The National Rural Telecommunications Cooperative and DirecTV announced this morning that they amended their original sales agreement, a move that effectively ends NRTC's exclusive DirecTV service distribution contract within rural areas.
DirecTV said with the new agreement, the NRTC's separate agreements for sale of the satellite TV service with its members and affiliates have been terminated, with an effective date of 90 days from today.
However, NRTC and DirecTV have further agreed to enter into a new relationship that will provide NRTC members an opportunity to continue to participate as non-exclusive DirecTV retailers and service providers. NRTC's members will be able to sell their exclusive contract rights to DirecTV, and turn around and enter into agreements to continue marketing and selling DirecTV services on a non-exclusive basis, the cooperative said.
"This is a classic win-win situation for NRTC's members and DirecTV. NRTC's members will be able to realize value from the businesses that they have so successfully built over the last decade while DirecTV will be able to retain NRTC's member base as part of its new national retail network," said Bob Phillips, president and CEO at NRTC.
The NRTC has had exclusive rights to distribute most DirecTV services in rural NRTC territories since 1994.
The National Rural Telecommunications Cooperative
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