News Archive
MSS Spectrum Value on Decline? -- Posted by soullezz
on Wednesday, October 31 2007
The value of mobile satellite spectrum has a good chance of being considerably less than the benchmarks established by the Federal Communications Commission's AWS and upcoming 700MHz auctions. A new study analyzing the business cases for satellite radio, mobile TV and interactive ATC services says the best case scenario for MSS spectrum valuation is, in fact, shockingly dismal.
According to TMF Associates, the prices of up to 73 cents per MHzPOP in the 2006 AWS auctions and more than $1 per MHzPOP in the recently announced 700MHz AT&T/Aloha transaction are no where near the actual valuations for mobile satellite spectrum. The firm's "ATC, Satellite Radio and other Hybrid MSS Networks: Business Cases and Spectrum Valuations" report pegs the actual value closer to between 23 cents and 35 cents per MHzPOP.
The study says the industry will see new MSS systems launched into orbit next year built on the premise that use of terrestrial repeaters will allow them to avoid a similarly disastrous fate of Iridium and Globalstar in the late 90s. A key reason why new systems have been able to raise funding is that potential use of their spectrum in terrestrial networks has enabled comparisons with multi-billion dollar terrestrial spectrum valuations, TMF said.
"Two-way services are likely to generate much greater returns, supporting a higher spectrum valuation," says TMF's Tim Farrar. "However, in order to achieve sufficient scale, network buildout will require $2 billion-plus of investment."
DISH Expands Ultimate Retail -- Posted by soullezz
on Wednesday, October 31 2007
As EchoStar's DISH Network quietly offers a high-definition channel package that beats cable and rivals that of DIRECTV, the company is growing its satellite TV platform via an increased retail presence. With the company touting its 75 HD channel offering, EchoStar is hooking up with CE big box Ultimate Electronics to help deliver its high-def goods straight to more customers.
The Colorado-based consumer electronics retailer this week unveiled an agreement with EchoStar to offer DISH Network satellite TV products and services in its 32 stores throughout Arizona, Colorado, Illinois, Kansas, Minnesota, Missouri, Nevada, New Mexico and Oklahoma. Ultimate said its partnership with DISH is a "natural fit" with its business model of offering the largest selection of high-definition TVs and services.
Ultimate said through Jan. 31, 2008, new customers can subscribe to EchoStar's DishHD package free for six months with an 18-month commitment. The company said new subs can also receive a free upgrade to DISH's HD DVR receivers. Ultimate will also offer a full suite of DISH Network DVR and HD receivers, entertainment packages and accessories, including home installation options, the company said.
In related news, DISH said Tuesday that NBA TV is now included in it's national lineup of HD programming. NBA TV features live NBA games every week, basketball news and information, exclusive interviews and original series spotlighting today's players and coaches as well as memorable moments in the NBA's history. NBA TV will offer its first HD games of the 2007-08 season on Sunday, Nov. 4, the company said.
Subscribers to DISH's America's Top 100 package with DishHD will receive NBA TV HD free on Channel 402. DishHD is available free for six months to new customers who may also receive a free upgrade to the company's HD DVR receivers.
Sirius Reports Strong Q3 -- Posted by soullezz
on Wednesday, October 31 2007
Growing demand helped Sirius Satellite Radio rack up strong subscriber additions and increased revenues during the third quarter. As the company did well to reduce its net loss and achieve some financial goals during the period, the company is counting on a strong holiday season to continue its positive momentum.
Sirius reported Tuesday it had increased its revenue by 45 percent year-over-year to $241.8 million and added nearly 525,000 net new subscribers during the three month period. The subscriber additions represent a 50 percent increase from one year ago, giving the satellite radio operator a total of about 7.7 million customers.
According to the company, the majority of its new subscribers (460,837) were generated from the OEM channel, with only 64,101 coming from the retail and aftermarket chains. Sirius said it captured 63 percent of the satellite radio segment share during Q3, marking the eighth consecutive period of leadership in industry subscriber growth.
