We can't take anything for granted any more. DirecTV must compete with independent Echostar, yet now both ventures face competition from three more entrants into the U.S. digital satellite marketplace, the third being the most significant. Announced in May at the NCTA show, the HITS2HOME service targets cable operators with rural and town systems too small for affordably upgrading the plant for digital HITS feeds. They can add about 140 channels of digital programming to their analog service without buying new headend equipment, rebuilding the network or using any plant bandwidth. HITS2HOME digital signals are received by the cable customers directly on a home satellite dish.
Local operators can brand the service with their own logo.
Cable systems in 39 markets have already launched HITS2HOME during beta-testing. Now the national marketing begins. Monopoly ploys will be opposed. Marketed to 14 million TV households in BellSouth's telecom service area, the regional DBS service may expand into the neighboring regions, conceivably reaching 50 million homes. DBS insiders voice their doubts that the regional telephone operating company understands the satellite business well enough to survive.