[Satellite News 01-21-09] EchoStar Corp. hopes it can become a force in the Mexican pay-TV market after signing a deal in late 2008 with MVS Multivision to form a joint venture, Dish Mexico, that has launched Dish, a low-cost satellite TV service for consumers across Mexico.
    The DTH will deliver a variety of audio and video channels. T via an EchoStar-provided high powered direct broadcast satellite. The basic service includes 25 Spanish and English-language channels for $139 pesos ($9.95) per month.
    In an interview with Satellite News, Steve Schaver, president of EchoStar International, a division of EchoStar Corp., talks about the operator’s aspirations in the Mexican pay-TV market and why he thinks it is the right time for EchoStar to make a move in this market.
 

Schaver: Mexico is largely an untapped market when it comes to pay-TV services, with less than 30 percent of the homes subscribing to pay TV. Other operators in the market include cable and satellite but do not offer a low-cost service or have the same national reach as Dish Mexico.

 
Schaver: They were a willing partner in launching a service that can expand on its existing MASTV service, which brings more than 570,000 customers to the newly formed joint venture. The Dish service will use the existing MASTV infrastructure that is positioned in 11 cities across Mexico and has been developed for the last 20 years to provide sales, billing and collection, installation, and customer service for subscribers. MVS is a natural partner for the joint venture.

Schaver: Because our satellite can broadcast across the entire country, we can reach all major population centers. Previously, MVS operated a microwave transmission service that delivered programming to consumers, but its reach and scalability were limited. Our satellite has a larger broadcast footprint and the capacity to launch more channels is greater. Also, we have partnered with a company that has years of experience delivering video services, providing installation for consumers and instituting collection outlets for bill payments. Combined with our advanced set-top boxes and dish antennas, these are the necessary ingredients for launching a successful satellite TV service.

Schaver: The primary difference between the U.S. and Mexican pay-TV markets is that Mexico is only 27 percent penetrated, whereas the United States has more than 80 percent to 90 percent pay-TV penetration. That provides opportunities for growth. With Mexico as a bordering country to the United States that has a promising economy, we believe the Dish service creates an attractive and widely available pay TV offering that has a strong chance for growth.

Schaver: We did not disclose subscriber targets, but I can share with you that the service has been well received since it launched in November. The growth opportunity for satellite TV is robust compared to other distribution methods simply due to its ability to overcome terrain, tall buildings or long distances.

Schaver: We are exploring ways to increase services beyond the basic and premium channel packages offered today, and high definition and personal video recorder would play a big part of that. But we’ve not yet determined the timing of when such services could be available.