| |  | | SATELLITE
DIGITAL TV
Satellite MATV (SMATV)
In a SMATV system network the local channels are augmented
by unique programming only available by satellite - to either cable operators
or Private Cable Operators (PCOs). In this network, all units are connected to
a common antenna site at the property called a "headend". Each satellite
program channel is processed individually and inserted onto the same "backbone"
wire as the local broadcast channels. At this same location the satellite programs
are converted from digital signal to analog. This requires a digital satellite
receiver and video modulator for each channel to be processed. The customer does
not need any special receiver/decoder, as the analog signals are available tuners
resident within their television sets. The number of satellite channels carried
on the system network will be between 20-23 including one pay channel (i.e. HBO).
This is in addition to the local broadcast channels. The minimum property size
that makes Satellite Video viable is between 100-150 units. The property size
is not as critical as the determinants of customer demand and wiring cost. If
the interest in subscribing is high and the wiring cost are at the low end of
the scale, then smaller properties are feasible. The advantages of a SMATV system
network are generally: - To provide specific
channels of programming only;
- Low maintenance is required;
- Local networks
and satellite channels seamlessly integrated;
- Lower up-front cost especially
for larger size properties. The disadvantages of a SMATV system network are generally:
- There is an additional cost to add programming services;
- None of the features
inherent of a satellite receiver in each tenant's unit are available;
- Does not solve the Dish law problem
Direct
Broadcast Satellite (DBS), L-Band
The distribution
of digital satellite signals within MDU properties is known as "L-Band"
system networks. This is because the digital signals are transmitted in a portion
of the frequency spectrum called the L-Band. The signals are not converted to
analog at the headend. Instead, a digital satellite receiver, known as an "Integrated
Receiver/Decoder" (IRD) is placed at the television set in each unit of the
property. These IRDs are identical to the ones sold in retail establishments and
MDU customers will have all of the same features and benefits.
L-Band
offers approximately 200 channels of programming for video, CD audio, pay-per-view
movies and events including sports from their main satellite orbital "slots".
In the next two years, per forecasted, up to 500 channels will be offered by each
company as new satellites are launched into additional orbit slots. Local broadcast
television signals are also being retransmitted via satellite into many of the
countries largest cities.
DBS requires reception hardware that includes
a dish, a decoder (set top box), and a remote control. A single decoder can decode
a single channel, which can then be routed to several TV sets and VCRs throughout
a household. A separate decoder is needed for each TV or VCR that subscribers
want to be able to view a different channel on simultaneously. Therefore to watch
two different satellite channels simultaneously or to tape one channel while watching
another (if both are from the satellite) a household must have two decoders. In
addition, to receive all the available programming - multiple orbital positions
(sending satellites) may need to be targeted and therefore subscribers must use
multiple separate dishes or a special elliptical dish.
Each manufacturer
of DBS equipment differentiates their product by providing a unique user interface
including their own on-line program guide format with a different look and feel
and different customized remote controls.
The dishes (antennas) can be
installed anywhere there is a direct line of sight to the sending satellite (southern
facing with no trees or buildings in the way). The dishes typically have a built-in
audible signal meter or blinking LED to indicate signal strength to help position
them during installation.
The DBS satellites operate from 22,300 miles
above the equator at various positions across the U.S. Dishes are pointed toward
the south with the angle above the horizon dependent on the distance north of
the equator. Those in the northern part of the U.S. (such as Minnesota) see the
satellites about 25-35 degrees above the horizon. Those in the southern part see
it higher in the sky.
The DIRECTV satellites are at the 101 degree West
orbital location which is above a North/South line running through western Nebraska.
Viewers in the central portion of the U.S. (such as Texas or the Dakotas) see
the satellite about straight to the south. On the East Coast it is slightly west
of south and on the West Coast it is slightly east of south. The EchoStar primary
satellites are at the 119 degree & 110 degree West orbital positions, EchoStar's
East Coast satellite operates from the 61.5 degree West position.
