BellSouth gives satellite another shot

BellSouth isn’t letting a broken alliance or several other failed attempts at getting into the video market stand in its way. The company, which has tested both wireline and wireless technologies as a video delivery mechanism, today announced an alliance with DirecTV to integrate the satellite service into the carrier’s BellSouth Answers bundle.

Under the terms of the agreement, BellSouth customers will be able to order DirecTV service packages through the same channels as their voice, DSL or wireless service. BellSouth also is integrating DirecTV’s ordering software into its customer service centers.

What makes this alliance different than previous attempts, including BellSouth’s ill-fated deal with DISH Network, is timing, according to Bill Smith, chief product development and technology officer for BellSouth.

“Alliances are clearing something that have been a challenge,” he said today during a conference call. “I think both parties at this point in time [have a lot of incentive] to make this work. We see some significant value in having a broad and robust video offering in the bundle.” Steve Cox, executive vice president of sales, distribution and customer acquisition said the satellite provider also has evolved significantly over the last few years.

“It’s truly evolved to a complete cable replacement product in a way that it may have been at the time we initially had some of our partnerships,” he said, noting that its ability to deliver local broadcast channels in the last year leveled out cable’s only advantage.

The BellSouth/DirecTV move comes just over a month after SBC and Qwest signed a similar deal with DISH Network. Ironically, both SBC and Verizon predecessor Bell Atlantic had signed deals to distribute DirecTV several years ago. BellSouth, meanwhile, at one time tried to launched its own satellite service. However, after failing to meet expectations, the carrier shut down that service and transitioned customers to DISH.