Satellite broadband carrier DirecTV has aligned with broadband-over-powerline (BPL) company Current Group to resell high-speed Internet access and VoIP. DirecTV also resells broadband service from telcos AT&T, Verizon Communications and Qwest Communications under arrangements that have helped revenue growth for all involved.
But, BPL is more directly competitive with telcos efforts to reach--and rewire--consumer homes for better broadband services. For telcos, partnering with DirecTV always seemed to be an interim way to inch into the video business while they contemplated and gradually began those broadband projects. Maybe for that reason telcos were already planning to de-emphasize or even cut ties with DirecTV. The BPL partnership may give them more reason to so now, though given the status of those broadband projects, you can't blame DirecTV for looking for new partners.
For more:
- read the coverage in The Wall Street Journal