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Technology Stocks : Echostar Comm. -- Ignore unavailable to you. Want to Upgrade?

To: Noel who wrote (807)	5/14/1998 9:34:00 AM
From: Goodboy	Read Replies (2) \| Respond to of 1394

At the time you speak of in 1996, it would have been a circumvention of FCC regs and international trade laws to have bypassed auction and launched with Mexican orbital slot. In 1997, a worldwide agreement was put in place regarding opening satellite slots and international satellite competition. If the foreign country has open trade relations and has demonstrated an open market for US firms, then FCC will permit slot usage and vice versa. Canada does not have such an open policy, thus their DBS slots are not open to US companies without special approval of FCC and FTC. Mexico under the 1997 agreement is open. That is why Charlie is testing the open full conus slot at I believe 127 degrees (which is close enough to 119 that you would not have to repoint your DISH to recieve the new channels, that is what he is testing. It would save him from this mini dish plus idea with the spot beam. He will need deep pockets to outbid these guys or he will just get 110 from the government, which would be unfair it Direct TV.) What is clear is that Primestar is not about to give up. In court, the FCC will have to prove that this entity will not compete and bring down prices and provide better service than both cable and other DBS players. Government will have a near impossible time doing that. I read the complaint (you can get it off DOJ web sight if you care) and Mr. Klein's evidence and case are both speculation and circumstantial (it is obvious Charlie provided him with much of his ammo. Many parts came from depositions from the Echo/News Corp. litigation.). DOJ has to prove on facts and on the proposed business plan as well as Primestars current operations, competitvie posture and customer satisfaction that this deal is truely anti-competitive and will hurt the consumer, not just guess. Any and all fears that DOJ and FCC have can be dealt with by consent decrees, not denial of the transaction. AskyB had already, prior to Primestar, abandoned the idea of competing without a partner and had originally tried to partner with Malone and TCI before Echostar (deal was nixed because Murdoch and Levin/Turner hate each other). There are a lot of moving parts here and background influences, both political and corporate. This provides investment opportunity.