Ian & Stuart's Australian Mac: Not for Sale/Another.not.for.sale (Australia).iso/Dr. Doyle/Satellites/High Power DBS.faq

Text File | 1994-09-29 | 46KB | 1,210 lines

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US High Power DBS Frequently Asked Questions List.

           Version 18              Sept 22, 1994

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NOTICE: This document is Copyright (C) 1993-1994, Richard R. Peterson.
All rights reserved.  Permission is granted to duplicate this document
if and only if the following three conditions are met:  1. This
document cannot be modified in any way. 2. This document cannot be
sold for profit nor included as a part of any publication sold for
profit.  3.This notice must be included.  Any other use requires the
written consent of the author.

DISCLAIMER: The author makes no guarantee as to the accuracy of any
information provided in this document and is not responsible for any
consequences of its use.




What is High Power DBS?

Hughes Communications and the United States Satellite
Broadcasting Company (USSB) have recently launched a new
generation of television service to the continental United
States.  This service allows households to receive
television programming directly from satellites on easily-
installable 18 inch satellite dishes.  Programming includes
most major cable services, sports, Pay Per View (PPV)
movies, and specialized "niche" programming aimed at smaller
audiences.  The FCC calls this new class of television
service Direct Broadcast Satellite (DBS) and the Hughes/USSB
service will likely be the premier DBS service in the U.S.
for some time.

Here's how it works.  Hughes has built and launched two Ku-
band satellites each containing 16 120-watt transponders.
The satellites are several times more powerful than the
current generation of satellites and are spaced 9 degrees
from others broadcasting in the same frequency range.  This
allows interference-free reception from anywhere within the
continental US and most of Canada using 18 inch diameter
satellite dishes.

Hughes has sold five of the transponders to USSB.  (Actually
USSB owns 5/16 of the entire satellite since federal
regulations require DBS broadcasters to own their broadcast
facilities.)  The two competing companies both offer
programming receivable with a common dish and decoder.

The system uses digital compression to allow from four to
eight channels per transponder allowing a total of about 140
to 180 channels, depending on what is being shown.   Hughes
and USSB say their channels have near laser-disc-quality
pictures and near CD-quality sound.

Hughes calls their programming service DIRECTV(TM).  They
have created a subsidiary called DIRECTV Incorporated which
is managing their DBS operation.



What equipment is required and what does it cost?

Thomson Consumer Electronics builds the decoders and the 18
inch antennas under the RCA name.  The hardware is called
Digital Satellite System or DSS(TM). Thomson sells two
packages of DSS hardware.  Each package contains decoder,
dish, remote, and cables to connect the decoder to a TV or
VCR.  An additional coaxial cable is required to connect the
dish to the decoder and that must be purchased separately.

The Basic Package (model DS1120RW) retails for $700 and
allows connection to one TV.  The decoder in this package
only sends right or left polarity signals into the home so
additional TVs cannot be connected.

The Deluxe Package (model DS2430RW) includes a universal
remote control, a slightly different dish, and a design
which sends the entire bitstream into the home which allow
multiple TVs or VCRs to be connected.  In addition, the
decoder in this package contains an additional set of audio
and video output jacks which are gold plated, and an
additional data port.

Every TV or VCR connected to the DSS system must have a
decoder (assuming viewers want to watch or record different
programs).  Thomson also sells the decoder included in its
basic package along with a remote control (but no dish) for
$650.  This additional decoder package (model DRD102RW) can
be connected to the dish included in the deluxe package and
used to decode a second signal within one household. This
can be used for a second TV or VCR.

The decoders are MPEG-2 video and MPEG-1 audio compatible
and are fully addressable so DIRECTV and USSB can include
digital codes in the signals which authorize individual
decoders to receive particular  programming.  The decoders
contain many features of high-end video products such as a
parental lockout feature and the ability of households to
set a maximum dollar amount for pay services.

Thomson has exclusive rights to build and sell the DSS
system for 18 months or one million units, whichever comes
first.  Sony has been selected as a secondary manufacturer,
but will not be allowed to sell the units until Thomson's
exclusive period has expired.  Thomson and Sony will share
exclusive rights for a second six months after Thomson's
exclusive period.



What programming is available and what does it cost?

The FCC has issued USSB five programming frequencies so USSB
broadcasts from five transponders on one of the satellites.
They started with about 20 channels and expect to have about
25 channels by the end of 1994 as the compression technology
improves.

DIRECTV has been issued 27 frequencies and programs about
120 channels with the expectation of expanding that to about
140 by the end of 1994.

DIRECTV and USSB offer different programming and compete
vigorously for each customer's programming subscriptions.
They are continuing to negotiate with program providers to
fill additional channel space as it becomes available.  By
the end of 1994, the combined DIRECTV/USSB programming
breakdown is expected to be approximately as follows:

50      Channels of major cable services
30      Channels of subscription sports
30      Channels of special interest/niche services
50      Channels of Pay Per View (PPV) movies
160     Total Channels

USSB says customers with more than one DSS decoder in a
household pay an additional $1 per month for the second
subscription.  DIRECTV charges an additional $2 for an
second decoder subscription.

