News Archive
NAB Keeps Up Multicast Fight & Coalition Pushes Issues Tied to DTV Transition & Texas Fails to Pass Telco Legislation & Venting on VoIP -- Posted by soullezz
on Monday, May 30 2005
NAB Keeps Up Multicast Fight
The National Association of Broadcasters kept up its fight concerning multicast at the Federal Communications Commission, commenting on a petition from the Minority Media and Telecommunications Council that deals with the topic.
Earlier, the council suggested that the FCC should define primary video from a broadcaster as a programming stream, broken into 12-hour segments. In each 12-hour segment, a specified minimum number of hours of local content should be provided to qualify for cable carriage, the council said.
NAB and the Association for Maximum Service Television rejected the idea. The groups said there's no regulation that makes carriage of free commercial broadcasting streams a discretionary matter. Second, the groups called the proposal impractical.
The NAB said, "The commission should ... decline to place any condition on digital carriage rights that would undermine the flexibility of broadcasters to adapt to the needs of their local communities or raise the specter of content-based regulation."
The association also took aim at the FCC's earlier decision on multicasting, saying the commission made a mistake when it ruled that the 1992 Cable Act does not require cable operators to carry both analog and digital signals and the free digital multicasting streams of local commercial stations.
Despite the FCC's decision earlier this year to exempt cable companies from forced carriage of broadcast multicasting material, the NAB and broadcasters keep pushing the issue at the Portals. Broadcasters want cable companies to carry any additional channels they may deliver - in addition to their primary signal - that may be contained in digital broadcast spectrum.
Coalition Pushes Issues Tied to DTV Transition
As the debate on the digital TV switch heated up last week, the Coalition for a Smart Digital TV Transition asked lawmakers to ensure that consumers who rely on over-the-air reception are not disenfranchised during the shift.
The coalition's move came in response to a legislation draft that was scrutinized during a House Telecommunications Subcommittee hearing last week. "It is critical that consumers relying on over-the-air reception of broadcast television, together with the 73 million owners of analog television sets, are not disenfranchised by this transition," said Manuel Mirabal, co-chair and founder of the Hispanic Technology and Telecommunications Partnership, a group that's a member of the coalition.
The coalition said its members, which include consumer, minority, labor, and communications and agricultural groups, are concerned about three critical elements that are currently missing from the proposed/draft digital television plan. The organization also outlined three primary changes for the proposed legislation:
*The legislation must include a provision to compensate low-income Americans for the cost of set-top converter boxes;
*The legislation should authorize multicast must-carry;
*The legislation needs to ensure that cable systems provide subscribers with traditional, analog televisions with the signal from all local broadcasters, while also providing the full, HDTV signal to those subscribers who have invested in a digital television set.
Said Larry Mitchell, spokesperson, the Alliance for Rural Television, "It is vital that the legislation mitigate the economic impact to rural residents who will be required to purchase expensive equipment to receive programming via free over-the-air, cable or satellite broadcasting. In sparsely populated areas with little or no access to traditional cable or satellite systems, there will be disproportionate impact to rural residents - often on a fixed-income - and to rural schools, libraries, hospitals and nursing homes."
Texas Fails to Pass Telco Legislation
Texas lawmakers could not pass legislation that would have allowed phone companies to negotiate a single statewide license with the state's Public Utility Commission to offer television programming and other advanced communications services.
If the bill passed, phone companies wouldn't be forced to acquire franchises through local governments.
The bill would have helped SBC Communications and Verizon with their plans to roll out fiber-based services to consumers, which would offer video, phone and broadband. The bill was opposed by cable providers, which said the bill unfairly favored the regional phone companies.
Venting on VoIP
Every up must have its down and, judging from recent news, VoIP is on that slope. The hot digital telephone offering, much beloved by cable cos, is under attack on several fronts.
First, of course, is the great 911 debate as VoIP's inability to pinpoint some distressed callers has led to safety concerns.
Thus last week, the FCC ruled that "interconnected" VoIP providers must offer standard 911 services with demonstrations of their compliance by mid-September. This, as noted by Internet Telephony Conference chairman Rich Tehrani in an interview Wired, "may make it difficult to provide inexpensive VoIP service." But such are the downs that come with growth.
That's not the only down likely to come VoIP's way. Writing in the May 2005 Business Communications Review, well-known telco consultant Richard Kuehn notes that, because of its classification as an "information service" (the outgrowth of a 20-year-old FCC decision to promote data services), VoIP remains free from all taxes and surcharges, including the Universal Service Fund.
Since such taxes and surcharges make up as much as 30 percent of monthly phone bills, this means that "right off the bat, VoIP service enjoys a 30-percent price advantage," says Kuehn.
