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AT&T CruiseCast Ceasing Operations

The beleaguered AT&T CruiseCast live video-for-the-car satellite service said it is winding down operations and stopped taking new orders on Oct. 28.

RaySat will refund consumers who purchased equipment and will also pay for the cost of installation, de-installation and unused service, said Mike Grannan, COO of RaySat Broadcasting, which partnered with AT&T to create the AT&T CruiseCast system.

A RaySat statement said customers will also receive “additional compensation for their time.” RaySat is also working with distributors to buy back unsold equipment inventory.

“We appreciated the opportunity to serve our customers, and we regret that we were unable to provide the service for a longer period of time,” said the statement.

RaySat’s AT&T CruiseCast service began broadcasting in June offering 22 channels of video and 20 channels of audio at $28 per month plus $1,299 for the receiver/antenna system.

It faced headwinds from a recession, competition from portables such as the iPhone and a less-costly FLO TV system that will start reaching the car market later this year through Audiovox and Chrysler.