DirecTV in Web access deal with Current Group
NEW YORK (Reuters) - Top U.S. satellite television provider DirecTV Group said on Wednesday it reached a deal to offer subscribers high-speed Internet and voice services carried by Current Group over electric power lines.
DirecTV will be able to offer its customers the services as early as the end of 2007, with initial coverage extending to the Dallas-Fort Worth, Texas, area for 1.8 million homes and businesses.
The deal is part of DirecTV's plans to expand its high-speed Internet offerings to better compete with rival cable operators.
The agreement will also allow DirecTV to expand to other U.S. markets as privately held Current builds out its network. Current's technology allows electric utilities to add Internet services over existing electric wires.
DirecTV and satellite TV operator EchoStar Communications Corp. have raced to match offerings from cable operators that sell bundles of video, high-speed Internet and digital phone services.
Over the past few years the companies have worked closely to seek partnerships to offer broadband services. They struck a deal in June to offer over-the-air broadband services from Clearwire Corp..
Earlier, both struck a deal with WildBlue, a satellite broadband provider partly owned by John Malone's Liberty Media, which is expected to assume control of DirecTV after concluding long negotiations with News Corp's Rupert Murdoch.
Current's investors include Duke Energy Corp., EarthLink Inc., Google Inc., Goldman Sachs, General Electric, Hearst Corp. and TXU Corp.. An investment affiliate of Liberty Media, Liberty Associated Partners L.P., founded Current.
DirecTV shares rose 12 cents to $22.22 in morning trade on the New York Stock Exchange.
(Reporting by Michele Gershberg and Kenneth Li)
