SkyFILES: Waiting in the Wings

[Gregg Lengling]

by Michael Hopkins mhopkins@mediabiz.com

Throughout chat rooms, conferences held by the financial community and in other circles, there's still a lot of buzz about DirecTV's plan to deliver up to 500 local high-def channels next year and up to 1,500 by the close of 2007 if and when the satellite TV giant launches its next four satellites.

How about DirecTV's competition?

EchoStar's DISH Network, the No. 2 DBS player, has been quiet about its plans. Yet that doesn't mean the company does not have any plans.

EchoStar has three applications pending before the International Bureau at the Federal Communications Commission for use of three DBS orbital locations: 86.5 degrees, 96.5 degrees and 123.5 degrees. In its application filings, EchoStar says it would use the additional capacity gained at the locations for delivery of spectrum-intensive services such as high-def television, more local channels and interactive TV.

The 123.5-degree slot is near EchoStar's 119-degree location, as well as Ka-Band spectrum it holds at 121 degrees. EchoStar also operates satellites at 110 degrees.

The slots are close to other DBS orbital locations. EchoStar has promised that its new satellites will not interfere with other DBS operations close by, thanks to recent advances in satellite technology.

And while the orbital spectrum will focus on delivering services to U.S. customers, EchoStar said it could coordinate with other countries - such as Canada - for use of its proposed satellites. Telesat Canada's two Nimiq DBS satellites are at 91 degrees and 89 degrees, close by 86.5 degrees and 96.5 degrees.

Of course, use of the orbital locations is still in the application stage. And in documents filed at the commission, EchoStar said it has not yet signed a contract with a satellite manufacturer or a launch provider.

Meanwhile, DirecTV's satellite/HD moves are expected to compel cable to step up its efforts to deliver more high-def programming.

The wired business claims it is most of the way there: The National Cable and Telecommunications Association said this week that the number of local TV markets in which consumers can receive a package of HDTV services from a cable operator has grown to 177, out of 210 markets, including all of the country's top 100 DMAs. NCTA also said the number of local digital broadcast stations being carried by cable systems has increased to 454, up from 304 in December 2003, reflecting growth of nearly 50 percent.

Out of 108 million U.S. TV households, 90 million are passed by a cable system that offers a package of HDTV programming, NCTA said. The new number represents an increase of more than 28 percent when compared to the 70 million HD mark achieved last December, the association added.