In general, pricing for the major cable services are about
the same as cable TV companies charge for comparable
services and higher than TVRO (big dish satellite TV)
subscriptions.



What programming does USSB have and what does it cost?

USSB currently broadcasts about 20 channels.  They have
landed some of the most desirable marquee programming and
because they have far fewer channels than DIRECTV, that
makes up the majority of their programming service.  They
feature HBO and Showtime premium services and that is the
foundation upon which they are basing their business.  Their
packages are:

Basic           $8 per Month    All News Channel, MTV, VH-1,
                                Lifetime, Nickelodeon, Comedy Central.

HBO            $11 per Month    HBO East, HBO West, HBO2 East, HBO2
                                West, and HBO3.

Showtime       $11 per Month    Showtime East, Showtime West, and
                                Showtime 2

HBO Plus       $25 per Month    HBO East, HBO West, HBO2 East, HBO2
                                West, HBO3, Cinemax East, Cinemax
                                West, Cinemax 2, and the six basics.

Showtime Plus  $25 per Month    Showtime East, Showtime West,
                                Showtime 2, Movie Channel East, Movie
                                Channel West, Flix, and the six basics.

Premium Plus   $35 per Month    All programming from the above packages.



USSB  provides all new DSS customers a free one month
subscription to its Premium Plus package.

When additional channel capacity is available, USSB plans to
carry two as-yet unnamed Superstation channels which are
totally advertiser-supported so no subscription is necessary
to receive them.  They also plan to carry a few niche
programming channels aimed at small markets. They call their
niche services MiniMass(TM).  No MiniMass services have yet
been announced.

USSB says they will not carry any adult oriented
programming.



What programming does DIRECTV have and what does it cost?

DIRECTV programming can be broken down into four areas:
cable programming, special interest/niche services,
subscription sports, and Pay Per View (PPV) movies.  All
DIRECTV programming requires a subscription;  no free
programming has been announced and little or none is
expected.

DIRECTV says they will temporarily shut off service for a
customer and enable it at a later date to save subscription
fees when their customers are out of town.


I.  Cable Programming

DIRECTV sells two cable packages:

Direct Choice  -  $22/month for about 25 channels

Bloomberg Direct
C-SPAN
C-SPAN 2
Cartoon Network
CMT
CNBC
CNN
CNN Headline News
Court TV
Discovery Channel
Disney (East)
E! Entertainment TV
ESPN
Learning Channel
MuchMusic
Superstation TBS
TNN
TNT (where available)
Weather Channel
USA
(more TBA)

In addition, consumers get a $2.50 credit which can be used
towards the first purchased PPV movie per month and the
DIRECTV preview channel.


Total Choice Package -  $30/month for about 40 channels

This includes all the above channels plus the following:

A&E
CNN International
Disney (West)
Encore
Encore: Action
Encore: Drama
Encore: Love Stories
Encore: Mystery
Encore: Tweens
Encore: Westerns
ESPN2
Family Channel
Golf Channel (When available)
Newsworld International
Sci-Fi Channel
TRIO
Travel Channel
Turner Classic Movies
(more TBA)


 In addition, customers get about 30 audio Music Choice
channels per month, a $2.50 credit which can be used towards
the first purchased PPV movie per month, and the DIRECTV
Preview Channel.  It also appears each subscriber gets their
local regional sports channel as well.  DIRECTV hasn't
listed all channels available yet, so a few of  those listed
under the Total Choice package may in fact be included in
the Direct Choice package.

Subscribers to the Total Choice Package can also subscribe
to STARZ! for an additional $3 per month.

The Digital Cable Radio (DCR) Music Choice service is
included in the total choice package.  This is a commercial-
free 24 hour CD-quality audio service featuring narrowcast
music in a wide range of categories.  Unlike most cable
systems, this service does not require an additional set-top
box beyond the DSS decoder.


II.  Special Interest / Niche Programming

Special Interest or niche programming (programming aimed at
small target markets) is expected to be very important for
DBS.  Because DBS services can be received in 100 million
households, the economics make sense.  Services to which
only one out of a thousand households are willing to
subscribe still can generate over a million dollars in
annual revenue. Only a few niche services have been
announced to date but more are expected in the coming months
as more channel space becomes available.

The Playboy channel is available for $10 a month or nightly
for $5 per night.

TV ASIA is available for $6 per month.  They broadcast about
12 hours a day carrying Asian programming from the Indian
subcontinent.  This is the first of many expected foreign
language services targeted at a specific ethnic group.

The Physician's Television Network (PTN) will soon be
available.  This service carries medical information and
computer based educational programming to doctors and
hospitals in the U.S.