Think maybe this will come up as Congress eyes a possible rewrite of the 1996 Telecommunications Act? Think there's any way it won't come up?
as seen on skyreport
Broadcasters, CE Interests Debate DTV on Hill & DISH, Sinclair Reach Temporary Deal & Sat TV Jumping Too Soon on Significantly-Viewed? -- Posted by soullezz
on Friday, May 27 2005
Broadcasters, CE Interests Debate DTV on Hill
Broadcast and consumer electronics interests faced off again about the nation's switch to digital television, this time during testimony before the House Telecommunications Subcommittee.
The Congressional panel took comments on the DTV switch and a staff discussion draft of the Digital Television Transition Act of 2005, legislation that began circulating on Capitol Hill earlier this week.
Jim Yager, CEO of Barrington Broadcasting, said broadcasters are ready for the digital TV transition. "Let me be very clear. All broadcasters - large and small - want to see the DTV transition brought to a successful close," he said.
But Yager warned about the impact a hard DTV transition date - as proposed in draft legislation released this week - could have on TV viewers who still watch over-the-air TV. "Under the draft's hard date, viewers will either lose their television service or have to pay for converter boxes, or even worse subscribe to pay TV, all just to keep something they currently get for free," he said.
Yager presented data that suggests there are 21 million U.S. households that rely exclusively on over-the-air TV reception.
In addition, Yager said many of these viewers are in economically vulnerable demographics, including low-income senior citizens who he said are disproportionately dependent on off-air reception. Also, African American households are 22 percent more likely to rely exclusively on over-the-air reception, and 43 percent of Spanish-language households rely solely on over-the-air TV, he said.
Gary Shapiro, president and CEO of the Consumer Electronics Association, also testified before the subcommittee. He urged Congress to stick with a hard DTV transition deadline, which he said will provide certainty for consumers, manufacturers and all others involved in the switch.
"It is right for consumers, it is right for innovation and it is right for America's national security," he said.
"While an analog broadcast cut-off is important for our nation, it will have little practical impact on the viewing habits of the vast majority of Americans," Shapiro added. "At the same time, some consumers may be adversely affected by a hard date. That's why we respect and understand the interest in creating a program whereby those viewers would have access to low cost digital to analog converters."
DISH, Sinclair Reach Temporary Deal
A temporary fix was reached concerning the retransmission consent negotiations between EchoStar and Sinclair Broadcast Group.
On its Web site, Sinclair said the existing deal between the companies has been extended for an additional two months in an effort to continue contract negotiations. "Although there can be no assurance that these negotiations will be successful, it is our hope to reach a long-term agreement," the company said.
The existing carriage agreement between the companies, which allows DISH Network to carry Sinclair's TV stations, was scheduled to expire on May 31. EchoStar confirmed to CableFAX Daily that an agreement had been reached, but offered no further comment.
Sat TV Jumping Too Soon on Significantly-Viewed?
Is satellite TV jumping the gun when it comes to delivering significantly-viewed stations to consumers?
The National Association of Broadcasters said this week it conducted a conference call with officials at the Federal Communications Commission to discuss concerns that DBS operators are providing notices to stations of their intent to commence delivery of significantly-viewed stations into outside markets. The talked-about move by satellite TV companies comes prior to the issuance of FCC rules governing the carriage of significantly-viewed stations, NAB said in its FCC filing.
"Our specific concerns addressed possible scenarios under which DBS operators might commence carriage of significantly viewed stations in ways that could violate rules subsequently adopted by the commission," NAB said in the filing. The association's call took place with personnel from the FCC's Media Bureau.
In a statement, DirecTV spokesperson Bob Marsocci said, "The FCC is aware of our plans to offer significantly viewed stations prior to adoption of final FCC rules. As for the NAB letter, we're aware of it and we are reaching out to NAB to see what their concerns are and how we can address them."
EchoStar didn't offer a comment.
When it began work on the issue, the FCC in its notice on significantly-viewed stations said due to a short timeframe for enactment of its rules "we believe that Congress intends for satellite carriers to make use of the (significantly-viewed) list to expand their carriage offerings so that their subscribers can begin to experience the benefits ... as soon as possible."
