True, they do not pay a franchise tax. They do however charge a sales tax in most states on programming and a sales tax on all equipment sales. This tax is as high as 13% but averages about 5%. It is totally up to the state and local municipalities to require this tax. Of course, dish companies don’t string wires all over town, dig up property or roads or sidewalks, require utility easements, or leak signal. We never break water mains or sewers or knock out power grids or telephone services or any other major damage risks. There are no regulatory or overseeing costs to the city. It costs cities millions to deal with the complexities of cable systems, none with dishes. These are a few of the many reasons cable companies pay a franchise fee. We ask nothing of the city, we pay the sales taxes required. Sounds fair to me.
I am not contending that Satellite companies contribute anywhere near what cable companies do to local economies (YET). I am just responding to the asinine statement made that they contribute nothing.
I never said I put dishes into schools. I asked who do you think serves the schools where cable doesn’t. If they want educational programming they now have a choice. It’s called School choice and the programming is free. Although the equipment is not included, a local sales company usually donates it. For the first time all schools can provide high quality educational programming. Keep in mind, they didn’t have to be forced to do this, they just did it.
They don’t have a emergency alert system in all areas or channels. In the areas that have local programming (65% of all areas and growing monthly) you tune to your local stations for weather alerts. Being that each box has its own address, I wouldn’t think offering a national alert system on all channels would be a difficult thing to do at all. Good point.
Dishes are regulated and taxed. They just don’t need to be as regulated and taxed as much as cable companies. The satellite installation industry is very good at self-regulation. They now require an SBCA certification nationally to become an installer. They also require additional education and certification to do Internet dishes. Cable has never approached the levels of national certifications necessary to become an installer regardless of whether the dish installer is sub, independent, or in-house. At the pay scale cable installers must suffer, I doubt they would willingly shell out the cash or time necessary to pass certifications.
Most of your points are exactly the same as mine. Cable is not nimble, easy, or cheap. It takes years to build a system or upgrade it. It takes years and millions of $$$ to deal with easements and to hash out agreements between the utilities. It costs hundreds of millions, even billions to build a modern system. Many millions more to maintain it. Satellite providers just send out an installer.
In the end both are doing 1 thing. Bringing RG6 to the house. With Hughes electronics, the king of all electronics in communications leading the way, satellite providers will be able to do more with that RG6 in the end.
That’s my opinion and it’s not to dog cable or its people. I’m just stating the obvious. If Dish and DirecTV combine, the end of cable as the dominant force in TV is much closer than many of you may think. They currently have 14 satellites in orbit and could one day be the dominant service not just in America, but in the world.
NOTE: I called direcTV and Dish several times to check my facts and I was never on hold for more than 10 seconds. I tried to call Charter Communications and I hung up, still on hold, 12 minutes later.
> I think what rr4490 is takling about is local franchise taxes. I'm not sure, but i don't think dish or direct tv pay local franchise taxes, other than maybe englewood where there home base is, and i'm not sure about that. But cable companys pay an amount based on the number of subsrcibers they have in each city, to that city. So not only do we provide service to all schools (usually a requirement by the local franchise agreement), we also do our part in all of the ways that you mentioned earlier. Purchases, employment and so on. I find it hard to believe when you said that you put dishes in schools where there was no cable. Most of the schools are within the city limits of each town. And if they don't have cable to them, then we're required to build cable to them at our own cost. So i doubt that you are putting dishes into too many schools.
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> In most of our systems, the high schools even have their own channel. It gives the kids a chance to get the feel of putting a broadcast on the air, and gives the parents an opportunity to bragg on their kids who are actually running the channel. we provide this opportunity at our own cost. Can dish offer such a service to the local schools? I hardly doubt that it's feesable.
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> I'm just guessing on this one, but I don't think dish has an emergency alert system for each area, do they? If not, what happens when a tornado blows in and people are watching tv and have no warning. Yet the cable companies are required by franchise to provide such a service. There are a lot of things that dishes leave out that the cable companies are providing. These are just a few off of the top of my head. At some point, when dishes have run the cable companies out of business, the politicians will realize that dishes need to be regulated and taxed. Until then, you'd better soak up all of the profits that you can, because if you were paying the franchise taxes and giving away services to each comunity like we are, you may not be in business. I think that you have a long way to go to compete with our cable company.
