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1999 Satellite Broadcasting and Communications Association Show READ ALL ABOUT IT! PAGE 2 DirecTv Dials Up SBC for Distribution Agreement Another telephone company has turned to DirecTv to help it gain quick entry into the growing multichannel video marketplace. As expected, SBC Communications has agreed to a marketing and distribution agreement with DirecTv that will enable it to offer DirecTv’s DBS service to its 18 million customers in California, Nevada, Texas, Oklahoma, Missouri, Arkansas, and Kansas. SBC will start offering DirecTv service this fall to residents of its Pacific Bell, Nevada Bell, and Southwestern Bell companies. The agreement builds upon one the companies reached in 1998 in which SBC began offering DirecTv’s service to multiple-dwelling unit residents. DirecTv has a similar marketing agreement with Bell Atlantic and other telephone companies. Ergen Criticizes Hartenstein On NAB Agreement EchoStar Communications Chairman Charlie Ergen’s steady stream of criticism against DirecTv’s legislative agreement with the National Association of Broadcasters did not slow down last week, during a TV interview with Satellite Business News in which DirecTv President Eddy Hartenstein also participated. “If there is going to be a compromise, the compromise needs to be an industry compromise involving all the people in the industry and not one big company who decides unilaterally that they can go out and cut a deal that lines their own pocket,” Ergen said. Hartenstein defended the agreement, saying it was necessary to get the legislative ball moving so satellite TV companies can offer local-into-local service sooner rather than later. “We don’t want to wait any longer and [we] want to try make the best out of what is not a perfect situation,” Hartenstein said. He also denied talk within the satellite TV industry that DirecTv’s agreement with the NAB contained any unannounced provisions that would prevent it from lobbying for further changes. “There’s no more. There’s no less. There’s no hidden documents. There’s no winks or nods,” Hartenstein said. Hartenstein and Ergen also weighed in on several other topics, including the recent consolidation in the DBS industry, which both executives said was necessary to compete more effectively against cable. With two DBS companies instead of four, the satellite TV is giving cable a run for its money, Hartenstein said. “Satellite is what’s really driving the multichannel video industry right now,” Hartenstein said. “We’re the ones creating the higher expectations and the competition driving cable to do what they’re trying to do quicker than in any other case they would have done it.” The “Satellite Conversations” program can be seen during the show on Hilton Hotel channel 27 and at the Satellite Business News booth—#257—on the show floor. TURN THE PAGE OTHER ISSUES TO LOOK FOR: Tuesday, July 20, 1999 Wednesday, July 21, 1999   Please direct questions about this site to general.mail@satbiznews.com q 1998 Satellite Business News Inc. All rights reserved.