Satellite TV is preparing to offer significantly-viewed stations to its customers residing in markets outside a station's core coverage area. The significantly-viewed mandate is part of the Satellite Home Viewer Extension and Reauthorization Act, and the FCC is working on final rules for significantly-viewed stations.
as seen on skyreport
Editorial with news post: Fair Warning & Second Spaceway Bird Getting Ready for Launch & Telesat Launches Sat Broadband for Canada & An Unusual Downgrade for a DBS Stock -- Posted by soullezz
on Wednesday, May 25 2005
Fair Warning
Editorial Comment: For those that thought Movies were safe, ponder one thing....If a hundred million is spent on production, and it only makes 50 million at the box office.....then you're caught selling pirated copies! YES, you can be held liable for the production companies losses, which may include projected income over the original cost! There are many of you out there that were warned that this was coming, but no one listened and now you have movies being downloaded with trackers in them that will trip local servers installed and owned by the FBI. Never take your local internet provider for granted, they are not on your side, they are on the side of what keeps them in business and makes them money.
WASHINGTON -- Federal raiders. Internet pirates. Intergalactic screen adventures. The government announced a crackdown Wednesday on the theft of movies and other copyright materials that has the elements of a film plot.
Federal agents shut down a Web site that they said allowed people to download the new Stars War movie even before it was shown in theaters.
The Elite Torrents site was engaging in high-tech piracy by letting people download copies of movies and other copyright material for free, authorities said.
The action was the first criminal enforcement against individuals who are using cutting-edge BitTorrent software to obtain pirated content online, Justice and Homeland Security Department officials said.
Elite Torrents had more than 133,000 members and offered 17,800 movies and software programs in the past four months, officials said. Among those titles was "Star Wars: Episode III _ Revenge of the Sith," which was available through Elite Torrents six hours before its first showing in theaters, the officials said.
The movie was downloaded more than 10,000 times in the first 24 hours.
Authorities served search warrants in 10 cities against computer users accused of being the first to offer copyright materials to other BitTorrent users on the Web site, Homeland Security's Customs and Immigration Enforcement agency said. The cities are: Austin, Texas; Erie, Pa.; Philadelphia; Wise, Va.; Clintonwood, Va.; Germantown, Wis.; Chicago; Berea, Ohio; Anthem, Ariz., and Leavenworth, Kan.
Authorities said the warrants were still under seal.
Investigators said many of the copyright movies were available through the Web site before their commercial release.
President Bush signed a new law last month setting tough penalties of up to 10 years in prison for anyone caught distributing a movie or song prior to its commercial release.
"Today's crackdown sends a clear and unmistakable message to anyone involved in the online theft of copyrighted works that they cannot hide behind new technology," said John C. Richter, acting assistant attorney general.
People trying to access the elitetorrents.org Web site on Wednesday were greeted with a warning about the penalties for copyright infringement, although officials said the investigation is focusing on those who originally offered the pirated materials.
The message also said: "This site has been permanently shut down by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement. Individuals involved in the operation and use of the Elite Torrents network are under investigation for criminal copyright infringement."
BitTorrent has become the file-sharing software of choice because of its speed and effectiveness, especially after the recording industry last year began cracking down on users of Kazaa, Morpheus, Grokster and other established software.
The peer-to-peer software works by using tracker files that are posted online. The tracker files point to users who are sharing a given file, be it a pirated feature film or a home movie. BitTorrent then assembles complete files from multiple chunks of data that it obtains from everyone who is sharing the file.
The Motion Picture Association of America assisted in the investigation that led to Wednesday's action against Elite Torrents, officials said.
"Shutting down illegal file swapping networks like Elite Torrents is an essential part of our fight to stop movie thieves from stealing copyrighted materials," said the group's president, Dan Glickman.
Hollywood movie studios last year sued many operators of computer servers that use BitTorrent technology to help relay digital movie files across the Internet. The group also sued six sites this month that focus on swapping television programs.
Second Spaceway Bird Getting Ready for Launch
DirecTV's Spaceway F2 satellite, the second of two Spaceway birds that will allow the company to expand digital and high-def programming for its customers, has arrived at the Guiana Space Center in Kourou, French Guiana, and is going through preparations for launch next month, the company said.
The spacecraft is one of four satellites DirecTV is launching during a two-year period as part of a dramatic in-orbit expansion. The satellites will enable DirecTV to deliver more than 1,500 local and more than 150 national HD channels and other advanced programming services to consumers nationwide by 2007.
Spaceway F1 launched in late April.
The Boeing-built satellite will be carried into space by an Ariane 5 launch vehicle and is expected to be ready for commercial service in early fall at 99.2 degrees, one of two Ka-Band orbital slots DirecTV will use to transmit local digital and HD signals via spot beam to its customers.
Telesat Launches Sat Broadband for Canada
Ka-Band-supported satellite broadband service is now available north of the border.
