US High Power DBS Frequently Asked Questions Version 23 April 12, 1995 -------------------------------------------------------------------- NOTICE: This document is Copyright (C) 1995, 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 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 180 to 200 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 currently sells two packages of DSS hardware and are expected to soon announce a second generation product line. Each package contains decoder, dish, remote, and cables to connect the decoder to a single 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 receiver in this package only sends right or left polarity signals into the home so additional TVs cannot be connected. The Deluxe Package (model DS2430RW) retails for $900 and 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 until 1 million units have been sold which will be about June of 1995. Sony has been selected as a secondary manufacturer and will begin to sell the decoders at that time. Thomson and Sony will share exclusive rights for a second six months after Thomson's exclusive period. Additional manufacturers will then be licensed to sell DSS units. DIRECTV has licensed Hughes Network Systems (HNS), Toshiba, and Uniden so far and others including some major consumer electronics companies are expected to be added. Units from these vendors are expected in early to mid 1996. 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 1995 as the compression technology improves. DIRECTV has been issued 27 frequencies and programs about 150 channels. 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. The combined DIRECTV/USSB programming breakdown is approximately as follows: 70 Channels of major cable services 30 Channels of subscription sports 20 Channels of special interest/niche services 50 Channels of Pay Per View (PPV) movies 170 Total Channels 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. Customers with more than one DSS decoder in a household pay an additional $1 per month for the second USSB subscription and an additional $2 for a second DIRECTV subscription. What programming does USSB have and what does it cost? USSB currently broadcasts about 20 channels. 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, Showtime 2, and Flix Select One Plus $18 per Month Choice of Multichannel HBO or Multichannel Showtime or Multichannel The Movie Channel or Multichannel Cinemax plus the six basics. 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 says they will also sell their basic channels on an ala carte basis for $3 per month. They also give all new DSS customers a free one month subscription to their Premium Plus package. When additional channel capacity is available, USSB plans to carry at least one totally free (advertiser-supported) channel. 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? DIRECTV programming can be broken down into five areas: cable programming, subscription sports, music services, Pay Per View (PPV) movies, and special interest/niche services. There is no free DIRECTV programming. DIRECTV sells programming packages based on popular cable services which range in price from $6 for a single channel package to $30 for about 40 channels. In addition, they sell several other services ala carte. Viewers must subscribe to a basic tier of cable programming before they can purchase any ala carte services including Pay Per View Movies. DIRECTV offers professional and college sporting events 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 carrying several packages and are continuing to negotiate sports deals with other leagues. DIRECTV sells the Digital Cable Radio (DCR) Music Choice which 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. DIRECTV offers Pay Per View (PPV) movies from all major Hollywood studios time-shifted on about 50 channels with many starting at intervals of at most 30 minutes. Their PPV service is called Direct Ticket. 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 $5 if you call DIRECTV and place the order. The DSS system has built in copy protection 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 if ever. USSB says they have no plans to use it. DIRECTV also delivers GALAXY Classroom to elementary schools nationwide. This is an elementary education satellite learning network which they say provides students with a new interactive global learning environment. 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. 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. What are DIRECTVM-^Rs packages and prices? DIRECTV sells three cable packages. The first is the Limited Package for $6 per month which includes only Bloomberg Direct plus one World League of American Football (WLAF) game per week. The second is Direct Choice which has about 20 channels for about $22 per month. It includes: Bloomberg Direct C-Span C-SPAN 2 Cartoon Network CMT CNBC CNN CNN Headline News Court TV Discovery Channel Disney (East) E! Entertainment TV Encore ESPN Learning Channel MuchMusic Superstation TBS TNN TNT Weather Channel WLAF weekly game USA In addition, subscribers get a $2.50 credit which can be used towards the first purchased PPV movie per month and the DIRECTV preview channel. The third package is the Total Choice Package which has about 40 channels for about $30 per month. It includes all of the above channels plus: A&E AmericaM-^Rs Talking CNN International Disney (West) Encore: Action Encore: Drama Encore: Love Stories Encore: Mystery Encore: WAM Encore: Westerns ESPN 2 Family Channel Newsworld International Sci-Fi Channel TRIO Travel Channel Turner Classic Movies In addition, customers get the 28 audio Music Choice channels, a $2.50 credit which can be used towards the first purchased PPV movie per month, the DIRECTV Preview Channel, and each subscriberM-^Rs local regional sports channel. What other services does DIRECTV sell and what do they cost? After purchasing a basic tier service, subscribers can add several ala carte services. STARZ is available for an additional $3 per month for Total Choice subscribers or for Direct Choice subscribers STARZ is part of an $11 package which includes all the Encore channels. Music Choice is free with the Total Choice package or $3 per month otherwise. The Playboy channel is available for $10 a month or nightly for $5 per night. The Golf Channel is available for $7 per month. The PhysicianM-^Rs Television Network (PTN) will soon be available for an as-yet unnamed price. This service will carry medical information and computer based educational programming to doctors and hospitals in the U.S. The ESPN/ABC College Football package was available for $10 per week or $50 for the 12 week 1994 season. Similar pricing is expected for the 1995 season. A sports package of eight regional sports channels can be purchased for $8 per month. Each Total Choice package subscriber gets their local channel free. Home team blackout restrictions apply. PrimeTime 24 (described below) is available for $4 per month or $1.50 for each channel individually. The NFL Sunday Ticket package will be available for the 1995 season. Prices are expected to be the same as the 1994 season which was about $120-$140 for about 200 games. The NBA League Pass is currently available for $150 for the 1995 season. This includes about 400 regular season NBA games. A package of 200 to 300 out of market NHL games was available for $70 for the 1995 season. 