May 5 - Live Earnings Call Updates

Financial stuff:

Revenue - 2.02 Billion
Higher average revenue per subscriber results to growth

Net Income - 318 Million

Added 325,000 Net new customers
11,230,000 Subscribers

Churn 1.4 %

$57 - Average revenue per subscriber, 1 dollar hihger than last qtr
Reduction in free promos, and price increases

Subscriber Aquistion Cost - $623
-increase in SAC due to more lease subs
 
Q: About Voom Deal :)

A: Small Equity interest in voom, put the channels up, 10 of 21 channels at 61.5, expand the service around the 1st of 2006 with the deploment of MPEG4 with the rest of the 21 channels.

"HDTV is not a 2005 event, a 2006 event"

Because we wont have enough deploment of MPEG4 yet.
 
More MPEG4.

It's going to be a slow rollout, as the costs will be higher with initial deployment.

Quality of the encoding system will improve over the years

Will have to spend more on retention costs with MPEG4 and have to decide how much of the costs the consumers will have to bear
 
Question about 19.99 promotion

he doesnt like the discount programming
It's a watered down promotion
only 3 months, requires 1 year commitment
but its standard "everyone's doing it"
dissapointed that they have to do this

But he's not thinking about this year, thinking about next year
 
Q: HDTV, how many nationals could they carry, HDLIL

No oposition to the Rainbow 1 aquisition. Hope to be approved before next conference call.

Currently they have 20 HD channels.

Using 61.5 and 148 they have capacity for 20 local markets and 50 national channels

More capcity with echo 10, 11

They don't agree with spending 100,000's of dollars for launching local markets, if the folks can receive the channels just fine over the air.

he says it does make sense to do at least the top 20 markets HDLIL
 
Q: Why all the satellite orders, if you're unsure about providing HDLIL.

Opportunity to not deploy some of the sats on order

Other uses would be Broadband, not sure about that route either.

Capicity IS needed for HD, and we want to be position.

Could still lease Transponders to others.
 
Question about sharing spectrum with directv:

Dish has tried for 10 years to share with D*, unsuccessfully, so it's not likely to happen.
 
Loclas on Single Dish solution question:

They have until june until next year to comply.

Affects 30 markets.

The capcity from echo 10 is one of the parts to the solution
 
Another HD Question: Wants a big figure of the overall cost of transition (truck rolls, production, satellites)

dont care what it costs as long as he gets a return
 
That's all the reporting from me.

Thanks for those that joined us in the chat :)
 

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