The following was sent to me to share with you guys.
Below is a letter that was sent by EchoStar CEO Charles Ergen to members of Congress today.
May 26, 2004
The Honorable
United States House of Representatives
Washington, DC 20515
Dear Member X:
Thank you for your efforts to help develop responsible and reasonable public policy as it relates to the Direct Broadcast Satellite (DBS) industry. We appreciate your desire to achieve a competitive marketplace and more choice for American consumers who seek quality television and video entertainment options.
With the House Committee on Energy and Commerce moving to a markup of the Satellite Home Viewer Extension and Reauthorization Act of 2004 (SHVERA), I want to express my grave concern over one specific, punitive provision in this Committee print that is clearly directed solely at EchoStar. The provision focuses on our two-dish solution for local-into-local service -- a practice which EchoStar, relying on current law, has utilized to facilitate a rapid expansion of local service to markets throughout the country.
We developed the two-dish solution as an innovative and effective mechanism to meet the wishes of Congress that DBS provide local service in all 210 of the nation's Designated Market Areas (DMA) as quickly as possible. Working within our current satellite resources and technologies, this efficient use of the spectrum has enabled EchoStar to provide service in 127 DMAs, and we expect to roll out service to as many as 20 more by the end of 2004. Importantly, we have been able to accomplish this expansion while employing the two-dish solution in only 38 of those 127 markets. Today, EchoStar provides local service in nearly twice as many DMAs as our nearest competitor in the nation, an accomplishment of which we are proud. With our recent launch of local channels in the Cheyenne (Wyo.) -Scottsbluff DMA recently, we have reached all 50 states with local-into-local service.
We are dismayed that our competitors in both the broadcast and satellite TV industries are pushing to eliminate the two-dish solution for more than 3 million satisfied customers within one year. This onerous and inequitable proposal would force EchoStar to shift significant financial and human resources away from expanding our markets and services to consumers. Ironically, the proposal under consideration would force us to redirect those resources toward physically installing second dishes on the homes of every customer subscribing to local channels in as many as 30 markets across the country. The ripple effect goes far beyond two-dish markets, and would essentially force us to reconfigure our entire network, potentially disrupting service in some one-dish markets. The proposed timeframe in the provision under consideration could inconvenience more than one million satisfied subscribers, make it impossible for our company to continue offering local service in some markets, and delay the rollout of local service in additional DMAs. To say this would give our competitors an excellent opportunity to capture dissatisfied customers would be an understatement.
Meanwhile, as Congress considers this draconian measure advocated by the broadcasters, the broadcasters themselves are more than two years past the date by which Congress directed them to be broadcasting their signal in digital. Worse yet, the broadcasters concede that they not be able to return their analog spectrum to the federal government by 2006, or by any foreseeable date in the future. This could cost U.S. taxpayers hundreds of millions of dollars by delaying the auction of this spectrum for other uses.
How do the broadcasters' explain their failure to meet the deadline? According to a National Association of Broadcasters spokesman who was quoted in a recent article, "Broadcasters are moving aggressively to DTV, but this transition must be orderly to ensure that consumers do not lose access to local television (emphasis added) in the process." Since the lack of an orderly transition is one of our key concerns on the broadcasters' proposal to force us to abandon our two-dish solution in one year, the NAB's double standard is outrageous. Why is it okay to jeopardize all local television access for millions of satellite viewers but not for viewers of individual stations who have had years to complete the conversion to digital and have failed to do so?
We know that the two-dish solution, for a variety of reasons, is not a long-term solution for providing local-into-local service in all 210 DMAs. In fact, EchoStar has not launched a two-dish market in five months. Additionally, in recent months EchoStar has reduced the number of two-dish markets from 45 to 38, and we have shifted a number of Spanish-language and Religious channels to make them available to consumers using only one dish. But if Congress forces us to comply with a 12-month deadline, our options and our hopes for remaining competitive in the market and providing nationwide local service will be jeopardized.
EchoStar cannot meet the one-year deadlines for eliminating our two-dish solution without creating consumer inconvenience for millions of consumers. Taking into account that it takes approximately three years to design, build, and launch a satellite, we can eliminate our two-dish solution by December 2008. Additionally, with that timeframe, we can commit to launching no additional two dish markets in the future. We believe this would allow Congress to achieve its policy goals while balancing the interests of the broadcasters with the needs and desires of satellite TV subscribers and our company. Furthermore, we believe the timeframe is reasonable, considering the leniency provided to the broadcasters who have not met their 2002 deadline of providing full digital service.
I trust you will understand EchoStar's inability to meet the one-year elimination of our two-dish solution without greatly disrupting our service to customers, and I hope you can see why this is such a vital issue to EchoStar and DISH Network subscribers.
