SBC Communications Adds New 'DISH' To The Menu, Launches 'Quadruple Play' Bundle With Satellite TV
SBC | DISH Network offers start at $29.99;
Most complete, integrated bundle of local/long distance, wireless, broadband, TV
available in SBC service area for about $125/month - a $380/year savings
San Antonio, Texas, Englewood, Colorado, March 3, 2004
In a move expected to reshape the telecommunications and television entertainment landscape, SBC Communications Inc. (NYSE: SBC) and EchoStar Communications Corp. (NASDAQ: DISH) today launched SBC | DISH Network satellite TV service across the SBC service area - 13 states and 55 million telephone lines - offering consumers new choices, significant values and unmatched convenience.
With the SBC | DISH Network rollout, the SBC family of companies becomes the first major telecommunications provider in the nation to offer TV, wireless, broadband and local/long distance service, all with one call and one monthly bill - a "strategic quadruple play" that significantly enhances customer benefits.
In the future, SBC and EchoStar companies plan to develop set-top boxes that combine the features of satellite TV, digital video recording, broadband, home networking and telecommunications services - moving to truly integrated telecommunications and entertainment services that will provide greater interactivity, features and functionality for consumers.
"The future begins today when it comes to buying entertainment and communications services," said Edward E. Whitacre Jr., SBC chairman and chief executive officer. "We now have perhaps the premier bundle in the industry. No competitor can surpass our compelling choices, great values and seamless customer experience."
No other major telecommunications provider in the nation has a more fully integrated relationship with a satellite TV provider or has greater benefit and customer experience available today on a broad basis.
SBC | DISH Network satellite TV programming prices start as low as $29.99 a month and all SBC | DISH Network packages include local channels (where available) at no additional cost, free standard professional installation for up to four TVs, no long-term commitment requirements, no equipment purchase, and a choice of receivers, featuring the latest technology - including a digital video recorder* (DVR) and a high-definition receiver.*
Plus, SBC customers with a qualifying SBC Connections bundle (a combination of SBC local service, SBC Long Distance and a package of call management features) who order any of the following entertainment packages (except America's Top 60 or DISH Latino) will receive a $4 a-month limited-time promotional discount.
- America's Top 60, $29.99, featuring more than 60 channels of the most popular programming.
- America's Top 120, $39.99
- America's Top 180, $49.99
- America's Top 120 plus HBO, $53.98, America's Top 120 plus eight channels of HBO.
- America's "Everything" Pak, $82.99, featuring the top 180 channels, plus 31 premium channels of HBO, Cinemax, Showtime and Starz!
- DISH Latino Package, $29.99, featuring 31 Spanish-language channels, the most competitively priced international programming package.
The SBC | DISH Network all digital package prices offer a compelling alternative to average cable packages. Additionally, the SBC | DISH Network entertainment packages feature options (like a digital video recorder), as attractive as any offered by cable competitors. And all SBC | DISH Network packages include 100 percent digital TV programming.
Customers who purchase SBC local service and long distance, Cingular Wireless and SBC Yahoo! DSL (or Dial) receive discounts on most services as part of the company's "the more you buy, the more you save" approach. This bundle, called SBC Total Connections**, plus SBC | DISH Network programming, starts roughly at a total of $125 a month, with a savings of more than $380 a year compared with a la carte pricing. If SBC Yahoo! Dial is chosen, or basic SBC | DISH Network programming packages, prices and savings are lower.
The current SBC-EchoStar agreement builds upon a relationship that began in mid-2002. Before today, SBC customers who wanted to order DISH Network were transferred to DISH Network and received a separate bill. The new agreement, modeled after the highly successful SBC-Yahoo! alliance, created a tighter relationship that will take full advantage of the SBC brand, customer relationships and powerful sales channels.
For the past six months, a dedicated SBC-EchoStar team has worked to develop simplified ordering tools, integrate billing systems, train thousands of employees and create a seamless customer experience. Today, customers in the 13-state SBC service area can enjoy a single point of contact for ordering, scheduling installation and billing and round-the-clock customer care provided by specially trained SBC | DISH Network representatives.
"SBC | DISH Network is an exciting new choice for consumers - especially those fed up with rising cable rates," said Charles Ergen, chairman and CEO of EchoStar.
