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Technology Stocks : Primestar/TCI Satellite (TSATA)
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To: JDCFA who wrote (98)10/2/1998 9:09:00 AM
From: Goodboy  Read Replies (1) of 442
 
Yes Primestar has churn. But when a sub cancels service, they don't leave the dish and box with the sub. They take it back. They also don't throw it on a shelf never to be used again, they will re-install it at another sub. Even when Primestar launches their high power service, they will be far less vulnerable to the solar cycle peak than Direct TV, who I can almost guarantee will lose a vital bird within 12 months or within 2.

The vast majority of Primestar subs will still be on GE 2 going into 2000. I believe they have GE-2 until 2002 or 2003. That will be the drop dead date for all Primestar subs to switch to high power. Every time a C-band sub swithes, the value of the sub goes from $400 area to the $1,500 area or better. It is ironic to say this, but I feel in the end that this delay in the launch of high power may work to Primestars benefit by next year.
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