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1999 Satellite Broadcasting and Communications Association Show READ ALL ABOUT IT! Ergen Continues Vendetta Against DirecTv, Hartenstein EchoStar Communications Chairman Charlie Ergen yesterday escalated his one-man war of words against DirecTv and its recent agreement with the National Association of Broadcasters on a framework for satellite TV legislation. “By DirecTv and the NAB doing side deals...they’ve set the process back,” Ergen said during his keynote interview with Satellite Business News Editor and Publisher Bob Scherman during yesterday’s general session. “Now, we’re going to be lucky to get legislation in the fall.” Though some at the show have criticized Ergen for publicly and personally blasting DirecTv President Eddy Hartenstein, Ergen said he thought it was necessary. “I’m doing it because I truly think what they did was wrong,” he said. EchoStar’s very public disagreement with DirecTv is not hindering the satellite TV industry’s efforts on Capitol Hill, Ergen contended, saying lawmakers have been aware for some time that the two companies do not agree. Ergen said he plans to keep up his fight against the DirecTv-NAB agreement and for EchoStar’s version of “meaningful” legislation. “The legislation in Congress today is a make-or-break issue in terms of whether we’re a 20 million-home industry or whether we’ll be a 100 million-home industry,” he said. “It’s that important.” He criticized DirecTv for working against legislation last year and then changing its corporate mind and arguing that local-into-local now is a pivotal issue for the industry. “We clearly are not going to be united as an industry,” regarding legislation, Ergen said. “We’re divided, and there’s no way to put that back together again.” Ergen tried to muster more support among audience members for EchoStar’s legislative agenda, urging retailers to contact members of Congress. “If they don’t hear from you, they will listen only to the broadcasters,” he said. Before the interview, EchoStar employees handed out copies of letters to the satellite TV industry outlining EchoStar’s position on legislation. But, overall, the satellite TV industry would be better off if it focused on competing against the cable TV industry rather than each other, Ergen said during the interview. “It really boils down to how we work together as an industry against the enemy at hand, which is the cable industry,” Ergen said. “If we go completely separate as DBS players and fight cable, each independently, I think our industry will not be as big as if we had a more focused approach,” he added. The consolidation in the cable industry, as well as cable companies’ efforts to better cluster their systems, means the satellite TV industry has an even harder job ahead of it, he said. “They’re a much more formidable competitor than they were two or three years ago,” Ergen said. Providing local-into-local service would go a long way toward helping DBS compete against the cable industry, Ergen said. If Congress passes legislation that’s “good for consumers...We have a very reasonable chance to serve all the people in America” with local TV delivered by satellite. Even with “meaningful” legislation, different companies in the satellite TV industry would have to work together to serve all of the homes in the country, he added. “I don’t think we’re powerful enough or financially viable enough as a company, to do it by ourselves. TURN THE PAGE OTHER ISSUES TO LOOK FOR: Monday, July 19, 1999 Tuesday, July 20, 1999   Please direct questions about this site to general.mail@satbiznews.com q 1998 Satellite Business News Inc. All rights reserved.