Alltel to offer satellite TV service

LITTLE ROCK - Alltel Corp. signed an agreement Tuesday to offer satellite TV service to all of its residential phone customers in a bundled package that will include wireline, wireless, high-speed Internet and other broadband offerings.

The deal with EchoStar Communications Corp., which includes 15 states where Alltel offers local phone service, is similar to other recent pacts that the Colorado-based owner of the Dish Network satellite TV service has reached with SBC Communications Inc. and CenturyTel Inc.

When the new service is unveiled later this summer, users of the Alltel's local phone service will be able to sign up for the Dish Network as part of a discounted bundle on a single bill provided by the Little Rock phone giant.

Alltel and EchoStar officials said that specific pricing plans and promotional offers will be announced later this year when the new service is rolled out.

"Adding TV service to our voice and broadband offering will provide greater value and convenience to our local telephone customers," John Koch, president of Alltel's wireline operations, said in a news release.

A year ago, EchoStar and SBC Communications Inc. announced a new satellite TV service that allowed the parent of SBC Arkansas to bundle TV, wireless, broadband and local/long distance service in one package.

That service, now called SBC DISH Network, is available in all of SBC's 55 million telephone customers in 13 states, including Arkansas.

Similarly, EchoStar and CenturyTel Inc. announced a partnership in August opening the door for the Monroe, La.-based rural phone giant to offer digital satellite TV as part of its bundled offerings.

CenturyTel is offering its bundled service in 22 states, including the rural carrier's 132,500 customers in eastern and Northwest Arkansas.

Currently, Alltel offers local phone service in 25 of the state's 75 counties. The regional phone carrier has more than 13 million wireless, wireline and broadband customers nationwide. EchoStar's Dish Network serves 11 million customers with satellite TV.

At the close of business Tuesday, Alltel shares were down 13 cents at .90.

Earlier this year, Alltel announced a deal to buy Washington State-based Western Wireless Corp. in a stock-and-cash deal valued at nearly billion. Last week, Alltel officials reiterated they still expect that deal to be completed by mid-2005.

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