AT&T to Discontinue Relationship with DishTV

It has been announced that starting the new year AT&T will sever its relationship with DirectTV. Best guesses are that AT&T will strike up a relationship with EchoStar. I just wonder which company as Echo has rumored to be splitting in two. –

AT&T Inc (T.N: Quote, Profile, Research) said on Tuesday it will stop selling satellite television services from DirecTV Group Inc DTV.O in the first quarter in a sign the phone company may favor EchoStar Communications Corp (DISH.O: Quote, Profile, Research) as its sole satellite partner.

Still, AT&T Chief Financial Officer Rick Lindner told Reuters separately that the company has not made a final decision on the matter and could take until the second half of 2008 to decide.

AT&T has a marketing partnership with EchoStar in some markets and with DirecTV in others, and the phone company is also expanding its own video service called U-verse, which is delivered over high-speed fiber optic cables.

The company said it would stop offering DirecTV’s services to phone customers in the first quarter, while its current agreement with EchoStar extends until the end of 2008.

Linky.