Sincerely,
Charles W. Ergen
Chairman and Chief Executive Officer
EchoStar Communications Corporation
Below is a letter that was sent by EchoStar CEO Charles Ergen to members of Congress today.
May 26, 2004
The Honorable
United States House of Representatives
Washington, DC 20515
Dear Member X:
Thank you for your efforts to help develop responsible and reasonable public policy as it relates to the Direct Broadcast Satellite (DBS) industry. We appreciate your desire to achieve a competitive marketplace and more choice for American consumers who seek quality television and video entertainment options.
With the House Committee on Energy and Commerce moving to a markup of the Satellite Home Viewer Extension and Reauthorization Act of 2004 (SHVERA), I want to express my grave concern over one specific, punitive provision in this Committee print that is clearly directed solely at EchoStar. The provision focuses on our two-dish solution for local-into-local service -- a practice which EchoStar, relying on current law, has utilized to facilitate a rapid expansion of local service to markets throughout the country.
We developed the two-dish solution as an innovative and effective mechanism to meet the wishes of Congress that DBS provide local service in all 210 of the nation's Designated Market Areas (DMA) as quickly as possible. Working within our current satellite resources and technologies, this efficient use of the spectrum has enabled EchoStar to provide service in 127 DMAs, and we expect to roll out service to as many as 20 more by the end of 2004. Importantly, we have been able to accomplish this expansion while employing the two-dish solution in only 38 of those 127 markets. Today, EchoStar provides local service in nearly twice as many DMAs as our nearest competitor in the nation, an accomplishment of which we are proud. With our recent launch of local channels in the Cheyenne (Wyo.) -Scottsbluff DMA recently, we have reached all 50 states with local-into-local service.
We are dismayed that our competitors in both the broadcast and satellite TV industries are pushing to eliminate the two-dish solution for more than 3 million satisfied customers within one year. This onerous and inequitable proposal would force EchoStar to shift significant financial and human resources away from expanding our markets and services to consumers. Ironically, the proposal under consideration would force us to redirect those resources toward physically installing second dishes on the homes of every customer subscribing to local channels in as many as 30 markets across the country. The ripple effect goes far beyond two-dish markets, and would essentially force us to reconfigure our entire network, potentially disrupting service in some one-dish markets. The proposed timeframe in the provision under consideration could inconvenience more than one million satisfied subscribers, make it impossible for our company to continue offering local service in some markets, and delay the rollout of local service in additional DMAs. To say this would give our competitors an excellent opportunity to capture dissatisfied customers would be an understatement.
Meanwhile, as Congress considers this draconian measure advocated by the broadcasters, the broadcasters themselves are more than two years past the date by which Congress directed them to be broadcasting their signal in digital. Worse yet, the broadcasters concede that they not be able to return their analog spectrum to the federal government by 2006, or by any foreseeable date in the future. This could cost U.S. taxpayers hundreds of millions of dollars by delaying the auction of this spectrum for other uses.
How do the broadcasters' explain their failure to meet the deadline? According to a National Association of Broadcasters spokesman who was quoted in a recent article, "Broadcasters are moving aggressively to DTV, but this transition must be orderly to ensure that consumers do not lose access to local television (emphasis added) in the process." Since the lack of an orderly transition is one of our key concerns on the broadcasters' proposal to force us to abandon our two-dish solution in one year, the NAB's double standard is outrageous. Why is it okay to jeopardize all local television access for millions of satellite viewers but not for viewers of individual stations who have had years to complete the conversion to digital and have failed to do so?
We know that the two-dish solution, for a variety of reasons, is not a long-term solution for providing local-into-local service in all 210 DMAs. In fact, EchoStar has not launched a two-dish market in five months. Additionally, in recent months EchoStar has reduced the number of two-dish markets from 45 to 38, and we have shifted a number of Spanish-language and Religious channels to make them available to consumers using only one dish. But if Congress forces us to comply with a 12-month deadline, our options and our hopes for remaining competitive in the market and providing nationwide local service will be jeopardized.
EchoStar cannot meet the one-year deadlines for eliminating our two-dish solution without creating consumer inconvenience for millions of consumers. Taking into account that it takes approximately three years to design, build, and launch a satellite, we can eliminate our two-dish solution by December 2008. Additionally, with that timeframe, we can commit to launching no additional two dish markets in the future. We believe this would allow Congress to achieve its policy goals while balancing the interests of the broadcasters with the needs and desires of satellite TV subscribers and our company. Furthermore, we believe the timeframe is reasonable, considering the leniency provided to the broadcasters who have not met their 2002 deadline of providing full digital service.
I trust you will understand EchoStar's inability to meet the one-year elimination of our two-dish solution without greatly disrupting our service to customers, and I hope you can see why this is such a vital issue to EchoStar and DISH Network subscribers.
Sincerely,
Charles W. Ergen
Chairman and Chief Executive Officer
EchoStar Communications Corporation
