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AT&T Won’t Renew Dish Network Satellite TV Contract

6:00 am on July 3, 2008 | Category: Business, Corporate, Telecom Services, Television

American telecom and home television provider, AT&T Inc., said on Tuesday that it would not renew its existing contract to resell EchoStar Communications’ Dish Network satellite TV services.

The contract, which was initially signed in 2003, allows AT&T to bundle television service with its residential telephone and internet offerings, so as to better compete with cable operators. It is set to expire on December 31.

AT&T’s relationship with Dish is apparently becoming less important as the telecom giant rolls out its own fiber-optic television network, allowing it to bypass the need for third-party partnerships in many markets.

Company spokesman, Michael Coe, called the contract cancellation notice a “routine” event, however, suggesting that the contract may be renegotiated with different terms.

“In accordance with the terms of our current agreement with Dish Network/Echostar, AT&T has provided the required six-month notification for non-renewal of our current contract, which is set to expire at the end of the year,” Coe explained in a written statement. “We continue to discuss options with DISH.”

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