News Archive
Taking Aim at Cablevision, VOOM & Carey Discusses DirecTV Outlook, Stern Exit & DirecTV Chases Adelphia Subs with Ads & FCC Denies Reconsideration of Anik/WildBlue Sat Issues -- Posted by soullezz
on Thursday, March 31 2005
Taking Aim at Cablevision, VOOM
While there wasn't any word concerning the fate of VOOM late Thursday night, Standard and Poor's took aim at the company that controls the satellite TV service's strings.
Standard and Poor's Equity Research issued a "hold" rating on Cablevision, noting the deadline between Chairman Charles Dolan and the cable company to keep VOOM operations intact through Thursday. The firm pointed out that Cablevision shares have fallen 3 percent this week after Dolan asked the Federal Communications Commission to reject the pending sale of VOOM's only satellite, Rainbow 1, to EchoStar.
Meanwhile, Dolan said in a Securities and Exchange Commission filing that he plans to propose that the company's board reduce its size to 12 members from 15. Dolan said he plans to raise the proposal at an April 18 board meeting.
Carey Discusses DirecTV Outlook, Stern Exit
DirecTV President and CEO Chase Carey touched on his company's outlook for continued subscriber growth and the departure of a top executive last month during a talk held at Banc of America Securities' Media, Telecommunications and Entertainment Conference earlier this week.
Carey said he expects DirecTV's future subscriber growth to be at a healthy level, but "we don't expect that growth to be at the level it was in 2004." In 2004, DirecTV's net subscriber additions totaled more than 1.7 million.
The DirecTV CEO also spoke about the departure of former DirecTV Inc. President Mitch Stern, saying his exit in March "was a mutual decision" between the two executives.
"There were issues with him he wrestled with and there were issues I wrestled with," Carey said.
Also, Carey said DirecTV is on track with its local HD plans, with deployment of local HD towards the later part of the year. The first SpaceWay Ka-Band satellite that will support delivery of HD locals is being prepared for a late April launch.
DirecTV Chases Adelphia Subs with Ads
DirecTV is targeting Adelphia with a mass media campaign launching Monday in a number of markets served by the MSO reminding its customers who may be uncertain about the future of their cable provider that there is a pay-TV alternative.
The campaign runs through the end of May in 19 markets, 11 of which will receive spot TV, radio and newspaper advertising from DirecTV. The effort reminds Adelphia customers that the cable operator is in bankruptcy and its assets are up for sale.
"It's an unsettling time to be an Adelphia customer - anything could happen in the next year," a print DirecTV advertisement states. "But you have an alternative."
Markets in the mass media effort include Buffalo, N.Y., Akron-Cleveland, Ohio, Johnstown, Pa., Roanoke-Lynchburg, Va., Los Angeles, West Palm Beach and Ft. Pierce, Fla., Burlington, Vt., Charleston-Huntington, W.Va., Lexington, Ky., Colorado Springs and Pueblo, Colo., and Portland, Me.
FCC Denies Reconsideration of Anik/WildBlue Sat Issues
The Federal Communications Commission dismissed a petition from Anchorage-based satellite retailer Microcom for reconsideration of an earlier FCC decision concerning Anik F2, a Telesat Canada satellite that will deliver Ka-Band-based broadband services into the United States.
The FCC added the Canadian satellite, located at 111.1 degrees, to its permitted space station list and also granted Telesat authority to use Anik F2's Ka-Band capacity to provide two-way broadband services in the United States. The satellite will support WildBlue's U.S. broadband product.
Two weeks after the deadline passed for filing petitions for reconsideration in the matter, Microcom, which sells DBS and StarBand broadband satellite services, filed with the FCC its concerns with the Anik F2 order. In its petition, Microcom requested that certain geographic service requirements be placed on Anik F2's operation to prevent loss of consumer satellite broadband access in Alaska and Hawaii.
The petition was denied as untimely filed by the FCC's International Bureau.