In a recent Forrester Research report, "SBC Makes a Smart Choice With EchoStar," senior telecommunications analyst Charles Golvin said this is a strategically beneficial move for both companies. Golvin stated that SBC companies will develop service bundles that add video to the current mix of telephony and data products, while EchoStar will get the distribution muscle it needs and will be able to leverage the strong SBC brand in its regions to accelerate satellite TV's market share.
More than 15,000 SBC customer service representatives will offer SBC | DISH Network service to the millions of customers who contact the company each month. Plus, a multimillion-dollar SBC advertising, direct mail and customer communications campaign will support the new service.
Independent and company research underscores consumer interest in bundling communications and entertainment services. Last year, 40 percent of consumers said they would like to purchase all of their communications services (local, long distance, broadband, wireless, and television) from a local phone company, according to a J.D. Power and Associates study1.
Meanwhile, the satellite TV audience grows as the cost of cable increases. Consumer spending on cable service has increased 41 percent in the last five years, moving from an average of $35.15 a month in 1998 to $49.62 a month in 2003, a J.D. Power and Associates survey found.2 A recent Federal Communications Commission report3 found that cable prices have risen 53 percent in the past 10 years, more than double the increase in the Consumer Price Index over the same period.
SBC | DISH Network provides access to hundreds of popular, all-digital television channels, including movies, sports, news, international and children's programming. SBC | DISH Network also features several high-definition programming channels, as well as commercial-free, CD-quality music channels of Sirius Radio.
For more information, or to order SBC | DISH Network service, please call 1-800-750-8400, or visit our web site at www.sbc.com/sbcdish.
SBC Communications Inc. (www.sbc.com) is a diversified communications company, owning several of the world's leading data, voice and Internet services providers. Through world-class networks, SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 30 company, SBC Communications Inc. owns America's leading high-speed DSL provider and one of the nation's leading Internet Service Providers. SBC companies currently serve 55 million access lines nationwide. In addition, SBC companies own 60 percent of America's second-largest wireless company, Cingular Wireless, which serves more than 24 million wireless customers. Internationally, SBC companies have telecommunications investments in 26 countries.
EchoStar Communications Corporation (NASDAQ: DISH) serves over 9 million satellite TV customers through its DISH NetworkTM, and is a leading U.S. provider of advanced digital television services. DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. DISH Network is the leader in the sale of digital video recorders (DVRs). EchoStar has been a leader for 23 years in satellite TV equipment sales and support worldwide. EchoStar is included in the Nasdaq-100 Index (NDX) and is a Fortune 500 company. Visit EchoStar's Web site at www.echostar.com or call 1-800-333-DISH (3474).
1J.D. Power and Associates 2003 Residential Long Distance Telephone Service Study.
2J.D. Power and Associates 2003 Residential Cable/Satellite TV Customer Satisfaction Study
3Federal Communications Commission Cable Competition Report January 2004
*There is a limit of one DVR receiver per account; 2 high definition ("HD") receivers per account; four total tuners per account (dual tuner receivers count as 2 tuners). There is a $5-per-month rental fee for each receiver. Rental fee for the first receiver is included in the monthly programming package price. There is an additional $4.98-per-month DISH Video-On-Demand Fee for each DVR receiver; subscribe to America's "Everything" Pak and Service Fee is waived. There is an Additional Outlet Programming Access Fee of $4.99 per month for the second tuner in any dual-tuner receiver (including the DISH Player-DVR 522), but that fee is waived if the receiver is continuously connected to customer's same land-based phone line each month. SBC | DISH Network confirmation process shall be the sole method utilized to determine if customer's monthly additional Outlet Programming Access Fee will be waived. Customers who choose an HD receiver must subscribe to HD Pak programming (currently $9.99 per month). Must have HD-capable television to receive HD programming.
Monthly price of $125 and yearly savings of $384 based on selecting the following SBC Total Connections services and America's Top 120 or DISH Latino Dos programming package.
