AT&T Strikes Deal for New TV Service

AT&T said Tuesday it would partner with Akimbo to offer a service where consumers could download movies and shows via the Internet for its Homezone television service. The telecommunications company plans to launch the offering in 13 states beginning this summer.

The service would feature live television from DISH Network along with enhancements built around it. Customers would be able to download movies through MovieLink, use digital video recorder functionality, access photo-sharing and radio services through Yahoo, and see caller ID data on their television screens.

Those features, as well as the Akimbo-supported service, would be accessible through set-top boxes to be manufactured by 2Wire, although no pricing information has been announced.

AT&T has been offering DISH Network separately since 2004, and is in the process of building a fiber-optic network to support its upcoming Lightspeed service. That offering -- a rival to Verizon's FiOS -- is not expected for several years, however.

Akimbo will provide nearly 10,000 programs from both mainstream and unique sources. Content currently available from the service includes shows from A&E, BBC, CNN Discovery, and the History Channel. The company has also included Bollywood films and karaoke as part of its offerings.

Homezone has not come without criticism, however. AT&T's plans to offer MovieLink and Akimbo content have led some to believe that the company may give their traffic priority over other data. Such an issue has be central to the whole debate of net neutrality.

Second, cable providers have criticized the service, saying AT&T is using it as a way to get around laws that mandate cable and satellite providers get licenses to operate in local municipalities before they offer service. AT&T, for its part, has denied both charges.