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Note I tried to transcribe the opening statement as close as possible. The rest is summaries.
Charlie Ergen and Jim DeFranco
CE: We had some disappointing news from the FCC, in that they declined our merger and had designated for a hearing. That is very disappointing to us because obviously we think that the merger is in the public interest and that is what the FCC rules on. Having said that, they made the determination that they didn't think that the merger was anti-competitive, while recognizing the all benefits of the merger, they felt that ultimately it just wasn't as competitive for consumers. So, we are disappointed by that, but that doesn't mean that by any means the merger is dead, it gives us bit more of an uphill battle. Of course we have to get Justice Department approval for the merger as well. On the positive side, the FCC did give us about 30 days to present new information to them, on our merger see if we can remedy some of the competitive effects that they think are not good about the merger and of course we plan on doing that and continuing to work and fight for this merger because we believe in it strongly. And were to give you all the services that you guys asked for and compete against cable and keep rates as low as we can, the merger is essential for us to be able to do that. Obviously there will be more in the press about this in the days and weeks and months ahead, but we continue to fight for it. But, you know obviously disappointed last week in the news.
JD: Any idea on timing?
CE: Gave us 30 days, and maybe this time next month we will know. A hearing will be held.
We have taken 2 things to Supreme Court (must carry, and distants) and lost both, we do not have a great track record, but if we believe in it we will spend the time, money and effort.
JD: What can customers do to help?
CE: Big election coming up in November and ask your rep, and vote accordingly. The FCC comment period is over.
-----------------
NHL Package reviewed 3 payments of $53 each for $159.
Doug Perlman, Sr. VP NHL TV & Media Ventures on to hawk NHLCI
Charlie is a thrashers fan. Doug quips if you get transferred, not if it happened to you… Charlie laughs it off…
Local market teams will be blacked out, whether home or away. Should be on your local channels.
Autographed Blake shirt to give away. What is the trophy goes to the team with best regular season record?
-----------------
New Russia channel only set you back $14.99/month NTB $164.99/year
-----------------
Basketball - we do not have yet, but we are working on it.
Merger Questions:
1. Will Dish still offer broadband now?
No, but may team up with some Bell companies w/DSL discount bundle. No way to do satellite without merger or government handouts.
2. Since merger in limbo will you still be adding local channels in local markets?
Yes, our goal to get to 50 markets by end of year. We are at 47, think more than 50 by year end. Will announce more LIL during next month's show. Some markets are undecided today because some broadcasters charge too much. We could not negotiate a fair deal and moved on to other cities.
NO WAY 210 without merger! Have to use cable or OTA antenna… 1950s Technologies. Government won't allow us to pursue the high tech methods.
3. Will locals go down to one dish?
The second dish is of course provided free of charge. With merger could do all one dish, without merger we do not have that ability. We are certain we are in compliance with all FCC regulations today. We will continue on a limited basis for the foreseeable future to use a second dish. We cannot defy law of physics. Most customers do not have a problem with using a second dish.
4. How will merger being put off affect LIL?
With merger we would have launched $300m satellite and would do it. We cannot defy the law of Physics. Cities like Jacksonville are high priority, but there are also nearby markets that could be important too. We are unable to get retrans consent in Jacksonville… other cities under that spot are would be happy to get LIL. Picks on Montana some since the politicians from MT were the most against the merger and they need it most. Sometimes in DC you do not spend enough time with real people from your district.
Winner "President's Trophy", Jeff wins
5. I wrote all my congressmen for the merger how do we help more?
It never hurts to write. Visit our web site www.dishnetworkmerger.com Find out where your congressmen stand on the issue. They have a formula is a mathematical formula for anti trust and does not match the real business world. Laws do not keep up with high tech… Cable goes up 3x inflation. It is a shame if the opportunity was missed. Maybe we did not explain the benefits of the merger well enough. We are not done yet. Anything you can do to help. We do not complain at Echostar, sometimes we win, sometimes we lose, if we lose we go by the decision.
6. ABC in HD before super bowl… ESPN HD?
We are real believers in HDTV. We are the leader, we have more than anyone else with 5 channels. With merger we could carry more. We are looking at engineering solutions to carry more. HD-NET, ESPN, etc are being worked with. We hope to have a lot of good stuff in HD. It will change the way people watch TV and we hope to be a part of that.
7. Why 3 WB, 2 UPN but UPN all East coast?
Because they were super stations before SHIVA, and we cannot add more. It is not that they were WB/UPN networks, but that they were super stations. They were grand fathered. Use a PVR. We are a leader in PVR technology.
