agreed to buy $1 billion worth of set-top boxes from big equipment vendor
The companies said the agreement covers more than one year and is "the largest set-top purchase agreement in the operator's history." Motorola will provide high-definition digital video recorders and standard-definition entry-level models, among others.
Comcast and Motorola also said they would embark on a "broader strategic relationship" in which they'll focus on new cable technology.
Philadelphia-based Comcast and Schaumburg, Ill.-based Motorola said they'd form two joint ventures revolving around so-called conditional access technologies, which prevent subscribers from getting services they aren't paying for. Motorola has granted the ventures a nonexclusive license for MediaCipher, its leading conditional access technology.
"This partnership with an industry leader like Motorola will help us to continue to aggressively advance our interactive digital platform and more rapidly develop and deploy video products," said Comcast's Steve Burke.
On Tuesday, Comcast rose 29 cents to $33.72, and Motorola rose 11 cents to $15.51.