EchoStar Communications and SBC Communications are packaging satellite services with digital subscriber line (DSL) Internet access in an effort to better compete with cable companies for customers of high-speed Internet access.
Under the terms of the deal, both companies will offer video and DSL services, and customers using both will get up to a $10 credit on their monthly bill. EchoStar will market the DSL services to the approximate 7 million users of its Dish Network TV subscribers, and SBC will market satellite services to its 1.5 million DSL customers.
Through such a combination, EchoStar and SBC say they should be better able to compete with cable companies, which can offer high-speed Internet access and cable TV at a discount since the services flow over the same lines. EchoStar's potential merger partner, DirecTV, a unit of Hughes Electronics, already has a deal to offer DSL service with WorldCom, but offered no rebate or "bundle" before. Analysts say other DSL companies are likely to strike deals with EchoStar or others in the future, and to provide tough competition for cable companies.
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