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DirecTV to market AT&T satellite service in 09

Fri Sep 26, 2008 5:31pm EDT

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NEW YORK, Sept 26 (Reuters) - DirecTV Group (DTV.O), the largest U.S. satellite television provider, said on Friday it has reached an agreement with AT&T Inc (T.N) to offer customers a co-branded package of video, home phone, wireless phone and Internet service from Feb. 1, 2009.

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DirecTV will begin selling the service once AT&T's current partnership with DISH Network (DISH.O) expires on Jan. 31. AT&T said current AT&T/DISH customers will continue to receive the same service after that date.

The companies said new AT&T/DirecTV customers will get DirecTV programming with the benefit of a discount for bundling other AT&T services including phone and broadband services.

Terms of the agreement were not disclosed.

Liberty Media Corp (LINTA.O) said earlier this month it would like to merge DirecTV with Liberty Entertainment LMDIA.O if the terms are suitable to its shareholders. Liberty Media owns around 50 percent of DirecTV's shares.

(Reporting by Yinka Adegoke; Editing by Ted Kerr)



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