Dish offers $1.38 Billion for TerreStar

[Scott Greczkowski]

I dont think he is going to use it for Internet access. Just VOD / Phone.

It wouldn't surprise me to see his next purchase be a IP Phone company along the lines of Vonage or Magicjack.

 

[JosephB]

Surely it wouldn't be Magic Jack. They're a gimmick when it comes to real telephony. Setting up an IP phone service is dirt cheap so unless he wanted the name and the existing customer base, starting from scratch would be cheaper than buying Vonage, etc.

 

[Scott Greczkowski]

It could be magic jack, I have heard rumors for years that all the ViP receivers have the ip phone technology built in just sitting there waiting to be turned on. This could be how they do it.

I use MagicJack at home and it works great, never had an issue with it. Being able to give DISH customer a free dialtone with free calls in the US and Canada would be something nobody else could do.

 

[toddhawk]

I dont think he is going to use it for Internet access. Just VOD / Phone. It wouldn't surprise me to see his next purchase be a IP Phone company along the lines of Vonage or Magicjack.

Wouldn't his acquistion of HughesNet be about providing Internet access? I know satellite internet is not ideal but for those of us in rural areas (like me) satellite is all I have. I currently have AT&T dial phone, Dish and a satellite internet provider (not HughesNet). Wouldn't mind an all-in-one solution a couple of years down the road. I sense that the "4G rage" is again going to be limited to more metro areas. That's already why I have to keep the dial phone (cell phone and cell internet service mediocre).

 

[DodgerKing]

I dont think he is going to use it for Internet access. Just VOD / Phone.

It wouldn't surprise me to see his next purchase be a IP Phone company along the lines of Vonage or Magicjack.

Ooma?

 

[Stargazer]

NetTalk?

I think they would start their own instead of buying someone else out unless their cost would be about the same as starting their own by buying someone else out which I do not see happening. I also see Dish Network charging a monthly fee offering a bundle with their television package and internet for triple play. They might offer new subscribers free service for an x number of months or perhaps a year.

 

[JosephB]

Wouldn't his acquistion of HughesNet be about providing Internet access? I know satellite internet is not ideal but for those of us in rural areas (like me) satellite is all I have. I currently have AT&T dial phone, Dish and a satellite internet provider (not HughesNet). Wouldn't mind an all-in-one solution a couple of years down the road. I sense that the "4G rage" is again going to be limited to more metro areas. That's already why I have to keep the dial phone (cell phone and cell internet service mediocre).

Well, Echostar bought Hughes, not DISH. A majority of Hughes' business comes from non-HughesNet business lines (leasing satellites, etc). I suspect adding that capacity to Echostar (which does the same thing) was likely the primary goal behind getting Hughes.

 

[pabeader]

It could be magic jack, I have heard rumors for years that all the ViP receivers have the ip phone technology built in just sitting there waiting to be turned on. This could be how they do it.

I use MagicJack at home and it works great, never had an issue with it. Being able to give DISH customer a free dialtone with free calls in the US and Canada would be something nobody else could do.

Like leaving your computer on all the time? I sure don't like that idea. (magic jack)

Phone service through dish receiver? Might be interesting.

 

[pabeader]

Well, Echostar bought Hughes, not DISH. A majority of Hughes' business comes from non-HughesNet business lines (leasing satellites, etc). I suspect adding that capacity to Echostar (which does the same thing) was likely the primary goal behind getting Hughes.

is HughesNet = Hughes?

 

[CK SatGuy]

is HughesNet = Hughes?

Yes

 

[JosephB]

is HughesNet = Hughes?

Hughes owns HughesNet, but their primary business is commercial satellite services. HughesNet is a small portion of their overall business.

 

[pabeader]

Hughes owns HughesNet, but their primary business is commercial satellite services. HughesNet is a small portion of their overall business.

hughes owned hughesnet.

