AT&T is rolling out a satellite video service with DISH Network Corp and has stopped marketing rival DirecTV Group's rival satellite television service. AT&T said the company was still in negotiations with both DirecTV and DISH over a long-term partnership, which allows for bundled phone, Internet and video services. A decision is reportedly due by the end of the year.

The DISH roll-out is over territory previously covered by BellSouth Corp, which AT&T acquired in late 2006. BellSouth had a pact with DirecTV in its nine states, mostly in the US Southeast. Analysts have said AT&T, the largest US phone company, is likely to switch to DISH throughout its territory, although both sides appear to be haggling over price and other conditions.

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