DISH Network Increases Basic Rates by $2; Average Customer to Receive 4% Increase

[John Corn]

EchoStar Communications Corporation (Nasdaq:DISH) announced today that effective Feb. 1, 2003, its DISH Network satellite TV service will increase basic rates by $2 per month.

Since DISH Network's average basic subscriber pays over $50 per month, this equates to an increase of less than 4 percent over 2002 rates. This price increase is dramatically lower than recently announced cable rate increases. Rising programming costs and the addition of a variety of new basic channels necessitated the DISH Network increase.

In addition, DISH Network is guaranteeing the price of its America's Top 50 programming package for both new and existing customers at the new price of $24.99 per month until January 2005. This price freeze continues DISH Network's leadership as the lowest all digital TV price provider in America.

DISH Network is also introducing an innovative way to help customers eliminate any price increase and actually reduce their monthly bill with the new DISH Network Value Paks. The HBO/Cinemax Value Pak combined with America's Top 100 programming package provides more than 125 channels at only $49.99 per month, a monthly price reduction of $2.99 from current rates. The HBO/Cinemax Value Pak plus America's Top 150 package provides more than 180 channels at only $59.99 per month, a monthly price reduction of $1.99 from current rates.

"We are pleased to keep our price increase for 2003 to an absolute minimum and to keep our prices well below those of comparable cable rates," said Soraya Cartwright, executive vice president of DISH Network. "Our commitment to the price freeze of America's Top 50 will help our current subscriber families continue to view their choice of programming without having to sacrifice funds from other household expenses. In addition, the decrease in prices in our new DISH Network Value Paks is yet another example of how families can save money and enjoy a greater variety of channel choices."

The price increase applies to DISH Network's four basic programming packages: America's Top 50, America's Top 100, America's Top 150 and America's Everything Pak. In addition, DISH Network's DISH Latino, DISH Latino MAX and out-of-market Multi-Sport packages will increase by only $1 per month.

America's Top 50 Value Pak: DISH Network is offering America's Top 50 programming package and local TV channels for a bundled price of $29.99 per month. DISH Network offers local TV channels in over 50 cities nationwide. This represents a 3 percent savings which will remain in effect until at least January 2005.

HBO/Cinemax Value Pak with America's Top 100: This value cannot be found anywhere else. For $49.99 per month, customers will receive eight channels of HBO and five Cinemax premium movie channels bundled with over 125 of the most popular satellite TV channels. This DISH Network Value Pak ensures customers a savings of 10 percent over standard pricing.

HBO/Cinemax Value Pak with America's Top 150: This new package is unmatched in value for movie lovers. For $59.99 per month, customers will receive eight HBO channels, five Cinemax premium movie channels and over 180 of the top satellite TV channels. This combination gives customers a 6.7 percent savings over standard pricing.

DISH Network also continues to bring new channels to its basic packages and has most recently added CNBC World, NBA TV, MuchMusic, Fox West 2, Vision TV, and National Geographic as well as Independent Film Channel and Women's Entertainment on a full-time basis.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=369280

[dankimjohn]

Does anyone know if you could sign up for their year plan now and avoid this increase for a year? Or add to the year plan you all ready on?

[John Corn]

You have until Febuary 1st to get todays prices. :)

[jeffwtux]

The fact is that they have increased prices over 17% over the last 4 years with almost no additional channels to AT100. Cable has added a significant amount of channels to analog basic packages, granted they were way behind DBS 4 years ago

[jeffwtux]

Anybody looking for certified Java Programmers, because this Dish Retailer is going to be forced out of business.

[AlexF]

I just started a Top 50 with an monthly fee for $22.99/mo.
Will I continue to pay that after January or will it go up to $24.99?
I am assuming it will stay the same for a year since it was a year contract I signed.

[AlexF]

I like the way they do their math to make it sound like the increase isn't that much (extreme sarcasm).

The way I look at it is (2/22.99)x100 = 8.7% increase

[jeffwtux]

At first I figured that I wouldn't be losing any potential customers who would take at50, then I realized that somebody could get TC for only $7 more. The promotions that Charlie announces on Monday better be doozies because they are dead without them.

[jeffwtux]

I say let retailers sell refurbs for cash-n-carry promotions, and reduce the price of refurbs to $69 for receivers and $119 for systems, and they better have a good cash-n-carry promotions, not like 123 Free. Promotions is all Dish can have going for it, but they will get massive churn with their At100 price.