 

[JosephB]

Hughes still owns HughesNet

 

[CK SatGuy]

And the bid is now officially approved.
Judge OKs $1.375 bln minimum bid for TerreStar | Reuters

 

[CK SatGuy]

Looks like Dish stands alone in this bid. Dish stands alone in TerreStar bid: sources | Reuters

 

[dan188]

How will we benfit

 

[Scott Greczkowski]

Hughes still owns HughesNet

Echostar now owns Hughes.

 

[dan188]

Scott any way this will benfit dish customers

 

[Stargazer]

I think it will benefit the Dish Network customers by offering triple play bundling by offering phone service no matter where they are located.

Having this service coupled with the other bandwidth that they bought could make Charlie a cell phone service provider. He could partner with a cell phone company to offer his satellite bandwidth in exchange to using their bandwidth or get roaming fees for everybody that uses his satellite when they get out of range from cell phone towers.
__________________________________________________________________

Some interesting information about the Terrestar service and their satellite. Notice that their satellite is located at 111 orbital location which is close to where the Echostar satellites are located.

The Satellite
TerreStar-1, constructed by Space Systems/Loral is the world's largest and most powerful commercial satellite. The satellite holds the Guinness World Record for 'World's Heaviest Satellite'. It is a geosynchronous satellite covering North America and supports the delivery of advanced all IP-based mobile data and voice services. TerreStar's revolutionary spot beam technology, coupled with Ground Based Beam Forming (GBBF), allows TerreStar to allocate power and spectrum to situation-specific incidents ensuring capacity when and where it is needed.

TerreStar-1 Specs:

Orbital slot at 111 degrees West
18 meter 2GHz S Band reflector
Approximately 5 stories tall and weighs 15,220 pounds
Provides coverage for the Continental United States, Canada, Puerto Rico, U.S. Virgin Islands, Hawaii and Alaska

A key advantage in the design of TerreStar-1 is the power and sensitivity of the antenna which allows satellite service to be added to mainstream cell phones with little or no penalty in size and weight. As proven by the TerreStar GENUS, your everyday phone can also be your satellite phone.

http://www.terrestar.com/technology-solutions/technology-overview/

 

[CK SatGuy]

Space Systems/Loral and AT&T both object the sale

From CNBC.com:
By Nick BrownNEW YORK (Reuters) - Bankrupt telecommunications firm TerreStar Networks Inc is facing two objections to its proposed sale to Dish Network Corp, including from the maker of its geosynchronous satellite.
Space Systems/Loral Inc, manufacturer of the TerreStar satellite currently orbiting the earth, filed court papers Tuesday in Bankruptcy Court in Manhattan saying the plan would pay it only a fraction of what is owed under three satellite contracts.
The plan would require TerreStar to pay about $5.6 million as a so-called cure amount, far less than the roughly $43 million Space Systems says it is owed, according to the filing.
Space Systems said it is working with TerreStar to resolve the issue, but filed the objection to preserve its rights in case talks fall apart.
AT&T Corp, a unit of AT&T Inc that sells TerreStar's satellite smartphone, also objected to the plan ahead of Tuesday's deadline.
AT&T said the plan could prevent it from seeking indemnity from Dish in certain cases where consumers claim damages against AT&T for problems related to the TerreStar phone.
An attorney for TerreStar declined comment Tuesday.
TerreStar, which tried to market the first satellite smartphone, was coveted for its roughly 20 megahertz of spectrum. It filed for bankruptcy in October with more than $1 billion in debt.
Dish, which set a $1.375 billion minimum bid for the company on June 15, won the right to buy it after receiving no competing offers.
If consummated, the sale would be at least the third major acquisition in 2011 for Dish, joining DBSD North America and Blockbuster Inc, bought for $1.4 billion and $320 million, respectively.
The TerreStar sale is slated for an approval hearing before Bankruptcy Judge Sean Lane in Manhattan on Thursday.
The case is in re: TerreStar Networks Inc, U.S. Bankruptcy Court, Southern District of New York, No. 10-15446.
(Reporting by Nick Brown, editing by Matthew Lewis)
Copyright 2011 Reuters.
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