 EchoStar, announced that it will purchase the Rainbow 1 satellite used by Voom, plus the rights to 11 DBS frequencies. EchoStar will pay $200 million to Cablevision, Voom's parent, for the assets.
March 7, 2005 -- EchoStar, announced that it will
purchase the Rainbow 1 satellite used by Voom, plus the rights to 11 DBS
frequencies. EchoStar will pay $200 million to Cablevision, Voom's parent, for
the assets.
The deal would seem to be the end for Voom, which has lost hundreds of millions
of dollars for Cablevision since its launch in October, 2003. Despite a massive
advertising campaign and a lineup of nearly 40 High-Definition TV channels, Voom
has generated less than 30,000 subscribers. Cablevision's board this week
refused Chairman Chuck Dolan's request to increase funding for the service.
EchoStar said it was still considering how it would use the Voom satellite --
and its DBS frequencies. However, the satcaster could use the extra space to
provide local HDTV signals. Rival DIRECTV recently announced that it will launch
four new satellites, enabling it to offer local HD in 12 cities as early as this
summer.
Cablevision issued a press release Thursday night saying that it would continue
to explore strategic alternatives for its remaining satellite assets, which
include exclusive high-def channels and satellite spectrum. The company said it
would also continue to provide service to its current Voom customers during an
unspecified transition period.
Consumers can visit www.theonlydish.com to learn more about the purchase, and to
order The DISH Network services right online.
Contact:
Robert Ramirez
HOTPOP PR INC.
http://www.theonlydish.com/
908-622-0119
News Source: PRWEB
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