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Comcast Agrees to Carry Big Ten Sports Network (Update2)

By Todd Shields

June 19 (Bloomberg) -- Comcast Corp., the largest U.S. cable-television operator, agreed to carry the Big Ten college sports conference's new network beginning Aug. 15, in time for the 2008 football season.

Comcast will show the network on the expanded basic level of service in states with Big Ten universities at first, the company said today in a statement. Next year, it may move the network to a more expensive, digital service.

The deal gives Comcast rights to use Big Ten footage for on-demand programming and on the Internet, the company said. The agreement gives the network, which started broadcasting in August 2007, 12 million subscribers out of 18 million cable and satellite households in Big Ten states, two people familiar with the negotiations said on June 16.

Financial terms of the agreement weren't disclosed. Comcast and the Big Ten Network, a venture with News Corp.'s Fox Cable Networks, said the agreement was ``long-term.''

The deal calls for Philadelphia-based Comcast to pay approximately 70 cents a month for each of the network's 5 million subscribers in seven, mostly Midwestern U.S. states where the Big Ten has teams, the two people said.

Comcast may also offer the network on any level of service outside the states with conference schools, the company said.

States where Comcast systems will carry the Big Ten Network include Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin, and Pennsylvania. Comcast doesn't have subscribers in Iowa.

Big Ten schools include the University of Illinois, Indiana University, University of Iowa, University of Michigan, Michigan State, the University of Minnesota, Northwestern University, Ohio State, Penn State, Purdue and the University of Wisconsin.

Comcast gained 9 cents to $20.55 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has gained 13 percent this year.

To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net

Last Updated: June 19, 2008 16:29 EDT

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