Telesat Canada announced on Wednesday the launch of a two-way satellite broadband service. The offering, supported by Ka-Band capacity aboard the company's Anik F2 satellite, delivers always-on, always-ready high-speed Internet connectivity throughout the country, the Ottawa-based company said.
The broadband satellite service is available to consumers through multiple distributors across Canada, including Barrett Xplore, Infosat Communications, Telebec, NorthernTel and Northwestel Cable. Barrett Xplore has started a regional roll-out and is planning to offer the service nationally within the coming weeks, Telesat said.
Telesat said its broadband service offers multiple tiers, including speeds as high as 2Mbps and 0.5 Mbps for download and upload capabilities, respectively.
The Telesat Anik F2 satellite also will support WildBlue's satellite broadband offering in the United States when it launches next month. Telesat is one of a handful of investors in WildBlue.
An Unusual Downgrade for a DBS Stock
On Wednesday, Doug Shapiro of Banc of America Securities delivered an unusual downgrade of a satellite TV stock. He lowered his rating on EchoStar from "buy" to "neutral" and reduced his price target to $32 from $37.
Shapiro said the change reflects his belief that the risk/reward for the company is no longer that compelling.
"We are more concerned about gross add comps in 2005. In aggregate, we calculate that fewer local TV launches, tougher competition in the NRTC (National Rural Telecommunications Cooperative) territories, tougher competition in the Hispanic market and less contribution from SBC could create a gap of 400,000-500,000 gross adds this year," the analyst said.
In a research note, Shapiro said EchoStar "could technically go private tomorrow, but we think this is unlikely for roughly a year and we don't expect much buyback in the interim."
as seen on skyreport
FCC Moves on DISH Sat Moves, Including Mexican Slot & WildBlue Sets 'Backyard' Debut for June -- Posted by soullezz
on Thursday, May 19 2005
FCC Moves on DISH Sat Moves, Including Mexican Slot
On Thursday, the International Bureau at the Federal Communications Commission denied a request from EchoStar to move one of its satellites to various orbital locations, including one controlled by a Mexican entity.
EchoStar had filed an application at the FCC requesting authority to relocate its EchoStar 4 satellite from the 157-degree orbital location to the 61.5-degree location. As part of the 61.5-degree move, the company made a request to temporarily relocate EchoStar 4 at the Mexican-controlled 77-degree orbital location for 180 days, and to keep the satellite at 61.5 degrees pending FFC action on the temporary 77-degree move request.
The bureau order concerning the EchoStar application stated that EchoStar told the commission it intends to operate EchoStar 4 at the 77-degree orbital location through a Mexican Broadcast Satellite Service (BSS) authorization granted to QuetzSat, an entity licensed by Mexican officials. EchoStar told the FCC that the satellite must be at the 77-degree orbital location by July 1 to satisfy the International Telecommunication Union (ITU) rules.
In denying the application, the FCC bureau said the request is inconsistent with its fleet management procedures. The bureau also said EchoStar had not justified a grant of special temporary authority to relocate EchoStar 4 at 61.5 degrees.
Concerning the FCC move, EchoStar said, "We hope to work with the FCC to better educate them about our plans, providing them with additional information that could prompt them to reconsider and expeditiously allow us to reposition the satellite."
WildBlue Sets 'Backyard' Debut for June
It's official - WildBlue will begin its commercial service rollout during the first week in June.
As part of the early rollout of WildBlue, the company selected Bijou Telephone Cooperative, a member of the National Rural Telecommunications Cooperative, as the NRTC member that will install WildBlue's first customer, the company announced Thursday. Bijou provides telephone and dial-up Internet services to about 2,500 customers along the Interstate 70 corridor from the East side of Denver to the small town of Limon, near WildBlue's headquarters in the suburban part of the city.
As previously announced, WildBlue initially will be available through participating NRTC members.
WildBlue's satellite Internet service provides high-speed Internet connections to homes and small businesses in communities in the continental U.S. not currently served, or underserved, by other high speed providers. The company has backing from NRTC, Liberty Media, Intelsat, Kleiner Perkins Caufield and Byers, and Telesat Canada.
as seen on skyreport
DISH, Sinclair Square Off on Retrans Deal & Stevens Talks About Indecency at ACA Event & Al-Jazeera To Launch English-Language Channel & HDTV Delivers for PanAmSat -- Posted by soullezz
on Tuesday, May 17 2005
DISH, Sinclair Square Off on Retrans Deal
It appears EchoStar is in the middle of a retransmission consent negotiation that's going down to the wire, this time with Sinclair Broadcast Group.