III.  Sports

DIRECTV plans to offer major professional and college
sporting on a Pay Per Subscription package or PPV basis.
They can use the addressable nature of the decoders to allow
reception only in certain geographic locations such as
outside the local broadcast coverage areas.

They are currently selling the ESPN/ABC College Football
package for $10 per week or $50 for the 12 week 1994 season
It also appears they are carrying about 15 channels of
regional sports coverage.  DIRECTV says that one local
channel will be included at no charge in the Total Choice
package and the remaining can be purchased for $8 per month.


IV. Pay Per View Movies

DIRECTV calls their Pay Per View (PPV) service Direct
Ticket. They are broadcasting several PPV movies time-
shifted on about 50 channels with many starting at intervals
of at most 30 minutes.  Direct Ticket broadcasts the movies
about the same time they are available on cable PPV which is
just after the video store window.  Prices for PPV movies
are currently $3 when ordered through the DSS remote control
and $4 if you call DIRECTV and place the order.

The DSS system has built in technology which can control
whether or not a PPV movie can be recorded.  DIRECTV says
they do not plan to use it for the first couple of years of
service.

Direct Ticket offers PPV movies from the following studios:
Paramount Pictures, Universal Pictures, Sony Pictures
Entertainment: Columbia TriStar, Turner Broadcasting, Warner
Brothers, and the Disney owned Touchstone Pictures,
Hollywood Pictures, Miramax Films, and Walt Disney Pictures.
The deal with Turner allows them to show classic MGM movies
on a PPV basis.  The deal with Disney allows them to show
only the live action films from Walt Disney Pictures.


Where can I buy my hardware and programming?

DSS hardware and programming is being sold through both TVRO
dealers and consumer electronics retailers including Best
Buy, Circuit City, Radio Shack, Sears, Wards Electric
Avenue, and RCA dealers nationwide.  DIRECTV says they
expect to have 8000 retailers by the end of 1995.

In addition, a group called the National Rural
Telecommunications Cooperative (NRTC) has bought exclusive
rights to distribute 20 top cable and broadcast services to
their rural customers in selected areas.  They are marketing
DIRECTV through rural electric cooperatives and telephone
firms.

Most if not all DSS retailers also sell both DIRECTV and
USSB subscriptions.  This means customers can buy hardware
and programming subscriptions together at one retail outlet.




How is the equipment installed?

The DSS hardware was designed to be easy to install with no
professional equipment required.  The dish can be installed
anywhere there is a direct line of sight to the South with
no trees or buildings in the way.  All DIRECTV/USSB services
are broadcast from one position in the sky so the dish does
not need to move.

Homeowners can install the hardware, but Thomson recommends
professional installation. Thomson says the suggested retail
price of a basic installation is $200 but many installers
charge lower fees.

Thomson also sells a self-installation kit which carries a
suggested retail price of $70 and contains seven cables, a
compass, a grounding block, a telephone T connector, and all
hardware necessary to mount the dish and connect it up.
Also included is a videotape which demonstrates the
installation process.  Many users say the installation kit
is not necessary since easy to follow instructions are
included with the DSS units.  All the necessary cables can
be bought at Radio Shack or other similar retailers.

The decoder can display the dish elevation for any area when
a zip code is punched in.  Installers level the mount, then
use the elevation scale built into the mount to set the dish
angle above the horizon.  The system has a built-in audible
signal meter, so installers pan the horizon listening to the
signal strength tone to position the dish.

A telephone connection is also used for billing purposes.
Thomson has developed a wireless phone jack system to
connect the decoder to a phone line without running
additional wiring.  The system works by transmitting
telephone signals encoded as FM signals through a home's AC
electrical wiring.  The wireless phone system retails for
$100 and can be used as an alternative to directly
connecting to a home's telephone wiring.



With all these channels, how will I find what I want to watch?

The interface for selecting a program is menu driven from
the remote control.  Users select programs from categories,
such as movies, sports, etc. and then select from sub-menus
such as football, golf, etc. until the desired program is
found.  An on-line program guide is also included which
lists programming scheduled up to about three days beyond the
date it is being viewed.  The program guide contains a lot
of programming information such as descriptions of upcoming
episodes and scheduled talk-show guests.

Channels are numbered between 100 and 999.  The system uses
a virtual channel assignment system meaning on any given day
a particular channel may actually reside on any one of the
32 transponders on the two satellites.



What about watching the broadcast networks and local channels?

DIRECTV offers a satellite-delivered package of network
stations to customers in rural areas called PrimeTime 24 for
$4 per month or $1.50 for each channel individually. This
package includes ABC (WABC - New York), CBS (WRAL -
Raleigh), NBC (WXIA - Atlanta), Fox (WFLD - Chicago), and
PBS (KRMA - Denver). These channels are available only to
customers who are not within the terrestrial coverage areas
of network affiliates.  Those who can receive network
affiliates will not be able to purchase this package and
therefore must get network programming over the air (or by
some other means).

