Echostar Warns dealers to knock it off

[Scott Greczkowski]

It seems as though some bad dealers calling DirecTV customers telling them they must swap out their equipment to Dish Network equipment is becoming a bad problem for Echostar.

We have seen many reports over the last few weeks about this and DirecTV even launched 2 channels warning their customers not to fall for this trick.

Now Dish Network has warned all their dealers about this as well.

August 30, 2002


Dear Satellite Retailer:

This notice reiterates our prior communications relating to the pending merger of EchoStar and Hughes/DIRECTV and what appear to be increasing instances of inappropriate sales and marketing activities of certain retailers.

Pending government approval and as required by law, both EchoStar and DIRECTV must continue operating as separate entities. The proposed merger has not yet been approved. We would like to make it especially clear that no decisions have been made about the receiving equipment the combined company will use for its DBS service. Any claim or insinuation that existing hardware will become obsolete, that there is any advantage to changing equipment now, that either the DISH Network service or the DIRECTV service will cease, or that current customers of either service will be disadvantaged by the merger, is absolutely false. Do not make any such claims to customers.

Any false or misleading information given to customers is not only inappropriate but also bad for business. EchoStar takes these matters very seriously and will take the proper action – including termination – if necessary. EchoStar sales personnel will continue to monitor retailer activity to confirm compliance. Thank you in advance for supporting these efforts.

Keep Selling DISH Network

Whats your thoughts on this?

[mnassour]

They'll have to cut off a couple of dealers before any of the dealers take it seriously.

[Nick]

Where are the reports of renegade D* dealers pulling the same scam in the reverse?

Any DBS dealer that foists this fraud on innocent subs falls into one of three "C" categories...

Corrupt, Criminal or Clueless.

The latter C is reserved for those few dealers, installers and salesmen who still don't fully understand the business they are in.

[Richard King]

They'll have to cut off a couple of dealers before any of the dealers take it seriously.
A couple of BIG dealers who are important to Echostar. And the cut offs (including names) have to be announced on the next dealer chat.

Corrupt, Criminal or Clueless
I suspect it is the first two of three in most of these cases.

[James_F]

I was wondering why DirecTV put those channels up. I had a retailer come up to my house and tell me that I had to switch. I assume he looked over my wall and saw my DirecTV dish. Nothing like giving Dish a good name! :rolleyes:

[Karl Foster]

Originally posted by James_F
I was wondering why DirecTV put those channels up. I had a retailer come up to my house and tell me that I had to switch. I assume he looked over my wall and saw my DirecTV dish. Nothing like giving Dish a good name! :rolleyes:

They must be part of the same gang that goes through my neighborhood every couple of weeks. My favorite "half-truth" told to me by one of these shysters was that my UTV receivers would work fine with Dish Network. I almost popped him. I know they aren't employees of Dish Network, but most people who don't visit these forums don't know that.

Not to be an a**, but I haven't heard of any instances of Directv retailers canvassing neighborhoods telling people Dish subs they have to switch. If anyone has a different story, let's hear it.

[JohnH]

Seems like the appropriate first step. Need to hear of some specific action being taken against the ones who are doing or did do this.

[drjake]

Yes, there are Directv Dealers who do this. My neighbor went to Tweeter electronics and bought a RCA high definition Directv Receiver because the Tweeter rep told him that the decision had been made that the DirecTV equipment would be used. I'm a Dish Retailer. My employees have been instructed not to engage in these type of sales tactics. There are bad eggs on both sides. The funny thing is that current receivers from both sides are being made so that they can be adapted for each system.

[James_F]

What DirecTV receiver works with Dish Network? I hadn't heard that....

[mnassour]

Originally posted by karl_f



Not to be an a**, but I haven't heard of any instances of Directv retailers canvassing neighborhoods telling people Dish subs they have to switch. If anyone has a different story, let's hear it.

Somehow, if DirecTV has purchased Dish...I think we'd be seeing that in droves..........

[Karl Foster]

Originally posted by mnassour


Somehow, if DirecTV has purchased Dish...I think we'd be seeing that in droves..........

...so that excuses these "rogue" retailers' bahavior? :rolleyes:

You might be right, but the reality is that E* is attempting to buy D* and the problem is E* retailers lying to D* subs to gain business.

It is too bad that these retailers can't sell based on the merits of their product, and not resort to this crap.

[Mark Holtz]

I would take names and numbers, and I would report this to both Dish Network AND DirecTV. Until the merger is complete, they must be run as two seperate companies.

Even if equipment is replaced, it would be with similar or better equipment. Lets admit it... some customers have older equipment that will have to be replaced, and even the most basic of receivers that both Dish and DirecTV have available now. Some people (myself included) believe that the merger would allow the combined companies to use more efficient codecs, not to mention more easily upgradable.

[mnassour]

Originally posted by karl_f


...so that excuses these "rogue" retailers' bahavior? :rolleyes:

You might be right, but the reality is that E* is attempting to buy D* and the problem is E* retailers lying to D* subs to gain business.

And I said it did excuse anyone?:confused:

Originally posted by karl_f

It is too bad that these retailers can't sell based on the merits of their product, and not resort to this crap.

Well, the business has gotten to the point where some of them are willing to do anything to get people to sign the contract....and I remain convinced that until Dish yanks some dealer licenses that it will continue.

[drjake]

James_F,

No Directv receiver works with Dish at present. However, I have been told that all new receivers from DISH and DirectV are firmware upgradeable so that such receivers can be adapted to receive the other systems signal if and when the merger happens. Makes sense since both use the same MPEG compression technology.

[James_F]

Hey all this reminds me of is this picture posted here before.

http://www.dbstalk.com/showthread.php?s=&threadid=7225&highlight=retailer

Unfortunately, that is what I think about when someone mentions a Dish Retailer. While I agree its a few bad seeds that are tarnishing most of the good dealers, someone needs to do something about it. Maybe this is a step in the right direction. Cold calls, looking over peoples fences and sticking pamphlets on my door doesn't endear me to any retailers. Maybe that is why when I decided to go to DBS, I purchased a system online and installed it myself. :shrug: