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I guess it doesn't make much of a difference. I just hope this isn't a good reason to raise the price on us.
 

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What the?? I thought they tried to do this before but it would never pass monopolization law?


Guys - it's NEVER a good thing when all of the competition combines into one company. Expect rates to go up, service to go down. If you want satellite, you'll come knocking on their door regardless how they treat you. They're the only show in the world!
 

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They are supposed to file a premerger notification (Hart-Scott-Rodino act requires this) so I would imagine they could not do that until they knew who was going to do the purchase. The Department of Justice and the FTC monitor the mergers and they decide which one of the two (DOJ or FTC that is) will take on the specific case after the premerger notification is submitted. I am not sure if one or the other specializes in telecommunication stuff. Anyway, I would expect that it will probably be a month plus before we know whether or not the DOJ or FTC will issue a request for more information on this merger (which kicks off a more formal review). This will be a high profile case, however, and things may move quicker


In a typical year, 4000+ merger notifications may be filed but only 100-200 are put through the ringer for possible voiding. Personally, I can see this one getting a lot of scrutiny and hope that it does. It may come down to how they define the market. They put a lot of faith in market concentration ratios in deciding which mergers to tackle. If they define the market as strictly satellite commercial TV, their concentration scores will go through the roof. If they expand it to include cable TV, things do not look as concentrated and it would be relatively more likely to pass, I would think


Dave M
 

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Assuming the merger goes through, the company will be called EchoStar, but the service will be known as DirecTV.


Which is what you would expect--they keep the name with the best brand recognition.
 

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Discussion Starter #6
Quote:
Originally posted by crowbert
Assuming the merger goes through, the company will be called EchoStar, but the service will be known as DirecTV.


Which is what you would expect--they keep the name with the best brand recognition.
It didn't say that in the article, where did you read that?
 

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i live in a market where I have a cable tv choice. But the single cable company sucks. Which leaves me with the satellite option. I want to have a choice between DISH and Directv. If this merger goes thru, I won't have any choice.


The competition between DISH and DirecTv has been very good for consumers. It's kept prices low and programming packages constantly improving.


This will be a bad thing if it happens.
 

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such a takeover has been rumored for a couple of years now...

When AOL acquired CompuServe, I had friends that thought it would be the end of the world. I don't know if any of them still use it, but CompuServe is still around.



I wonder, what will happen with the two services:


Are they hardware compatible? I would assume that they have two seperate satellite systems, broadcasting on seperate bands, and that their dishes are not compatible. Do you continue to run two seperate networks, with seperate customer bases depending on which dish they have? Do you shut down one and switch your customers to the other? Can the satellites be "retasked" to all broadcast on one band? Can the dishes be "retuned"? If the satellites stay "seperate", do you offer the same programming on both or do you double the amount of programming by offering different services on each? What are the implications for DirecTiVo and UltimateTV, considering that Echostar has a proprietary, wholey owned PVR of its own?



Bandwidth is one of the main advantages digital cable has over satellite TV. If all of a sudden Dishnetwork has twice the bandwidth it used to, that might be something big.



Joe
 

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Quote:
Originally posted by RandyL712
it's NEVER a good thing when all of the competition combines into one company.
For retail, competition is a great thing. But, I can think of several examples where monopolies might be preferred.

First class mail, water, gas, and electricity would top my list. For things like this the customer always suffers once competition starts - service begins to suck. I don't know about electrical companies in other states, but in California you could choose who you bought your power from (after the energy crisis, many of those extra companies went out of business, though). But service begins to suck; the smaller companies don't have good service, but they have lower rates. The original 'monopoly' company has to compete, so they begin to trim back services offered where possible. I never experienced phone rates or service before phone companies like MCI, Sprint, etc came out, so I can't say how well it was before. But I do know that if AT&T had no competition, I wouldn't be getting nightly calls to switch phone services.


A scary scenario for mail: If other companies compete for first class mail with the US Post Office, some cities might change from USPS to a new mail service to save a few bucks, or get kickbacks (whatever they call kickbacks to make them legal). It might work well for a while, but I could see the next step would be for private residences who have their mail delivered to their door would next have to pay extra for that service; the default option would be to pick up your mail at a central location, or a nearby mailbox like in apartment complexes. I would hate that. Or, they might deliver once/week instead, and charge extra for more deliveries. Yuck....


Now if you are talking about competition to Fry's stores, that is really a good thing. But basic services, no. I'm not sure if cable/satellite can be considered basic yet, but they sure are close to necessities in this country now. (I'll get off my soapbox now...)
 

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Quote:
Originally posted by RandyL712
?


Guys - it's NEVER a good thing when all of the competition combines into one company. Expect rates to go up, service to go down. If you want satellite, you'll come knocking on their door regardless how they treat you. They're the only show in the world!
Satellite TV was designed to provide competition for local cable. Echostar might be a monopoly on Satallite, but it is not a monopoly on media distribution.
 

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Quote:
Originally posted by RandyL712
What the?? I thought they tried to do this before but it would never pass monopolization law? 88
What monoplization law? There can't be one otherwise Micro$oft would have been forced into about 87 different entities by now. And we won't even start talking about Disney, AOL/TimeWarner, etc, etc.


IMHO (yeah right!) anytime a single company commands more than 25% of a market then it's time to fire up the Anti-Trust lawyers and break them up!!
 

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anytime a single company commands more than 25% of a market then it's time to fire up the Anti-Trust lawyers and break them up
Well said comrad... Every time a company does good and makes more money than the rest, we should kick them to the ground so they can start over again! This will keep incentive down and all of the lazy companies can stay in business. That is the Amerika I want to live in.
 

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lol, if you people want one big company shelling out a service that you can't get from anyone else, it's your business. But mark my words - customer service goes down, price goes up. They may be competing in some way with cable, but they were always competeing with each other. Digital cable is now $45-90 in my area, and satellite starts at $21.95. I predict that will change in short order if this merger goes through.
 

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So, for $21,95 you get comparable channels on satellite to what you get for $45 on digital cable?
 

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Quote:
Originally posted by riker



It didn't say that in the article, where did you read that?
Here's the passage:


The new company, which would retain the EchoStar name but would use the DIRECTV brand for consumer offerings, would be based in Littleton, Colo., and would employ approximately 20,000 people and serve more than approximately 14.9 million direct-broadcast satellite TV customers. EchoStar and Hughes have pledged that the merger would not cause disruption of service or additional expense to existing customers of either DIRECTV or DISH Network service.



Here's a link:
http://www.directv.com/press/pressde...12,439,00.html


Xaa
 

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Cool, I didn't see the release, thanks....
 

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Quote:
Originally posted by klmay



Well said comrad... Every time a company does good and makes more money than the rest, we should kick them to the ground so they can start over again! This will keep incentive down and all of the lazy companies can stay in business. That is the Amerika I want to live in.
And the alternative.....?? We get Micro$oft products on our PC's whether we like it or not. They get to charge grossly inflated prices for their OS and you get to pay for bug fixes the next time they update their OS. We all had Win 3.1 and then they put out Win95 that fixed just enough bugs so that most people bought it (usually along with new hardware) to stop their systems from crashing and locking up all the time. Repeat procedure for 95OSR2, 98, 98SE, blah, blah, blah.


Oh and don't forget to log onto the Windows update site every 38 minutes to get the "patch" for the latest 14 security bugs in Windows (nevermind having to update all your other M$ software to keep from being infected by virii)


I'm not against someone making money, what I'm against is them using that money solely to squash any and all competition either by driving them out or buying them out. Let your product prove itself in the marketplace in a free market. Now if M$ had EVER done that then they would never have gotten out of the backseat of Gates' car back when he sold licenses for DOS (A product he didn't "steal" until after selling said licenses) to IBM.
 

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CA did power deregulation wrong...if you want to see how it should have been done look at PA (or was it ohio? -- doesn't matter, one of those two states did it right). CA screwed up by having price caps on electricity to the consumer. As for telephone service, the cost for long distance has gone down a lot since the break-up of AT&T.


We already have competition with the US post office. It's called UPS, FedEx, etc.


In the case of DBS systems, having only one choice will clearly be harmful. As a former directv customer who was targeted by DISH and successsfully enticed me away from one DBS provider, I can tell you they are most certainly competing with each other. And in may parts of the country, only with each other. So in many markets, a merger will produce a monopoly. A true monopoly. Not a fake one like Microsoft. (People have choices with Microsoft, see linux, OS2, macs.)

Quote:
Originally posted by rayliner



For retail, competition is a great thing. But, I can think of several examples where monopolies might be preferred.

First class mail, water, gas, and electricity would top my list. For things like this the customer always suffers once competition starts - service begins to suck. I don't know about electrical companies in other states, but in California you could choose who you bought your power from (after the energy crisis, many of those extra companies went out of business, though). But service begins to suck; the smaller companies don't have good service, but they have lower rates. The original 'monopoly' company has to compete, so they begin to trim back services offered where possible. I never experienced phone rates or service before phone companies like MCI, Sprint, etc came out, so I can't say how well it was before. But I do know that if AT&T had no competition, I wouldn't be getting nightly calls to switch phone services.


A scary scenario for mail: If other companies compete for first class mail with the US Post Office, some cities might change from USPS to a new mail service to save a few bucks, or get kickbacks (whatever they call kickbacks to make them legal). It might work well for a while, but I could see the next step would be for private residences who have their mail delivered to their door would next have to pay extra for that service; the default option would be to pick up your mail at a central location, or a nearby mailbox like in apartment complexes. I would hate that. Or, they might deliver once/week instead, and charge extra for more deliveries. Yuck....


Now if you are talking about competition to Fry's stores, that is really a good thing. But basic services, no. I'm not sure if cable/satellite can be considered basic yet, but they sure are close to necessities in this country now. (I'll get off my soapbox now...)
 

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Quote:
Originally posted by ChampaignWalt
And in may parts of the country, only with each other. So in many markets, a merger will produce a monopoly. A true monopoly.
This wouldn't be an issue if they were forced to have a nationwide pricing structure. Who cares if a comparable cable system is or isn't available in some rural location as long as the combined DBS company couldn't have a higher price in that area than they had in the markets where they did compete with cable companies?
 
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