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An Open Letter to DirecTV CEO Eddy Hartenstein

"DirecTV is now seeking regulatory approval to sell 1/3 of its company for almost $7 billion dollars -- This enormous profit is the direct result of the vast spectrum grants you have assembled."

 Washington - Oct 02, 2003
 Hartenstein: I am writing to ask you to stop your campaign of distortion against Northpoint Technology's plans to create a low cost competitor to DBS and cable. You say our company should not be licensed in the same manner as international and global satellites because the "DBS industry must participate in auctions to receive spectrum." This is totally disingenuous and you know it.

  • Your company Hughes Electronics -- the largest DBS operator -- has never paid the Treasury one cent in an auction for any of its spectrum licenses and yet it is the largest spectrum holder in the United States.

    • You have paid nothing at auction for your DBS or any other spectrum. Zero. You must also know that 88% of all DBS spectrum was never auctioned and that the FCC has not held a satellite auction of any kind in almost seven years.

  • Our company is only seeking to share the very same spectrum that your company was already given without auction.

    • It is outrageous that you would advocate that we have to pay to share something that you were given free.

    DirecTV is now seeking regulatory approval to sell 1/3 of its company for almost $7 billion dollars -- This enormous profit is the direct result of the vast spectrum grants you have assembled.

    As you know, people have questioned the sale of your company because of concerns that you will fail to use your enormous spectrum grants in the public interest. This is understandable because today:

  • DirecTV fails to carry over 1,000 television stations
  • DirecTV raised prices by 10% on basic service in 2003
  • DirecTV does not carry the Emergency Alert System
  • DirecTV does not offer a viable high speed internet service

    • Mr. Hartenstein, I think you should spend less time lobbying to impose unfair burdens on new competitors and more time seeking ways to use your free spectrum to improve service to the public.

    Source: Northpoint Technology, Ltd.

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