EchoStar Set to Offer $39.99 Digital Converter

Dish Network Chief Charlie Ergen Unveils Set-Top at Consumer Electronics Show

By Linda Moss -- Multichannel News, 1/7/2008 12:38:00 PM

LAS VEGAS – Essentially saying the product will be a loss leader, Dish Network chief Charlie Ergen Monday announced that his new spin-off company will be offering a new digital-to-analog converter that will help consumers make the transition to all-digital TV in February 2009.

The new standalone technology/set-top company, EchoStar Holding, unveiled plans for its TR-40 over-the-air, digital-to-analog converter during a press conference at the Consumer Electronics Show here.

“We’re doing that because we want to take a leadership in that,” Ergen said.

He noted that there are 13 million to 15 million U.S. homes whose TV sets will essentially be rendered useless as of the all-digital deadline, adding, “No company has really stepped up and said let’s make this transition happen. Today, EchoStar Corp. has said we will make those products available for $39.99.”

The box will be sold under the brand names of both EchoStar and its acquired subsidiary, Sling Media, for $39.99 at retail, and can be purchased via the National Telecommunications and Information Administration’s Digital-to-Analog Converter Box Coupon Program.

The program provides U.S. households with up to two coupons, worth $40 each, toward the purchase of eligible digital-to-analog converter boxes, which includes the TR-40.

Ergen said with its low retail cost, EchoStar Holding won’t even be making any money by selling the TR-40 for only $39.99, essentially the amount of the issued coupon, which is $40.

“That means every home in America, for two TV sets absolutely free of charge, can convert to the digital transition,” Ergen said. “There is no reason the digital transition can’t take place by February 2009, and there is no reason it will cost the consumer a dime.”

The TR-40’s features include up to a seven-day electronic programming guide, program search, parental locks and VCR auto-tune timers. The TR-40 is sampling now and will be available in limited quantities in March and unlimited quantities in June.

Mark Jackson, president of EchoStar Holding, said that although the TR-40 will be a loss leader, it will brings customers with no pay-TV service into Dish retailers, so that these consumers can potentially be “upsold” on pay-TV service.

Ergen made that point as well.

“Obviously, we manufacture that product today for a little bit more than that, so we’ll actually lose money,” he said. “But if we’re successful, one, we can free up digital spectrum for all of America … Second, we have a chance to go out there and do something good for consumers, and hopefully, if they ever decide to get the pay-TV business, maybe we’re a company they’ll look at.” 

EchoStar will also offer the TR-50 DVR digital-to-analog converter box that includes a digital video recorder, allowing customers to view, record and play back local over-the-air analog and digital broadcasts, including high definition.