** SBC Total Connections: Monthly price and savings based on this combination: Access line and qualifying local package with at least 3 features; Value Plus 60 long distance service ($2/mo.); SBC Yahoo!® DSL ($26.95/mo. with 12-mo. term); Cingular plan ($24.99/mo. with 24-mo. term). SBC Yahoo® Dial available for $9.95/month with a six month term. Prices subject to change. Per-minute charges apply for Cingular/long distance usage exceeding allotted minutes. Taxes, surcharges, fees, installation, state/federal universal service charges, wireless phone (purchase required), and wireless roaming, extra. Credit restrictions apply. Must maintain: (1) Cingular Wireless; (2) joint billing; (3) local line (and a qualifying local package) from an SBC local telephone company and local toll and long distance services from an SBC company; and (4) SBC Yahoo!® DSL (where available) or subscription to SBC Yahoo!® Dial (at lesser savings) to qualify for applicable Cingular, long distance, and SBC Yahoo!® DSL/Dial discounts. Early termination fees apply: $150 for Cingular Wireless, $250 for SBC Yahoo!® DSL, and $25.00 for SBC Yahoo® Dial. Tariffed components are available separately at regular tariffed prices. Total savings are compared to the price of services/features/plans if purchased separately (where offered separately, and without a term commitment, if available). SBC Yahoo!® DSL is an information service combining Internet access with DSL transport from SBC Internet Services and customized content and applications from Yahoo! Inc. Long distance service provided by SBC Long Distance. Calling card calls not included in block of time minutes. Unused monthly minutes do not carry over. Unbilled long distance use may appear on future bills. Further details provided during enrollment and registration.
SBC | DISH Network is a co-branded service provided by SBC Home Entertainment and EchoStar Satellite L.L.C. Programming provided by EchoStar Satellite L.L.C.; equipment and other services provided by SBC Home Entertainment.
Offer available to 6/30/04 to new SBC | DISH Network residential customers only (one offer per household) who live in SBC franchised territories, receive a combined SBC local telephone/SBC | DISH Network bill and receive credit approval. Not available to current or former DISH Network or SBC | DISH Network customers who have had service within the past 180 days.
Must subscribe to minimum of America's Top 60 or DISH Latino programming package. Includes Standard Professional Installation: typical installation of one 20" dish antenna, typical hook-up of up to 4 tuners to up to 4 TVs (1 single or dual tuner per TV), and equipment testing. Complex installations extra; other installation restrictions apply. All equipment remains SBC property, is leased to customer and must be returned within 15 days of service cancellation, suspension, or disconnection. If not returned within 15 days, an Unreturned Equipment Charge will be issued to customer's account. Unreturned Equipment Charges are up to $300 per receiver (DVR receivers) and $100 for certain antenna and switch components.
$4-per-month discount applies to SBC Connections customers who subscribe to America's Top 120 or DISH Latino Dos programming package or higher. SBC Connections customers are those who order and maintain (1) SBC local service with a qualifying package (3 features or more) (2) local toll from an SBC company and SBC Long Distance service (3) combined billing. Availability, credit and other restrictions apply. Further details provided during enrollment and registration. (In CT, $4-per-month discount applies to All Distance® customers who subscribe to a qualifying SBC package and who also subscribe to America's Top 120 or DISH Latino Dos programming package or higher. In CT, All Distance customers are those who presubscribe to local and in-state toll service from SBC Connecticut and out-of-state long distance service from SBC Long Distance East.)
Certain local channels may require an additional dish antenna or a SuperDISH antenna, installed free of any charges at time of initial installation. Local channels by satellite are only available to customers who reside in the specified local Designated Market Area (DMA). Cities subject to change without notice. Distant Networks packages by satellite are only available for private home viewing and in limited areas to homes that are outside a Grade A or B designated area or with the approval of local affiliates. Limit of two distant cities per eligible customer. If customer qualifies for PBS National Feed, it will be included in the Distant Networks package price at no additional charge. ESPN and ESPN2 programming subject to change and blackout restrictions. Some games telecast locally may also be included in ESPN packages. FOX Sports Networks programming subject to blackout restrictions. Regional sports networks not available in all areas. Channels may vary by market. Some international programming may require a second dish and/or SuperDISH, installed free of any charges at time of initial installation. Prices, packages and programming subject to change. Local and state taxes may apply. Not available in all areas. Programming and other services are provided subject to the terms and conditions of the SBC | DISH Network Digital Home Advantage Agreement and the SBC | DISH Network Residential Customer Agreement provided at time of installation; also available at www.sbc.com/sbcdishnetwork or upon request.
SBC, the SBC logo and other product and service names are the trademarks or servicemarks of SBC Knowledge Ventures, L.P. and/or its affiliates. DISH Network, the DISH Network logo and other product and service names are the trademarks or service marks of EchoStar Satellite L.L.C. © 2004 SBC Knowledge Ventures, L.P. All rights reserved.
