Qwest Communications signed a strategic marketing agreement with DIRECTV to offer satellite TV as part of its consumer bundle of consumer services. Initially, Qwest will offer satellite TV services available to its customers in single family homes in Phoenix and Tucson, Arizona, and Seattle through DIRECTV. The company expects to rollout these services to more markets throughout the remainder of 2003 and into 2004. The partners are exploring ways to further enhance this relationship with next-generation services as well as migrating to a more integrated model in the first half of 2004 where Qwest will be the primary interface for various customer interactions including service and billing. The companies said it is increasing important for service providers to deliver a bundle of residential entertainment and communication services, including video, to stay competitive in the trend toward bundled services.
Separately, Qwest signed a strategic marketing agreement with EchoStar Communications under which it will offer the DISH Network satellite TV services available to its customers in single family homes in Colorado and Nebraska. The company expects to rollout these services to more markets throughout the remainder of 2003 and into 2004. Qwest also plans to work with EchoStar to integrate billing, ordering and customer support functions.
Qwest currently offers multi-channel video entertainment to approximately 64,000 customers using a variety access methods, including VDSL, satellite and HFC.
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- DirecTV U.S. added 633,000 gross subscribers in Q2, and after accounting for churn, 181,000 net subscribers, giving it a total of 11.56 million total subscribers. Hughes said the monthly ARPU at DIRECTV U.S. increased by $2.80 to nearly $61.