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Technology Stocks : Echostar Comm.
SATS 70.950.0%1:16 PM EST

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To: Noel who wrote (791)5/5/1998 3:51:00 PM
From: Goodboy  Read Replies (1) of 1394
 
GI is going to provide the box for Primestar upon the C-band sub switching to DBS via Primestar. They are negotiating a very food deal on the cost of the equipement (box)and have the carrot that GI could lose the customer all together. Very powerful incentive for GI and Primestar will dangle a conversion package that is compelling in price.

In addition, they will allow current C-band subs to begin building program credits for each month they pay their c-band bill (or prorate if they pay one year in advance). That means Primestar will give them free programming based on their payment of their c-band bill (sort of like an affinity program). It will be hard for DISH or Direct TV to even come close to getting any of these subs to convert to their service after this deal.
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