The End of VOOM?

[Sean Mota]

Source

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Jan. 20, 2005--EchoStar Communications Corporation (NASDAQ: DISH) announced today that it has agreed to purchase certain satellite assets from Rainbow DBS Co., a subsidiary of Cablevision Systems Corporation (NYSE: CVC), for $200 million.

Specifically, EchoStar has agreed to purchase Rainbow 1, a direct broadcast satellite (DBS) located at 61.5 degrees West Longitude, together with the rights to 11 DBS frequencies at that location. The satellite includes 13 frequencies, up to 12 of which can be operated in "spot beam" mode.

The EchoStar III satellite also located at 61.5 degrees West Longitude broadcasts DISH Network TV programming to hundreds of thousands of consumers today using DBS spectrum controlled by EchoStar at that location. EchoStar is assessing how the Rainbow satellite's flexibility can best be utilized to enhance DISH Network's existing service. Also, as part of the transaction with Cablevision, EchoStar will acquire ground facilities and related assets in Black Hawk, S.D. The transaction is subject to review by the Federal Communications Commission and other regulatory agencies.

 

[dcf1580]

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Jan. 20, 2005--EchoStar Communications Corporation (NASDAQ: DISH) announced today that it has agreed to purchase certain satellite assets from Rainbow DBS Co., a subsidiary of Cablevision Systems Corporation (NYSE: CVC), for $200 million.

Specifically, EchoStar has agreed to purchase Rainbow 1, a direct broadcast satellite (DBS) located at 61.5 degrees West Longitude, together with the rights to 11 DBS frequencies at that location. The satellite includes 13 frequencies, up to 12 of which can be operated in "spot beam" mode.

The EchoStar III satellite also located at 61.5 degrees West Longitude broadcasts DISH Network TV programming to hundreds of thousands of consumers today using DBS spectrum controlled by EchoStar at that location. EchoStar is assessing how the Rainbow satellite's flexibility can best be utilized to enhance DISH Network's existing service. Also, as part of the transaction with Cablevision, EchoStar will acquire ground facilities and related assets in Black Hawk, S.D. The transaction is subject to review by the Federal Communications Commission and other regulatory agencies.

About EchoStar Communications

 

[Walter L.]

Wow, Is that official? Is this the end of VOOM as we know it?

 

[Sean Mota]

The Fat Lady has sung its song. It was good while it lasted... The end of the run...

 

[Calvin&Hobbes]

I guess this begs the question, should I go through with my installation on the 28th?

 

[Sean Mota]

No need... as far as I can see...

 

[Calvin&Hobbes]

So what is the recommended alternative, Dish now with the increase in capability, or directv?

 

[mike123abc]

Just released by WSJ:
Cablevision to Sell Rainbow Direct Broadcast Satellite and Certain Related Assets to EchoStar for $200 Million

January 20, 2005 7:31 p.m.

BETHPAGE, N.Y.--(BUSINESS WIRE)--Jan. 20, 2005--Cablevision Systems Corporation (NYSE:CVC) today announced that it has entered into a definitive agreement for Rainbow DBS Company LLC to sell its direct broadcast satellite and certain other related assets to a subsidiary of EchoStar Communications Corp. (Nasdaq: DISH) for $200 million in cash.

Under the terms of the agreement, EchoStar will acquire the Rainbow 1 satellite, located at the 61.5 degree W.L. orbital position, as well as FCC licenses to construct, launch and operate DBS services over 11 frequency channels at the 61.5 degree W.L. orbital location. In addition, EchoStar will acquire the contents of Rainbow DBS's ground facility in Black Hawk, S.D. and related assets. The transaction is subject to regulatory approvals.

http://online.wsj.com/article/0,,PR_CO_20050120_002562,00.html

 

[Walter L.]

I agree. It was good while it lasted.

 

[Sean Mota]

So what is the recommended alternative, Dish now with the increase in capability, or directv?

Those two or cable are the only alternatives...

 

[fredfa]

more from the CVC press release:

"...Cablevision will continue to explore strategic alternatives, including monetization, for its remaining Rainbow DBS related assets, including programming, equipment and spectrum.

VOOM will continue to provide service to its current customers during a transition period...."

 

[Calvin&Hobbes]

Yeah, and I want to ditch cable.... so who do people recommend dish or directv?

 

[Walter L.]

I guess this begs the question, should I go through with my installation on the 28th?

Like somebody else suggested, I'll say go for it. Assuming that it is not recalled by VOOM, you have nothing to lose. Instead, if you become a VOOM you may get a good deal to switch to another provider.

 

[Sean Mota]

And the point of that is what? It will mean that at some point they will sell the HD that they produced to someone but that it's not likely to occur any time soon. In the mean time, there's no need to stay. Start looking for alternatives if you don't have another provider already.

 

[BFG]

OMG. Today is a day which will live in infamy

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=665115

 

[dishrich]

E* to buy VOOM satellite & frequencies

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=665115

Sorry if this has been posted within any other posts, but thought it deserved a separate post.

 

[HiDefGuy]

Wow, so does VOOM get sucked up into Echostar and everything good from VOOM goes away?

Does anyone see this as "good news"? I enjoy all my HD and the good SD PQ, don't wanna go back...

 

[korsjs]

dish buys voom satellite

i am surprised no one on the voom board has mentioned it.

http://www.satelliteguys.us/showthread.php?t=43527

 

[Sean Mota]

I never knew what it would feel like when we finally saw the day!

Voomers welcome to dishnetwork muwahahaha!!!!

I am already there....

 

[BFG]

But all it says is they bought the satellite and transponders. I think voom might be dead...