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Dolan Takes VOOM Battle to FCC & Maine Also Mulls Sat TV Tax & Court Hears Brand X Arguments -- Posted by soullezz
on Tuesday, March 29 2005
Dolan Takes VOOM Battle to FCC
Cablevision Chairman Charles Dolan, who wants to take over the VOOM satellite TV service from the company, sent a petition to the Federal Communications Commission earlier this week asking the agency to deny EchoStar's proposed $200 million acquisition of certain VOOM assets.
The joint petition was submitted by VOOM HD LLC, the entity Dolan set up to take over VOOM, and The Association of Consumers to Preserve and Promote DBS Competition. The FCC docket said the filing was submitted on behalf of Dolan, who has been at odds with the company concerning the future of VOOM.
The filing said VOOM HD is in the process of obtaining financial commitments from its controlling investors amounting to $400 million in cash and credit, and it stands "ready, willing, and able to compete for the purchase of the Rainbow DBS transponders located at 61.5 degrees should they once again become available in the market."
As for the EchoStar/Cablevision deal, the petition said the proposed transaction would conflict with an FCC policy of fostering competition and the new entry of DBS service providers. The filing also took aim at EchoStar's proposed acquisition of 11 additional transponders at the DBS orbital slot, and asked whether the deal would serve the public interest.
"By eliminating one of only three facilities-based providers of DBS service to U.S. consumers, the proposed transaction would result in the loss of the highly unique DBS service VOOM offers to its approximately 40,000 subscribers," the petition said. "The proposed transaction thus indisputably conflicts with the agency's stated policy of promoting competition in the DBS marketplace."
In January, EchoStar and Cablevision entered into an agreement in which the cable operator agreed to sell a satellite and other DBS-related assets to EchoStar for $200 million. In a statement released late Tuesday, EchoStar said: "We're perplexed that a member of the Cablevision board of directors would now file an objection after the remainder of the board had already voted to sell the Rainbow satellite. Nonetheless, we remain committed to completing the deal and using the spectrum to help us compete in a growing pay TV marketplace."
Following the EchoStar/Cablevision deal, Dolan established VOOM HD LLC to take over any remaining assets of the struggling satellite TV service. Dolan also pressured Cablevision to stop its plans to shut down VOOM at the end of the month.
Maine Also Mulls Sat TV Tax
And yet another state has joined the fray over satellite TV taxes.
Lawmakers in Maine are debating a tax on satellite TV services delivered to consumers in the state. The levy is being described as leveling the playing field between cable and satellite TV, since cable customers pay a 5 percent sales tax but satellite subscribers do not pay the same levy.
The current budget being debated by the Maine legislature would apply the same 5 percent tax to satellite services.
In other parts of the country, the Nevada General Assembly is working on legislation that would impose a 5 percent levy on satellite TV subscribers in the state. And Kentucky Gov. Ernie Fletcher recently signed into law a state budget that imposes a new tax on the state's satellite TV subscribers amounting to at least 3 percent.
Court Hears Brand X Arguments
As expected, the cable industry asked the Supreme Court on Tuesday to uphold regulations from the Federal Communications Commission that would keep its broadband offerings as a deregulated service.
The action was part of the high court's hearing of oral arguments in the so-called Brand X case. The court is weighing whether the FCC was correct in categorizing cable modem broadband offerings as information services.
Progress and Freedom Foundation Senior Fellow Randolph May, who attended the oral arguments, said he hopes the FCC and cable industry prevail. "Surprisingly, except for Justice Stephen Breyer's persistent questions, there was little discussion at the argument concerning the deference due the agency's interpretation regarding what, in my opinion, are inherently ambiguous statutory provisions - the definitions of 'information' and 'telecommunications' services," he said.
Internet service providers have been fighting for access to cable's broadband lines.
Earthlink said at issue is whether consumers "will be able to choose their broadband provider over cable and ultimately, over DSL as well. More broadly, it will determine whether a wide variety of innovative voice, video and data services become available, or whether Internet users will be limited to only those services their cable company provides."
