AUGUST 2, 2010, 4:38 P.M. ET

CenturyLink Switches to DirecTV

By ROGER CHENG
Wall Street Journal

http://online.wsj.com/article/SB10001424052748704271804575405642762818332.html?mod=WSJ_Tech_LEFTTopNews


CenturyLink Inc. selected DirecTV Group Inc. as its satellite TV 
partner, displacing rival Dish Network Corp.

The deal was effective Sunday, according to a DirecTV spokesman. A 
CenturyLink spokeswoman said DirecTV offered more features, including 
NFL Sunday Ticket and a whole-home digital video recorder.

Dish declined to comment.

DirecTV, which has locked up agreements with all of the major landline 
companies, has shifted from solely pursuing customer growth to improving 
the quality of its subscriber base. Dish, which has seen its growth 
accelerate in the last few quarters, continues to tap into lower-end 
customers through aggressive promotions.

CenturyLink, which is working on closing its acquisition of Qwest 
Communications International Inc., was heading for a potential conflict 
if the change wasn't made. Qwest has been an ardent partner of DirecTV, 
and the companies have worked together to create a more integrated 
service. The transition promises to be smoother with CenturyLink 
switching to DirecTV.

The talks with DirecTV began before the Qwest deal was struck, according 
to the CenturyLink spokeswoman.

Dish's contract with CenturyLink expired on Saturday, but customers can 
continue to use the existing service. DirecTV will not directly target 
current Dish customers in CenturyLink's territory.

A satellite TV option is necessary for telecommunications companies that 
lack their own television service since the cable companies can offer a 
"triple play" of phone, Internet and TV services at a discounted bundled 
rate.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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