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Technology Stocks : Echostar Comm.

SATS 71.26

-3.4%

Nov 11 3:59 PM EST

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To: Kip518 who wrote (969)	1/12/1999 9:41:00 AM
From: Noel	Read Replies (1) of 1394

Just to add my two cents worth, the proposed satellite legislation will include satellite "must carry" which could seriously impede the local-into-local strategy of Ergen. The problem: bandwidth. Even though the 110 deal gives the company a lot of extra bandwidth (provided they are not required to divest themselves of the 119 slot), it can be eaten up quickly. The main problem is that DISH only wants to uplink the network affiliates in a specific market, while local independent broadcasters are concerned that they will lose market share if they are not included. The must-carry provision would protect them, but at the expense of DISH's plan to serve most markets. That's because of the large number of independent stations in most large TV markets. Instead of 5 channels from New York, for example, DISH might end up having to uplink 12 - 240% of the bandwidth otherwise necessary. Add that to the recent ruling on DBS public service requirements (at 4-7% of capacity, just those 12 New York stations could require another 1-2 channels of public service) and you've got a bandwidth bus with no brakes. DISH has come a long way, but local-into-local is no sure thing... Regards, NOEL

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