Cablevision Enters into Interim Agreement Regarding VOOM

[James Long]

And for those that say "oh, just switch to the other bird" keep in mind that it's going to be a serious cash outlay for Voom to do this. They will need a bigger dish, and it's going to mean all 45k subs will need a visit from the installer. That's a lot of work and cash.

Voom planned on adding Rainbow2, which would cost the dishes anyways. This way they can use a cheaper dish (AMC-6 only) off the shelf instead of a modified E* SuperDish121. (And don't forget, that of the 46k figure that has been bantered around, 5k have not yet been installed - so Voom will have to visit them anyways.)

There have been complaints about Voom's SD PQ. Trippling their bandwidth will help increase PQ in the long one.

Plus the conversion up MPEG-4 will require visits. They might as well flip a dish while they are there. (And E* could probably hold off until September with the right incentive for a transition.)

JL

 

[FrankJo]

Voom doesn't have a satellite! It has been sold to E*!

It isn't in E*'s interest to lease the satellite to the new Voom. They need it.

It would cost too much money to go out to 46,000 subs to reposition their dish to something else. That's not even counting the fact that Voom (as a satellite provider) will continue to lose money. And lots of it over the next several years. This also assumes that it would someday actually make a profit. By then D* & E* will have ramped up their HD offerings. Voom can't compete.

Maybe E* wil pick up Voom as a content provider, but that's it.

Once the satellite is gone, VOOM HAS NO WAY TO BROADCAST.

Realistically, it really is going to take a MIRACLE for you guys to kep receiving Voom the way you do now.

 

[msav]

bingo

Echostar really needs R-1. They need a high powered spot beam satellite. VOOM does not need R-1, R-2 will work fine for them. But, I think Echostar will be more than willing to lease R-1 to VOOM probably at a VERY cheap rate during the transition to R-2. Echostar does not need the wrath of the FCC to come down on it. Technically if the FCC blocks the 11 TP license transfer E* could still move the satellite to somewhere else like 129. Echostar needs the satellite and will probably cooperate fully to get the licenses too.

Bingo!
If the FTC allows the sale of the sat that is one thing but will the fcc allow the transmit frequencies to go without contest. The fcc has been keeping E* from getting any more frequencies in that slot for quite some time and allowing only 2 slots at a time. They are not due for any more frequencies untill 2006 (if i remember right) That would leave E* with the satelite and nothing they can do with it. why not Lease it to V*.

mark

 

[James Long]

The FCC has used the competition argument a few times over the past couple of years to deny these types of applications especially to Dish.

"these types of applications"? What has been denied are STAs for the unassigned transponders. When was the last time the FCC denied a transfer? The D* E* merger was much bigger than this deal and the approved transfers that came before the D* E* merger.

In "the past couple of years" E* got the final 11 western assignments where they wanted them on 148 and 157, then moved transponders on 157 because of problems on E4. They also purchased the rest of 157 at auction. Losing the 61.5 STA channels to V* was unexpected, but V* only got a STA as well.

So what have I missed? A few botched applications for FSS where they had to guess how much could be assigned and E* guessed too low? I don't see why this transfer should be any harder than all of the previous ones E* has survived.

JL

 

[TheTimm]

blah blah blah blah blah blah blah Voom will die blah blah blah blah blah blah Voom can't live blah blah blah blah blah blah Voom sucks blah blah blah blah blah Voom will be shut down by blah blah blah blah blah blah nothing on exclusives blah blah blah no sat blah blah blah blah blah Voom losing so much money blah blah blah blah blah blah blah still not dead huh well soonblah blah blah blah blah blah Voom is doomed blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah

... and yet every day I turn on my tv and there's Voom in all it's HD glory.

 

[James Long]

That would leave E* with the satelite and nothing they can do with it. why not Lease it to V*.

Cablevision's sale to E* is a complete package. If they don't get the FCC approval within a year (15 months if extended) the entire deal is off and Cablevision owns a satellite and doesn't get the $200 million.

JL

 

[gutter]

Voom doesn't have a satellite! It has been sold to E*!


Realistically, it really is going to take a MIRACLE for you guys to kep receiving Voom the way you do now.

First...VOOM's have had several miracles since January 20th. Second E doesn't own the R1 yet and faces tough review at the FCC as has been outlined. Chuck's cards can make it easier for them to take control but there is no question that Chuck wants a few concessions as well. That fact that the two are good friends and billionaires can't hurt.

Normally you would be right, but nothing in this whole episode for the last two months has followed conventional wisdom and you have been wrong again.

 

[msav]

vooms new bird

does not voom have a new bird under construction set to be completed in about 8 months?
That is if the contract that was signed for the birds is transfered with the sale of voom.
If this is the case vooms just needs to lease space for about a year.

where is anybodys guess. but since it is a short term usage and E* has no immediate plans for the sat why is this not possible. I remember he is dealing with ergen not murdock.

mark

 

[gutter]

Someone will definetly correct me, but I think that the new bird you are speaking of is about 18 months away at least.

 

[msav]

ok maybe a bit longer

according to the statement made in november the first will be ready in 34 months

so maybe a bit longer lease that mease it would be 30 months left til completion

mark

 

[James Long]

The new birds "under construction" are also unpaid for, so I doubt that the work is moving swiftly. They are all ka birds. Voom is better of on Ku. AMC-6 is their best bet (even if they keep Rainbow1).

