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Technology Stocks : Echostar Comm.

SATS 70.94

+3.3%

Nov 24 3:59 PM EST

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To: Goodboy who wrote (792)	5/5/1998 11:03:00 PM
From: Noel	Read Replies (1) of 1394

GI builds all of the Primestar equipment now, but the residual dollars come from a different division within GI, and I don't think they'd like to give up that revenue. Right now, they make money on both c band conditional access residuals and the box sale. Also, Goodboy, I wasn't aware of the programming credit plan you mentioned, but it seems to me that would be all the more reason for the other DBS players to begin attacking with their best deal now - before customers build up so many credits they wouldn't want to lose them. One thing about C band - there's a lot of moving parts. That's the reason it makes sense for all the DBS players to bank on conversions. Any one of the DBS products costs less up front than the cost of replacing the motor arm on a c band system. So the first time it breaks, the customer switches. It's a good plan on Primestar's part, but don't be surprised if DISH and DIRECTV throw money at this thing too... Regards, NOEL

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