Analysts say some discount Sirius' OEM strength because the company books OEM subscribers when cars are shipped to dealers as compared to XM which books OEM subscribers when a consumer activates. According to Wedbush Morgan's William Kidd, the difference in accounting treatment is a key aspect of what makes Sirius a better story than XM.
"Sirius' OEM agreements require most of its major OEMs to pay for subscription services regardless of whether the consumer activates for a period of six or twelve months, whereas with XM, most of its OEM agreements have XM being paid by subscribers directly," he said. "Thus, for Sirius, a shipment equates to revenue, and for XM, only subscriber-elected activations equate to revenue."
Sirius said its advertising revenue reached $8.5 million in the third quarter with average monthly revenue per subscriber (ARPU) at $10.71. SAC per gross subscriber addition was $103 for the period compared to $114 for the year-ago third quarter.
The company also said its net loss improved by 26 percent to $120.1 million, or 8 cents per share, for the Q307 from $162.9 million, or 12 cents per share, for Q306. The adjusted loss from operations improved 32 percent year-over-year to $56.9 million from $83.2 million, Sirius said.
EchoStar Going IPTV? Company Unveils ViP-TV -- Posted by soullezz
on Tuesday, October 23 2007
Late Monday, EchoStar and its subsidiary EchoStar FSS Corporation took the wraps off ViP-TV, an IP-based service that will transport more than 300 channels of secure broadcast programming delivered via satellite to telco, private and rural cable operators, municipalities and master planned community video providers.
EchoStar described ViP-TV as its turnkey solution for wholesale multichannel content transport and distribution. The offering promises customers affordable, scalable and aggregated MPEG-4 IP encapsulated audio and video programming channels from a high-powered Ku-Band satellite, the company said.
ViP-TV's suite of channels includes ViP-Premier, which offers more than 100 channels of programming. There's also ViP-HD, which has 40 channels of high-def programming, and ViP-Movies, delivering a menu of 40 movie services. The service also offers ViP-Latino, offering 30 Spanish-language programming services, and ViP-International, offering more than 30 programming channels in 10 different languages.
ViP-TV also provides transport of local networks from more than 165 local DMAs. In addition, VIP-TV offers transport of high def local networks from more than 30 local DMAs, EchoStar said.
"ViP-TV is one of the most comprehensive video IP transport and distribution platforms available in the marketplace," said Michael Kelly, executive vice president of EchoStar Fixed Satellite Services. "More than just programming, it is a premier service buoyed by industry-leading technology, service and support."
FCC Eyes Puerto Rico in DIRECTV/Liberty Deal -- Posted by soullezz
on Monday, October 22 2007
As the Federal Communications Commission continues to review Liberty Media's pending takeover of a controlling stake in DIRECTV from News Corp., focus has turned to the companies’ multiplatform efforts in Puerto Rico.
According to a filing sent to the FCC last week, representatives from DIRECTV and Liberty Media recently met with staff from the agency's Media and International bureaus about efforts in the Caribbean commonwealth. Liberty Media owns Liberty Cablevision of Puerto Rico while DIRECTV provides service to the island via DIRECTV Latin America.
Details on the discussion at the FCC gathering weren't made clear in the filing. However, the companies disclosed subscriber figures to commission staff for their respective services operating in Puerto Rico.
Liberty Media said Liberty Cablevision of Puerto Rico served about 94,000 customers, representing about 27.8 percent of households passed. DIRECTV Latin America's numbers for Puerto Rico were redacted from the filing, apparently to keep confidential any sensitive data.
DIRECTV Latin America has operations in Puerto Rico as well as Mexico, Brazil, Argentina, the Caribbean, Chile, Colombia, Ecuador, Peru, Venezuela and Uruguay. In addition to Liberty Cablevision of Puerto Rico, Liberty Global has VTR Global Com in Argentina.
DIRECTV Sues Cox Over HDTV Spots -- Posted by soullezz
on Monday, October 22 2007
Just when cable thought it was safe to blast satellite's HDTV product.
