AT&T launches Homezone

AT&T said last week that it has begun marketing its AT&T Homezone, a service that combines high-speed Internet and satellite television in a single set-top box.

Homezone, which offers digital video recording, movies on demand, photo and music sharing, and Web-based remote access, is initially available in Ohio and San Antonio, TX, ahead of a broader launch in coming months, Reuters reported.

Homezone is meant to be an alternative to AT&T's Web-based television service U-Verse, which runs on fiber-optic networks, for customers who live in areas without fiber deployment, AT&T spokesman Fletcher Cook told Reuters.

AT&T has not announced any targets for Homezone sales. It is aiming for 19 million U-Verse customers by 2008. U-Verse offers more capacity for quicker downloads with interactive capabilities, and is already available in San Antonio, where the company's headquarters are located.

Homezone will be available at various prices depending on features such as long-distance calling, channels and Internet speed. Bundled packages will cost around $80-$140 per month, versus the $70-$120 per month for the U-Verse bundle.