Lockheed Martin Contract Question ?

[skydigital]

Cablevision also has several orbital slots that cover the western parts of the U.S., a $740 million contract to buy more satellites from Lockheed Martin Corp. (LMT), and contracts to lease capacity from SES Global SA (008808732.LUX).

Cablevision, in its statement, said it "will continue to explore strategic alternatives" for its programming, equipment and spectrum assets. A Cablevision representative wasn't immediately available to comment.

But the latest purchase doesn't mean EchoStar won't be looking for still more capacity. Analysts said that DirecTV still has more capacity as well as more favorable satellite slots that allow coverage over the whole of the continental U.S.

Rainbow's 61.5 degree slot will give EchoStar more capacity over the eastern and midwestern parts of the U.S. but won't do much to bolster its coverage of the West Coast.

The transaction must pass regulatory review before EchoStar can start using the new satellite. Spokesman Steve Caulk said the deal covers only the satellite and spectrum, not Voom's existing customers. He declined to comment on whether the company is eyeing any other Cablevision assets.

Terms call for EchoStar to assume control of Cablevision's Rainbow 1 satellite as well as Federal Communications Commission (news - web sites) licenses to construct, launch and operate DBS services over 11 frequency channels in return for its $200 million. The deal also gives EchoStar ownership of the satellite's ground facility in Black Hawk, S.D



Hi, i was just wondering whether E* did or did not buy the orbital slots from cablevision?
and what will happen regarding the lockheed contract?, i read somewhere it was cost $100 million to get out of. Would it not of been more sensible for E* to take over the contract? It does seems quite strange that Voom would order 5 more Ku-band sats only 3 months ago only to pull the plug?

 

[mdonnelly]

Hi, i was just wondering whether E* did or did not buy the orbital slots from cablevision?
and what will happen regarding the lockheed contract?, i read somewhere it was cost $100 million to get out of. Would it not of been more sensible for E* to take over the contract? It does seems quite strange that Voom would order 5 more Ku-band sats only 3 months ago only to pull the plug?

It's not strange at all. VOOM management aren't the ones that planned to cease operations. The Cablevision board of directors pulled the plug on them. The VOOM managers were doing what they thought best to grow the business.

 

[Bruce]

E* already has 2 new birds up in test mode, one "used" Voom bird, 3 more on order, they don't really need more.

Here is a little thing about the 3 new ones from 10-02-04:

From the FCC Daily Digest:

ECHOSTAR SATELLITE LLC. Granted EchoStar Satellite LLC Authority to
Construct, Launch and Operate a Geostationary-Satellite Orbit Satellite
in the Fixed-Satellite Service Using the Extended Ku-Band Frequencies at
the 109,83,121 Degree W.L. Orbital Locations.

With all these slots already owned by E*, do they really need more slots from Voom at even more different areas of the sky, we would need about 10 dishes on our roofs to pick them all up.

 

[skydigital]

Just seen this

Voom Ends Up on Dish Plate
EchoStar chief Charlie Ergen walked away with the goods from the Voom fire sale yesterday. EchoStar picked up the assets of Voom, Cablevision’s erstwhile satellite service, for $200 million, less than half the amount the Bethpage, N.Y. cable concern invested in it.


Specifically, EchoStar agreed to buy the Rainbow 1, Voom’s only satellite, located at 61.5 degrees west longitude, as well as the rights to 11 DBS frequencies at that location. In addition, EchoStar will also buy the Rainbow ground facility in Black Hawk, S.D., and related assets.


Voom, launched in October 2003, was positioned as a hi-def satellite service. Cablevision, which has 3 million cable TV subscribers in the New York metropolitan area, sunk nearly $500 million into the venture. By the end of 2004, it had netted around 26,000 subscribers and lost more than $76 million. Nonetheless, Voom execs went out in November and leased 16 transponders over 10 years from SES Americom. The following month, Voom agreed to buy five birds from Lockheed Martin for upwards of $1.5 billion.


Cablevision will retain its proprietary programming units, which include an HD news network launched specifically for Voom. Additional satellite orbital slots not purchased by EchoStar remain for sale. Cablevision said it would continue to provide DBS service to its Voom contingent during the transition.


And so ends Charlie Dolan’s vision of the next big thing. The 79-year-old founder and chairman of Cablevision has long been held as one of the most innovating executives in the delivery of television. He pioneered the notion of premium cable networks, created the first regional sports packages and built Cablevision out of a 1,500-subscriber backwater. Urban legend has it that Dolan wasn’t above crawling around under the streets of New York to lay out the company’s infrastructure.


Voom was the brainchild of Charlie Dolan, whose son James, Cablevision’s CEO, was apparently not willing to let the cable company absorb Voom’s losses. Analysts are not speculating about the Dolans’ future with the company. A report from Rich Greenfield, an Doc Horn at Fulcrum, said the Dolan family’s control of Cablevision "could be viewed as a concern."





I guess all these theories about a resurrected voom are complete rubbish if the rest of the orbital slots are for sale!