Local TV on Satellite LLC, Raleigh, North
Carolina, is proposing to beam local television programming to
small TV markets across the U.S. Local TV has deals in place to
retransmit nearly 300 television station in the markets, using two
satellites it plans to launch. The agreements extend for the
expected 15 year lifespans of the satellites. Local TVs satellites
are planned to be positioned near the existing spacecraft operated
by DirecTV, El Segundo, California, and EchoStar, Littleton,
Colorado.
Local TV plans to
buy two spacecraft, each equipped with 210 Ka-band transponders,
and launch them in late 2002, at a cost of approximately US$1
billion.
Local TV is in
negotiations to supply its service to DirecTV and EchoStar. Local
TV wants to provide a package of local channels to both DBS
providers, on a wholesale basis, generating revenues by charging a
fee for each subscriber that receives its service through the DBS
company. Viewers would require a new satellite antenna and set-top
box.
The
U.S. Congress passed legislation in 1999 permitting DBS providers
to retransmit local channels, but the DBS industry is not mandated
to provide local signals to all markets. However, in markets where
a DBS provider chooses to provide local transmissions, starting
January 1, 2000, they must carry all local stations serving that
market. Limited Ku-band spectrum capacity constrains the number of
markets which EchoStar and DirecTV can serve with local
programming, using their current satellites.
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