Sinclair said an agreement with EchoStar that allows its stations to be carried by DISH Network is set to expire May 31. "Despite the good faith efforts of Sinclair to arrange for an extension of this agreement with EchoStar Communications, the owner of the DISH Network, we have been unable to reach an agreement to do so," the company said in a statement posted on its Web site.
The broadcaster added, "Although we continue to negotiate with EchoStar, there can be no assurance that these negotiations will be successful and if they are not, Sinclair stations will no longer be able to be viewed by DISH subscribers over their satellite service beginning on Wednesday, June 1."
In a statement, EchoStar said the Sinclair stations remain on DISH Network while the company continues "to negotiate in good faith a fair retransmission agreement." EchoStar would not offer further comment.
Sinclair said in its Web site statement that if DISH Network drops its stations they will still be available over-the-air and through cable as well as DirecTV. Sinclair and DirecTV recently concluded negotiations for an extension of their retransmission consent agreement.
Sinclair Broadcast Group owns and operates, programs or provides sales services for 61 television stations in 38 markets. The company said its television group reaches about 23 percent of U.S. television households and includes ABC, CBS, FOX, NBC, WB, and UPN affiliates.
Key markets with Sinclair stations include Las Vegas, Oklahoma City, San Antonio, Tampa, Minneapolis, Milwaukee, Pittsburgh, Cincinnati, Baltimore, Kansas City, Nashville, and St. Louis, among others.
Stevens Talks About Indecency at ACA Event
Indecency and retransmission consent were hot topics at the American Cable Association's 12th annual Washington, D.C., summit Monday.
The event included remarks from Senate Commerce Committee Chairman Ted Stevens (R-Alaska), who told the gathering about the need for "decent family viewing" on cable. "I do believe that the concepts of must-carry and carrying television programming onto cable has brought about some change, but there's no question that the prohibitions on the over-the-air broadcasters ought to be met equally by anyone who is providing the services to the American family home," Stevens said.
The senator advocated for a family tier of programming. "I'm learning more and more about that, that it may not be economically possible, but I think we ought to come as close to it as we can," Stevens said.
On the retransmission consent side, Cebridge CEO Jerry Kent said his company supports the ACA's proposal that would allow cable operators to import distant signals whenever a station demands cash payment or other consideration for its signal. "It's an important first step and is consistent with the core principles of the free market system. Competition is the best governor on pricing," Kent said.
Al-Jazeera To Launch English-Language Channel
Arabic satellite television channel al-Jazeera has officially thrown its hat into the ring in the increasingly combative arena of news' viewpoints.
Seeking to bring an Arabic viewpoint to the flow of news, al-Jazeera says it plans to launch an English language channel next year. According to a report in the Financial Times, the new channel will focus on developing world issues with reports emanating from four main centers, Doha, Kuala Lumpur, London and Washington, D.C. As with existing al-Jazeera talk shows, and the channels web sites, the new channel will encourage audience participation.
No word yet on which U.S. multimedia platforms might carry the channel. The Arabic-language al-Jazeera channel is currently offered only by the DISH Network via its Arabic-language packages.
HDTV Delivers for PanAmSat
Video distribution, which includes a growing business that's supporting the delivery of HDTV, helped PanAmSat achieve a good first quarter.
The company said first quarter revenues were $208.8 million, compared to revenues of $205.4 million for the same quarter last year, representing an increase of 1.6 percent. Program distribution and video services revenues, the core parts of PanAmSat's business, grew 8.4 percent during the three-month period when compared to first quarter 2004, the company said.
"Our year-over-year revenue growth was predominantly driven by our core video business, where we are continuing to realize incremental capacity sales for the delivery of high definition television programming to cable distribution systems over our satellites," said PanAmSat CEO Joe Wright.
Wright said his company has a 70 percent market share in HDTV full-time cable delivery within the United States.
During the past year, the satellite services company has strengthened its HDTV programming neighborhoods to include such customers as Fox, NFL and The Outdoor Channel. The addition of these customers, PanAmSat delivers high-def for HBO, Cinemax, ESPN, STARZ Encore, TNT, Warner Brothers, HDNet and Wealth TV.
as seen on skyreport
Z-TV.us - eXtreme IPTV! (Read this! You won't regret it!) -- Posted by soullezz
on Wednesday, May 11 2005
Z-TV.us
Z-TV's newest product is phenomenal!
What can we say about it except ... WOW!!
Allow me to re-iterate ... WOW!!!!
We expected it to perform like streaming media from a porn site but we were pleasantly surprised, it is more akin to a Cable or Satelite Hidef service and yet it is so much more. When have you gotten 50 always on XXX channels from cable or sat? I know I never have! Does cable or sat give you interactive content? Video clips? Live Girls? NO! But this does!