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A Pivotal Week for VOOM & Cable Eyes Brand X at High Court & DISH Ready for Comcast SportsNet Chicago -- Posted by soullezz
on Sunday, March 27 2005
A Pivotal Week for VOOM
This could be a pivotal week for Cablevision and its struggling VOOM satellite TV service.
Cablevision's agreement to maintain VOOM expires Thursday, March 31. The company and its chairman, VOOM backer Charles Dolan, agreed earlier in the month to keep VOOM up and running while Dolan figured out how to take over the satellite TV service from the cable company.
Cablevision was planning to shut down VOOM this week, but gave Dolan time to put together a transaction after he replaced members of the Cablevision board, among other strategic moves.
While the VOOM deadline is Thursday, "This does not necessarily mean that the service will be shut down," said Tom Eagan of Oppenheimer and Co. "We expect Cablevision to extend the agreement."
However, Eagan said long term it's likely EchoStar will buy the VOOM programming suite in addition to the satellite supporting the satellite TV service. EchoStar agreed in January to buy the VOOM satellite, known as Rainbow 1, and other satellite-related assets for $200 million.
"We doubt that EchoStar wants to 'waste' the satellite's transmission capacity on the VOOM service," Eagan said. "Moreover, after the satellite sale closes, EchoStar may look to transfer VOOM subscribers over to the DISH platform. Until then, VOOM's success could be DISH's success."
Also, this week, the first round of comments concerning EchoStar's takeover of the Rainbow 1 satellite are due at the Federal Communications Commission.
Cable Eyes Brand X at High Court
The cable business will have its eyes on Washington, D.C., Tuesday as the Supreme Court hears oral arguments on the Brand X case.
At issue in the case is whether cable companies should be forced to lease their wires at a discount to Internet service providers so they can sell consumer broadband service. Cable has fought the initiative, and the Federal Communications Commission has said similar regulations for the phone industry have led to higher prices and slower broadband growth.
The cable industry will be looking for a decision that its high speed services are information, not telecommunications services, and therefore not subject to regulation, which would reaffirm the FCC's earlier decision on the matter. ISPs are hoping for a court ruling that cable services are subject to open access rules.
DISH Ready for Comcast SportsNet Chicago
EchoStar and Comcast SportsNet made the announcement official: They signed a multi-year carriage agreement for the delivery of Comcast SportsNet Chicago, a regional sports network serving Chicago-area sports fans. The service will be available to subscribers in five states via the satellite TV service.
Beginning March 30, fans of the Chicago Bulls, Chicago White Sox, Chicago Cubs and Chicago Blackhawks can watch their teams as part of DISH Network's America's Top 60 Plus programming packages and above, EchoStar said. Subscribers of DISH Latino Dos, DISH Latino Max, Latino Everything Pak and Multi-Sport packages also are eligible to receive Comcast SportsNet Chicago.
Comcast SportsNet plans to carry more than 250 regular season games for the White Sox, Cubs, Bulls and Blackhawks, and feature live pre- and post-game coverage for each team. Comcast SportsNet also has locally produced programming including SportsNite, SportsRise and SportsDay. In addition, the network is home to collegiate sporting events and live press conferences.
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Copps Praises Satellite for its Accomplishments & New Vehicle Deals for XM, Sirius & SES Americom Prepares for AMC-18 -- Posted by soullezz
on Wednesday, March 23 2005
Copps Praises Satellite for its Accomplishments
Michael Copps of the Federal Communications Commission praised the satellite business for its accomplishments in delivering competition to the pay-TV business as well as bringing new technology to consumers during a speech before the Folger Library Dinner hosted by the Satellite Broadcasting and Communications Association and the Satellite Industry Association.
Copps pointed out that DBS accounts for about a quarter of pay-TV subscriptions today. And he said at the dinner held earlier this week that satellite radio has amazed everyone with its success.
