Qwest Teams With EchoStar, DirecTV

DENVER -- Qwest Communications International Inc. (NYSE: Q) today announced that it has signed a strategic marketing agreement with DIRECTV, Inc. (NYSE: GMH). With this alliance, Qwest will make satellite TV services available to its customers in single family homes in Phoenix and Tucson, Arizona, and Seattle through DIRECTV. The company expects to rollout these services to more markets throughout the remainder of 2003 and into 2004.

This joint marketing agreement represents the first step in the process to bundle video with Qwest’s other communications services. Additionally, the partners are exploring ways to further enhance this relationship with next-generation services as well as migrating to a more integrated model in the first half of 2004 where Qwest will be the primary interface for various customer interactions including service and billing.

Through Qwest, residential customers in these markets can now make one phone call to order competitively-priced local, long-distance, DSL, wireless and now television service. Beginning in early August, Qwest will introduce additional package savings allowing Qwest customers to enjoy all of the programming that DIRECTV offers including news, movies, sports, commercial-free audio music channels and a host of other programming selections.

In addition, Qwest and DIRECTV have extended their existing agreement for DIRECTV to be the exclusive digital satellite TV provider for multiple dwelling unit (MDU) properties in those territories where Qwest provides video programming services.

“We’re a major step closer to providing customers with a true one-stop shopping experience -- one bill, one number to call and one Web site to visit for all of their communications and programming needs,” said Richard C. Notebaert, Qwest chairman and CEO. “Recent reports by J.D. Power and Associates show that between 2002 and 2003 an additional 10 million households chose to bundle their services. Our goal is to meet customers’ needs; our commitment is to work with DIRECTV to provide customers with these benefits.”

“We look forward to providing Qwest customers in Phoenix, Tucson and Seattle with a compelling alternative to their local cable provider and are pleased to have extended our existing MDU partnership with Qwest,” said Steve Cox, executive vice president of Sales, Distribution and Customer Acquisition for DIRECTV, Inc. “We believe that DIRECTV’s position as the nation’s leading digital multi-channel television service provider, in conjunction with Qwest’s Spirit of Service, will provide a tremendous value proposition for consumers within the Qwest territories.”

According to a 2002 Yankee Group survey, satellite providers scored significantly higher than cable across a broad range of criteria from overall satisfaction and value for the money to timely resolution of problems and customer service and support. Satellite TV customers enjoy 100 percent digital signals, which result in superior picture quality as well as greater channel selection in most cities – particularly for sports, foreign language and international programming.

“It is becoming increasingly important for service providers to deliver a bundle of residential entertainment and communication services,” said Yankee Group Analyst Adi Kishore. “Video is an important component of this bundle, and today Qwest has a partner that has regularly provided a high standard of customer service for multi-channel video services. Our research has shown that satellite has consistently outperformed cable across a range of customer satisfaction metrics.”

In a separate release:

Qwest Communications International Inc. (NYSE: Q) today announced that it has signed a strategic marketing agreement with EchoStar Communications Corporation (NASDAQ: DISH) and its DISH Network, the fastest growing satellite television provider. With this alliance, Qwest will make DISH Network satellite TV services available to its customers in single family homes in Colorado and Nebraska. The company expects to rollout these services to more markets throughout the remainder of 2003 and into 2004.

This joint marketing agreement represents the first step in the process to bundle video with Qwest’s other communications services. Additionally, Qwest and DISH Network are exploring ways to further enhance the relationship with next-generation services as well migrating to a more integrated model in the first half of 2004 where Qwest will be the primary interface for various customer interactions including service and billing.

Through Qwest, residential customers in these markets can now make one phone call to order competitively-priced local, long-distance, DSL, wireless and now television service. Beginning in early August, Qwest will introduce additional package savings allowing Qwest customers to enjoy all of the programming that DISH Network offers including access to hundreds of popular, all-digital television channels including news, movies, sports, international and high-definition TV programming.

“As a company, we are committed to working closely with DISH Network to develop a true one-stop shopping experience where Qwest customers will enjoy one bill, one number to call and one Web site to visit for all of their communications and programming needs,” said Richard C. Notebaert, Qwest chairman and CEO. “Recent reports by J.D. Power and Associates show that between 2002 and 2003 an additional 10 million households chose to bundle their services. As a result, Qwest is aggressively working to provide its customers with these benefits, and today’s announcement brings us one step closer.”

“The availability of bundled services makes it easier than ever for consumers to take advantage of Qwest’s data and communications services and DISH Network’s all digital television, all with one phone call,” said Charles Ergen, EchoStar chairman and CEO. “Our alliance with Qwest also opens new opportunities to expand our subscriber base while offering our customers an attractive alternative to bundled cable services.”

According to a 2002 Yankee Group survey, satellite providers scored significantly higher than cable across a broad range of criteria from overall satisfaction and value for the money to timely resolution of problems and customer service and support. Satellite TV customers enjoy 100 percent digital signals, which result in superior picture quality as well as greater channel selection in most cities – particularly for sports, foreign language and international programming.

“It is becoming increasingly important for service providers to deliver a bundle of residential entertainment and communication services,” said Yankee Group Analyst Adi Kishore. “Video is an important component of this bundle, and today Qwest has selected a partner that has regularly provided a high standard of customer service for multi-channel video services. Our research has shown that satellite has consistently outperformed cable across a range of customer satisfaction metrics.”

Qwest Communications International Inc.

EchoStar Communications Corp.

DirecTV Inc.