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DirecTV finds Sky Brasil overstated customer numbers
2013-06-27 15:22:00| Telecompaper Headlines
(Telecompaper) Pay-TV provider DirecTV announced that its subsidiary Sky Brasil has been overstating subscriber numbers for several months. An internal investigation started in April found that some employees were improperly waiving or reducing subscription fees for some customers in order to limit churn. DirecTV said the unauthorised sales practices led to an overstatement in active customer numbers of around 100,000 as of end-2012 and around 200,000 as of March this year. The customers who would have otherwise no longer receiver Sky services will have their contracts with the operator terminated by the end of this month. DirecTV will take a one-time charge of USD 25 million in the second quarter to write-off the costs of the terminated customers and their equipment. In addition, due to increased competition, economic and other factors, the company said it expects Sky Brasil's on-going churn will be higher than previously anticipated. Further details will be discussed at its second-quarter report, scheduled for 01 August. The internal investigation into the matter is still ongoing.
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Category:Telecommunications