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SBC Considering Buying DirecTV
Guppy06 writes "Throwing their hats into a ring that includes News Corporation, Cablevision, and General Electric, this NYT article (yadda yadda yadda) reports that #2 Baby Bell SBC is interested in buying DirecTV. After federal and state anti-trust authorities shot down DirecTV's purchase of EchoStar recently, their purchase by a corporation that already has its own state-mandated telephone monopoly is... "interesting" to say the least. Those of us who dislike government monopolies are left hoping either News or GE wins this one (if a sale even takes place)." One of the other suitors for DirecTV has been Murdoch's Fox.
Just because SBC operates as a monopoly in many local phone markets does not make the entire firm a monopoly. If it acquired DirecTV it would defiantly have to be a competitive firm as it entered the Cable/Satellite market.
The real benefit I see to SBC in this is that they want to encourage people to have satellite tv since satellite TV subscribers usually have DSL and not cable modems. They may try and cut you some deal if you sign up for both, a "switch away from your cable company" kind of deal.
Another weird side not is that I've seen in Fort Worth where SBC provides "cable" service to apartment complexes but their "cable boxes" are really DirecTV receivers and they just have one dish for the entire complex (or area, I'm not sure) and split the signal from it up to all of the apartments.
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People who live outside the US already know the joys of NewsCorp's monopoly on satellite broadcasting - they run the Sky satellite networks and in many markets (e.g. the UK), they are the only satellite provider.
Now, I have a deep and abiding dislike and mistrust for the News Corporation, so perhaps someone who actually lives somewhere under their monopoly can share their experiences?
-Isaac
I am not a lawyer, and this is not legal advice. For Entertainment Purposes Only.
Great service, great support.
We've got a T1 and ISDN circuit from them
Their long distance service is horrendously expensive, so we only use them for the circuits.
McLeod USA used to re-sell the SBC service around here. With them getting in the way, it was horrible. But lately, SBC has been doing 'buy-backs' and we're getting better pricing that McLeod gave us (Which was much better than what SBC originally offered)
SBC around here used to be Ameritech, and Michigan Bell before that.
As it stands now, HDTV remains somewhat on the fringes of the television market, but with each new digital TV, this remains less and less true. And those subscribers that have DirecTV that upgrade their sets have few options:
1. they will need an IRD (DTV "box") upgrade that runs about $500. Plus they will usually need a new dish and someone to come out and re-aim it for them -- the football dishes are no charm to aim and get all of the DTV satellite constellation.
2. when they do upgrade their IRD they get three HD channels -- and no local stations. They can only get HBO, HD-Net and Discovery Channel in HD.
On the other hand, terrestrial based cable systems have made up a lot of ground. They offer most all of the old analog-based channels that once distinguished DTV, AND they also offer ABC, NBC, CBS, Fox, HBO, PBS in their HD offerings. Add to that a sub-TiVo POD, HBO on Demand.
That says to me that DTV faces a major competitive disadvantage in the future. The only way that they can add more capacity is to launch more distribution satellites, and until they do, they cannot begin to match the HD offering that Time Warner and others are offering today. As it is now, TW already has a better picture with less pixellation on ALL channels.
Whoever gets DTV had better be aware of this, or they will face a major uphill battle as the transformation of TV from analog to digital takes place.