EchoStar Statement on Passage of Satellite Bill

[Scott Greczkowski]

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Nov. 21, 2004--EchoStar
Communications Corporation (NASDAQ: DISH) released the following
statement today:

EchoStar applauds the members of Congress for their work in
passing the Satellite Home Viewer Extension and Reauthorization Act of
2004 that will benefit consumers. Over the next several years, the
bill will allow satellite TV carriers to begin offering distant high
definition TV network channels to many consumers if the local
broadcasters lapse on their promises to Congress to begin broadcasting
full-power HDTV to their viewers. EchoStar thanks the Senate and House
Commerce Committees and the Senate and House Judiciary Committees for
their time and effort in creating this bill and focusing on the best
interests of consumers. In particular, we appreciate the diligence of
Senators Ensign, McCain, and Stevens, their staffs and the
participation of the House and Senate leadership.

The forward-thinking digital white area provision will motivate
local broadcasters to build their towers and broadcast at full power
in order to serve their communities. These changes will also help
accelerate the digital transition and ensure the return of the 700 Mhz
spectrum to the government.

While we appreciate the bi-partisan effort to pass legislation
that considered the needs of diverse interests, EchoStar is
disappointed that the bill inappropriately singles out EchoStar for
unfair treatment with respect to channel positioning. The bill gives
EchoStar only 18 months to eliminate its two-dish solution while at
the same time forcing us to wait up to three years to provide distant
digital signals. However, EchoStar will work with local broadcasters,
Congress and the Federal Communications Commission to meet this tight
deadline and to minimize the impact on consumers.

Congress has directed the Federal Communications Commission and
Copyright Office to resolve many outstanding issues. We look forward
to continuing to work with coalition groups to facilitate the digital
transition.


Members of Congress withstood pressure from some of the most
powerful lobbying interests in Washington and crafted legislation that
puts consumers first. We deeply appreciate their courage.

About EchoStar

EchoStar Communications Corporation (NASDAQISH) serves more than
10.4 million satellite TV customers through its DISH Network(TM), the
fastest growing U.S. provider of advanced digital television services
in the last four years. DISH Network offers hundreds of video and
audio channels, Interactive TV, HDTV, sports and international
programming, together with professional installation and 24-hour
customer service. DISH Network ranks No. 1 in Customer Satisfaction
among Cable/Satellite TV Subscribers by J.D. Power and Associates.
Visit EchoStar's DISH Network at www.dishnetwork.com or call
1-800-333-DISH (3474).

--30--

CONTACT: EchoStar Communications Corporation
Steve Caulk, 303-723-2010
steve.caulk@echostar.com

 

[BFG]

and I take, two steps forward, two steps, burm burm....

Three years, oh geez... For a company that was pushing so hard for this, i'm glad they going to rush to get it going...

 

[RBBrittain]

I think Charlie is intentionally exaggerating the time lag for "digital white area" as an argment for losing on two-dish. Either that, or Charlie and his lawyers haven't read all the way through the bill yet.

As I read the bill (someone PLEASE correct me if I'm wrong), the ONLY area where there is a time lag for digital distant locals is inside the analog grade-B contour in non-LIL markets, where the FCC has to create a "digital white area" rule to allow it. Those outside the analog grade-B contour, AND analog LIL subscribers (the vast majority of the potential market), can get distant HD as soon as (a) the President signs the bill and (b) Charlie is willing to launch it.

Of course, one might argue that the NAB had it written this way because they want to nudge Charlie into offering analog LIL in all 210 markets first by offering distant HD as a reward. (D* is legally committed to nationwide LIL as an FCC condition of the Rupert deal, but E* isn't.)

 

[BFG]

So everyone can get an idea of what were looking at I made this chart that shows the situation for 2nd dish locals. I hope it's correct.

 

[boy921]

the bill will allow satellite TV carriers to begin offering distant high
definition TV network channels to many consumers if the local
broadcasters lapse on their promises to Congress to begin broadcasting
full-power HDTV to their viewers.

Scott, do you or any of your advisors have a clear definition as to exactly how this will benefit the HD satellite viewer?

Congress has directed the Federal Communications Commission and
Copyright Office to resolve many outstanding issues. We look forward
to continuing to work with coalition groups to facilitate the digital
transition.

This is good direction by Congress. I question the time factor. Any ideas on issues and deadlines?

 

[RBBrittain]

I have read the relevant section again, and I still don't find anything that delays the launch of HD distant locals for anyone EXCEPT those inside a grade-B contour in a non-LIL market. I did find a few missing pages in the draft I posted, but the most crucial one (page 80, numbered at the top) would involve station requests to delay the start of "digital white area" waiver testing, which is irrelevant for LIL markets and analog "white areas".

I think I'm gonna have to email E* directly to see if they're reading the bill differently than I am; IMHO, they can launch distant HD to most of their customers (i.e., all 151 LIL markets plus analog "white areas") as soon as the bill is signed. Of course, they may also be lying low to avoid last-minute NAB shenanigans.

