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Technology Stocks : Echostar Comm.
SATS 68.66+2.1%Nov 21 3:59 PM EST

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To: Noel who wrote (793)5/6/1998 9:07:00 AM
From: Goodboy  Read Replies (1) of 1394
 
I hear you, but when you own the c-band company and most of these people have a major investment in their dish, they are not actively seeking an alternative until hit with a direct mailing or something happens to the dish. Who do they call? Who sends them guides and bills? Who will offer the best deal? Who owns the mailing list to the other 800,000 former subs?

The point is that Primestar expects about 75,000 subs to convert per year. They paid 400 per sub and they are worth (by DISH valuations) over 1,700 a sub when converted to DBS. That is a powerful incentive to own TSATA after this deal. Direct TV and Echo will have their hands full competing against Primestar and each other for new cable converts or unserved markets. C-band conversion (at least from the company Primestar now owns) will flow 80 to 90 percent to Primestar.

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