AMC-14 Declared a Total Loss
April 11, 2008
Nearly a month after the AMC-14 was launched, SES Americom has declared the satellite to be a total loss. The supplier of satellite services was to have leased the satellite to DISH Network. The launch initially went off as planned, but a failure during the second burn of the fourth stage left the satellite short of its proper orbit.
Engineers from SES Americom and Lockheed Martin, the builder of the satellite have been exploring options on moving the satellite to its proper geostationary orbit. While there was some hope of moving to the satellite to its proper orbit, it is either impossible or hung up in a patent dispute with Boeing. Either way, SES has decided to scrap the satellite and settle for the $150 million dollar insurance payment.
The loss confirms the original bad news for DISH Network. The satellite television provider has been locking horns with DIRECTV and various cable operators in a battle to deliver HD content to the consumer.
So how will the news affect DISH Network? While a satellite failure is always bad news, this one could not have come as a worse time for DISH Network. After initially leading the high-definition bandwagon, DISH has fallen behind DIRECTV in both national HD and in local HD channel coverage.
Earlier this year, DISH forecast 100 national HD channels and 100 local HD markets by the end of 2008. While they expect to launch two additional satellites later this year, they will be hard pressed to reach their stated goal. Additionally, competitive forces will continue to press the DISH subscriber base as consumers look to sign up with providers offering more HD.
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