C-Cube Message Board - Msg: 2700029

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Technology Stocks : C-Cube

CUBE 36.52

+0.3%

Dec 12 3:59 PM EST

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To: Peter V who wrote (25116)	11/11/1997 8:58:00 PM
From: John Rieman	Read Replies (1) of 50808

Cable can still delay digital, or can they?????????????????????????? ijumpstart.com Window of Opportunity: Go Digital While DBS Guys Gaze at Voids in the Sky <Picture><Picture><Picture> Cable's digital window of opportunity continues to widen as some of its DBS competitors are forced to watch satellites worth $500mln+ go unused because of technical problems or lack of permission to use them. EchoStar's [DISH] Charlie Ergen isn't anywhere close to getting D.C. approval to use his EchoStar III bird to offer local broadcast nets, and the MSO-controlled PrimeStar admits it doesn't have a clue to what's causing power problems to the Tempo satellite that the company was hoping to use to switch to high-power service in '98. EchoStar and PrimeStar delays may give MSOs more time to go digital before DBS becomes a serious threat, but cable's satellite friends aren't about to crumble financially, analysts say. A likely scenario for Ergen: use EchoStar III to offer foreign- language nets as planned, and lease transponders slotted for broadcast net transmission to other providers if regulators continue to balk at the local issue. But PrimeStar is in a tougher situation, says Carmel Group analyst Jimmy Schaefler. The company is running out of high-power options because of the Tempo problem coupled with the uncertainty of whether FCC and Justice will approve transfer of News Corp's [NWS] transponders at 110 degrees. "It's vitally important for PrimeStar to move to some form of high power within the next year," says Schaefler.

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