DIRECTV last week filed a false-advertising lawsuit against cable operator Cox Communications alleging the company's web ads profess misleading statements about the quality of its high-definition offering compared with that of the satcaster's.
DIRECTV's most recent lawsuit said Cox's web site detailing its high-def effort includes a headline reading "Cable Wins the HD Challenge." The information listed under the section cites a Comcast-supported survey that claims two-thirds of satellite subscribers actually prefer the cable industry's HD product.
This latest court activity comes fresh on the heals of a similar lawsuit DIRECTV filed against Comcast earlier this year. The Comcast case, which is still pending, claims the nation's largest MSO used false HDTV print advertisements in connection with the same survey.
Filed last week in the U.S. District Court for the Central District of California in Los Angeles, DIRECTV's suit against Cox seeks an injunction blocking the internet ads as well as monetary damages and attorneys' fees.
"There are substantial differences in the quality of high-definition service provided by various cable providers," DIRECTV said in its complaint. "Accordingly, the picture quality afforded by Comcast's HD service cannot be deemed equivalent to that of Cox's HD service."
Analyst: Expect AT&T to Acquire EchoStar -- Posted by soullezz
on Wednesday, October 17 2007
Two sources hinted Tuesday that an AT&T move on EchoStar's DISH Network may be more than just the latest round of rumors. Of course, the news came after EchoStar unveiled that it had plans to spin its company into two separate operations a couple weeks ago.
First, in a research note to investors, Citigroup's Jason Bazinet said there is a 65 percent chance that the telco giant would buy EchoStar's DBS service within the next 12 months. The analyst also said EchoStar's separation of its technology businesses and its DBS service has "logical linkages" to merger and acquisition activity.
"Owning (DISH Network) can complement AT&T's fiber deployment by broadening the footprint, enhancing high-def video capabilities and improving on-demand services," Bazinet said.
Another telling sign that there may be more to the rumors was a report on TheStreet.com that said AT&T has hired Goldman Sachs to review a possible EchoStar acquisition. The investment site reported that an unnamed source said the deal could be put together in the next three to six weeks.
Bazinet maintained a "buy" rating on both AT&T and DISH in light of the developments. AT&T closed Tuesday trading down 1.61 percent at $35.37 while EchoStar closed up 4.16 percent at $51.08.
DIRECTV-11 Delayed? -- Posted by soullezz
on Wednesday, October 17 2007
The second of DIRECTV's planned satellite launches for 2007 has reportedly been delayed until early next year. DIRECTV-11, the second satellite the company planned on launching this year for its high-definition expansion, has reportedly been bumped from its position in line of satellites waiting to be orbited from Sea Launch.
According to internet reports, Sea Launch Director of Communications Paula Korn confirmed that the launch services company has pushed the liftoff of DIRECTV-11 back to the first quarter of 2008. Korn reportedly sited a delay in the launch of the Thuraya-3 satellite to November as being the reason for DIRECTV-11's set back.
When asked by SkyREPORT about the reported delay, a DIRECTV spokesman said
DIRECTV-11 "is still scheduled for launch early next year - as we've said before."
DIRECTV-11 originally was scheduled for launch by Sea Launch in November of this year but was delayed by a satellite explosion in January that damaged the launch facility. Since the mishap, DIRECTV has said the launch of DIRECTV-11 would be sometime "early next year (2008)."
Neither Sea Launch nor Thuraya have made any comments on the reported delay.
DBS Still Looking For Tax 'Equality' -- Posted by soullezz
on Monday, October 15 2007
DIRECTV and EchoStar were hoping that when the House Judiciary Committee approved a tax moratorium extension bill last week that it would prohibit states from imposing DBS-specific taxes. Now both companies are looking for answers after learning the bill does not include the language they wanted.
One solution could come in the form of a bill House Judiciary Committee Chair John Conyers introduced in September. The DBS companies are lobbying for the state tax streamlining bill, but sources said it is unclear whether the House will pass what would be non-discriminatory legislation this year.
