Exciting in the telecom sector: AT&T (NYSE:T) is rolling out a new national TV service that lets customers connect Google Android-powered boxes directly to their broadband internet, eliminating the need for U-Verse fiber hookups or satellite TV dishes.
The service, called AT&T TV, which has previously been available in just 13 markets, includes access to all streaming apps that are available in Google’s app store and free access to HBO Max, AT&T’s streaming service that launches in May.
The Android box runs a custom interface built by AT&T and has 500 hours of DVR cloud storage. There’s also a remote that includes Google Assistant (NASDAQ:GOOGL)
Among other things, Google Assistant can be used to change channels, check the weather, play music and control smart home gadgets, such as light bulbs.
T’s new video interface is similar to Comcast’s (NASDAQ:CMCSA) X1 and will ultimately be the company’s flagship TV service, replacing DirecTV and U-Verse.
The primary benefit for AT&T, beyond the next generation software, is the dramatic reduction in subscriber acquisition cost that comes with an internet-connected box.
No external box or satellite installation is necessary because consumers will be able to plug in the set-top box directly to the TV, which connects wirelessly to any home broadband service. Satellite TV installation and associated customer acquisition costs are typically more than $700 — a figure that will be drastically lower without the cost of a dish installation.
Shares in T gained 21 cents to $35.41 soon after Monday’s opening.