Installation was incredibly easy and fast. The unit has built in component video (HD ready), dolby digital audio, and composite outputs (RCA A/V jacks). Simply run an ethernet cable from your router, hub or modem (broadband connections only, minimum 300kbps download speed -this is standard speed for broadband connections) to your unit and connect to your TV using any of the available A/V connections. Upon installation a firmware upgrade is always recommended, this takes an average time of less than 2 minutes (this is better than any FTA unit or paid service provider in the world).
While supplies last the complete install kit (including cables, remote, and the box) is free for all customers, only pay for shipping. Get it while they last because when they are gone the kit will cost $199.95 US, shipping included, but even at that price it is an exceptional value for the content provided, it will eliminate the need for any paid porn site subscriptions or satelite PPV porn.
Think you don't have room for yet another piece of equipment? Think again! The unit is only 8 inches wide, 6 inches deep, and 1.5 inches high, smaller than any other receiver or home entertainment electronics we have seen. It is closer to the size of a router than a receiver!
In about 3 monthes or less Z-TV.us will have their own DVR unit for this system available for all customers and all existing customers will be given a trade value in against their existing units for the upgraded STB (Set Top Box), including those who received free kits.
Content Preview...
Find all the hottest porn actors and actresses on the planet and have them perform to your wishes! Do you want to see them masterbate? Pee? Shower? You want it? We got it!
AND 50 always on XXX channels by topic from straight, girl on girl, threesomes/group, shaving, mature, teen, MILF's, BBW, gay ... if you are into it, there IS a channel for you!
If you can dream it, we will provide it!
www.z-tv.us
Webmasters opportunities Click Here
XM Also Ponders Move into Canada & Street Comments on Satellite TV's 1Q & Sat Piracy Efforts Target Illinois -- Posted by soullezz
on Monday, May 9 2005
XM Also Ponders Move into Canada
XM Satellite Radio revealed that it's considering a move into Canada, following in the footsteps of Sirius and its plans to offer a product north of the border.
XM disclosed in a Securities and Exchange Commission filing released late last week that it's working to establish a joint venture entity that would be authorized to provide its offerings in Canada. The entity is in the process of seeking authority from the Canadian government to provide satellite radio service throughout the country, the company said.
Also, XM said it anticipates the joint venture, once established, would be independently financed.
Sirius has partnered with CBC/Radio-Canada to bring its product to Canada, and both are working at the Canadian Radio-television and Telecommunications Commission for a license to deliver satellite radio service north of the border. CBC/Radio-Canada said it secured distribution of two of its main channels, Radio One and La Premiere Chaine, for the Sirius service.
Street Comments on Satellite TV's 1Q
What did Wall Street think of satellite TV's first quarter?
Most in the financial community thought financial results for the dish business were in line with expectations. Last week, DirecTV and EchoStar's DISH Network reported first quarter numbers, including a combined 830,000 net customer additions for the three-month period, 505,000 for DirecTV and 325,000 for EchoStar's DISH Network.
Craig Moffett of Sanford C. Bernstein called EchoStar's first quarter mixed. "Financial performance was in line with expectations, with lower churn than we expected," he said.
"However, gross adds were weaker than we expected, and substantially below DirecTV's 1.14 million. The share shift between the two is a matter of concern," Moffett said. Nonetheless, the Bernstein analyst said better than expected churn, at 1.44 percent, "meant that net adds came in about where we expected, 325,000 versus consensus of 317,000."
As for DirecTV, Tom Watts of SG Cowen said the satellite TV giant posted "excellent first quarter results, with strong subscriber metrics." Watts said he expects DirecTV to net 1.54 million customers in 2005, a figure he jumped last week from a previous year-end estimate of 1.4 million.
However, "With cash flow take-off not expected before 2006, we remain neutral on DirecTV pending visibility of improving free cash flow and EBITDA," Watts said. The SG Cowen analyst said he continues to prefer EchoStar for its free cash flow focus, lower valuation and near term margin expansion.
Tom Eagan said DirecTV showed operational improvement during the quarter, but he expects the overhang on the company's stock to continue through August. That's the earliest point the General Motors Pension fund has indicated it would sell more of the 185 million DirecTV shares.
"We believe DirecTV cannot buy back these shares until late-December 2005, the two-year anniversary of GM selling its DirecTV stake to News Corp, without endangering the tax-free status DirecTV sale," Eagan said.
Sat Piracy Efforts Target Illinois
An alleged scheme involving the re-programming of smart cards for illegitimate reception of satellite TV service led to the filing of charges against two Illinois men.