According to reports, Conyers is set on having Congress address the issue which could have significant implications on states' ability to enact taxes on satellite TV that are different from those established for cable services. As it stands, six states currently have what the DBS companies consider "discriminatory" tax structures on satellite TV.
DIRECTV's Big Fat Greek Launch -- Posted by soullezz
on Monday, October 15 2007
DIRECTV expanded its WorldDirect programming platform last week with the addition of two new Greek-language channels - Alter Globe TV, the international version of one of Greece's entertainment channels, and GMTV, the first Greek music video channel. The satcaster is now the exclusive satellite provider of the new channels, plus the Greek nets it already carried - Mega Cosmos and A SAT here in the States.
According to DIRECTV, GMTV is the television home for Greek music, movies, fashion and other pop-culture topics. The company said Alter Globe TV offers news, comedy and other cultural programming.
Both channels are available in the GreekDirect II programming package, which includes Mega Cosmos and A SAT for $34.99 per month. Alter Globe TV is also available on an a la carte basis for $14.99 per month, the company said.
DIRECTV's GreekDirect II package is part of the WorldDirect platform that is tailored toward Greek-speaking audiences within the U.S. The company's WorldDirect Platform has launched 104 channels that deliver programming in several foreign languages, including Spanish, Russian, Hindi, Tamil, Gujarati, Bengali, Mandarin, Cantonese, Vietnamese, Tagalog, Korean, Italian, Polish, Arabic, Caribbean, Ukrainian and Greek.
Sirius Canada Tops 500K -- Posted by soullezz
on Monday, October 15 2007
As satellite radio services become increasingly popular here in the States, it seems that the terrestrial radio alternative is making headway in Canada as well. Sirius Canada unveiled last week that it has signed up more than 500,000 paying subscribers nationwide, adding more than 200,000 since February alone. Sirius said it is Canada’s fastest growing satellite radio company and the first to surpass the 500,000 subscriber milestone since the service was first introduced less than two years ago.
According to figures released by The NPD Group, Sirius Canada is capturing 82 percent of retail sales year-to-date. The research firm said during the key Father’s Day gift buying period in June, Sirius garnered an overwhelming 88 percent market share of satellite radios sold.
Sirius Canada said its automotive partners make up nearly 60 percent of vehicle sales in Canada, and since the beginning of 2007 have built more than 100,000 vehicles with factory installed Sirius radios. (Sirius Canada’s automotive partners include Ford, Chrysler, Audi, BMW, Jaguar, Land Rover, Lexus, Mazda, MINI, Subaru, Toyota, Volkswagen and Volvo.)
Sirius also said its Canadian service is the number one choice among truckers in Canada and has captured more than 90 percent of satellite radio sales to-date from Pana-Pacific, North America’s largest supplier of audio and electronics equipment to the trucking industry.
ATCi Introduces Low Cost Flyaways -- Posted by soullezz
on Thursday, October 11 2007
Antenna Technology Communications Inc. (ATCi), a provider of ground-based commercial satellite communications systems and services, introduced its new specialized two-channel flyway broadcast system geared toward soccer and sports applications. The new package was designed to give customers the ability to transmit their own video channels from anywhere in the world to anywhere in the world.
ATCi said the fly away system includes a antenna, amplifier, encoder, modulator, receiver, cases, spectrum analyzer as well as design, integration and implementation resources. The company said its flyaway systems are in stock and pre-tested for reliability, quick setup and fast time to air.
Company officials said due to the success ATCi has had with its flyaway systems for news gathering applications, customers have voiced a need for an affordable custom flyaway package specifically designed for sports applications. The company said it is trying to answer market demands as 2008 is an Olympic year.
Report: Advanced STB Features Coming -- Posted by soullezz
on Thursday, October 11 2007
Research shows that as revenue from standard set-top box sales declines, along with waning demand for aging STBs during the next few years, set-top vendors will initially rely on DBS, IPTV and digital terrestrial television (DTT) boxes. However, according to a new study from ABI Research, by the end of the decade even those sectors will be under pressure from alternative technologies to facilitate "the connected home."
