AT&T Broadens Availability of Homezone Service

AT&T Inc. announced Wednesday the expanded availability of its high-speed Internet and satellite TV offerings beyond the areas announced this past summer -- San Antonio, San Diego and Ohio -- to customers served by its broadband footprint.

The footprint also includes California, Texas, Illinois, Michigan, Indiana, Wisconsin, Missouri, Kansas, Oklahoma, Arkansas and Nevada.

Homezone integrates AT&T Yahoo! High Speed Internet, AT&T DISH Network satellite television and AT&T Home Networking services via a single device. It features DVR, movies on demand, photo- and music-sharing and storage for both, and remote, Web-based access to the system.

The service, however, lacks an HD receiver and music, already available from cablecos and from smaller telcos, note industry analysts. Demand for HD sets and programming is building fast, as prices drop and the holidays approach.

According to the latest IDC survey, high-quality video is the main force driving the adoption of the new and emerging digital TVs. “Over half of survey respondents consider HD compatibility as an extremely important factor influencing their decision to replace their current TV,” according to the report. “Surprisingly, however, an overwhelming majority of survey respondents say they do not currently subscribe to HD programming.”

IDC explains that survey respondents are probably waiting to subscribe to HD programming until after purchasing a larger and higher quality digital TV as a majority of respondents currently rely on the old-school CRT tube as their main TV set.

AT&T Homezone is available to new AT&T | DISH Network residential customers who either already have or plan to order AT&T Yahoo! High Speed Internet and the 2Wire, Inc. home networking gateway. Customers can select from several broadband speeds and TV packages, then purchase Homezone service for an additional $9.99 a month.

The carrier says Homezone also complements U-verse services, the company’s IP-based video service, which is available in San Antonio now and will be available in additional markets by year-end. AT&T said U-verse services will be the company's primary video offer in available markets.

The Homezone receiver at the heart of the service was developed for AT&T by 2Wire and integrates entertainment content wirelessly, sharing data with a 2Wire home networking gateway that communicates with the AT&T Yahoo! High Speed Internet connection. This in-home integration drives content for movies on demand -- or music and photos from the PC and Internet portal -- to the TV.

AT&T said future Homezone enhancements will include a HD version of the receiver, as well as new music and video content from content providers Yahoo! and Akimbo. Customers will also be able to eventually program their DVR and use other remote-access features through their Cingular wireless phone. AT&T did not say when the enhancements would be added.

AT&T Inc. www.att.com  

International Data Corp. www.idc.com

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