--------------
Basketball ABC/ESPN have exclusive.
Shows a commercial… Has Kevin Corke from ESPN as guest. Pick up today's WSJ that discusses merger. Kevin gives his background. Hypes ESPN a lot. All sit around and hype ESPN. 90 NBA games on ABC/ESPN stations, don't miss out Wednesday and Fridays on ESPN. Oct 30th is first game. Mini basketballs autographed by George Girvan (sp?), and Rafe, sweatshirts and teeshirts. What college did Bill Walter play for?
--------------
8. Is the NHLCI available in US Virgin Islands.
I believe any US territory where you can recieve a Dishnetwork signal.
9. I just love my PVR 501 but can only record/watch one channel at a time, you going to have a PVR that I can watch one channel and record a different one?
Watch next month. Model 721 does this. You will have to upgrade your 501 and buy a 721.
10. ABC/NBC going to be available in HDTV?
We hope to negotiate rights in limited areas like CBS O&O. We just don't know the answer. Use an antenna (model 6000 allows this). Because it is digital it will be perfect (or no picture at all, and you will not have to pay for it!!!). We should be able to give you more national channels like HBO, Discovery in HDTV.
11. Will 508 do frame advance or slow motion? Will HDTV PVR come out?
Prototypes of HDTV PVR are being reviewed and tested (even Charlie saw it demonstrated today). As far as 508 slow motion, engineer pipes up and says they are working on it, maybe by December…. But Charlie says reality check if engineer says December probably means March.
12. Can I hook up a dish and use my receiver in my RV when I travel?
Probably, you can do it with one subscription, you do not have to pay twice for it. Charlie suggests you label your wires so you can keep track of them. You have to have experience to align the dish, but if you can drive an RV you should be able to do this.
13. How do I see Pacers game that are not blacked out?
We are in negotiations with NBA to get NBA pass, hopefully we will have. We do not have anything to announce about this now. NFL we do not have, but DirectTV exclusive is up at end of year, no one know what will happen.
Winner ESPN, Ron from Myrtle Beach, SC won NBA prizes.
Club dish Push… you can have 12 people under you and get $60/month off your programming a month. Get those cable customers you know converted!
Automation is improved at the customer service center. We have between 6k and 7k CSRs. You will be delighted by our new touch tone menus.
Tech Forum November 9, 2002 9PM EST CH 101
Charlie Ergen and Jim DeFranco
CE: We had some disappointing news from the FCC, in that they declined our merger and had designated for a hearing. That is very disappointing to us because obviously we think that the merger is in the public interest and that is what the FCC rules on. Having said that, they made the determination that they didn't think that the merger was anti-competitive, while recognizing the all benefits of the merger, they felt that ultimately it just wasn't as competitive for consumers. So, we are disappointed by that, but that doesn't mean that by any means the merger is dead, it gives us bit more of an uphill battle. Of course we have to get Justice Department approval for the merger as well. On the positive side, the FCC did give us about 30 days to present new information to them, on our merger see if we can remedy some of the competitive effects that they think are not good about the merger and of course we plan on doing that and continuing to work and fight for this merger because we believe in it strongly. And were to give you all the services that you guys asked for and compete against cable and keep rates as low as we can, the merger is essential for us to be able to do that. Obviously there will be more in the press about this in the days and weeks and months ahead, but we continue to fight for it. But, you know obviously disappointed last week in the news.
JD: Any idea on timing?
CE: Gave us 30 days, and maybe this time next month we will know. A hearing will be held.
We have taken 2 things to Supreme Court (must carry, and distants) and lost both, we do not have a great track record, but if we believe in it we will spend the time, money and effort.
JD: What can customers do to help?
CE: Big election coming up in November and ask your rep, and vote accordingly. The FCC comment period is over.
-----------------
NHL Package reviewed 3 payments of $53 each for $159.
Doug Perlman, Sr. VP NHL TV & Media Ventures on to hawk NHLCI
Charlie is a thrashers fan. Doug quips if you get transferred, not if it happened to you… Charlie laughs it off…
Local market teams will be blacked out, whether home or away. Should be on your local channels.
Autographed Blake shirt to give away. What is the trophy goes to the team with best regular season record?
-----------------
New Russia channel only set you back $14.99/month NTB $164.99/year
-----------------
Basketball - we do not have yet, but we are working on it.
Merger Questions:
1. Will Dish still offer broadband now?
No, but may team up with some Bell companies w/DSL discount bundle. No way to do satellite without merger or government handouts.