In response, the research firm says STB vendors will have to add new features and functions in order to revive flagging shipment numbers. "The development of two-way digital-cable-ready TVs, residential gateways, media centers, and even video capabilities on gaming systems will put the set-top's status at risk," says research analyst Paulhwa Lee.
ABI says STB manufacturers are responding in several ways, starting with the addition of new features like increased hard-disk space, DVD players, DVD burners, home-audio solutions. The developments will help to make traditional STBs more relevant to consumer demands, improve electronic program guides and incorporate more web-based services and video gaming, the firm says.
Set-top box vendors are also moving more aggressively into the hybrid STB market, ABI said, as hybrid boxes offer a single solution to a number of possible problems caused by the multiplicity of video sources and distribution platforms.
Said Lee: "No one video or television technology will be a 'killer' in the next few years. So as this market flattens towards the end of our forecast period in 2012, STB vendors would be well advised to incorporate as many of those technologies as possible into their products."
Sirius/XM Merger Finds New Support -- Posted by soullezz
on Thursday, October 11 2007
While some in the industry continue to bash the proposed merger of Sirius and XM, others are warming up to the idea of a unified satellite radio company. Now the companies have found additional support for their $13 billion plan and it's coming from Congress members, consumer advocates and other various parties.
During the past few weeks, several filings have been given to the Federal Communications Commission urging the agency to approve the merger of Sirius and XM. Within the statements, sources have cited the benefits consumers will see if the deal is to go through as reason enough for the FCC's approval.
According to the satellite radio companies, several members of Congress have come out in support of the merger. Recent comments urging the FCC to approve the transaction have come from Rep. Eliot Engel (D - NY), Rep. Rick Boucher (D - VA), Rep. Anthony Weiner (D - NY) and Rep. Pete Sessions (R - TX).
"The proposed merger should be considered in the context of a broad market definition, which includes the entire marketplace for audio entertainment," said Boucher. "Under such an appropriate definition, the merger would combine only a small percentage of the market, but would lead to significant pro-consumer benefits."
Said Rep. Weiner: "There is no doubt that the merger would be good for consumers of this service. A merger will allow the two companies to pool their resources, cut costs through economies of scale, boost innovation by bringing together their best and brightest talent, and ultimately make more programming available to subscribers."
In addition, two more organizations have endorsed the idea of approving the merger. Both the Independent Women's Forum and Latinos in Information Sciences and Technology Association joined the list of advocacy groups to push the FCC toward approval.
And, in this latest group of supporters, Kia Motors America has joined other automakers like Honda, Hyundai and Toyota in expressing support for the merger.
In related news, the National Association of Broadcasters asked the FCC this week to defer action on the merger until the group has enough time to review pending documents set to be released through a recent Freedom of Information Act request by the NAB. The group is seeking 180 days to review the documentation "relating to the apparent wrongdoing by XM and Sirius 'executive and senior-level employees' regarding the operation of FM modulators/transmitters and/or terrestrial repeaters."
Two Moves for WildBlue -- Posted by soullezz
on Wednesday, October 10 2007
Satellite broadband provider WildBlue Tuesday unveiled two new business arrangements for its Enterprise Solutions operation.
In the first, WildBlue, XipLink and Trispen launched a technical and commercial solution to provide an integrated, high performance VPN network for small to medium size businesses. The network, allowing for accelerated communications and optimized bandwidth over satellite, will be available through WildBlue Enterprise Solutions' Value Added Resellers (VARs).
The arrangement between the three companies will provide an end-to-end secure solution, at broadband speeds, for business users of the company's broadband internet service. The accelerated VPN network will use the XipLink acceleration appliance along with WildBlue satellite equipment and integrated Trispen VPN (IPsec) software.