[Jacob S]

Customers want better pricing on the programming rather than good deals up front anymore I think PLUS free or super cheap prices on equipment up front.

[jeffwtux]

Well that's what DirecTV does. Now do you see why I say this is the end of the world. However I do disagree about promotions. Most of my new customers are fed up with cable and want an enticement to switch. They all compare my deals to D* though. That is a fact.

[raj2001]

Originally posted by jeffwtux
Anybody looking for certified Java Programmers, because this Dish Retailer is going to be forced out of business.

Everyone who is looking, is looking overseas where they cost $5/hour.

[StevieD]

Limited basic cable costs around $20 and includes all local broadcast channels, no long term commitment, and no equipment is necessary beyond a TV set. Who has the better deal at the low end?

[Dennis]

What happened to bundling locals with AT100 and AT150 for $5?

[Nick]

Lessons in how to make a rat look like rabbit. Hope most of us know the difference between a press release and an independent news story.

[Joe Capitano]

DISH Network also continues to bring new channels to its basic packages and has most recently added ... Vision TV (snip!)

Uh, yeah, but Dish took that channel off some weeks ago. Is anyone at corporate-ir.net doing their homework? Geez!

[Dennis]

I think it is still there.

[Chris Freeland]

Originally posted by Dennis
What happened to bundling locals with AT100 and AT150 for $5?

The reason E* is only charging $5 for locals when bundled with AT50 and AEP and not AT100 and 150 is to keep the price of AT50 w/locals to under $30 and it keeps AEP under $80. A $5 price for locals with AT100 and 150 does not make that much of a difference, paying the full $5.99 for locals still brings the price of AT100 w/locals to $39.98, still under $4o. AT150 w/locals $48.98, still under $50. E* seams to be keeping popular package combos to just under $30, $40, $50, $60, $80 where they can, see the pattern, its all for easy marketing.

[Dennis]

I think it would make a $.99 cent difference. Roughly half the increase. I understand the psychology of marketing but originally it was rumored to apply to all packages. Just asking. But apparently it is not happening.

[Jacob S]

A buck must not mean much then anymore like it used to to a big company, but to a customer it does. Maybe they just do not realize that yet.

[bunkers]

OT

Until they do something about the H1-B visas in this country, the american companies are going to continue hiring indian consultants, because they work for less money.

No need to document anything to PROVE that your company ever had a shortage (to begin with) to hire all H1-B workers either.

But the funny thing is that the justification for H1-B workers is the huge "shortage" of tech workers -- which is total BS these days. We need 'em because of the "shortage", but don't need to prove you have a shortage to hire em.

So the net result is -- my friends are past co-workers are laid off and can't find work -- and I'm on the phone to bombay weekly hiring indian workers because my company says I must hire them only. In Denver, if your a highly skilled american worker, you can't find computer work easily at all. But I hire about 2 indian consultants a week. This sucks.

Write your congressmen folks -- this is ridiculous.

We have illegal mexicans all over the place doing jobs most americans wouldn't want to do -- but no legal way for them, sorry.
But your nice paying white collar jobs ... are free to any indian willing to take em. Its not their fault that we created these stupid laws.

[jeffwtux]

bunkers: who ever came up with this myth that Indian programmers work for less? I have installed many satellite dishes for many Indian Compuware workers who make more than I ever have. AND I CAN'T EVEN GET AN INTERVIEW. JUST GIVE ME AN INTERVIEW PETE(Karmanos, CEO of Compuware and owner of the Carolina Hurricanes).

[Unthinkable]

I don't think Peter Karmanos is too big of a fan of Red Wings management (to put it rather mildly) so if you get that interview with him, make certain that you avoid that subject entirely if you like the Wings.

[jeffwtux]

Yeah, I pretty sure Pete and Mike(Illitch) will stay about as far away from each other at the $350/person black tie charity preview at the North American International Auto Show tomorrow night.

[bunkers]

jeff, obviously there are exceptions and some may make more than others, but the guys my company forces me to hire make $19 an hour and their total BILL RATE is HIGHER, but still ~$20 less than the lowest domestic provider we have to deal with.
Most of these guys are single and live together in lower cost condos. I like these guys on a personal level. I dislike the fact that you and many others I know can't get an interview, but I hire guys with under a years experience, poor english -- because the H1-B system makes it legal and its $20 less an hour for my company.

So wake up -- they ARE (by and large) cheaper and its a farce that they are not. I have hired upwards of 20 and know the amounts we pay. I don't blame the workers, I blame the system.

