The Hidden Message Behind EchoStar's Potential Marriage To AT&T: U-Verse Sucks And Satellite TV Is Dying
from the gotta-make-the-deals-now dept
We were a little confused last month when EchoStar announced plans to buy SlingMedia. Such a deal made some sense for the investors and founders of Sling, looking to cash out -- but at a strategic level it didn't seem to make much sense. Locking Sling into EchoStar seemed unnecessarily limiting, and the benefits to EchoStar of being the sole owner seemed... not all that compelling. However reports quickly came out about the details behind the plan. Basically, EchoStar CEO Charlie Ergen seems to be realizing that the satellite TV business has gone about as far as it can go, and its opportunities for growth aren't all that interesting. However, some of the technology behind what the company is doing is quite interesting, and when you combine that technology component with Sling, you potentially get something very interesting. The problem, though, is that you need to shed the whole satellite TVAs for AT&T, initially, I would say that it's a bad deal, but that might not necessarily be the case due to its own problems elsewhere. AT&T flirted with buying DirecTV in 2003 and EchoStar in 2005. The company did invest in EchoStar, and already offers a bundled package. However, as we pointed out during the original EchoStar rumors, the combination doesn't seem to make much sense. If AT&T is really pushing for a triple play offering, they should focus on doing that all through a single pipe (as with its U-Verse offering), rather than getting tied up with the limitations of satellite. So why would it make sense? If AT&T's U-verse plans aren't going particularly well. In such a case, AT&T could buy EchoStar to get its hands on all of the pay-TV customers and hope that those customers can easily be transferred over to IPTV when AT&T finally figures out how to offer it more broadly. It would be about buying customers, not technology (the good technology would stay with Ergen anyway), squeezing some life out of the legacy satellite business and then casting it off and transferring everyone over to fiber. At least, that's the only way the plan makes any sense -- and it would still require AT&T be able to successfully convert DISH customers to U-Verse, which may not be particularly easy.
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Filed Under: broadband, deals, satellite, tv
Companies: at&t, echostar
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Satellite is Dying?
Do you really believe satellite will go away? In a day when everything is going more mobile, why would users want to be tied to a cable? So many people have ditched their landline phone in favor of their mobile. Satellite TV direct to the phone may not be feasible now, but who's to sat what's in the future.
Satellite is still the carrier of choice in many homes due to cable's crappy service and outrageous pricing. It'll be here for a long time before the birds fall to earth.
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If I want premium TV satellite is my only option
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broadband penetration?
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Dial-up doldrums
On the other hand, dial-up is an excellent exercise in developing patience.
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fiber? where?
Satellite is the only TV choice I have. Same with most people in my community. Satellite is here to stay for quite some time.
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Slowing growth != Dying
IPTV is a non-factor, and will remain so for a long time yet.
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Satellite
Also, DiSH network is the only service I have found that offers a DVR that controls two rooms (I can DVR something in the bedroom and watch it in the living room).
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Satellite's not dead
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new wi-fi works better with Satellites for
in there first year in services. starting in spring 2008 1 tower covers
33 miles 360 degrees 20 feet deep and 33 miles high. T-1 with voip
under $30 a month. It has taken 6 years to build and is backed by 7 investment banker, up to 13 billion $. The services will also by pass
Cell sites by using the bluetooth to connect to there network
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Re: new wi-fi works better with Satellites for
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Re: Re: new wi-fi works better with Satellites for
He said it COVERED 33 miles (around the tower).
Lear2Read.
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Re: Re: Re: new wi-fi works better with Satellites
33 miles 360 degrees 20 feet deep and 33 miles high"... 33 miles HIGH.. Who needs to LearN2Read?
TB
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So long to DISH then
Once AT&T buys it, that will all go away. AT&T will screw up the customer service, raise the prices on all bundles, add surcharges, and limit content. AT&T has something of a reverse Midas touch: everything it buys turns to shit.
-C
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Satellite is so far behind now that they will never come back.
The lack of two-way communications is the barrier and by the time they design new antenna's to support bi-directional, Fiber will have surpassed any plans a satellite company may have. Forget the fact that the picture is lousey when weather is bad, the service is so limited that it will be used only in very remote areas.. I can see that niche existing for quite some time but how can these guys be profitable? Good bye Sat TV.. hello fiber
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Release the hounds and Cable/Satellite are done
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fiber and dish
I'm glad fiber is good for you, but it's not an actual choice for the majority of people in the country yet.
As for Dish, dear god why didn't someone tell me ATT was gonna buy them when I signed up last month? We use ATT for our cell service at work, and they were great when Cingular, then ATT bought them, now I can't get customer service to save my life.
Christopher - You ain't kidding, everything they touch DOES turn to shit.
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