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More than 70,000 DirecTV Broadband customers will not be left in the lurch when the high-speed Internet service
is discontinued next month.
DirecTV Broadband's parent, Hughes Electronics, has inked a deal allowing its is subscribers to shift to SBC Yahoo! DSL without interruption.
"Our alliance with SBC ensures that our customers in the SBC territory do not have to worry about searching for a
new provider," said Ned Hayes, president and CEO of DirecTV Broadband.
The agreement with SBC Yahoo! DSL, the co-branded service between telecom SBC Communications (Quote, Company Info) and Internet portal Yahoo! (Quote, Company Info), includes promotions and discounts
for customer who choose the service recommended by DirecTV DSL.
The option is open to subscribers in SBC Yahoo!'s coverage area, which consists of 13 western states. More
agreements are expected for other regions, a DirecTV Broadband spokeswoman told internetnews.com
In addition to providers sanctioned by DirecTV Broadband, several other providers have targeted customers who
will lose their service.
Hughes acquired Cupertino, Calif.-based DirecTV Broadband in April 2001, and as recently as October was
looking to jump-start the business with new features and an advertising campaign.
But despite adding subscribers, the customer base never reached the critical mass necessary to turn a profit. The
company faced stiff competition from its DSL rivals, as well as companies offering alternative high-speed hookups,
most notably, cable modems.
And after its merger with EchoStar collapsed, Hughes needed to quickly to stem the flow of red ink.
Associated with the move, 200 workers were laid off from DirecTV Broadband last week, and another 200 will
go when the wind down is complete.
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