The FCC commissioner also said, "Satellites are critical to rural America, both for the delivery of multichannel video and audio and for telecommunications. Their potential to help bring broadband to remote areas of the country is very real and very promising, and it should command the ongoing attention of policy-makers."
Copps also addressed homeland security concerns. Since the 9/11 terrorist attacks, the FCC has taken several steps to strengthen the communications infrastructure, he said, including the allocation of more spectrum for public safety and the implementation of 911 using the satellite GPS system.
New Vehicle Deals for XM, Sirius
Hyundai Motor America announced that it will be the first automaker to launch XM Satellite Radio as standard, factory-installed equipment in every vehicle across its entire model line-up.
Starting in 2006, XM radios will be factory-installed in all Hyundai models, beginning with the Sonata, Santa Fe, Elantra and the upcoming replacement for the XG350 premium sedan. By the end of 2006, 75 percent of Hyundai's sales volume will be XM-equipped, with the remaining models following thereafter, totaling more than 500,000 units by 2007, XM said.
Meanwhile, Mercedes-Benz announced the availability of Sirius as a factory-installed option for the next-generation 2006 Mercedes-Benz M-Class Sports Utility vehicle beginning next month. Also, Sirius said Jaguar plans to offer Sirius as a dealer-installed accessory in four 2005 model vehicle lines this May.
SES Americom Prepares for AMC-18
SES Americom is getting a new satellite in 2006, designated AMC-18.
The satellite will operate at 105 degrees, the same location where SES spacecraft will deliver services for EchoStar's DISH Network. The bird will carry cable programming.
Lockheed Martin Commercial Satellite Systems will build the A2100 spacecraft, and Arianespace has been contracted to launch the satellite in the second half of 2006, SES said.
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New Product Review! & Satellite TV Fights Higher Regulatory Fees & Satellite TV Fights Higher Regulatory Fees & FCC Picks Up ACA Petition on Retrans -- Posted by soullezz
on Sunday, March 20 2005
New Product Review
We received the Coolsat 4000 Pro from Global Wholesalers for review a few days ago.
The shipping package arrived in good condition. Although it is surprisingly small and light weight this unit packs some powerful features... Click Here to read the full review.
Satellite TV Fights Higher Regulatory Fees
On Friday, DirecTV and EchoStar filed joint comments with the Federal Communications Commission urging the agency to reject what they say are cable industry attempts to impose higher regulatory fees on the satellite TV competition.
The comments are part of the FCC's assessment of regulatory fees for fiscal 2005, and suggested that cable is seeking to use the commission's regulatory fee proceeding "to augment its dominance in the market and hinder competition by raising costs to DBS operators. The commission should not - and legally cannot - allow this to happen," the companies' joint filing said.
The filing said satellite TV operators impose a "significantly lower regulatory cost burden" on the FCC than cable operators. "Because practically all incumbent cable operators are dominant MVPDs (multichannel video program distributors) in their franchise areas, each is subject to a variety of policies - including a federally supervised rate regulation regime - not applicable to DBS operators," the DBS companies said.
"These factors naturally result in many FCC proceedings involving cable systems that involve DBS peripherally at most," the filing stated.
In another item, the filing suggested that cable has attempted to raise the costs for its satellite TV rival by lobbying in at least eight states for increased taxes on DBS services. "Indeed, one of NCTA's (National Cable and Telecommunications Association) members appears to have amassed a political 'war chest,' contributions from which will flow only to elected officials who sign a pledge to raise DBS taxes," the filing stated.
Satellite TV Fights Higher Regulatory Fees
On Friday, DirecTV and EchoStar filed joint comments with the Federal Communications Commission urging the agency to reject what they say are cable industry attempts to impose higher regulatory fees on the satellite TV competition.
The comments are part of the FCC's assessment of regulatory fees for fiscal 2005, and suggested that cable is seeking to use the commission's regulatory fee proceeding "to augment its dominance in the market and hinder competition by raising costs to DBS operators. The commission should not - and legally cannot - allow this to happen," the companies' joint filing said.