The DSS hardware was designed with the intention of viewing
local channels over the air as well as channels from the
satellite.  There is an RF antenna input on the back of the
decoder which allows viewers to change between local and
satellite channels easily using the DSS remote control when
their TVs are connected to the decoder using the RF antenna
output.



Why don't I see any DSS equipment available in my area?

The service is being launched slowly with DSS equipment
available only in limited parts of the country  to start
with.  They are gradually expanding into additional markets
throughout the fall of 1994 and expect to supply retailers
throughout the US by the end of 1994. Equipment is expected
to be in very short supply until some time in 1995.

DIRECTV and USSB say customers are welcome to travel to one
of the initial markets and purchase the DSS hardware.  Some
customers outside the initial markets are calling retailers
in the early markets and arranging for hardware to be
shipped to them.



Can I use my existing TVRO system for DSS?

Not directly.  If you have Ku Band capability, you may be
able to use your existing dish but you must purchase a DSS
decoder. DSS uses a circular polarized LNB which probably
would need to be replaced as well.  It appears Thomson is
packaging the dish and decoders together so there is no way
to buy just the decoder anyway.



If DIRECTV and USSB are different services, will I get two bills?

Probably, depending on what services you subscribe to. It is
possible that other services provided through other
companies will require their own billing, as well.



I live in the city where there are tall buildings.  Can I
receive the DIRECTV/USSB DBS service?

You must have a direct view of the satellite to get this
service with no trees or buildings in the way.



Where in the sky are the satellites positioned?

The two satellites operate from 22,300 miles above the
equator at the 101 degree West orbital location.  This is
above a North/South line running through western Kansas.
Viewers in the central portion of the U.S. (such as Texas or
North Dakota) 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 angle above the horizon depends on the distance north of
the equator.  Those in the northern part of the U.S. (such
as Minnesota) see it about 38 degrees above the horizon.
Those in the southern part see it much higher in the sky.



I live in an area that receives lots of rain.  Will I lose
my signal during rainstorms?

Rain fade appears to be a pretty big problem with the DSS
system.  Several users have reported outages and/or digital
blocking artifacts during heavy storms.  The satellites are
focused to send more power to rainier areas to help minimize
this problem, but it does exist.  DIRECTV claims the signal
will be receivable 99.7% of the time everywhere within the
coverage area.



What is impulse Pay Per View?

Viewers can subscribe to PPV services such as movies and
special event programming simply by pressing a few buttons
on the remote control.  The billing information is saved in
the decoder which automatically calls the billing service
center and downloads the billing information once or twice a
month.

In order to use impulse PPV, decoders must be connected to a
telephone line.



Why is the number of channels so vague?

Thomson has worked with several companies to create a
proprietary MPEG2-based compression system whereby multiple
channels can be broadcast from a single transponder.  The
number of channels which can be compressed into a single
transponder depends on a lot of things such as desired image
quality (i.e. resolution), frame rate of the source
material, amount of movement in the source material, degree
of allowable visible artifacts, etc.

Programming containing frames with many fast-moving small
objects such as a basketball game can be compressed about 3
or 4 to a transponder before significant digital artifacts
appear.  Programming containing mostly large still images
(such as soap operas with their close-ups) can be compressed
at a higher rate, perhaps 5 or 6 to 1 transponder.  Movies
are filmed at 24 frames per second rather than 30 for video
so they contain less source material.  In addition, film is
not interlaced and is in general fairly constant from frame
to frame.  As a result, film can be compressed more, perhaps
7 or 8 to 1 transponder for near laser disc quality.

Determining what programs to combine with what others on
which transponder is no doubt quite a challenge at the head-
end, especially with special event, subscription sports, and
other infrequent programming.

For the first few months of operation, the encryption system
has been the MPEG-1 syntax rather than MPEG-2 so the number
of channels per transponder is lower than the eventual
target. Both DIRECTV and USSB's uplink centers will be
upgraded to MPEG-2 before the end of 1994. The decoders are
fully MPEG-2 compatible and will not need to be upgraded.
Use of MPEG-2 syntax is expected to increase channel
capacity by about 15% to 30%.



Does the DSS compression system really work ?

Yes, digital broadcasting works.  However, the resulting
quality seems to be open to debate.  Many of  the early DSS
customers report that the video and audio quality are very
good and the system works extremely well.   Others report
poor quality images and sound and lots of digital artifacts.
It seems that dealer demonstrations are particularly poor,
but many customers report the quality is much better once
they purchase a system and install it in their homes.

It is difficult to understand the wide range of quality
reported by various individuals. It could be that those who
commonly view a cable, terrestrial broadcast, or VHS
generated signal think the DSS quality is terrific.  Those
used to TVRO (big dish satellite) or laser discs think the
system falls short.

