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2000 Satellite Broadcasting and Communications Association Show

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PAGE 3

EchoStar Sweetens Pot for Consumers
EchoStar Communications announced two more promotions designed to attract new customers starting Aug. 1. EchoStar said it will drop the suggested retail price of its model 2712 reception system from $169 to $99. EchoStar also plans to offer new subscribers who sign up for the America’s Top 100 or America’s Top 150 programming packages and a premium movie package three free months of that movie package. Customers who sign up for all four of EchoStar’s movie packages would save more than $100 over the three-month period. EchoStar also touted its planned two-way Internet service with Gilat-to-Home. The companies are testing that product now, including tests with more than 1,000 retailers. The companies plan to roll out the service late this year, likely for about $1,000. Over time, that price could drop to the $200 level, EchoStar Chairman Charlie Ergen said. EchoStar also said it intends to ship its DBS/DVD receiver later this summer with a suggested retail price of $399. As expected, Ergen also announced that CVS Systems will distribute EchoStar’s reception systems in the Midwest. As reported, CVS recently stopped distributing DirecTv’s DBS equipment. CVS “used to be on the dark side” distributing for DirecTv and, prior to that, Primestar, Ergen quipped during a press conference.

New DirecTv President Emphasizes Customer Service
After being “buried” for the past three months learning about DirecTv’s business, new President Odie Donald said yesterday he is convinced that if the company focuses on good customer service revenues and profitability will follow. The appearance at DirecTv's press conference was his first since he took over DirecTv’s day-to-day operations from Eddy Hartenstein. Making sure the company’s customer service is up to snuff is particularly important as more cable operators launch digital services, Donald said. “They’re loading up for an all-out holy war for marketshare,” he said. In addition to mentioning several new reception systems from Sony, Philips, and Samsung, DirecTv also officially announced its Sunday Ticket Promotion. As reported, that offer gives new subscribers three free months of the Platinum Choice package if they subscribe to NFL Sunday Ticket, which retails for $169. Meanwhile, Pegasus Communications, the largest rural DirecTv distributor, announced an agreement with Hughes Network Systems under which it will offer its own version of HNS’ DirecPC service. The service is slated to launch in the fourth quarter. Pricing has not been set for a stand-alone Internet access system or a DirecDuo version that combines DirecTv’s DBS service with Internet access.

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