JL

 

[dragon002]

ergen needs the 61.5 NOW his is about dead at that slot

buddy buddy or not and you dont know if they are or not, ergen takes care of e* cx first, do you really think he cares about the voom subs?

ergen will not help a competiter out, that may bite him in the butt later, why would he????

this is business plain and simple.

ergen,comcast, murdock, adelphia, dolan, charter, they are in business to make profits, not to be visionarys and lose money. they dont care if you have a hd tv or a 13" black+white, you are paying around 50 per month, that is all that matters to them. period

get over it

 

[Spike]

That sat. is a trump card in VOOM's favor! A big trump card. It hasn't been sold to anyone yet.

 

[rocatman]

The deadline for the last input to the FCC on the transfer of the frequency licenses is April 18th, 2005. I can not see the FCC making a ruling for a couple of weeks after that at the earliest so Dish probably could not start using the R-1 satellite until June 1 at the earliest. A letter from Dolan stating Voom doesn't need R-1 probably would cinch an FCC approval for Dish. Dish might as well receive some lease money from Voom during this time.

The real value of the R-1 satellite for Dish is the spotbeam capability that is probably only workable at the 61.5 W location. As I have posted elsewhere, if the FCC disapproves the frequency transfers, it would still be worthwhile for Dish to work a frequency swap with the FCC, their current 11 frequencies at 61.5 W for the 11 that the R-1 satellite can use with its spotbeams. Yes, I know that the R-1 satellite actually can use 12 frequencies for spotbeams but the 12th is one of those that Voom has with the STA.

 

[David Dietzel]

That agreement is FANTASTIC NEWS.

Now Cablevision and it's shareholders can sleep better at night since any continued VOOM expenses are no longer their problem.

Now Charles and his team can get on with the business of arranging all the elements needed for VOOM's continuance under their own direction.

Now VOOM subscribers can continue to enjoy the best HD picture and sound quality in the marketplace.

Now new VOOM installs can proceed.

Now the negative nellies are all annoyed to no end (actually, I think they all just need to get laid more often).

 

[rocatman]

That sat. is a trump card in VOOM's favor! A big trump card. It hasn't been sold to anyone yet.

The satellite can not be considered a Voom trump card because VoomLLC/Chuck Dolan doesn't hold that card in his hand. Echostar has a contract with Cablevision/Rainbow DBS for purchase of the satellite etc. I would think if there was a cancellation clause in the contract that Chuck Dolan could implement, he would have already done it and there wouldn't be talk of working a deal with Echostar.

 

[Spike]

He wouldn't have to cancel at this point, and further I don't think that it is Dolan's intent to do so at any point of the game. Talking to work a deal does makes sense, since that sat is important to both!

 

[James Long]

The deadline for the last input to the FCC on the transfer of the frequency licenses is April 18th, 2005.

That's the deadline for rebutals to reply comments. So far E* is the only entity to file any comments under IB 05-72. The initial deadline is late this month. If there are no comments that need to be replied to a decision could start then. Otherwise the FCC should wait until after the reply comments deadline to see if there are any. If there are no reply comments they don't have to wait until April 18th. (And as noted in the announcement, the decision COULD be made in 31 days from the announcement - the end of the initial comment period. But that would be incredibly fast.

As I have posted elsewhere, if the FCC disapproves the frequency transfers, it would still be worthwhile for Dish to work a frequency swap with the FCC, their current 11 frequencies at 61.5 W for the 11 that the R-1 satellite can use with its spotbeams. Yes, I know that the R-1 satellite actually can use 12 frequencies for spotbeams but the 12th is one of those that Voom has with the STA.

That would take a new deal between Cablevision and Echostar. According to the Satellite Sales Agreement, E* doesn't have to buy the satellite if they don't get the licenses. E* is having problems with even TPs on E3 so an equal swap would give Voom a transponder E* couldn't transmit for them.

Unless someone important complains I expect the transfer to be approved. Perhaps a bit of noise and lament over the loss of the "third" DBS provider (even the FCC doesn't count SA ). But not enough to have grounds to say no.

I would think if there was a cancellation clause in the contract that Chuck Dolan could implement, he would have already done it and there wouldn't be talk of working a deal with Echostar.

The parties can cancel the contract by mutual agreement. Cablevision keeps the bird (etc) and Echostar keeps the $200 million. But it MUST be a mutual agreement. Other than that, Cablevision must cooperate fully in getting the licenses transfered to E* and completing the deal. (That doesn't say that someone else can't interfere, but Charles is too connected to Cablevision to be the one.)

JL

 

[dispatcher_21]

I agree with the guy above, Sr. Dolan will throw a stink about the 3rd sat company and deal will go boom on E*

 

[calikarim]

Charles dolan is serious

What i get from the news is that Charles Dolan is very serious about persuing his vision of voom, and is willing to stand behind Voom 100%. The difference being before the board was adamnant about shutting down voom, now they are trying to reach an agreement to offload voom to Charles.

"Cablevision said it entered an agreement with Dolan, its chairman, and Thomas Dolan, his son, under which Voom will stay in service while the two try to arrange a transaction that would prevent its closure"


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