If I understand this correctly...this is a positive for DISH's suit as well...
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Pegasus: DirecTV Messing with Distribution
Pegasus Communications and Golden Sky
Systems are putting more heat on DirecTV,
this time amending their lawsuit and
listing new allegations that the DBS giant
is interfering with manufacturers,
distributors and dealers delivering and
selling product for the two companies.
In the amended complaint, filed in U.S.
District Court in California, Pegasus and
Golden Sky said DirecTV has "coerced
agreements to supply equipment exclusively
to DirecTV's own dealer network for sale,
installation and use." That has kept product
away from DirecTV affiliates associated
with the National Rural Telecommunications
Cooperative, including Pegasus and Golden
Sky.
"DirecTV's wrongful conduct has both
interfered with plaintiffs' (Pegasus and
Golden Sky) economic relationships with
equipment dealers and distributors, and
has impeded the plaintiffs' ability to sign
up new subscribers" in NRTC territories,
the lawsuit said.
Pegasus and Golden Sky are the largest
providers of DirecTV through the NRTC.
In January, Pegasus agreed to buy Golden
Sky for $1 billion.
DirecTV spokesman Bob Marsocci said the
amended complaint "does not raise any
new issues with us." He also said
DirecTV isn't engaged in any activities
that may hurt NRTC members. "We do not
whatsoever interfere with or damage the
business of any NRTC members or affiliates,"
he said.
In the amended suit, Pegasus singles out
DirecTV's principal equipment manufacturers,
Hughes Network Systems (HNS) and Thomson
Consumer Electronics. DirecTV parent
Hughes controls HNS and holds a minority
interest in Thomson.
HNS and Thomson are not listed as
defendants in the amended suit, first
reported by SkyREPORT.COM on Thursday.
In the new complaint, DirecTV is blamed
for interfering with equipment
manufacturers and their relationship
with the two DirecTV/NRTC providers.
"DirecTV has caused equipment manufacturers
and distributors to refuse to provide
equipment to or for the benefit of the
plaintiffs (Pegasus and Golden Sky) or
their affiliated dealer networks for
sale, installation and use anywhere in
their NRTC territory," the suit said.
The distribution/equipment issue doesn't
get the total blame for Pegasus' sluggish
subscriber acquisitions in January. Net
subscriber additions were 5,530, taking
the company's total to 726,585.
Pegasus' Yolanda Robins said the low
subscriber enrollments can be attributed
to - among other things - adverse weather
throughout the country and a new
commission structure that kicked in
Feb. 1. That new structure provides for
more favorable commissions, which may have
led to some salespersons to complete any
sales on or after the first of the month.
Both EchoStar and DirecTV reported
tight equipment supplies for January.
In the amended suit, Pegasus and Golden
Sky also withdrew previous class action
allegations to allow for a new class
action to be filed on behalf of members
and affiliates of the National Rural
Telecommunications Cooperative. |