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. However, dealers can only sell DIRECTVM-^Rs Total Choice Package. In order to purchase other basic cable tiers such as the Direct Choice Package, subscribers must call DIRECTV and order the programming directly from them. 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 some installers charge lower fees. More complex installations may cost more. 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 purchased at Radio Shack or other similar retailers, but those who donM-^Rt have easy access to supplies may want to consider the self-installation kit. 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 and some authorization 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? Channels are numbered between 100 and 999. 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 four 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. 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). Currently no UPN or Warner Brothers network affiliate is included in this package. 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. 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. 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 eventually 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? Outages can occur as a result of severe thunderstorms. 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. The first five minutes of each movie are broadcast unscrambled so viewers can check out a movie before buying it. In order to use impulse PPV, decoders must be connected to a telephone line. Why is the number of channels so vague? Thomson and several other companies have jointly created 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 used 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 will begin converting their encoders to use MPEG-2 video compression sometime in 1995 with complete conversion to MPEG-2 expected by the end of 1995 or perhaps sooner. The decoders are MPEG-2 video 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. The vast majority of DSS customers report that the video and audio quality are excellent and the system works extremely well. Others report poor quality images and lots of digital artifacts on at least some channels. The artifacts have been a problem, but are occurring less frequently as the compression technology improves. Nearly everyone thinks the DSS sound quality is excellent. How do I connect the decoder to my home audio/video system? On the back of the first generation DSS 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 two-way data port similar to an RS-232 port. There are plenty of options for hooking the decoder into a home A/V system. However, on the first generation DSS decoders, 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 TVM-^Rs video/antenna switch to watch local programming. The DSS remoteM-^Rs 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. Is the telephone connection really necessary? Yes if you want to take advantage of all services available from DIRECTV. The phone line is used to verify the location of the DSS unit and manage the blackout restrictions imposed by the professional sports leagues. You must be connected to a phone line to be authorized to receive regional sports networks or pro sports packages. It is also required to purchase impulse PPV movies and other special events. Many viewers have never connected their systems to a phone line and donM-^Rt feel they need it. Some recreational vehicle owners take the DSS system with them when they travel and others take systems to cabins or other remote locations occasionally where no phone line is available. 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. All DSS decoder models contain a 20 mega bit per second data port which RCA says can be directly connected to an HDTV decoder. Whether or not DIRECTV or USSB plan to use it remains to be seen. Significant HDTV broadcasts will likely be many years away. Within the next year or two, however, it is expected that widescreen NTSC broadcasts will be available occasionally on 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 decoderM-^Rs built-in pan and scanning capability. However, DIRECTV says it will be many months before they do any widescreen broadcasts. 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. Both DIRECTV and USSB say they are exploring data delivery and plan to do something in the near future, but neither company has announced any specific services yet. 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. Some viewers have reported spending a couple of hours watching a movie and then losing the picture for the last few minutes because of a rain outage. There are visible digital artifacts which some viewers find objectionable. Some claim 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 VCRM-^Rs 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 donM-^Rt work with the DSS system. Many on the west coast are disappointed that programs appear very early since the programmers use east coast feeds for most of their programming. There seems to be an ongoing problem with audio and video getting out of sync occasionally. The companies involved say they are working on the problem, but some viewers find this very annoying. No channels carry any of the Star Trek series programming. 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 several 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 uplink dishes which 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 is scheduled for launch in June of 1995. 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 is capable of up to 720 x 480 images. 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 has built a third satellite scheduled for launch in June of 1995 which will operate as part of the constellation at 101 degrees W. They hope to have it operational by summer or fall of 1995. 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 two-satellite 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 will 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. DIRECTV says there are no plans for a fourth satellite at this time. How many of these systems have sold and how many do they expect to sell? DIRECTV and USSB claim over half a million customers to date with that number climbing by thousands every day. RCA says they have built and delivered over 900,000 DSS systems. DIRECTV has forecasted 1 million units sold the first year and 10 to 12 million within six years. USSB says that is conservative and they have forecasted 2 million by the end of 1995 and 15 to 20 million after five years. USSB also expects to sell 40 million units within 10 years. 