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DISH Network is the Only One! EchoStar's DBS Service the First and Only to Guarantee Local Channels
Business Wire - January 08, 1998 17:28
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LAS VEGAS--(ENTERTAINMENT WIRE)--Jan. 8, 1998--Continuing its leadership in the DBS industry, EchoStar Communications Corporation (NASDAQ: DISH, DISHP) announced today at the Winter CES Show that DISH Network(TM) will offer consumers their local network channels, direct from EchoStar's satellites, in twenty of the top U.S. television markets, representing over 40% of the U.S. population.
Commencing this month, DISH Network will uplink the ABC, CBS, NBC and FOX affiliates in the New York, Boston, Washington, D.C., Chicago, Atlanta and Dallas markets. Additional markets in the Eastern and Central Time zones will be added during February. DISH Network will also add network affiliate stations from the Mountain and Pacific Time zones following the launch of EchoStar IV in the spring of this year.
The Digital Local TV Channel package will retail for only $4.99 monthly and will be available to eligible consumers beginning in mid-January.
"Providing digital local channels over satellite is an unprecedented milestone for the DBS industry," said Charlie Ergen, chairman and CEO, EchoStar(R) Communications Corporation. "This is a significant achievement for DISH Network and a strong selling point for consumers."
"When customers go into a store interested in a satellite television system, eight out of ten of those people walk out of the store without making a purchase when they find out they can't get their local channels," added Ergen. "To more successfully compete with cable, you have to offer the customer the ability to disconnect from cable and get their local channels seamlessly, either with an off-air antenna or from a satellite. Only EchoStar and DISH Network can provide that guarantee."
While satellite television has been the most successful consumer electronics product rollout ever, the single biggest reason cited by consumers who have not made the switch from cable, is the inability of DBS providers to offer customers their local networks. While others speculate about solutions in three to five years, effective this month, EchoStar has removed the obstacle.
Existing law clearly gives EchoStar the ability to make the significant investment required to retransmit local channels now. Section 119 of the Satellite Home Viewer Act specifically provides a copyright license covering EchoStar's plans. While Section 325 of the Communications Act of 1934 clearly exempts EchoStar from any requirement to obtain retransmission consent from local broadcasters, EchoStar plans to focus on providing local network channels to households in the local markets served by those affiliates. Consequently, EchoStar continues to work with networks and their affiliates to assure the best possible solutions for the consumer. Of course, the "must carry" laws specifically apply only to cable, with its monopoly share of local television today, and are not applicable to satellite, MMDS or other alternative means by which local network stations are broadcast.
The plan is also a very important step towards resolving the "white area" issue. "We have worked hard to try to address the issues raised by broadcasters and the NAB. They should be very happy with this plan and all of the feedback we have received to date has been very positive," Ergen noted.
EchoStar Communications Corporation, headquartered in Englewood, Colorado, includes three interrelated business units:
o DISH Network, EchoStar's state-of-the-art DBS system, offers customers over 200 channels of digital video and CD-quality audio programming, fully MPEG-2/DVB compliant hardware, installation, financing and leasing;
o HTS(tm), designs, manufactures and distributes DBS set-top boxes, antennae and other digital equipment for DISH Network and various international customers including ExpressVu Canada and Telefonica's Via Digital system in Spain. HTS also provides uplink center design, construction oversight and project integration services for customers internationally.
o Satellite Services, addresses markets that fall outside of the current DISH Network residential market, including business television, data delivery, educational initiatives and satellite capacity leases.
EchoStar III was launched on October 5, 1997, from Cape Canaveral Air Station, Florida. EchoStar III will complement current programming offered by DISH Network by expanding international, educational and business programming, including possible data delivery and retransmission of local channels in certain U.S. television markets. EchoStar plans to further enhance its services with the launch of EchoStar IV, scheduled for Spring 1998.
DISH Network is a trademark of EchoStar Communications Corporation. HTS is a trademark of Houston Tracker Systems, Inc. DISH Network is located on the Internet at: dishnetwork.com .
CONTACT: EchoStar Communications Corp.
Judianne Atencio, Communications Director
303/799-8222, x5112
e-mail: judianne.atencio@echostar.com
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