Both men had worked for the Illinois Department of Transportation, and they allegedly used government computers to access Web sites offering features that could allow for the reprogramming of DirecTV smart cards, news reports from the state said. Charges filed against the men include official misconduct and unlawful use of a communication access device.
Illinois officials told the State-Journal Register that both individuals were terminated from their state jobs.
as seen on skyreport
Companies Take Sat Taxes to Court & DISH Reports 1Q, Ergen Eyes More HD & EchoStar Heats up TiVo Litigation & Cablevision Pushes VOOM Channels During 1Q Call -- Posted by soullezz
on Thursday, May 5 2005
Companies Take Sat Taxes to Court
DirecTV and EchoStar filed lawsuits in Florida and Kentucky challenging the constitutionality of taxes levied against satellite TV services delivered to consumers in each state.
The Florida lawsuit was filed in Circuit Court for Leon County. The other piece of litigation was filed in U.S District Court for the Eastern District of Kentucky.
Under Florida's communications services tax law, satellite TV customers shoulder a higher tax burden - 10.8 percent on retail sales - than their cable counterparts, who pay 6.8 percent, the companies said.
As for Kentucky, DirecTV and EchoStar said the state's new tax law superficially imposes the same rate of excise and gross revenue taxes on satellite companies as it does on cable, but in reality satellite TV will be taxed at a substantially higher rate than cable.
On the Kentucky tax, the companies said, "Cable companies are using their local franchise fees - a simple cost of doing business that gives them the right to tear up city streets and use utility poles - to offset the cable companies' overall tax obligation. Satellite companies, in contrast, pay the full amount of the tax, without any offsets. The result is added expense for satellite customers, compared with cable customers."
DISH Reports 1Q, Ergen Eyes More HD
EchoStar CEO Charles Ergen, discussing first quarter results during a conference call Thursday, called the company's performance for the three-month period solid, but also a "non-eventful quarter" for the small dish business.
EchoStar's DISH Network added around 325,000 net new subscribers during the first quarter, taking the service to about 11.23 million subscribers as of March 31, the satellite TV company reported.
As for the future, Ergen said EchoStar expects to expand DISH Network's lineup of VOOM channels at the beginning of next year. At the moment, DISH Network has 10 of the 21 VOOM HD originals available from satellite capacity at the 61.5-degree location. Ergen said DISH Network could carry all 21 VOOM originals at the start of 2006.
Ergen also said EchoStar is looking at the launch of local TV services in high-def, but he added that the debut of those offerings is a 2006 event. Before launching more HD, EchoStar needs to develop more volumes of product with MPEG 4 capabilities, Ergen said.
But once the product is out "we can compete very well," the CEO said.
Ergen said that initially DISH Network could offer 20 markets with local HD, and maybe as many as 30 local high-def markets. National channels in high-def also are being considered, he added. The company will launch satellites next year and in 2007 that will provide extra capacity for the services, Ergen said.
As for the company's continuing litigation with TiVo, Ergen said he's confident EchoStar will prevail in court. And he said EchoStar continues work on a broadband product, but there are a few more hurdles before the offering is available to consumers.
Also, the company confirmed that SBC plans to "de-emphasize" its sales of DISH Network.
For the first quarter, EchoStar said total revenue was $2.02 billion, a 28 percent increase compared with $1.58 billion for the corresponding period in 2004. Net income was $318 million for the quarter, compared with a net loss of $43 million for the same quarter in 2004.
EchoStar Heats up TiVo Litigation
EchoStar revealed that last week it filed a lawsuit against TiVo and set-top box manufacturer Humax in U.S. District Court for the Eastern District of Texas.
The litigation alleges infringement of various U.S. patents, stated a filing EchoStar sent to the Securities and Exchange Commission Thursday. It's the latest legal salvo between the companies and the federal court.
In January 2004, TiVo filed a lawsuit against EchoStar in the same Texas-based U.S. district court alleging patent infringement. In March, the court denied an EchoStar motion to transfer the case to a federal court in California.
In response, TiVo issued this statement: "EchoStar's response is a typical step in the process. We remain confident about the merits of our suit."
Cablevision Pushes VOOM Channels During 1Q Call
While the VOOM satellite TV service from Cablevision is gone, the original high-def programming it delivered lives on, executives with the cable operator emphasized during a first quarter conference call Thursday.
Cablevision President and CEO James Dolan said a recent deal with EchoStar to carry some of the HD originals from VOOM "confirms our belief there's demand for quality HD programming." Last week, as the plug was pulled on the VOOM satellite TV service, Cablevision and EchoStar announced that DISH Network would pick up 10 of the VOOM HD channels.