The
advantages of an L-Band system network are: - Deliver a larger channel selection
more economically in smaller properties;
- You provide a Cadillac service to
your tenants;
- You can change programming services without any additional expense;
- Low cost Pay-per-View option. The disadvantages of an L-Band system network
are generally:
- Must have a state-of-the-art "home run" cable distribution
in place for L-Band system network;
- Potentially
a higher up-front cost, based on property size;
DIRECTV
vs. EchoStar
The main differentiation is
the custom programming. NFL football and other sports enthusiasts will also want
DIRECTV as well as those who like a lot of Premium services and Pay Per View movies
and events. In addition DIRECTV has just launched a Latin Station grouping called
"Para Todas". EchoStar offers substantially more stations than Direct
TV (500 vs. 250) and leads in delivery of ethnic programming as well as Christian
programming. In addition, EchoStar already offers local stations in Atlanta, Boston,
Chicago, Dallas, Miami, Los Angeles, New York, Pittsburgh, Washington DC, Denver,
Phoenix, Salt lake and San Francisco. Both companies are launching new cities
weekly.
HYBRID-SMATV and L-BAND Network
In this configuration a SMATV system is utilized to
deliver basic cable and premium movies with the option to add a digital satellite
receiver (set top box) to every unit to receive specific service tiers from the
satellite Network. Some examples of these tiers might include: The advantages
of a Hybrid-SMATV and L-Band system are generally: - SMATV, local networks,
and satellite channels are integrated to the tenant:
- Deliver a large channel
selection more economically in large properties ;
- An "all encompassing"
TV service is available to the Tenant base, and they then determine what services
they will receive. The disadvantages of a Hybrid-SMATV and L-Band system are generally:
- Must have a state-of-the-art "home run" cable distribution in place
for L-Band system network.
- As a combination system this methodology represents
the largest Capital infrastructure.
- Generally
the Consumers will be billed by two different vendors, the private cable supplier
and the DBS supplier.
Programming
As a general rule, it's important to provide local broadcast
networks like ABC, CBS, NBC and FOX because these channels are most commonly viewed.
These services are either provided through an off-air antenna system and the programming
is subsequently provided "free-of-charge" to the property (excluding
maintenance fees); or, through a cable system - where the tenant pays a monthly
fee. In some major metropolitan areas local broadcast Network programming may
be available via the satellite. However, if local service is offered via satellite
than a digital receiver (set top box) must be used to view the signal.
Satellite Equipment
Proprietary
digital satellite receivers must be used to acquire satellite network programming
services. These receivers are in addition to the satellite antennas required to
receive the programming signal. In addition the satellite dish must be positioned
to allow an open southern facing.
Technical
Support
After the initial system installation
and the Tenant connection (requires both a video and phone jack) is made, most
technical service related issues can be resolved directly by satellite. The phone
connection allows the decoder to communicate pay-per-view (PPV) requests to the
satellite uplink center and to also transmit Tenant billing information. Each
digital satellite receiver is addressable and designed to receive software upgrades
and receive direct communication. Therefore, there are few ongoing service requirements.
THE DISH RULE
The
rule is cited as 47 C.F.R. Section 1.4000 and has been in effect since October
14, 1996. It prohibits restrictions that impair the installation, maintenance
or use of antennas used to receive video programming. The rule applies to video
antennas including direct-to-home satellite dishes that are less than one meter
(39.37") in diameter (or of any size in Alaska), TV antennas, and wireless
cable antennas. The rule prohibits most restrictions that: (1) unreasonably delay
or prevent installation, maintenance or use; (2) unreasonably increase the cost
of installation, maintenance or use; or (3) preclude reception of an acceptable
quality signal. On November 20, 1998, the Commission
amended the rule so that it will also apply to rental property where the renter
has exclusive use, such as a balcony or patio. The effective date of the amended
rule is January 22, 1999 The rule applies to viewers
who place video antennas on property that they own and that is within their exclusive
use or control, including condominium owners and cooperative owners who have an
area where they have exclusive use, such as a balcony or patio, in which to install
the antenna. The rule applies to town homes and manufactured homes, as well as
to single family homes. The rule allows local governments, community associations
and landlords to enforce restrictions that do not impair, as well as restrictions
needed for safety or historic preservation. In
addition, under some circumstances, the availability of a central or common antenna
can be used by a community association or landlord to restrict the installation
of individual antennas. In addition, the rule does
not apply to common areas that are owned by a landlord, a community association,
or jointly by condominium or cooperative owners. Therefore, restrictions on antennas
installed in common areas are enforceable.
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