And to answer one question: From what I see, in LIL markets the power or quality (SD vs. HD) of the digital station is irrelevant; all that matters is whether or not digital LIL is available, which is a long ways off in most markets (and probably longer for E* than for D*).

 

[viqventeur]

two-dish solution

The bill gives EchoStar only 18 months to eliminate its two-dish solution

Could someone clarify what this means? Thank you.

 

[mwgiii]

In a few cities, Dish has the main locals on one satellite dish and a couple of "minor" locals which require a 2nd satellite dish.

Congress has mandated that in 18 months, all locals will have to come from 1 dish not 2.

 

[GregN]

OK E* lets rock.... when ya going to light up FOX-HD,NBC-HD, ABC-HD distants?

61.5 or 105?

I dont think the two dish issue is that big of a deal they just need to provide some customers with superdish ..... E* saw it coming years ago, get over it .....

 

[don_riggins]

I dunno, with the act passing it is good but not sure how E* is going to go about this, one would imagine put more locals on the 105/121 and make the superdish more readily available to get the must carries off the wings. That right now would be the biggest concern. One would imagine moving the HD channels back on the wings to allow the bandwidth needed for the locals and by this time if local mapdowns have not been updated to recievers probably not going to happen so don't have to have 5 different copies of east/west feeds throughout the channel directories.

 

[SimpleSimon]

OK E* lets rock.... when ya going to light up FOX-HD,NBC-HD, ABC-HD distants?

61.5 or 105?

I dont think the two dish issue is that big of a deal they just need to provide some customers with superdish ..... E* saw it coming years ago, get over it .....

You forgot about 148 for the West feeds - E* can feel free to add them right next to the CBS-HD West that I'm watching right now.

 

[dfergie]

Cold case... already got it once on my 921 tonite gonna save the best one(pq) for a few days..btw, i live in a 2 dish dma and only 1 ota digital (part time as it is down more than up) so the possibility of abc-hd, fox-hd and nbc-hd would be cool athough my only local digital is abc ...

 

[Paradox-SJ]

So here in the San Francisco/San Jose/Oakland Bay Area we will get a supper dish but as far as distants digital goes EVERY broadcaster (network&local) in the DMA has their digital signal broadcasting 24/7 already so I dont think it will benifit us...

 

[chaddux]

So here in the San Francisco/San Jose/Oakland Bay Area we will get a supper dish

Gotta love those bracket-mounted dinner plates.

 

[GregN]

So everyone can get an idea of what were looking at I made this chart that shows the situation for 2nd dish locals. I hope it's correct.

Looks like they need to move 113 locals. = 10 to 12 transponders.

Should be doable when they get the new 105 bird up

Does anyone know how many 2 dish local customers they have?

 

[Bobby]

I seriously doubt that the SF Bay Area will get a Super Dish. It's way to large of a subscriber base. They would rather put small DMA America on the SD because they will need a lot less of them.

 

[mike123abc]

I am very doubtful that they will use superdish 105 to move the wing satellite channels to a single dish. This is 38 of the largest markets. 18 of the top 20 markets would be involved and having to put SuperDish into all of them would cost them a lot of money and a lot of issues with a huge dish being forced on people.

Dish has Echostar 10 going up in 6-8 months to 110. This bird will have 45+ spots on it. While Dish might not like the fact that they have to move 113 locals to E10 from the wings, it will save them a lot more than making a superdish a requirement in 38 of the largest markets. If dish were to make 105 SD a requirement, they would probably have to end up installing an additional million+ SDs a year. Assuming that SD costs dish $50 more than Dish500 (installation pain and hardware) that would cost them $50million a year, in a couple years they could pay for a new satellite. This is probably where Dish came up with the it will cost us a $100 million if single dish LIL were to go into effect right away.

 

[BFG]

Yeah they wont be using a superdish for all those. What might happen is those cities below the top 50 will have all of their locals moved to super or wing so the wings of the top 50 can go on the main sats. Unless charlie still pulls the trick we thought about, being move the locals to superdish but dont install superdish for anyone.

 

[Chris Freeland]

I agree with mike123abc, E10 should easily handle all those minor locals and thus eliminate the need for a 2nd dish. I belive that in some of those smaller split DMA's, even if E* could not place them on E10 they would more then likely move the major channels in those markets from 110/119 to join the minor channels on 61.5 or 148 since many in these markets already have a 2nd dish and only part of those subs would then have to add a 2nd dish vs upgrading the whole DMA to a SD. Remember this new law only requires all of a DMA's locals on the same dish, E* can still have 2 dishes with core programing on 110/119 and all of a DMA's locals on 61.5 or 148/157.

 

[Stargazer]

$50 more for installation is only part of it. The extra cost of the dish itself and switch as well in addition to the added installation costs and the subscriber loss because of the bigger dish would make it a lose/lose situation for Dish Network. The smaller markets would be forced onto SuperDish instead if they had to do that but I think more than likely the new satellite will be used for those locals.