EchoStar revealed plans for new satellites and an aggressive launch
schedule along with an extensive list of programming announcements
and small dish sales pitches Wednesday. Three new satellites ordered
by EchoStar will take the company's DBS fleet to nine birds. Two of
the birds, EchoStar VII and VIII, are spot-beam satellites that will
allow DISH to offer local channels in 60 or more markets across the
United States. EchoStar IX, a hybrid Ku/Ka-Band spacecraft, is expected
to deliver business-to-business communications and expanded services
that may include two-way Internet capabilities. EchoStar VII, which
will be built by Lockheed Martin, will reside at 119 degrees. EchoStar
VIII will be located at 110 degrees. EchoStar IX will be stationed
at the company's Ka-Band slot at 121 degrees. Space Systems/Loral
will build EchoStar VIII and IX. Delivery of EchoStar VII and EchoStar
VIII should occur in December 2001. Delivery of the EchoStar IX bird
is expected sometime in 2002. This spring, the company will launch
the already-built EchoStar VI. EchoStar's announcement that it will
deliver Internet and data, made Wednesday at its Team Summit gathering
of retailers in Denver, follows other unveilings of satellite broadband
platforms this year. In January, iSKY, backed by Liberty Media and
others, announced plans to launch Ka-Band satellites in 2001 and 2002
for a consumer broadband offering. Hughes said last month that it
plans to debut two-way Internet applications for DirecPC by the end
of the year. Last week, VSAT provider Gilat unveiled the Gilat-To-Home
broadband platform with Microsoft. On Wednesday, Gilat and EchoStar
formally announced their partnership, which will deliver two-way,
high-speed Internet access along with the DBS service. SkyREPORT.COM
first reported those plans last week. EchoStar also announced new
channels and an additional programming package for DISH Network. Outdoor
Life, Speedvision, Cartoon Network's Boomerang and CNN/Si will be
available in DISH's new America's Top 150 package. Turner South will
be available in America's Top 100 programming package. EchoStar also
will add Starz-Encore channels. DISH Network is the first satellite
provider to carry Boomerang and Turner South. EchoStar's announcements
pushed its shares up more than $20 Wednesday. The DISH stock closed
at $120.81. The dealer summit continues today.
FCC Gets Video Description Comments
The Satellite Broadcasting and Communications Association and DirecTV
submitted comments to the Federal Communications Commission on video
description of video programming. Video descriptions - as proposed
by the agency - are aimed to allow viewers with visual disabilities
to better follow the action on television. "Making television programming
available to as many diverse audiences as possible has great appeal
and is a worthy public policy objective to be pursued by the commission,"
SBCA said. "However, it should be carefully crafted and balanced in
view of the many new issues that are at play in today's video marketplace."
Some of SBCA's comments focused on C-Band. The organization said adding
video descriptions to the analog signals would destroy audio security,
leaving all audio in the clear. Currently, C-Band utilizes two encrypted
audio channels within a satellite television program signal for stereo
reception. As a result, video description could only be delivered
to subscribers on an unencrypted audio sub-carrier. SBCA also said
requiring video description for DBS can displace services popular
with consumers while actual demand for video description remains unknown.
DirecTV, which provides some video descriptions, questioned whether
the FCC has jurisdiction in the matter. "While DirecTV is committed
to continuing to provide video description on a voluntary basis, DirecTV
does not believe the commission has the statutory authority to promulgate
and apply video description rules to DBS providers," the company said.
"If the commission were to propose such rules, it would create tremendous
technical and financial burdens for DBS operators." DirecTV said a
big concern with video descriptions is their potential impact on local
channels. "Massive upgrades would be necessary, for example, to provide
an additional audio channel for each broadcast and non-broadcast network
covered by the rules," DirecTV's filing said.
BSkyB Partner Faces More Scrutiny
The U.K. Competition Commission, Britain's antitrust regulator, extended
a review of Vivendi's 24.5 percent stake in British Sky Broadcasting
until late March, citing "important late evidence that needs to be
explored." The commission, which initially wanted to close its inquiry
in late February, is investigating whether the French company's stake
in the satellite provider could restrict competition. In addition
to Vivendi, BSkyB's partners include News Corp., which has a 40 percent
stake in the company. In July, Vivendi paid $2.7 billion for a piece
of both BSkyB and Canal Plus, France's largest pay-TV operator. There
is speculation that Vivendi wants to create an alliance between the
two companies, or possibly merge the two operations into one platform.
News Corp. has opposed those moves in the past. Specifically, the
Competition Commission is looking into whether Vivendi's stake in
BSkyB could impact competition for U.K. sports and film rights.
AT&T-Cablevision Partner for Phone Service
AT&T is working with Cablevision Systems to sell phone service to
cable customers in New York, New Jersey and Connecticut. Under the
co-marketing agreement, customers who get premium cable channels,
order pay-per-view movies and online services will get AT&T phone
service at a reduced cost. A marketing campaign for the new offers
will begin this spring, the companies said.
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