Cablevision Pushes Ahead DBS Efforts

[Steve Mehs]

Cablevision said it will continue to push forward with its DBS plans, despite a two-month delay in the launch of its first satellite - Rainbow 1 - and lingering questions about the proposed satellite TV platform.

Said CEO Jim Dolan, "As we move forward, we will continue to consider all of our options, and we will seek to maximize the value of this asset, and we will look to take advantage of strategic opportunities."

When pushed by analysts about Rainbow DBS, Cablevision executives said company plans are focused on going forward with the platform, and rolling out the service first on a regional basis before expanding coverage. Officials also said it's likely the Rainbow DBS effort will include partners.

As for asking the Federal Communications Commission for a two-month launch delay, "We do not foresee any problem with obtaining an extension," Dolan said. Lockheed Martin needs the extension, from the original date in March to May. The launch provider plans to launch the bird within the second quarter timeframe, Dolan said.

On Monday, Merrill Lynch analyst Jessica Reif Cohen said in a research note that a delay in launching the Cablevision satellite could provide the company with additional time to negotiate a sale of the DBS assets, possibly to EchoStar.

Dolan added that Cablevision will need to make an additional investment of $80 million in the Rainbow satellite platform. The company has DBS spectrum at 61.5 degrees.

From SkyReport (http://www.skyreport.com/skyreport/feb2003/021203.shtm#three) (Used with Permission)

[Jacob S]

These other news reports saying analysts think they will sell out and I knew they wouldn't, why go this far just to sell out? They knew the chances they were taking coming into this. I am glad that they are sticking to this because we do need another alternative to keep Dish and Direct inline. This is why it was not fact but opinion what analysts were saying. Will Dish really be the HD leader as they say they will be when Cablevision will be offering so many channels?

[Scott Greczkowski]

Jacob in order to convinve the FCC to let them delay the launch of their satellite they need to put on a game face that everything is ok.

Once the bird is up I would expect it to be sold to Echostar.

Cablevision was hoping to obtain transponders from Echostar in order to make their DBS plan work, when the merger got killed it also hurt Cablevisions DBS plan.

Again I predict that ultimately the satellite will be sold to Echostar.

[Chris Freeland]

Originally posted by Scott Greczkowski
Jacob in order to convinve the FCC to let them delay the launch of their satellite they need to put on a game face that everything is ok.

Once the bird is up I would expect it to be sold to Echostar.

Cablevision was hoping to obtain transponders from Echostar in order to make their DBS plan work, when the merger got killed it also hurt Cablevisions DBS plan.

Again I predict that ultimately the satellite will be sold to Echostar.

I agree, however I think we may see a sell before the satellite is up, I read in one of those articles that if E* purchases Cablevisions DBS assets, that the satellite could easily be re-configured for E* provided it is done before launch. With a 3rd up-link center that E* would gain with the Cablevision assets, E* possibly could re-configure this spotbeam bird and launch it to 110 instead for additional DMA's at 110 and possibly eliminating the need for a 2nd dish solution in other dma's. Additional 11 and possibly 13 tp frequencies at 61.5 could then possibly be used for additional HDTV possibly some local HD channels in the larger dma's.

[Jacob S]

How many more DMA's could they cover with this much space?

[Mike123abc]

They cannot delay because if they do they risk losing their slot licenses. That is why they are asking the FCC for a delay for launch, they are worried without a waiver for the late launch they will risk losing their transponders. So, deal or not they have to get the sat up and operating.

Even if they complete the deal before launch they will have to go through the whole FCC change of ownership process it could take a while to go through the regulatory process. So, they will still have to launch to 61.5 unless they get a waiver from the FCC.

Even if it gets up, can it work at 110? The spots would have to be re pointed almost 50 degrees different. I wonder if the satellite is that flexible.

[Mike123abc]

Originally posted by Jacob S
How many more DMA's could they cover with this much space?

Dish is getting close to 60 markets with the 30 spots they have (using 10 transponder freqencies). R/L DBS sat has 22 spots with 7 frequencies. Now Dish already has the largest markets so the next set of markets is a lot fewer stations per DMA. R/L DBS was going to serve about 66 markets, but they were going to use 8PSK on all the transponders. So, I would estimate 40-65 markets with this satellite -- smaller markets but also less capacity.