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SBC Communications, Echostar forge strategic Partnership, will
offer 'SBC Dish Network' Television Service
First-of-its-Kind, Co-Branded TV Service to Deliver Seamless
Customer Experience, Convenience of Single Point of Contact and
Single Bill, Greater Value by Early 2004
Exclusive Partnership Designed To Drive Growth, Broaden Customer
Relationships
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SAN ANTONIO, Texas,
and LITTLETON, Colo., July 21, 2003 – SBC
Communications Inc. (NYSE: SBC) and EchoStar Communications
Corporation (NASDAQ: DISH) today announced a first-of-its-kind
broad strategic partnership that will give SBC companies the
ability to aggressively market co-branded “SBC DISH Network” multichannel
television services as a fully integrated part of their bundled
services. The two companies will begin work immediately on
integrating operations, including order entry, customer service
and billing, so they can begin offering customers the co-branded
service in early 2004.
The alliance will
deliver important strategic and marketing benefits for both
EchoStar and SBC Communications. It will
give EchoStar a powerful sales and marketing channel for its
DISH Network™ satellite TV service, which today reaches
more than 8.5 million customers nationwide. For SBC Communications,
it fulfills a long-term strategic objective to integrate television
entertainment into its consumer bundles and does so with a
modest investment. The partnership will provide SBC Communications
with an exclusive telecom partnership for single-family residences
throughout the SBC 13-state traditional service area, where
it provides service to more than 56 million access lines. The
co-branded “SBC DISH Network” satellite television
service will offer SBC customers access to hundreds of popular,
all-digital television channels, including movies, sports,
news, music, international and high-definition TV programming.
SBC companies will market the TV service in bundles that may
include local telephony, long distance (where available), wireless
and DSL Internet service.
As part of the multi-year agreement, SBC Communications will
help fund the development of the co-branded bundled video services.
The new agreement furthers the SBC next-generation bundling
strategy, allowing the company to offer the full spectrum of
television, wireline, wireless and broadband services. The
co-branded entertainment service will play a key role in meeting
the needs of a significant segment of SBC customers, allowing
them to select and customize complete communications and entertainment
bundles, while also providing greater value and unmatched convenience.
Key elements of the partnership include:
Co-Branding. The television service will be co-branded, similar
to the co-branding approach currently used in the highly successful
SBC Yahoo! DSL Internet access service partnership.
A Unified Customer Experience. SBC companies will manage customer
relationships for SBC DISH Network service. Customers will
eamlessly place their order, arrange for installation, and
activate their service with a single phone call.
Single Bill. SBC DISH Network customers will be billed for
their television services on a single SBC bill with their other
SBC voice and data services.
Bundling Flexibility. The partnership gives SBC companies
significant flexibility in bundling the co-branded service,
providing customers more options and greater value.
"For the past several months, we've aggressively looked
for the best way to integrate television into our bundles of
consumer services. This first-of-its-kind milestone agreement
with EchoStar gives us what we've been seeking and puts us
in a great strategic position to compete with any provider
- telecom or cable company - in the years ahead," said
Edward E. Whitacre Jr., SBC chairman and CEO. "Consumers
have waited a long time for true one-stop shopping, with single-source
customer care and billing for TV, wireline, wireless and Internet
service, and now it's finally here."
While EchoStar will continue to offer DISH Network satellite
TV service in SBC areas through its well established retail
channels, this new agreement provides a significant channel
to further increase DISH Network sales. New and existing DISH
Network customers will benefit from SBC bundled offerings for
local, long distance (where available), wireless, or DSL Internet
services. Consumers also will finally have an affordable and
superior alternative to cable companies' bundle of television,
broadband and telephony products.
“By co-branding SBC and DISH Network services, our customers
will have greater exposure to the benefits of satellite TV
with the added value and convenience of a bundle,” said
Charles Ergen, chairman and CEO of EchoStar. “With this
partnership, we continue our efforts to make DISH Network even
more competitive with cable TV providers.”
Longer term, the companies also will work together to develop
technology that combines the functionality necessary to conveniently
receive DISH Network satellite television, DSL Internet and
home networking as well as more convenient ways to receive
SBC DISH Network bundled services. In a separate transaction,
SBC also has agreed to make a $500 million investment in EchoStar
in the form of convertible debt. ABOUT SBC COMMUNICATIONS
SBC Communications Inc. (www.sbc.com) is one of the world's
leading data, voice and Internet services providers. Through
its world-class networks, SBC companies provide a full range
of voice, data, networking and e-business services, as well
as directory advertising and publishing. A Fortune 30 company,
America's leading provider of high-speed DSL Internet Access
services, and one of the nation's leading Internet Service
Providers, SBC companies currently serve 56 million access
lines nationwide. In addition, SBC companies own 60 percent
of America's second-largest wireless company, Cingular Wireless,
which serves 22 million wireless customers. Internationally,
SBC companies have telecommunications investments in 27 countries.
ABOUT ECHOSTAR COMMUNICATIONS
EchoStar Communications Corporation and its DISH Network satellite
TV system provide over 500 channels of digital video and CD-quality
audio programming as well as advanced satellite TV receiver
hardware and installation nationwide. EchoStar is a Fortune
500 company. Visit EchoStar's Investor Relations website at
www.echostar.com. DISH Network currently serves over 8.53 million
customers in the United States. DISH Network is located on
the Internet at www.dishnetwork.com.
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