 KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
 ·AT&T DSL Service
| reply to DaveDude
Re: no more satellite radio competition, why not tv? said by DaveDude:If Dish and Direct are profitable and sustainable they shouldnt be allowed to merge. Hmmm. SBC and Bellsouth was profitable. They merged. Citi merged with Travellers.... etc etc. I don't think profitable is really a standard they use.
They weigh in on competition. A merger of DBS would create one provider for rural subs--- not so good.... *but* DBS is facing STRONG competion from Telco and Cable offerings that they have a hard time competing with due to the fact they cannot offer other services to sweeten the pot. (IE Bundles.) A stronger DBS competitor here would be good for these consumers.
SO, the argument could go either way.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
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CorydonCultivant son jardinPremium
join:2008-02-18
Denver, CO | I don't see how a merger would do much of anything to change your analysis. The DBS company would still face competition from cable (and more and more, telcos).
Sure they could save some money by eliminating positions. Sure they might make a bit more by putting more of a squeeze on rural customers who have nowhere else to go.
But they still will not be able to offer a viable bundle alternative and would end up getting squeezed by triple play companies who can.
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"Think for yourselves and let others enjoy the privilege to do so too." |
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KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK Reviews:
·AT&T DSL Service
| The advantages I see are:
1) Bandwith. They would gain control of both companies satellite spectrum. Result: They could dump duplicate services and use the bandwidth to bring more channels, more HD, less compression, etc etc
2) Numbers of subscribers. With a larger group of subscribers, it gives them more clout with the content providers--- ie puts them in a better position to negotiate on prices. If they can keep programming costs lower, then they can compete better on price. (And still remain profitable.)
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
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| reply to KrK
DirecTV does have bundles of a sort; they have partnered with Verizon (Triple play - phone, DSL and DirecTV). But it's true that won't last long-term; Verizon only uses it as a stopgap measure to prevent subscriber loss to the cable companies. Once FIOS is expanded to a certain coverage percentage we can look for Verizon to end their partnership (and customer discount). From what I've heard from Verizon contacted call center employees, they've already made the bundle an "honor do not offer" deal. |
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