AT&T to sell U-verse at Wal-Mart, Circuit City

NEW YORK (Reuters) - AT&T Inc plans to sell its U-verse high-speed Internet and video service at Wal-Mart and Circuit City stores starting this month, stepping up competition against cable service providers.

AT&T said on Monday that it would sell U-verse at 600 Circuit City Stores Inc and Wal-Mart Stores Inc stores in parts of Arkansas, California, Connecticut, Texas and several other states where the service is available.

The company said the retail deals, the first for U-verse, would help create a powerful distribution channel and provide customers with a convenient way to order the service.

Both AT&T and No. 2 phone company Verizon Communications Inc have invested heavily in high-speed Internet and video services to stop a rapid decline in home phone lines.

Many of those consumers have canceled wired phone services in favor of Internet, video and phone services offered by cable service providers.

Consumers are currently able to sign up for cable service at major electronics stores.

AT&T aims to have more than 1 million U-verse television customers in service by the end of the year. It also plans to expand the network and have the service available to more than 30 million homes by the end of 2010.

(Reporting by Ritsuko Ando; Editing by Lisa Von Ahn)

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