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Verizon and DIRECTV to Offer Competitive Service Bundle to Beat Cable ’Triple Play’ in Multidwelling-Unit Market


Verizon and MDU Communications Multi-Year Sales-Teaming Agreement Enables Owners, Managers to Deliver Best in Voice, Internet and Entertainment to Residents

September 14, 2006, NEW YORK - Verizon and DIRECTV have entered into a new agreement to collectively serve the multidwelling-unit market with a bundle of services that will provide better choice and value when compared to cable. The multi-year agreement will enable Verizon to serve as the single point of contact for a bundle of offerings that includes Verizon’s broadband and telephony services in addition to DIRECTV’s content and services. Verizon will offer the DIRECTV bundle in locations where it does not offer its own entertainment services.

To further provide DIRECTV and Verizon services in a bundle throughout the Northeast and Mid-Atlantic, Verizon and MDU Communications International (MDUC), a long-time partner and provider of DIRECTV services to multidwelling units, have entered into a sales-teaming agreement.

These two new agreements provide owners, managers and residents with a new set of choices as an alternative to their franchised cable operator. Verizon will offer a complete service bundle designed to outperform cable’s “triple play.”

With these new relationships, Verizon now can serve all the units in a complex with voice, broadband, and DIRECTV. Verizon will offer DIRECTV digital satellite programming in packages and bundles specifically designed for owners and residents of apartments, condominiums, cooperatives and other multifamily properties.

Verizon and MDUC will work together to jointly propose, provide, install, market, operate and maintain specially designed multidwelling-unit technology systems for the reception and distribution of DIRECTV’s digital satellite television, and Verizon’s FiOS broadband Internet, telephone calling and other telecommunications services.

“Verizon’s premier FiOS Internet all-fiber optic broadband service and our reliable and versatile voice services are a draw for property owners and developers who want to differentiate their properties from others,” said Eric Cevis, vice president of Verizon Enhanced Communities. “Now, with these agreements that allow us to deliver DIRECTV services as the entertainment component, we have a complete solution for those owners and managers, particularly where Verizon does not offer entertainment programming.”

Cevis noted that serving the multifamily market efficiently and effectively requires a different strategy from the one for the single-family-home market. Multifamily property owners and condominium boards prefer to contract with one experienced team that can provide a complete complement of state-of-the-art television, broadband and telephony services to their residences at reasonable guaranteed rates and without significant disruption to the property itself.

In addition, Cevis said, the residents of multifamily developments want state-of-the-art alternatives to traditional franchise cable services and are likely to subscribe to a bundle of services from one reliable source.

“Teaming with a company the caliber of Verizon represents a significant opportunity and step forward for MDU Communications in its Northeast, Mid-Atlantic and Midwest regions and should allow us to accelerate our deployment in both new construction and existing properties in these regions,” said Sheldon Nelson, president and CEO of MDU Communications. “The benefits of this agreement and expanded video services should result in service to a greater number of properties and higher subscriber penetration rates in properties covered by this agreement.”

Daren Benzi, vice president of sales development and strategy for DIRECTV Inc., said, “Verizon and MDU Communications have both been valuable partners of DIRECTV for a number of years. By combining their strengths and commitment to the customer, along with DIRECTV’s wide array of content and services including HD and DVR, we are able to offer a bundle of services that delivers superior value and choice to MDU owners and residents.”

Verizon already offers DIRECTV in the consumer and small-business markets, giving customers a one-stop choice for all their communications needs. DIRECTV offers a variety of service packages, access to more than 250 channels of all-digital TV programming, more than a dozen high-definition channels, local channels in 142 markets, as well as all the popular premium channels, pay-per-view offerings and its exclusive NFL SUNDAY TICKET subscription package. Service packages also include music channels supported by XM Satellite Radio.

Verizon Communications Inc. (NYSE:VZ), a Dow 30 company, is a leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving nearly 55 million customers nationwide. Verizon Business operates one of the most expansive wholly-owned global IP networks. Verizon Telecom is deploying the nation’s most advanced fiber-optic network to deliver the benefits of converged communications, information and entertainment services to customers. Based in New York, Verizon has a diverse workforce of more than 252,000 and generates annual consolidated operating revenues of approximately $90 billion. For more information, visit


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