Like I said, american selling the best jobs to H1B and then making the crappiest jobs illegal just isn't a good formula for success in america, IMHO.

[bunkers]

jeff.

they may make a lot -- but they started out (here is in the US) making very little.

THen they stayed, they saved -- and they move up in the world (paywise), just like you and I do.

I just dislike the fact that I'm not out hiring college grads from the US, I'm hiring college grads for other countries and the justification is "because of the shortage". Thats just plain BS, and tell all my unemployed friends with 10+ years experience about it!

THis hurts the economy as well, because those unemployed friends don't buy anything because they are just trying to stay away from selling their houses for another month just to stay above water.

[jeffwtux]

bunkers: I'm sure you're right about this. I'm just viewing it from my personal perspective, and can't look at it from any other. How could you if you've been unemployed for 1 year.

[jened]

i read in a recent computer industry magazine that talked about companies like IBM outsourcing to India where you can hire programmers for $6000 a year.

[lee635]

And call centers are being outsourced to India as well. They go over and spend a 6 weeks teaching them how to speak english without the heavy accent (many of these folks already speak english as a second language), then outfit a phone bank boiler room with long distance lines back to the states. Next time you call to check on your account, you may be talking to someone in India.

Here in Oregon, the customer service center for the state health plan is operated by the state prison. So when you call to check on your claim, you're talking to an inmate.

A freind said that the new CIO hired at his firm was hired specifically because he totally outsourced IT to India at his last job. And they are going to do that at his company.

[StevieD]

PRICES SUBJECT TO CHANGE IS THE CONTRACT YOU SIGN!

DISH NETWORK FREE SATELLITE TV SYSTEM
OFFICIAL RULES
New, first-time DISH Network residential customer provides a valid major credit card and commits to 12 consecutive months of America's Top 50 or higher programming between 8/01/02 and 1/12/03 and receives a DISH Network satellite TV system (Model Dish301) and Free Standard Professional Installation. All prices, packages and programming subject to change without notice. Local and state sales taxes may apply. This offer not valid with any other offers. Equipment may be new, remanufactured or discontinued based on availability. Additional receivers must be activated in conjunction with a primary receiver, and are subject to a $4.99 per month programming fee per receiver. For this offer, free Standard Professional Installation includes installation of one 20" dish antenna, hook-up of up to two receivers to the same number of TVs and equipment testing. Only one free Standard Professional Installation per system installed and programming activated between 8/01/02 and 1/12/03. Other installation restrictions apply. MSRP Standard Professional Installation $199. MSRP for additional receiver installation $59. Free Standard Professional Installation available through DISH Network Service Corporation and participating retailers. Customers who disconnect or downgrade qualifying programming before the end of the 12-month period will be charged a $240 Cancellation Fee. If at any time a customer does not subscribe to DISH Latino, DISH Latino Dos, DISH Latino Max, America's Top 50, America's Top 100 or America's Top 150 programming, a $5.00 per month Service Access Fee will apply (in addition to any other applicable fees). Programming is available for single-family dwellings located in the continental United States. All DISH Network programming, and any other services that are provided, are subject to the terms and conditions of the Residential Customer Agreement, which is available upon request. Hardware and programming sold separately. Local Broadcast Networks by satellite are only available to customers who reside in the specified local Designated Market Area (DMA). Certain local channels may require an additional dish antenna from DISH Network, installed free of any charges. Distant Broadcast Networks packages by satellite are only available for private home viewing and in limited areas, to homes that are located outside a Grade A or B designated area or with the approval of local affiliates. There will be a $5.00 Change of Service Fee for each programming downgrade or change to same level of programming and a $10.00 Change of Service Fee for each Adult programming downgrade or change to same level of programming. All receivers must be connected to a phone line. ESPN and ESPN2 programming subject to change and blackout restrictions, and is licensed separately for residential and commercial use. FOX Sports Networks programming subject to blackout restrictions, and is licensed for residential use only. Regional sports networks and Turner South not available in all areas.

[Unthinkable]

Originally posted by jeffwtux
Yeah, I pretty sure Pete and Mike(Illitch) will stay about as far away from each other at the $350/person black tie charity preview at the North American International Auto Show tomorrow night.

I saw a four wheeled motorcycle on Tech TV's Tech Live the other day that was just unveiled at one of the Detroit auto shows.
Who would win in a three way no holds barred brawl featuring Mike Illitch, Jeremy Jacobs, and Peter Karmonos? That might be worth the $350 hit alone seeing Jacobs wiped out.