In the second, solution provider for IP over broadcast media UDcast and WildBlue unveiled another technical and commercial relationship to develop new products, services and markets for the delivery of the company's broadband service to the small and medium size business sector.
As part of the arrangement, WildBlue approved the UDcast UDgateway as an accelerated VPN solution for enterprise users of its service. As part of the end to end solution, the UDgateway will also be used with WildBlue's satellite equipment.
Hughes Using Wal-Mart for Increased Distribution -- Posted by soullezz
on Wednesday, October 10 2007
It's called Broadband Across America, and it's a program that has the potential to bring satellite-delivered broadband to a lot more customers. Hughes Network Systems took the wraps off a plan to offer consumers across North America its HughesNet satellite broadband internet service from Wal-Mart, the country's largest retailer. The joint effort is designed to give more customers in rural areas the opportunity to experience high-speed internet access.
According to the companies, the HughesNet service will be sold in 2,800 Wal-Mart stores across the U.S., including locations throughout most of rural America where terrestrial broadband services are often not available. And with millions of Americans shopping at Wal-Mart each week, being able to purchase HughesNet at the stores makes broadband more accessible in many more areas across the country than ever before.
Hughes said every Wal-Mart customer who purchases a HughesNet system will receive an "ExpressPay" card for $100 to buy anything at the retail behemoth. Hughes said HughesNet's download speeds should range from 700Kbps to 2Mbps with pricing starting at $60 per month.
In many of the Wal-Mart stores, HughesNet will be available in the electronics department, through a "Digital Connection Kiosk" or customers can contact the Wal-Mart call center to be connected with a Hughes installer.
Satellite Subscriber Sues Provider -- Posted by soullezz
on Friday, October 5 2007
A subscriber to the Israeli-based yes satellite television service filed a $30 million lawsuit against the media company this week and is seeking authorization to classify the suit as class action. According to local reports, the lawsuit was filed due to daily interruptions in the customer's satellite TV broadcasts for an entire month.
Yigal Greenlander, who according to the suit watches satellite TV nearly every day, claims that during the month of September he encountered frequent interruptions in video and audio services, including blackouts, from his satellite system. The disgruntled subscriber said the shoddy service made it impossible to watch any programming.
The complaint includes the fact that the company's customer service center had shut down during the month in question, and yes asked its subscribers not to bring complaints to service representatives. Greenlander said the absence of proper customer service prevented him from disconnecting the satellite TV service during that time, thus minimizing his expenditures (about $56 per month) on a faulty product.
The suit also said that yes had publicly announced in local media outlets that it was aware of the problem and did not know its source or how to fix it. Greenlander said he came up with the $30 million based on a full month refund to all 535,000 yes subscribers.
More Talk About AT&T Moving on DISH -- Posted by soullezz
on Friday, October 5 2007
Shortly after EchoStar unveiled plans to spin off its technology operations into a separate business, some on Wall Street said the company could be preparing its DBS service for a sale to AT&T. And, just as the rumors started spreading, other industry analysts tried to quash the news by saying it didn't make sense for either company.
Now, another analyst has come forward saying EchoStar CEO Charlie Ergen may in fact, be ready to sell his cherished DISH Network.
Wedbush Morgan's William Kidd said in an investment note this week that it shouldn't surprise anyone there's so much uncertainty about EchoStar's true motivations about splitting in two because "transparency has never really been an EchoStar focal point." The analyst said there is merit to the speculation that AT&T is now more likely to acquire DISH as Ergen could be creating a company for himself to run after he cuts ties with the pay-TV industry.
"The difference now is that Ergen may finally be showing signs that he is a seller," Kidd said. "AT&T continues to be the most logical buyer of the company, given that they already work with EchoStar and they're embroiled in their own pay television efforts as a means of fending off their subscribers from cable poaching."
Kidd said the timing of the spin-off and AT&T's decision on a distribution partner are two factors that could delay any merger announcement. The analyst said he doesn't believe a deal is imminent, but the probability of a transaction "is now more likely than not."
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