The filing said satellite TV operators impose a "significantly lower regulatory cost burden" on the FCC than cable operators. "Because practically all incumbent cable operators are dominant MVPDs (multichannel video program distributors) in their franchise areas, each is subject to a variety of policies - including a federally supervised rate regulation regime - not applicable to DBS operators," the DBS companies said.
"These factors naturally result in many FCC proceedings involving cable systems that involve DBS peripherally at most," the filing stated.
In another item, the filing suggested that cable has attempted to raise the costs for its satellite TV rival by lobbying in at least eight states for increased taxes on DBS services. "Indeed, one of NCTA's (National Cable and Telecommunications Association) members appears to have amassed a political 'war chest,' contributions from which will flow only to elected officials who sign a pledge to raise DBS taxes," the filing stated.
FCC Picks Up ACA Petition on Retrans
On Friday, the Federal Communications Commission released for public comment a petition from the American Cable Association asking for a rulemaking concerning retransmission consent and network non-duplication rules.
The petition asks the FCC to examine regulations that ACA said the big four TV networks and broadcast stations are using to create an unfair marketplace to prop up the price for retransmission consent of local stations. ACA said its petition asks the FCC, among other things, to remove network non-duplication protection for broadcast TV stations that elect retransmission consent and give cable operators and consumers the "right to shop" for carriage of other network stations.
"By its action to open this petition for public comment, the FCC is acknowledging that important issues concerning retransmission consent require further scrutiny," said Matt Polka, ACA president and CEO. "ACA appreciates the action taken today by the commission, and we look forward to providing the facts and examples necessary to remedy retransmission consent abuse."
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EchoStar Reveals Info on Accounting Probe, Lawsuit Dismissed & DirecTV Addresses Alaska Service Concerns -- Posted by soullezz
on Thursday, March 17 2005
EchoStar Reveals Info on Accounting Probe, Lawsuit Dismissed
For the first time, EchoStar disclosed that an internal investigation was conducted concerning a handful of record keeping/accounting issues at the satellite TV company. EchoStar made the revelations in a quarterly filing that was sent to the Securities and Exchange Commission late Wednesday afternoon.
While some issues were discovered concerning the record keeping, the EchoStar filing said the company has implemented changes to correct any deficiencies.
The company said in the SEC filing that its audit committee recently completed a review of record keeping and internal control issues related to vendor and third party relationships, and concluded that the company's record keeping in prior years and the current control environment "were deficient."
Also, the filing said the review found one instance in which an unnamed executive in charge of certain business functions directed the preparation - in prior years - of inaccurate documentation that was used to determine payments made to a vendor. The filing further stated that management evaluated the issue "and determined that it constitutes a 'significant deficiency' in the company's internal control over financial reporting."
Despite the determination, no adjustments to consolidated financial statements were required as a result of the review, and none were made, the company said. "We are, however, implementing several changes recommended by the Audit Committee to our governance, operating and control policies and procedures. We have also taken disciplinary action and other steps to remediate the conduct underlying the deficiencies identified by the Audit Committee's review," the filing said.
EchoStar said that after press reports surfaced earlier this week about the potential accounting issues the company received a call from the Securities and Exchange Commission inquiring about the matter. The company said it intends to fully respond to any SEC inquiry.
Meanwhile, Atlanta law firm Chitwood and Harley said it dismissed a securities fraud class action complaint it filed last week in U.S. District Court in Colorado against EchoStar concerning reports about the accounting matter.
DirecTV Addresses Alaska Service Concerns
DirecTV responded to concerns sent to the Federal Communications Commission about its service to Alaska, telling officials it faces challenges in serving the state but that it's making progress addressing the issue.
In a letter sent to the FCC Wednesday, DirecTV said, "It is important to recognize as the commission has explicitly noted that there historically have been and remain significant technical and operational challenges with respect to serving Alaskan DBS subscribers. However, in light of these technical challenges, DirecTV's service has been reasonably comparable to the service offered to subscribers in the continental U.S. and has consistently improved over the years."
