Hartenstein a Satcon keynote no-show

Ironically, said Eddy Hartenstein, chairman and CEO of DirecTV, today was “broadcasting and cable day” at the Satellite Application Technology Conference & Expo [Satcon] in New York City “and they needed a DBS guy to jump-start it.”

Even more ironically, that DBS guy didn’t show up. Hartenstein, the day’s keynote speaker, mailed in his remarks via videotape rather than possibly dealing with questions concerning EchoStar’s fading chances of acquiring his satellite company from General Motors’ Hughes Networks Systems.

The video remarks were milquetoast, with Hartenstein avoiding any references to the acquisition, which, if things stay on their present course, could explode when DirecTV backs away from the deal Jan. 21. If not, the Federal Communications Commission and Justice Department have promised legal action that could potentially tie things up for years.

He also did not talk about broadband data delivery -- a key component in cable’s increased efforts to wrest away satellite’s momentum.

Satellite, said Hartenstein, is an “efficient means for delivering entertainment.”

Thomas Watts, managing director & senior analyst for SG Cowen Securities, addressed both issues that Hartenstein avoided during a post-video analysis. In Watts’ view, cable is not as formidable a threat as it might believe.

“I think cable TV is taking a tack that actually benefits satellite,” said Watts.

That mistake, he said, is part of the broadband bundling strategy that cable is developing to deliver a sticky package of voice, video and data services.

“Cable is making the same mistake it made with video,” Watts said, noting that the wireline competitor is “underinvesting on their network [and] overcharging their customers.”

This, he said, will give satellite an opportunity to deliver a competitive broadband data offering by about 2005.

As for the merger, Watts offered a bleak analysis.

“Most people expect DirecTV to come back on the block and be sold. Most likely buyer, [Rupert Murdoch’s] News Corp.,” he said.

If only Hartenstein had been around to add his two cents.