The companies involved claim they already have tens of
thousands of satisfied customers.  This is the first
widespread use of an MPEG based compression system which is
a very complex system with a lot of computer hardware and
software which must be very robust and error-free. In
addition, DSS uses a complex conditional access system using
data extracted from all units across the country. It will no
doubt take time before all the companies involved are able
to make everything work perfectly.


What inputs and outputs does the decoder have?

On the back of the decoder, there is a Satellite input F-
connector, a phone jack, composite audio and video output
jacks, an S-video output jack, RF in and out connectors, and
a channel 3/4 modulator for the RF output. In addition there
is a wideband high-speed data port on all decoder models.
The Deluxe decoder includes an additional set of composite
output jacks as well as a 9600 bit per second RS-232
compatible two-way data port.

There are plenty of options for hooking the decoder into a
home A/V system. However there is no RGB output connector
for monitors which have an RGB input.  TV sets with S-video
inputs can use the S-video output jack on the decoder
allowing the display of pure component (Y/C) video as it was
uplinked to the satellite.  This appears to be most
advantageous on those channels which are broadcast using
digital tape or fiber optic cable as the source.  On those
channels, use of the Y/C port can avoid the conversion from
the digital component signal to NTSC making very high
quality images possible.

Viewers who choose to use the composite or S-video output
jacks to connect to their TV sets must use the TV's
video/antenna switch to watch local programming.  The DSS
remote's mode selector only applies to its RF output.

Viewers who choose to use the RF output to connect their TV
sets do not get stereo or surround sound audio to their TV
speakers.  Stereo sound is available only through the direct
audio output jacks from the DSS decoder.



What if I want to connect more than two TVs?

The DSS dishes connect to the decoders with coaxial cable.
The dish electronics have two coaxial connections so at most
two decoders can be connected to one dish.  Channel Master
and perhaps other companies are selling a MultiSwitch which
takes both coaxial outputs from the dish and allows up to
four decoders to be connected to it.  Note that the base DSS
unit can only be connected to one decoder, so the Deluxe
unit is necessary in this configuration.

DIRECTV and USSB say in order to authorize more than one
decoder at a location, there must be a telephone connection
at each decoder.



How does the conditional access system work?

The News Datacom division of Rupert Murdoch's News
Corporation is managing a conditional access and encryption
system they developed for the DSS system.  The decoder
accepts a credit-card sized processor board called a
SmartCard which plugs into the front and allows the decoder
to receive authorized programming.

The authorization stream is sent on each transponder along
with the video and audio information.  The SmartCard is very
difficult to reverse-engineer, and can be inexpensively and
easily replaced by the owner if necessary.

Viewers who buy a used decoder must purchase a new SmartCard
from DIRECTV at a cost of about $50.



What about High Definition TV?

There is little doubt that DBS will be the first means in
which most Americans have access to broadcast High
Definition Television programming.  Terrestrial broadcasters
are balking at the investment necessary to move to
terrestrial HDTV which will still leave them with one
channel in an increasingly multi-channel world.  DBS will no
doubt prove to be the most cost-effective means of
delivering HDTV to homes in the U.S. for years to come.

Significant HDTV broadcasts will likely be many years away.
In the near term, however, it is expected that widescreen
NTSC broadcasts will be available on at least part of the
DIRECTV/USSB service.



What is widescreen NTSC?

The DSS system is capable of broadcasting 16:9 screen ratio
video to widescreen sets such as RCA's CinemaScreen TVs.
Sony's latest professional digital video equipment can store
an enhanced 525-line widescreen image in a format they call
525 Widescreen.  Movies are filmed (and therefore archived)
in widescreen formats as well. There is a lot of widescreen
source video available, and it is expected that DIRECTV and
possibly USSB will eventually do some widescreen broadcasts
using the decoder's built-in pan and scanning capability.

The DSS system processes and broadcasts component video
signals allowing video recorded in widescreen component
formats such as Sony's 525 Widescreen to be passed straight
through to 16:9 widescreen sets without ever being processed
as NTSC video.  The results of this are said to be of very
high quality and could be a short-term substitute for HDTV.



What other services might be available?

The potential for data services is perhaps the most exciting
aspect of the DIRECTV/USSB service. Because the DSS signal
is a digital packet-based system, it can send video, audio,
and computer data in any combination to the decoder. All of
the decoders contain a high-speed data port which can be
connected to a computer or another external decoder.   The
24 MHz bandwidth of each transponder can send an enormous
amount of information (23 MBits of data per second). The
applications of this are difficult to imagine.

Picture, for example, the (imaginary) hotel channel, which
is not really a TV channel at all but instead is a circular
data services channel capable of downloading room
availability and pricing of participating hotels around the
country.  Travelers enter a command at their computer which
instructs it to watch for all hotels in a particular city
with availability on a particular date in a particular price
range.  After some time the computer reports back on all
appropriate hotels showing a full-motion video picture of
the hotel, its rooms, restaurants, and even a short video
sequence showing the entertainment planned for the lounge
with stereo sound.  All this is possible with the
DIRECTV/USSB DBS service.