2. Since merger in limbo will you still be adding local channels in local markets?
Yes, our goal to get to 50 markets by end of year. We are at 47, think more than 50 by year end. Will announce more LIL during next month's show. Some markets are undecided today because some broadcasters charge too much. We could not negotiate a fair deal and moved on to other cities.
NO WAY 210 without merger! Have to use cable or OTA antenna… 1950s Technologies. Government won't allow us to pursue the high tech methods.
3. Will locals go down to one dish?
The second dish is of course provided free of charge. With merger could do all one dish, without merger we do not have that ability. We are certain we are in compliance with all FCC regulations today. We will continue on a limited basis for the foreseeable future to use a second dish. We cannot defy law of physics. Most customers do not have a problem with using a second dish.
4. How will merger being put off affect LIL?
With merger we would have launched $300m satellite and would do it. We cannot defy the law of Physics. Cities like Jacksonville are high priority, but there are also nearby markets that could be important too. We are unable to get retrans consent in Jacksonville… other cities under that spot are would be happy to get LIL. Picks on Montana some since the politicians from MT were the most against the merger and they need it most. Sometimes in DC you do not spend enough time with real people from your district.
Winner "President's Trophy", Jeff wins
5. I wrote all my congressmen for the merger how do we help more?
It never hurts to write. Visit our web site www.dishnetworkmerger.com Find out where your congressmen stand on the issue. They have a formula is a mathematical formula for anti trust and does not match the real business world. Laws do not keep up with high tech… Cable goes up 3x inflation. It is a shame if the opportunity was missed. Maybe we did not explain the benefits of the merger well enough. We are not done yet. Anything you can do to help. We do not complain at Echostar, sometimes we win, sometimes we lose, if we lose we go by the decision.
6. ABC in HD before super bowl… ESPN HD?
We are real believers in HDTV. We are the leader, we have more than anyone else with 5 channels. With merger we could carry more. We are looking at engineering solutions to carry more. HD-NET, ESPN, etc are being worked with. We hope to have a lot of good stuff in HD. It will change the way people watch TV and we hope to be a part of that.
7. Why 3 WB, 2 UPN but UPN all East coast?
Because they were super stations before SHIVA, and we cannot add more. It is not that they were WB/UPN networks, but that they were super stations. They were grand fathered. Use a PVR. We are a leader in PVR technology.
--------------
Basketball ABC/ESPN have exclusive.
Shows a commercial… Has Kevin Corke from ESPN as guest. Pick up today's WSJ that discusses merger. Kevin gives his background. Hypes ESPN a lot. All sit around and hype ESPN. 90 NBA games on ABC/ESPN stations, don't miss out Wednesday and Fridays on ESPN. Oct 30th is first game. Mini basketballs autographed by George Girvan (sp?), and Rafe, sweatshirts and teeshirts. What college did Bill Walter play for?
--------------
8. Is the NHLCI available in US Virgin Islands.
I believe any US territory where you can recieve a Dishnetwork signal.
9. I just love my PVR 501 but can only record/watch one channel at a time, you going to have a PVR that I can watch one channel and record a different one?
Watch next month. Model 721 does this. You will have to upgrade your 501 and buy a 721.
10. ABC/NBC going to be available in HDTV?
We hope to negotiate rights in limited areas like CBS O&O. We just don't know the answer. Use an antenna (model 6000 allows this). Because it is digital it will be perfect (or no picture at all, and you will not have to pay for it!!!). We should be able to give you more national channels like HBO, Discovery in HDTV.
11. Will 508 do frame advance or slow motion? Will HDTV PVR come out?
Prototypes of HDTV PVR are being reviewed and tested (even Charlie saw it demonstrated today). As far as 508 slow motion, engineer pipes up and says they are working on it, maybe by December…. But Charlie says reality check if engineer says December probably means March.
12. Can I hook up a dish and use my receiver in my RV when I travel?
Probably, you can do it with one subscription, you do not have to pay twice for it. Charlie suggests you label your wires so you can keep track of them. You have to have experience to align the dish, but if you can drive an RV you should be able to do this.
13. How do I see Pacers game that are not blacked out?
We are in negotiations with NBA to get NBA pass, hopefully we will have. We do not have anything to announce about this now. NFL we do not have, but DirectTV exclusive is up at end of year, no one know what will happen.
Winner ESPN, Ron from Myrtle Beach, SC won NBA prizes.
Club dish Push… you can have 12 people under you and get $60/month off your programming a month. Get those cable customers you know converted!
Automation is improved at the customer service center. We have between 6k and 7k CSRs. You will be delighted by our new touch tone menus.
Tech Forum November 9, 2002 9PM EST CH 101
