[Steve Mehs]

Following a number of rumors, speculation and later, confirmed reports, StarBand is reorganizing its retail business model to a dealer direct format that will allow retailers to purchase StarBand systems directly through the company. This follows EchoStar's recent news that it will no longer sell StarBand equipment.

However, despite the change, StarBand retailers have voiced concerns and frustrations over EchoStar's recent cutoff of StarBand equipment dealer sales. The details of EchoStar's recent decision to halt the sales of StarBand equipment came in the form of a letter recently sent to retailers.

Over time, retailers and dealers haven't reacted well to EchoStar's news citing frustration and confusion over the company's vague reports. Some of this concern is best summed-up in a letter recently sent to SkyRetailer.

"We find it unconscionable that they (EchoStar) would leave us and other retailers hanging in suspension without explanation," said satellite TV retailer Ron Habegger.

"Because of these and other previous actions, we are 'sick to death' of (and finding the same with other retailers) Echosphere, DISH Network and Charlie Ergen. This predates your (StarBand) involvement with them. However, we looked at StarBand as a fresh breath to continue in the industry with a product relevant in today's lifestyles regardless of (EchoStar CEO Charlie) Ergen," said Habegger.

From SkyRetailer (Used with permission)

 

[John Corn]

This is because Echostar really believes that the merger will go through and wants to steer satellite broadband to Hughes.

 

[Richard King]

This is because Echostar really believes that the merger will go through and wants to steer satellite broadband to Hughes.

While steering to Hughes after the merger might be the case, I doubt that this is the reason for the change. They can't do this under the assumption that the merger will happen. They must continue to run the business as though it will not happen. They are dropping Starband, in my opinion, due to the fact that Starband has yet to ever come even close to any projections that have been made by them. They are shutting off the flow of good dollars following the bad dollars that have already been invested.