What are some of the disadvantages of the DSS system?

Heavy thunderstorms in the path between the satellite and
the dish can cause a total service outage.  Picture spending
a couple of hours watching a movie and then losing the
picture for the last few minutes because of rain fade.  It
happens.

There are visible digital artifacts which some viewers find
objectionable.  Some viewers report this is very distracting
while others hardly notice it.  It appears to be quite
subjective.  Nevertheless digital artifacts are a part of
the DSS system.

Some cable TV customers with cable-ready VCRs and TVs are
used to being able to watch one channel and record another
or set their VCR to record  two different cable channels
while they are out.  The DSS system, like any system which
requires a decoder, can only decode one channel at a time.
There is no way to watch one channel while recording another
or to use the VCR's programming capability to record
programs on more than one channel at a time.  A separate
decoder must be purchased for each TV or VCR which are to be
used at the same time.

It appears that VCR Plus units don't work with the DSS
system.



What other companies are involved in this DBS service?

The following companies are involved in this DBS service
beyond DIRECTV and USSB:

Thomson Consumer      Building the RCA receiver and dish and
Electronics           supplying compression technology.

News Datacom          Providing the conditional access system.

Arianespace           Launched first satellite (DBS-1).

General Dynamics      Launched second satellite (DBS-2).

Sony                  Supplying digital equipment for both DIRECTVs and
                      USSB's broadcast centers and acting as a second
                      decoder manufacturer.

DEC                   Operating DIRECTV's national billing center.

Matrixx Marketing     Providing telephone marketing and customer
                      service for DIRECTV.

DBS Systems Corp      Providing advanced billing software for DIRECTV.

NRTC                  Providing rural sales distribution for DIRECTV.

C-Cube Microsystems   Supplying MPEG encoding technology for the
                      DSS system.

JC Penney             Providing billing and customer service for USSB.

SGS-Thomson-Inmos     Providing MPEG-2 video decoders.

Texas Instruments     Providing MPEG-1 Layer II audio decoders.

Philips/Signetics     Providing NTSC composite and component Y/C
                      baseband signal generators.




Where are the uplinks located?

DIRECTV has constructed a state-of-the-art all digital
facility in Castle Rock, Colorado where they uplink all
programming to the DIRECTV satellite.  The center includes
eight receiving stations and four 13-meter uplink dishes.
Programming is provided to the uplink facility via
satellite, over fiber optic cable, and through the use of
digital tape.

Equipment going into DIRECTV's broadcast center includes
more than 300 Sony digital Betacam video recorders, a
digital routing system that includes more than 800 inputs
and outputs, and 50 automated playback and recording
systems.

USSB has built a new 20,000+ square foot all-digital uplink
facility in Oakdale, Minnesota which is near Saint Paul.
They call it the National Broadcast Center.  They are using
two 9-meter Ka-band dishes and multiple C and Ku-band
downlinks. The uplink dishes in USSB's facility are inside a
specially constructed microwave-transparent atrium which
shields them from exposure to the weather.



Can you tell me more about the satellites and DSS system?

The two satellites are called DBS-1 and DBS-2.  A third
satellite called DBS-3 may also be added in the future.
Each has 16 transponders powered by 120-watt traveling-wave
tube amplifiers (TWTAs) suitable for both digital and analog
transmissions.  They operate in the Broadcast Satellite
Services (BSS) portion of the Ku-band spectrum (12.2-12.7
GHz) and employ circular polarization.  They can deliver 58
to 53 dBW radiated power over the contiguous U.S. and
southern Canada.

Each spacecraft weighs 3800 pounds and measures 7.1 meters
across and 26 meters long with antennas and solar panels
deployed.  The solar panels generate 4300 watts of
electrical power.

The DSS system employs Quadrature Phase Shift Key (QPSK)
modulation to encode digital data on the RF carriers.  The
audio is MPEG-1 Layer II encoded.  Surround sound can be
achieved by encoding the audio with Dolby Pro-Logic before
MPEG encoding.  The video will eventually be MPEG-2 with up
to CCIR 601-1 sampling rates which allows up to 720 x 480
images.

Each transponder outputs 23 MBits/second of usable
information.  The system uses a statistical multi-program
encoder called a "statmux" that varies the bit rate
according to video content taking into consideration other
programs multiplexed on the same transponder.


What about the third satellite?

DIRECTV is seeking FCC approval to launch a third satellite
to operate as part of the constellation at 101 degrees W.
Each of the DBS satellites can be configured for either 16
120 Watt transmissions or eight 240 Watt.  This is based on
the DC power generating capability of their solar panels.