Some Alaska interests, including Anchorage-based retailer Microcom, have complained to the FCC about DirecTV's service to the state, saying it doesn't come close to matching its efforts in the lower 48 states.
DirecTV said it continues work on improving service to Alaska subscribers. The company also said it would work with Microcom and others "to make its Alaska service even better in the coming months."
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Editors Note: Bad Timing :( & Interim Deal Keeps VOOM Alive -- Posted by soullezz
on Wednesday, March 9 2005
Bad Timing :(
The key change during this period of site maintenance and upgrades had the unfortunate effect of crashing our sites last nite. We apologize for the inconvenience and will have the site back up and running fully and smoothly as quickly as possible.
Thanks
Soullezz
Interim Deal Keeps VOOM Alive
Cablevision said it entered into an agreement with its chairman, Charles F. Dolan, and his son Thomas Dolan in which they agreed to work cooperatively and finalize a separation of Cablevision and its Rainbow DBS operation.
The agreement allows Rainbow DBS to remain in operation and continue to provide VOOM service to subscribers while the Dolans seek to arrange an alternate transaction that would avoid a shutdown of the satellite TV business, the company said. Charles Dolan has agreed to fund any costs incurred by Rainbow DBS above those that would have been incurred under a shutdown scenario, Cablevision added.
The agreement, which was approved by the Cablevision board during a meeting Tuesday, terminates on March 31, Cablevision said.
The move follows last week's threatened shut down of the service by Cablevision, which the company postponed after Charles Dolan placed new members on the cable company's board.
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No Board Decision on VOOM -- Posted by soullezz
on Monday, March 7 2005
The Wall Street Journal reported late Monday that Cablevision's new board met for the first time Monday but took no action concerning company Chairman Charles Dolan's move to buy the remaining assets of the struggling VOOM satellite TV service.
Cablevision had agreed to sell a satellite and other assets to EchoStar for $200 million in January. Then, Dolan established VOOM HD to take over the remaining VOOM assets. He couldn't close a deal to acquire those assets, which led Cablevision to announce it would shut down VOOM at the end of this month.
However, Dolan managed to place new members on Cablevision's board last week, and that compelled the company to suspend its shut down of the VOOM service. Cablevision revealed that Dolan wants to speak with EchoStar about gaining access to the satellite it wants to buy from the New York-based company, and reportedly Dolan was going to report to the board Monday about his progress in getting a deal as well as securing the remaining VOOM assets.
The Journal reported that the Cablevision board met for more than two hours. New board members include Liberty Media Chairman John Malone and Frank J. Biondi, Jr., a former president and CEO at Viacom, former chairman and CEO of Universal Studios, and former chairman and CEO at HBO.
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No Board Decision on VOOM -- Posted by soullezz
on Monday, March 7 2005
The Wall Street Journal reported late Monday that Cablevision's new board met for the first time Monday but took no action concerning company Chairman Charles Dolan's move to buy the remaining assets of the struggling VOOM satellite TV service.
Cablevision had agreed to sell a satellite and other assets to EchoStar for $200 million in January. Then, Dolan established VOOM HD to take over the remaining VOOM assets. He couldn't close a deal to acquire those assets, which led Cablevision to announce it would shut down VOOM at the end of this month.
However, Dolan managed to place new members on Cablevision's board last week, and that compelled the company to suspend its shut down of the VOOM service. Cablevision revealed that Dolan wants to speak with EchoStar about gaining access to the satellite it wants to buy from the New York-based company, and reportedly Dolan was going to report to the board Monday about his progress in getting a deal as well as securing the remaining VOOM assets.
The Journal reported that the Cablevision board met for more than two hours. New board members include Liberty Media Chairman John Malone and Frank J. Biondi, Jr., a former president and CEO at Viacom, former chairman and CEO of Universal Studios, and former chairman and CEO at HBO.
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