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

To: cuemaster who wrote (917)	10/15/1998 11:44:00 AM
From: Noel	Read Replies (1) \| Respond to of 1394

I think they can be. After all, it is cheaper for them to acquire subs than it is for cable TV, and with their abundance of DBS frequencies, DISH is better protected that their competitors, since they can add as many channels as they need to (at least in the near term) to stave off competition. Just came across this - I wonder how low Primestar has to sink before they abandon their system. Maybe 2m Primestar subs will be going into play: News Corp. Exits PrimeStar Deal News Corp. Chairman Rupert Murdoch apparently has exited the deal to buy into PrimeStar, a day after hinting that he may abandon the satellite provider for other options. The Justice Department said Wednesday that News Corp. had left the deal, taking with it the high power DBS assets owned by its American Sky Broadcasting venture. PrimeStar wanted the spectrum at 110 degrees in order to switch to a smaller dish and compete more effectively with DBS providers EchoStar and DirecTV. The Justice Department in May had sued to block PrimeStar's cable backers from acquiring high power assets on the grounds that it would blunt competition. The ASkyB deal would have given PrimeStar the last of three national orbital locations to provide DBS service in the United States. "This is the right result and a big win for consumers," said the Justice Department's antitrust chief Joel Klein. "It will ultimately mean lower prices, more innovation and better service and quality." PrimeStar had informed the department recently of its decision to abandon the planned merger, said Gina Talamona, spokeswoman for Justice's antitrust division. During a news conference with reporters in Adelaide, Australia, Murdoch said PrimeStar is an "alternative" for ASkyB's high-power DBS assets, and that News Corp. isn't stuck to any deal involving the DTH service. "We certainly do not have to buy them out," Murdoch said Tuesday following News Corp.'s annual meeting. "We have a large asset in ASkyB with the very valuable spectrum, some satellites, and we are looking at a number of alternative ways to go forward. PrimeStar is one of them." News Corp.'s exit spells more trouble for PrimeStar. The satellite provider may have trouble finding the money and the spectrum it needs to go to high power, and could face the possibly of being sold off by its cable backing. * * * Could be good news for DISH, since Primestar may sell their frequencies at 119... Regards, NOEL