Telecommunications giant AT&T said Tuesday that it would stop marketing and selling Dish Network TV services at the end of the year, a move that comes as the Douglas County-based satellite-TV provider tries to stem subscriber losses.
Since 2003, AT&T has offered Dish Network video packages as part of a package of phone, Internet and TV services. The company announced the contract termination in a regulatory filing.
Dish spokeswoman Kathie Gonzalez wouldn’t provide additional details but said “at this time there is no impact to Dish Network AT&T customers.”
AT&T spokesman Michael Coe said the company gave Dish Network the required six-month notification that it would not renew the contract.
“We continue to discuss options with Dish,” he said in an e-mailed statement.
It’s unclear whether AT&T will push forward with its own video service, called U-Verse, renegotiate a deal with Dish, or look to rival DirecTV to offer TV service to customers. DirecTV is resold by Qwest and Verizon, and previously BellSouth, before it was acquired by AT&T.
Earlier this year, AT&T said it would offer Dish Network service in the BellSouth territory instead of DirecTV.
Dish Network had 13.8 million subscribers at the end of 2007. DirecTV had 16.8 million.
AT&T’s action follows its decision last month to sell $500 million in Dish Network debt back to the satellite service. Craig Moffett, an analyst at Sanford C. Bernstein & Co. in New York, said that news of AT&T ending its relationship comes as little surprise given the divestiture.
Moffett estimates that about 15 percent of Dish Network’s gross subscriber additions come directly from AT&T. At the same time, Dish’s subscriber growth has been slowing in recent quarters. He said DirecTV could benefit should AT&T seek a new pay-TV partner.
“AT&T has provided the first little bit of fireworks for the Fourth of July,” he said. “Unfortunately, this announcement is a little bit like a firecracker blowing up on Dish’s hand.”
Shares of Dish closed down 17 cents at $29.11 Tuesday. Shares of AT&T were down 39 cents at $33.30.
Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com
