The purchase deal will make Pegasus the third largest DBS provider in the United States and the 8th largest multichannel provider, including satellite and cable. The organization's major involvement, said NRTC spokesman Harry Thibedeau, will entail negotiating the transfer of DBS distribution contracts from Golden Sky to Pegasus. Hughes would surely rather deal with one major entity, such as Pegasus, than a loose confederation of NRTC affiliates. Before that happens, however, a bigger, more powerful Pegasus will have substantial leveraging power in the DBS business. Moreover, Pegasus and Golden Sky have filed a new class action lawsuit against DirecTV and parent company Hughes Communications.
Centennial already operates wireless PC, Internet and telephone services on the island.
The license covers patented PMC technologies relating to DBS transmission and receipt. In a series of court actions, PMC has alleged that technology used by DirecTV and several of its manufacturers infringes on PMC patents. While the lawsuits petered out in more or less of a draw, they could be revived and the exclusive license now held by Pegasus leaves that company in a position to challenge some of the systems at the heart of DirecTV's technology. Unless, of course, you consider the threat of another patent lawsuit as a potential weapon in the continuing skirmishes. The investment gives Pegasus a Class B ownership interest in PMC, which is controlled by well known satellite mavens, John Harvey and Kazie Metzger.