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 4000 units per day. They are currently expanding the plant to a capacity of 200,000 per month. DIRECTV believes it will break even in its second year of operation when they expect to have 3 million subscribers. USSB says their break-even point is closer to 2 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, USSB, RCA, and Sony plan to spend a combined $150 million on advertising in 1995. 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. DIRECTV says they expect the price to be in the $500 to $600 range for the basic unit by the end of 1995. The wholesale prices will be set exclusively by Thomson until 1 million units have been sold which will occur about mid 1995. 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 move the prices down. After the two exclusive periods expire, additional manufacturers will be entering the market increasing competition for price and features. Can you tell me about the Sony decoders? Sony cannot yet publicly discuss their DSS product line, but information about them is slowly becoming available. They have developed their own unique program guide which will help them differentiate their product line from Thomson. Their products are expected to be retail priced the same or slightly higher than RCAM-^Rs units. Sony is expected to sell three DSS packages. The basic package will allow connection to only one TV. The next package is expected to use the same decoder with an LNB which will allow multiple (separately purchased) decoders to be connected. The top package includes a different, more feature-rich decoder and remote control with the more advanced LNB. What is the service called PRIMESTAR? A group of major Cable Multi System Operators (MSOs) have joined together and formed Primestar Partners, Limited which also offers a fully digital 80 channel Direct-To-Home service to North America. Primestar and the DIRECTV/USSB service are competitors and are the only two DBS services available at this time. The Primestar system currently uses the medium power Satcom K1 satellite to broadcast to a three foot dish using General InstrumentsM-^R DigiCipher 1 digital broadcasting system. Primestar differs from the DIRECTV/USSB service in several ways. Most notably, 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 larger dish which is about 3 feet in diameter which must be professionally installed. They use General InstrumentM-^Rs DigiCipher decoders which are not compatible with the DSS system. Primestar currently has over 400,000 subscribers. Sometime in 1995 Primestar will begin to distribute update modules for their customersM-^R decoders (at PrimestarM-^Rs expense) which will support the DigiCipher 2 system. DC2 uses the standard MPEG-2 syntax. It is expected they will move to the DC2 system sometime in 1996. Primestar currently 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, that will be changing soon. Primestar controls 27 frequencies from the 110 degree orbital location to which they are planning to migrate their medium power DBS service sometime in 1996. This will make Primestar a major player in the High Power DBS industry. How much does the Primestar service cost? Local Primestar distributors set packages and prices for their area based on competition and the cost of doing business so prices vary nationwide. Primestar installation prices vary with normal installations ranging from about $150 to $300 plus about $75 for any desired additional outlets. It appears programming subscriptions are priced slightly higher than those of the DIRECTV/USSB service, but with the equipment leasing costs included, that is to be expected. Their subscription fee for a second decoder within a household is significantly higher than with DIRECTV or USSB. For about $40 a month, viewers can get A&E Cartoon Network C-SPAN CNN CNN Headline News CMT Discovery Channel Disney Channel ESPN 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. Lower priced subscriptions (with fewer channels) may be available in some areas. Premium services are also available for the following approximate prices. 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. A network affiliate package 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 recently added Starz, Playboy TV, CNN International, QVC, CNBC, and the Golf Channel, but pricing information is not yet available. Primestar says customers can optionally purchase their decoders for about $700 for the first unit and $500 for each additional unit. They are expected to put more emphasis on selling vs leasing equipment as time goes on. 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). It is interesting that USSB controls 3 frequencies at PrimestarM-^Rs 110 degree orbital slot as well With DIRECTV/USSB at 101 degrees and Primestar at 110 degrees, what is planned for the 119 degree position? Echosphere's EchoStar division is now in the process of planning their DBS service from the 119 degree orbital position where they have control of 21 transponders. Their first satellite, called EchoStar I, is being built by Martin Marietta and is scheduled for launch by China Great Wall Industry Corporation sometime In mid to late 1995. They are building a $40 million uplink facility in Cheyenne, Wyoming and hope to be operational by late in 1995 or early in 1996. Echostar has reportedly selected the Digital Video Broadcast (DVB) technology for their digital service which is MPEG-2 based. Their decoders will be incompatible with both DSS and Primestar. They say their programming and equipment prices will be lower than the competition and expect to have 3 million customers by the year 2000. Are any other DBS services planned? Canadian based Tee-Comm plans to launch a medium-power service they call Alpha-Star to the U.S. late in 1995 or early in 1996. They plan to broadcast 100 channels to 24- inch dishes from AT&TM-^Rs Telstar 402R satellite which is expected to launch late in 1995. They will use the same DVB system as EchoStar and hope to have up to 200 channels by sometime in 1997. Where can I get more information? You can get more information using the following phone numbers: DIRECTV Consumer Information 1-800-DIRECTV 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 Where can I find the latest version of this document? This document is updated and submitted every month or two to both the rec.video.satellite.dbs Internet news group and the DBS section of the COMPUSERVE Consumer Electronics Forum library. An Internet archive is also kept at ftp://ftp.src.honeywell.com/pub/www/jhodgson/dbs.html. -- Richard R. Peterson, President Phone: 612-773-8652 The DBS Connection Voice mail: 612-683-6151 1480 Lark Avenue, Maplewood, MN 55109 Fax: 612-683-6287 Internet: rich@ncs.com