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2000 Consumer
Electronics Show
READ
ALL ABOUT IT!

PAGE 3
Panelists Ponder Local-into-Local
for Small Markets
With DBS services steadily ramping up their local-into-local
services in numerous large markets, the question still remains
about how to get similar services to smaller and rural markets.
DirecTv President Eddy Hartenstein and EchoStar Chairman Charlie
Ergen both said during a panel discussion that it would have
made sense for the companies to share satellite capacity to deliver
local broadcast signals. Though the panel lacked the sparks and
controversey of years past, the executives said such a plan would
be difficult to acheive now for numerous reasons.Problems such
as incompatibility between their reception equipment and the
orbital slots each company has decided to use to deliver their
services would need to be addressed, they said. In addition,
Ergen said, Were fierce competitors. So we may have
passed the point of no return there. Hartenstein suggested
the companies could maintain their current local-into-local plans
for the major cities and share satellite capacity to serve smaller
markets. Technical compatibility issues could be resolved, he
said, adding, Were certainly open to looking at that.
Meanwhile, congressional leaders have committed to considering
legislation this session that would provide government guarenteed
loans to parties interested in providing local broadcast signals
to rural areas. However, Rep. Mike Oxley (R-Ohio) noted that
committment does not necessarily mean such legislation would
pass. I think its a long shot, Oxley said,
adding that once Congress starts considering the measure any
number of factors, including budget concerns and jurisdictional
issues, could weigh it down and prevent its passage. Congress
almost included a rural loan provision in the satellite TV act,
but dropped it at the last minute over just such concerns. I
hope Im wrong, he said. But at the end of the
day, I think its going to be a little tough to try to sell
that...But Id vote for itif I got the chance.
Though there is bipartisan support for delivering local broadcast
signals to rural areas, it could take a long time to achieve,
Ergen said. It took three years just to get local-into-local
legislation, something that should have been a no-brainer,
he said. Who knows how long it could take to get rural
America so its fully covered."

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