The DSS architecture can broadcast 40Mbits/sec per
transponder in either of two error control modes.  In High
mode, 30Mbps is allocated to information and 10Mbps to error
control.  In Low mode, 23Mbps is allocated to information
and 17Mbps is allocated to error control.

The current configuration is running in Low mode.  High mode
requires about 3dB more signal power to achieve an end-to-
end availability equivalent to the Low mode.

Therefore by adding a third satellite, DIRECTV and USSB
could end up broadcasting 16 transponders at 240 Watts in
High mode which would give them about a 30% increase in
throughput.  The remaining 16 transponders would apparently
need to continue to run at 120 watts unless a 4th satellite
was added.




What are the marketing projections for this DBS service?

DIRECTV and USSB forecast 1 million units sold the first
year and 10 to 12 million within six years.  USSB says that
is conservative and they have suggested the possibility of
selling 50 million units (about half the households in the
U.S.) by the turn of the century.

It will be quite a challenge for RCA and their sub-
contractors to produce enough decoders and dishes fast
enough to meet the projections.  However, Thomson believes
they have the capacity to produce 600,000 receivers by the
end of 1994 which is in line with DIRECTV's forecasts.

Thomson considers their first generation DSS decoder the
largest first-year introduction of a consumer electronics
product in the history of the business.  They have recently
opened a manufacturing line in Mexico which allows them to
assemble over 120,000 units per month or about 5000 units
per day.

DIRECTV believes it will break even in its second year of
operation when they expect to have 3 million subscribers.

The market plan is to first concentrate on the 10 million or
so rural homes which do not have access to cable TV and then
move to more populated urban areas as the cost of the
equipment goes down.  Both USSB and DIRECTV plan to compete
with cable by stressing higher quality pictures and sound
with more choice at a lower price.

DIRECTV is planning a $40-$50 million consumer advertising
campaign launched in the fall of 1994 for the holiday
selling season.



Will DSS hardware prices drop in the near future?

USSB says the price of the DSS hardware will drop
significantly, perhaps to half the initial price within a
couple of years after its introduction.  Others are not so
optimistic.

The wholesale prices will be fixed by Thomson for the first
18 months or 1 million units, whichever comes first.  After
that time, Sony and Thomson will share exclusivity for
another 6 months. At the time Sony is allowed to enter the
market, they will compete head-to-head with Thomson on both
price and features.  This is expected to quickly drive the
prices down.

Sony says they will have product ready to sell whenever
their marketing window opens.  Most experts believe this
will be before Thomson's 18 month exclusive period has
expired.

After the two exclusive periods expire, additional
manufacturers will be allowed to enter the market increasing
competition for price and features.



Are there any other DBS services available?

A group of major Cable Multi System Operators (MSOs) have
joined together and formed Primestar Partners, Limited which
also offers a fully digital 65 channel Direct-To-Home
service to North America.  Primestar and the DIRECTV/USSB
service are the only two DBS services available at this
time.

Primestar differs from the DIRECTV/USSB service in several
ways. They do not require customers to buy the decoder or
dish;  instead, they lease it and include the lease cost in
the monthly subscription fees.  They use a much larger dish
which is about 3 feet in diameter which must be
professionally installed.  Installation prices vary wildly
with normal installations ranging from about $150 to $350
plus about $75 for any desired additional outlets.  Their
system currently uses General Instruments' DigiCipher 1
system to broadcast from the medium power Satcom K1
satellite. Sometime in 1995 they will swap out their
customers' decoders  (at Primestar's expense) and replace
them with DigiCipher 2 based models which use the standard
MPEG-2 syntax.

They are rolling out their digital service slowly in limited
areas due to decoder availability.  They expect to be
available nationwide by the end of 1994.  General
Instruments says they can deliver 600,000 DigiCipher 1
decoders by the end of 1994 and Primestar says they can sell
all they can get.  It is interesting that RCA says they can
deliver about the same number of DSS units.

Primestar executives are changing their packages and prices
frequently.  As of September of 1994 they expect to have the
following subscription rates and cable packages:

Economy Pack  -  $35 per month

Cartoon Network
C-SPAN
CNN
CNN Headline News
Discovery Channel
Disney Channel
Family Channel
Learning Channel
Preview Channel
TBS
TNN
TNT
USA

In addition, viewers get 6 CD-quality music channels and 14
regional sports channels.


Variety Pack - $39 per month

A&E
Cartoon Network
C-SPAN
CNN
CNN Headline News
CMT
Discovery Channel
Disney Channel
Family Channel
Learning Channel
Preview Channel
Sci-Fi Channel
TBS
TNN
TNT
Turner Classic Movies
USA
Weather Channel


In addition, viewers get 6 CD-quality music channels and 14
regional sports channels.

Additional packages are as follows:

HBO, HBO2, and HBO3 are about $10 per month.

Cinemax and Cinemax2 are about $9 per month.

