A couple of thoughts-
I've not looked directly, but my impression is that TCI is not in great financial shape. @home is, however, as they can print money with their stock. Does this mean that LOR might ally themselves with primestar?
If you look forward 10 years from now, does it look to you guys like there's only two companies: LOR and Hughes? Who else is amassing business in all the major space enterprises? Sure there's T* and other specific competitors, like I*, but will this congeal into one or two large companies, much like the software industry has congealed into one company, MSFT?
Another thought, LOR has moved majorly into the two biggest upcomming markets: LEO voice and data, and they have also continued investments inthe current markets for sat construction and video/data/VSAT services. The big hole is DTH. They have moved a little into DTH for mexico and india, but what would ahppen if they launched 3 or 4 DTH birds to create a global DTH network? Can they do this, or does directtv have patents to preven it. I mean, if they put up a sat and start programming, and contract with one of the other players, then all those Sony and RCA receivers should be able to receive the broadcasts from the LOR service. (Or is this market just too unprofitable...) If LOR wants to move in this direction, and has a greements with TCI, then Primestar would be a good acquisition target.... ie, Generation 2 primestar with DirectTV sized antanaes. It seems that primestar is now free of the cable companies that were holding it down (and prices up.)
I may sound quite foolish here as I don't understand that industry segment very well, but would love to be corrected. I love my DirectTV, but have a distaste for hughes. AND the costs are still too high, you get more than cable for the same cost. Would be nice to get exactly what you want, rather than having to buy the whole enchilada.
I think there's a clear place for LOR to take a price advantageious position.
Dragonfly |
