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Mdu deregulation


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10 replies to this topic

#1 OFFLINE   fksnsj

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Posted 30 March 2011 - 12:39 PM

Is it true that the MDU cable/satellite tv has recently been deregulated? A friend of mine has introduced me to a company called vodaplex and they say the mdu market for directv is wide open for growth, because of recent deregulation is this true?

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#2 OFFLINE   Shades228

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Posted 30 March 2011 - 01:31 PM

There was a law passed a while ago that basically says the MMVPD companies don't own the cable inside the building even if they installed it. So technically the market is more open.

I guess the question is what's the pitch you're being given?

#3 OFFLINE   cabletech

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Posted 30 March 2011 - 02:18 PM

And what are you looking to do??

#4 OFFLINE   fksnsj

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Posted 30 March 2011 - 02:58 PM

Well the pitch was from a MLM company called vodaplex and my past experience with MLM companies tells me to triple check any information they give.

I'm a Directv and Dish Network independent salesman at thist time and I was going to sell to MDU'S.

As far as I can tell vodaplex is extraggerating the opportunity to sell directv in MDU'S. They say that due to recent deregulating that cable companies can no longer hold the MDU owners capitive with exclusitivity contract.

However; after looking at information from the FCC it looks to me that the deregulation is not recent it was done in 2007.

My question is do MDU owners have to pay money up front to install Directv on their property or can they opt for a longer contract, so they do not have to pay any money upfront.

Also, how much cheaper is Directv compared to cable for MDUS?

I'm just trying to get some facts on the Directv mdu market.

#5 OFFLINE   cabletech

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Posted 30 March 2011 - 05:20 PM

There several differant MDU programs. One program is that the property owner goes to a small headend system and then cable is out.

With the headend, there will be a room full of recievers that feed to the units and the tenent will use the tv just like a regular cable system BUT they will be a the mursy of the owner in the channels and programing.

The owner can get $$ help from DTV in setting up the system.

The other type of system is were the owner installs a single DISH/antenna system and then feeds the signal to each unit (think SWM) and then the tenent can get there own reciever (s).

Again, the owner can get $ help from DTV.

Average DTV package pricing for headend is $2.50/unit up to 45 channels available.
(All 45 would still be the same, as they go by unit and not channel).
HBO/SHOW/CIMX is from $3.00 to $7.00 per service pack per unit.
Local channels are a flat rate +/- $30.00

All of these prices are per month.

SOOO... a MDU with 50 units with locals & no priumim would cost +/- $155.00 per month, then add the priemium channels. Could get to over $500 a month.

Most MDU's are not wired to accept dual service providers and you really have trouble about this when talking to the owners.

If you can talk to the chief contractor and building owner in the first stage of new construction, then you have a better chance of doing some thing, as you then can run
a dual feed to each unit from a master room and wire each unit with a break out box in the closet in each unit that feeds all internal wall jacks.

Doing a dual feed this way allows both a cable based system and a Satillite system with tenent making the choice.

#6 OFFLINE   Shades228

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Posted 30 March 2011 - 05:34 PM

I would listen to the pitch if you haven't but MDU's are a rough sale. Learn all the different options and what the package requirements are because there are many options.

#7 OFFLINE   adkinsjm

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Posted 30 March 2011 - 05:43 PM

Is it true that the MDU cable/satellite tv has recently been deregulated? A friend of mine has introduced me to a company called vodaplex and they say the mdu market for directv is wide open for growth, because of recent deregulation is this true?


All deregulation did was prohibit exclusive contracts. It's still up to the property owner to allow another company in.

#8 OFFLINE   west99999

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Posted 30 March 2011 - 06:11 PM

There was a law passed a while ago that basically says the MMVPD companies don't own the cable inside the building even if they installed it.



Actually the new regulations don't say they don't own the cable it say's that if an individual unit cancels service the owner of the cable has to remove the cable within so many days and if not it is considered abandoned and can be used by another provider. They also give other providers the ability to run their own cable inside raceways, sheet rock, baseboards & other ways if the owner gives permission to do so and at the cost of the provider

#9 OFFLINE   SamC

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Posted 31 March 2011 - 04:22 AM

MLM


Run away. Someone is attempting to defraud you.

#10 OFFLINE   AntAltMike

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Posted 31 March 2011 - 05:14 AM

Actually the new regulations don't say they don't own the cable it say's that if an individual unit cancels service the owner of the cable has to remove the cable within so many days and if not it is considered abandoned and can be used by another provider. They also give other providers the ability to run their own cable inside raceways, sheet rock, baseboards & other ways if the owner gives permission to do so and at the cost of the provider


Can you find that FCC regulation? There were a couple of FCC Orders, one in the late 1990s that said that a provider could run coax in existing cove molding and even replace it with larger molding over the objection of the company that installed it, and if a cable company's access agreement (typically 15 years) expired, it had to remove the internal wire, sell it, or remove it completely, but if they didn't remove it completely, they could not cut it within a foot of the point where it enters the wall. I was not aware of an agreement that extends that wiring right to cover individual subscriber cancellations.

Edited by AntAltMike, 31 March 2011 - 06:23 AM.


#11 OFFLINE   BattleZone

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Posted 31 March 2011 - 07:35 AM

MDUs, like apartment buildings, are still a tough sell because not only is there up-front cost that the owner has to bear, but constant on-going maintenance costs, mostly concerning managing the connections for all the tenants moving in, upgrading, and moving out.

Usually, MDUs only make sense in high-rise apartment buildings where almost no one has balconies, and where the environment can be tightly controlled (wiring rooms locked, only approved techs given access, all customers forced to go through the MDU provider). And some tenants will still complain, because the very latest features are usually not available on MDUs (think: MRV), they have to pay additional fees to the MDU, and they generally won't be able to just call DirecTV and get special deals, because management of their account goes through the MDU.

Again, while this can be managable in a high-rise, it's often a disaster in smaller, spread-out complexes, as there are a number of ways for customers to end-run the MDU provider and apartment management. Lots of these setups end up being abandoned after a short amount of time (a year or less).

Consider that MDUs put in 2 years ago wouldn't have had SWM technology available, so everything would have been legacy equipment. And now that SWM *is* available, the tenants will want it, but the apartment owner won't be willing to pay for those expensive SWM switches and MDU labor to install/convert everyone, because he was told 2 years ago that his investment in the old system would "last".

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