DISH Network Continues to Offer Satellite TV for $9 Despite Legal Threats From Charter Cable.Business Editors LITTLETON, Colo.--(BUSINESS WIRE)--Oct. 5, 2001 DISH Network See DBS. (Nasdaq: DISH): DISH Network Expands Its Offer to Give Charter Customers With Current Charter Bill an Additional $100 Off Satellite TV Purchase DISH Network, the nation's fastest-growing digital satellite TV provider, today released documents detailing legal threats made by Charter Communications Charter Communications NASDAQ: CHTR is an American company providing cable television, high-speed Internet, and telephone services to more than 5.7 million customers in 29 states. It is the third-largest publicly traded cable operator in the U.S. Inc., one of the five largest cable television providers in the nation. In the letter, Charter cable calls for DISH Network to immediately discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its $9 per-month ad campaign. Charter also accuses DISH Network of unfair competition and threatens to consider legal action against the satellite TV provider. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the letter, Charter claims that DISH Network's current promotion has caused Charter "to lose current and potential customers, and has damaged...Charter's goodwill and reputation. Accordingly, Charter demands that (DISH Network) immediately discontinue the $9 a Month Ad Campaign..." "Charter Communications can stomp their feet, pound their fists and threaten to unleash their lawyers, but we will continue `I Like 9,' which is a great deal for consumers," said Charlie Ergen Charles W. "Charlie" Ergen (born May 1, 1953) is the co-founder and CEO of EchoStar Communications Corporation, the parent company of Dish Network. Born in Oak Ridge, Tennessee, Ergen's father William Ergen was a nuclear physicist at Oak Ridge National Laboratory, and his , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and chairman of EchoStar Communications Corporation EchoStar Communications Corporation (NASDAQ: DISH) is the parent company of DISH Network and the maintainer of the satellite fleet that provides the signal that DISH Network markets. and its DISH Network. "The facts are simple: When comparing similar programming packages, DISH Network's `I Like 9' promotion can save consumers up to approximately $300 over Charter's digital cable programming package in a year. Savings could be even higher if Charter continues their historical rate increases." The following table illustrates current savings to consumers when comparing DISH Network's all-digital "I Like 9" promotion with a typical digital cable package offered by Charter Communications in selected areas:
DISH Network Charter Communications
America's Top 100 digital cable
Programming Package Programming Package
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Monthly Programming Cost $13.99(a) Monthly rate - $49.95(b)
($9), and Local Network First month - $14.95
TV channels ($4.99)
One-Time Cost of DISH $99.00 N/A
Network equipment exclusively
for Charter cable customers
Total Price - Annualized $266.88 $564.40
------- -------
Annualized DISH Network
savings over cable $297.52
((a) DISH Network prices are based on August 2001 rate. DISH Network
rates are subject to change. Local TV channels from DISH Network are
$4.99 per month and subject to restrictions and availability.
(b) Charter Communications may offer varying, special promotions and
prices for new customers that may reduce the monthly programming rate.
Charter Communications prices are based on first-month rate of $14.95
and regular monthly rates of $49.95 for digital cable based on
information available in August 2001 for a select area in St. Louis,
home of Charter's headquarters. Similar Charter rates and similar
savings with DISH Network can also be obtained in select areas in
Atlanta and Birmingham, Ala.)
On Aug. 1, DISH Network launched a nationwide campaign for "I Like 9," offering over 115 channels of all digital satellite video and music television for as low as $9 per month ($13.99 per month with select local network channels) when new customers purchase an all digital DISH Network satellite TV system valued at $199 or more. New customers will receive a credit of $21.99 per month for 12 consecutive months when they subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; America's Top 100 programming package, currently priced at $30.99 per month. The "I Like 9" program also includes free basic professional installation. In addition, DISH Network is making an exclusive offer to Charter customers for an additional $100 savings off a qualifying DISH Network TV system starting at $199. Customers must present to DISH Network or an authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: retailer a Charter bill showing they subscribed to Charter within 90 days of when they become a DISH Network customer. This exclusive offer for Charter customers begins Oct. 8, 2001, and expires Oct. 31, 2001. "We're surprised by Charter's reaction to our `I Like 9' promotion," Ergen added. "If Charter doesn't want to lose customers who switch to DISH Network, then their reaction should be better service and better pricing for their customers. We believe consumers, not Charter's lawyers, should decide who has lower rates. We challenge Charter to lower their rates." DISH Network is recognized as providing the best customer service in the subscription television industry. DISH Network was recently ranked number one in customer satisfaction in the American Consumer Satisfaction Index published by the University of Michigan (body, education) University of Michigan - A large cosmopolitan university in the Midwest USA. Over 50000 students are enrolled at the University of Michigan's three campuses. The students come from 50 states and over 100 foreign countries. Business School. DISH Network scored 71 while Charter scored 63, which was below the average score of 64 for the Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. : Cable and Satellite sector. Details of this study are available at www.bus.umich.edu/research/nqrc/acsi.html. For Press: A copy of Charter's letter is available by contacting Judianne Atencio or Marc Lumpkin at EchoStar. DISH Network(TM) (Nasdaq: DISH) is EchoStar's state-of-the-art direct broadcast satellite (DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. ) system that is capable of offering over 500 channels of digital video and CD-quality audio programming, including Dolby Digital A digital audio encoding system from Dolby used in movie and home theaters. First used in 1995, Dolby Digital employs Dolby's AC-3 (Audio Coding-3) coding and compression technology and is the standard for DVD-Video and HDTV. 5. sound, high-speed interactive television and data services, all on a single dish, as well as offering fully MPEG-2/DVB compliant hardware and installation. DISH Network, which serves over 6 million U.S. customers, is a trademark of EchoStar Communications Corporation. DISH Network is located on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.dishnetwork.com. |
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