AT&T extends deal to redistribute DirecTV

AT&T has signed a three-year extension with DirecTV to continue to be able to resell the latter's TV service across the 22 states where AT&T offers residential broadband and voice service.

Given that AT&T is not going to expand U-verse much more than it already has, the value remains high for a relationship with a partner that can provide the television component of AT&T's bundle offers outside the U-verse footprint.

"We want all of our customers to have the option to receive a complete, integrated bundle of services from us, including TV," said Jeff Weber, vice president of video services for AT&T Mobility and Consumer Markets. "AT&T | DirecTV service allows us to offer customers the best entertainment and communication services in areas where U-verse is not available, including compelling features that enhance their entertainment experience."

This agreement, the two said, will enable both companies to provide a quadruple-play bundle of AT&T | DirecTV service and AT&T broadband, home phone and wireless voice services, as well as bundled discounts when AT&T | DirecTV service is combined with qualifying AT&T services.

Through a separate agreement, DirecTV also sells AT&T broadband services, including AT&T U-verse high-speed Internet, through its sales distribution channels and to existing DirecTV customers.

Separately, DirecTV announced third quarter earnings [1], and AT&T cut a deal with New York City to expand free Wi-Fi availability in more city parks [2].