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> I think these are just some of the things that rr4490 was talking about.
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> > Let me quote you “Satellite providers also contribute nothing to the local economy or educational systems”. Do you really think that I am the only installation company in St Louis? There are hundreds of independent installers and companies in the area that my company covers. I am not a lone installer. I employ others and am in the process of adding 20 more. If you add up what we bring into our local economy through sales and installs it is most certainly several million annually.
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> > I have no idea how cable companies giving away millions in dish buy backs leads to “MANY keep the dish and get cable. Many are seeing throught the smoke and mirrors of the sat agreements and contracts, If your service is so good, why di they even have contracts.” What the hell does that mean? Of course they have contracts, they install and provide most, if not all, of the equipment for free. Do cable companies have digital agreements for their digital customers? Hell yes they do and they are a lot longer and more detailed then any satellite agreement! What smoke and mirrors? It’s all there in large print on one page.
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> > Your not making sense, go take a nap.
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> > > I will go intgo detail later tonight when I have time. But let me count the economic bom generated by your sat operation...I count 4 people. Wow, your town must have 2.5% unemployment with an economic boom like you waving thru.
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> > > BTW, you must do alot of work for your tax guy to make a living solely off of you. That guy would be in business whether you cut another jumper in your life.
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> > > As for the buy backs, many are given 100.00 credit, true. However, MANY keep the dish and get cable. Many are seeing throught the smoke and mirrors of the sat agreements and contracts, If your service is so good, why di they even have contracts.
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> > > I don't have time for the reast now, but rest assured...I'll get to it tonight.
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> > > > You said NEVER. That’s a gutsy call. I’m aware of the inherent lag in satellite Internet, and I occasionally game, that’s why I don’t use it. I am also aware of the inherent distance problems with cable modems, you have to be a hell of a lot closer to the head end then 22,400 miles to get one. Like I said, satellite internet services are in their earliest stages, I wouldn’t venture to say they will NEVER overcome their technological challenges. I am not misinformed. I understand the challenge. I just believe in the ingenuity of man. We are a very industrious and creative race, we do lots of things that were once thought to be impossible.
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> > > > Your point about programming is a small consideration, every provider pays for programming and it’s essentially a wash. If Cable wants to add 5000 new customers next year they have to spend millions in construction today. If DirecTV or Dish wants to add 5000 new customers next year, all they have to do is call me, and fortunately for them I charge a fraction of what it would cost a cable company! Not to mention that the cable company is hampered by geographical considerations, you can’t easily serve people who aren’t near you or you can’t reach because of terrain. Satellite services have only to deal with LOS and only about 1% of the people I deal with are LOS challenged.
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> > > > It sounds like you work in a pretty good system, count yourself lucky, that’s a rare thing. I’m wondering what that monthly bill is that includes all of those services and maintenance your so proud of? It’s funny that you don’t see the irony in having to buy back all of those dishes. You have to PAY THE CUSTOMERS to get them to switch. Lets see, 7000 dish buy backs times a typical buy back credit of $150, oh my god! That’s $1,050,000 spent bribing customers to come back. If your system is typical you probably also gave them a reduced monthly rate and a month or two free? What will they do when your gravy train runs dry? Pay $55 a month for 1 box and no premiums like in my area or pay the same for 3 boxes and a premium package with satellite?
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> > > > Your contention that satellite providers don’t contribute to local economies is absurd. Who benefits from the sales of these systems? Who benefits from the installation of these systems? Who benefits from the rare but occasionally necessary service of these systems? Who rents these companies property? Who supplies their utilities? Who benefits from the advertising on local channels (soon to be nationwide)? What about the local installation materials supply companies? The van and truck dealerships? The hardware stores that I personally spend thousands at every year? The sign companies? The uniform companies? The insurance companies? The office supply companies? The phone companies? Where am I getting all of this tax money that I pay every year? Is my lawyer in Egypt? My accountant in Mexico (we’ll he might be by now, he is a bit shady)? Those local training schools I attend, are the aliens? You blew that one.
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> > > > Who do you think contributes services to the schools that cable doesn’t serve? Did you forget about all of the American schools that aren’t anywhere near a cable system??? Don’t blame yourself, lots of cable companies do the same thing.
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