EchoStar netted 225,000 new subs in 2Q05 for DISH, down nearly 34 percent from the same quarter last year. In its 10Q, the satellite TV company attributes some of the drop to a decline in its co-branding agreement with SBC; EchoStar says the telecom shifted its marketing and sales strategy during the first half of 2005 to focus “On limited geographic and customer segments.” The company warns that net adds and other key metrics “could continue to be adversely affected to the extent SBC further deemphasizes, or discontinues altogether, its efforts to acquire DISH Network subscribers, and as a result of competition from video services offered by SBC or other regional bell operating companies.”
DISH doesn’t quite put it like this but the iffy relationship with SBC puts it at a disadvantage to the cable operators who can use their own pipes to bundle video, HSD and voice.
Don’t look for much detail in the earnings release but EchoStar’s 10Q has plenty. Earnings call webcast.
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