Dolan also said Cablevision and EchoStar continue to await regulatory approval of EchoStar's purchase of the satellite that supported VOOM services.
On the cable operations side, the company saw a strong first quarter in terms of subscriber growth.
Basic video customers jumped by 21,800 during the three-month period, to 2.984 million. iO: Interactive Optimum digital video customers also were up, by 139,928, and that customer total stood at 1.622 million as of March 31. Cablevision also said its broadband customers increased by 88,038 to 1.44 million during the first quarter.
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VOOM Shuts Down, But Not the HD Channels & FCC Eyes Local TV for Far Away States & Commission Also Looks At Digital Distant Nets -- Posted by soullezz
on Sunday, May 1 2005
VOOM Shuts Down, But Not the HD Channels
As expected, the VOOM satellite TV service from Cablevision shut down during the weekend. But that doesn't mean the cable company won't sell some of the programming associated with the HD-centric platform.
Rainbow Media Holdings, the Cablevision programming entity, said it will keep in operation VOOM's 21 HD Originals for distribution to cable and satellite TV providers. Cablevision also named Nora Ryan and Greg Moyer co-general managers of the VOOM 21 HD Originals.
And the suite of high-def channels got its first carriage agreement.
At its retail summit in Nashville, EchoStar's DISH Network said it will expand its high-def package by adding 10 original VOOM HD networks, which were expected to launch this past weekend on the satellite TV service. They are RUSH HD, Gallery HD, Rave HD, Ultra HD, Equator HD, Monsters HD, Animania HD, Majestic HD, HD News and Guy TV HD, the company said.
VOOM, which launched in October 2003, struggled to get subscribers for its service. Despite last-minute attempts by Cablevision Chairman Charles Dolan to keep the service alive, the company opted instead to close down VOOM on April 30.
FCC Eyes Local TV for Far Away States
On Monday, the Federal Communications Commission initiated an inquiry into proposed satellite TV carriage requirements of local TV signals to non-contiguous states and possibly U.S. territories, work that's part of its implementation of the Satellite Home Viewer Extension and Reauthorization Act (SHVERA).
In addition to that matter, the FCC proceeding also will scrutinize issues surrounding multicast. An FCC spokesperson said the proceeding involves only a look at multicast in terms of a possible requirement for satellite TV service in Alaska and Hawaii.
The FCC said it will seek comment on proposed rules that would require satellite TV services with more than 5 million subscribers to carry both the analog and digital signals of local TV stations in non-contiguous states. The nation's biggest satellite TV services, DirecTV and EchoStar's DISH Network, provide services to far-flung Alaska and Hawaii, and DISH Network provides local channels in the two states.
The FCC notice also seeks comment on a number of other issues, such as whether the term non-contiguous states includes territories and possessions such as Puerto Rico and Guam. It also seeks comment on the interpretation that satellite carriers' obligation to carry local TV signals extends to the whole broadcast signal, including multicast digital signals and high-def signals, said a statement released Friday outlining the FCC proceeding.
The FCC said SHVERA requires satellite TV services to provide signals to substantially all subscribers in each station's local market by Dec. 8 for analog signals and by June 8, 2007, for digital signals. And, the FCC pointed out, DirecTV and EchoStar qualify for local TV carriage requirements for non-contiguous states because they have more than five million subscribers.
One satellite TV company had something to say about the FCC proceeding.
In a statement, EchoStar said it was the first "company to provide local TV channels by satellite to Hawaii and Alaska. We intend to continue providing the best technology possible in those states, creating the most competitive alternative to the cable industry's continually rising prices and historically poor customer service. We intend to file comments in the FCC proceeding and work with the FCC on the issues."
Commission Also Looks At Digital Distant Nets
Also on Friday, the Federal Communications Commission began its look into the creation of testing procedures that will be used to determine if households are eligible to receive distant digital network signals from satellite TV, another item on the FCC's long list of things concerning SHVERA.
SHVERA extends to digital broadcast signals similar requirements as had been placed on analog broadcast TV signals and their delivery as distant network signals, and it's up to the FCC to hammer out final regulations.
Current rules aim to protect broadcasters' interests while at the same time give satellite TV the ability to offer network programming to subscribers who are unable to receive local TV via off-air means. In 1999's Satellite Home Viewer Improvement Act, the FCC developed a predictive model for determining if a household is unserved by analog TV stations, thus deciding if that household was eligible for distant network signals.
The proceeding for digital distant network signals will study whether a new methodology for determining if a household is unserved by an adequate digital signal should be developed; whether the FCC should revise measurement procedures for digital TV signals to determine if a location is unserved; and if a standard that does not rely on signal strength should be used.
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