HBO, HBO2, HBO3, Cinemax, and Cinemax2 is about $15 per
month.

Network affiliates of ABC, NBC, CBS, Fox, and PBS is about
$5 per month or $1 apiece.

Encore Multiplex is about $5 per month.

TV-Japan featuring Japanese and English broadcasts from
Tokyo is about $20 per month.

Primestar says customers can optionally purchase their
decoders for about $700 for the first unit and $500 for each
additional unit.

Primestar does not broadcast in the BSS portion of the
spectrum which the FCC has designated for DBS services.
This has prompted some to claim they are not true DBS.
However, they are clearly an alternative for consumers
considering a Direct-To-Home service and are one of  the two
digital broadcasts available in the U.S.

Other companies launching DBS services will likely use high
powered satellites and broadcast in the BSS portion of the
spectrum allowing the use of very small dishes.



What about other high power DBS services?

The FCC has set aside eight orbital positions at the equator
for U.S.-owned DBS satellites of which four are to provide
service over the east coast and four over the west.  At each
of these slots the FCC is permitting a maximum of 32
transponders.  The FCC assigns DBS frequencies to applicants
in a way that gives them an equal number of orbital
positions from east coast satellites and west coast
satellites.  The idea is that each company can provide
service to the entire continental U.S. by broadcasting from
both their east and west satellites.

However, with today's technology, three of the four eastern
positions (101 degrees west longitude, 110 degrees w, and
119 degrees w) are at longitudes which can actually provide
coverage to the entire continental U.S.  These are the most
desirable slots and companies assigned these locations are
the only ones who have announced plans to begin a service.
Note that companies at these slots also have licenses for
west coast only slots which at this time they apparently are
not planning to operate from.

The DIRECTV/USSB DBS service operates from what all experts
agree is the best orbital position (101 degrees).

Echosphere's EchoStar division is now in the process of
planning their DBS service from the 119 degree orbital
position where they have combined their original 11
frequencies with the 10 formerly controlled by DirectSat.
It appears they will be launching their service with a total
of 21 transponders and they say they will have 250 channels.
They have contracted with China Great Wall Industry Corp. to
launch the first of their Martin Marietta developed
satellites  around July of 1995.  They are building a $40
million uplink facility in Cheyenne, Wyoming and they hope
to be operational by late in 1995 or early in 1996.

EchoStar has discussed several possibilities for their DBS
service.  Originally, they suggested a system which was
complementary to the DIRECTV/USSB DBS service by offering
additional niche and targeted market services.  This would
require them to use the same DSS hardware with a motorized
dish to allow movement between the two DBS positions. More
recently they have proposed a competing system offering
lower equipment and subscription prices.  They have not yet
announced a decision whether or not to be compatible with
DSS and it is not clear whether or not DIRECTV would allow
that.  It is interesting that EchoStar is one of five
exclusive DSS distributors selected by Thomson Consumer
Electronics.

The Tempo division of cable leader TCI is building two
satellites capable of high-power DBS which they will use to
broadcast from their 119 degree position where they hold a
license for 11 frequencies.  Primestar Partners L.P. is 20%
owned by TCI and it appears they  may migrate at least some
of their medium power DBS service into these BSS frequencies
from the high power satellite. There had been negotiations
to combine with EchoStar's frequencies at the same orbital
position, but the companies now say they are no longer
pursuing a combined service.

Another company, Advanced Communications (ACC) , has
contracted with GE AstroSpace to build two satellites which
they hope to launch in the fall of 1996.  Their service will
operate from the 110 degree orbital slot where they own 27
frequencies.

The remaining DBS licensees include Continental Satellite
Corp and Direct Broadcast Satellite Corp.

Most experts believe business alliances, consolidations, and
buyouts will continue to occur among the DBS permittees.

Since DIRECTV and USSB will eventually have most if not all
major cable programming as well as plenty of room for
sports, PPV movies, niche programming, and others, it is
difficult to imagine how other services will be able to
capture a significant number of households.  On the other
hand, it won't take a large percentage of households to make
a profitable business if you consider the expected break-
even point for both DIRECTV and USSB is only about 3% of all
households or 3 million subscribers.

Some experts think the DBS services from the orbital
positions which cannot cover the entire continental U.S.
will be primarily limited to business communications and
other technologies such as computer services.



Where can I get more information?

You can get more information using the following phone
numbers:

DIRECTV Consumer Information      1-800-DIRECTV (or 310-607-4511)
DIRECTV Dealer Information        1-800-323-1994
USSB Consumer Hotline             1-800-BETTERTV
USSB Dealer Hotline               1-800-898-USSB
Primestar General Information     1-800-966-9615

--
Richard R. Peterson, President           Phone:       [phone]
The DBS Connection                       Voice mail:  612-683-6151
1480 Lark Avenue, Maplewood, MN 55109    Fax:         [phone]
Internet:    [e-mail]