EchoStar Committed To Mexican Satellite-TV Venture - CEO
MEXICO CITY -(Dow Jones)- EchoStar Corp. (SATS) said Monday that it remains
committed to its satellite-TV venture in Mexico, in which it plans to invest $
112 million over a 10-year period.
"The business has got off to a good start and clearly gotten the attention of
the competition," EchoStar Chairman and Chief Executive Charles Ergen said
during a conference call to discuss third-quarter results.
EchoStar formed a joint-venture with Mexican telecommunications firm MVS
Comunicaciones in November 2008 to sell pay-TV packages for as little as 149
pesos ($11.20) a month to low-income consumers. EchoStar holds a 24% indirect
stake in the venture, called Dish Mexico.
Dish Mexico competes directly with the cable and satellite TV subsidiaries of
media giant Grupo Televisa SAB (TV), Mexico's No. 1 television broadcaster and
the largest producer of Spanish-language content in the world.
Televisa's satellite-TV unit, Sky Mexico, responded to competition from Dish
by launching its own low-cost package earlier this year.
Dish Mexico's operations benefit from a billing-and-distribution agreement
signed last year with the country's largest fixed-line phone company, Telefonos
de Mexico SAB (TMX), or Telmex.
Telmex, which is prohibited from directly selling pay-TV services to its
clients, has hinted that it could invest in Dish Mexico if it were to receive
the necessary regulatory approval.
While declining to comment on the number of subscribers at Dish Mexico, Ergen
said "it's a business that has good growth potential and profitability
potential."
EchoStar said Monday in its 10-Q filing with the U.S. Securities and Exchange
Commission that, so far, it has contributed $59 million in the form of cash,
equipment and services as part of its investment in Dish Mexico.
EchoStar said it expects to satisfy its remaining investment commitment by
contributing about $27 million in cash and the rest in the form of services or
equipment.
-By Ken Parks, Dow Jones Newswires, 52-55-5980-5177, ken.parks@dowjones.com
(END) Dow Jones Newswires
11-09-091600ET
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