Vogel reclaims EchoStar reins

Ex-president back in old job as challenges confront firm

Joyzelle Davis, Rocky Mountain News

Published September 19, 2006 at midnight

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EchoStar on Monday said Carl Vogel is returning to the job of president as the nation's second-largest satellite-TV provider faces slowing subscriber growth and the possibility of new ownership at rival DirecTV.

Vogel, an industry veteran and longtime Denver-area resident who rejoined EchoStar last year as vice chairman of EchoStar's board of directors, fills a post that's been vacant since Michael Neuman abruptly resigned seven months ago.

EchoStar also announced the appointment of Bernard Han as chief financial officer. He succeeds David Rayner as Rayner shifts to the newly created post of executive vice president in charge of installation and service.

Vogel helped launch EchoStar's Dish Network in 1996 and resumes the post as the company faces competition from invigorated cable companies with their triple-play bundles of phone, Internet and video service. Satellite companies haven't come up with a cost-efficient way to offer a similar package, putting pressure on them either to invest heavily in new technology or merge with other companies.

After leaving EchoStar in 1997, Vogel worked at its now-defunct archrival, Primestar before joining AT&T Broadband, Liberty Media and most recently serving as president and chief executive officer of Charter Communications.

"There's no one who has the extent of satellite and cable experience that he has," said Jimmy Schaeffler, senior research analyst at The Carmel Group. "Carl sets up an extremely unique opportunity if EchoStar has the willingness to use it."

Vogel, 48, declined to comment. EchoStar Chairman and CEO Charlie Ergen said in a statement that Vogel's "extensive knowledge of the industry in general, and EchoStar in particular, will strengthen our company and allow us to continue delivering high-quality programming to our more than 12 million subscribers."

Vogel's appointment comes days after reports emerged that Rupert Murdoch's News Corp. may leave the U.S. satellite business by trading its controlling stake in DirecTV to John Malone's Liberty Media in exchange for Liberty's stake in News Corp.

Concern that Murdoch has soured on the satellite-TV industry prompted several analyst downgrades and speculation that a Liberty-controlled DirecTV might pursue a merger with EchoStar - Liberty's Douglas County neighbor - to achieve cost savings.

Vogel has connections with both companies, having served as chief executive of Liberty Satellite and senior vice president of parent company Liberty Media until 2001.

A merger between EchoStar and DirecTV - regardless of who owns it - is unlikely to happen soon, considering that Federal Communications Commission Chairman Kevin Martin last week said there aren't enough other pay-TV competitors to justify a merger between the nation's two biggest satellite-TV providers.

That might change in several years after phone companies enter the fray with their own video services while cable companies continue to pick off subscribers, Schaeffler said.

"They would be foolish not to be talking about" a merger, he said. "The key is the growth of the telecom, which is a two-edged sword for EchoStar. They have to cede subscribers and growth in order to help create" an environment where such a merger would be approved.

Not everyone thinks a Malone- controlled DirecTV would merge with EchoStar, even years down the line. Phone companies are focusing on urban and suburban markets, while avoiding the rural areas served only by DirecTV and EchoStar.

"Why would Malone have the leverage (with Washington regulators) that Murdoch wouldn't have?" said Todd Mitchell, an analyst at Kaufman Bros.

If anything, Mitchell said, the Liberty deal is likely to pressure EchoStar into strengthening ties with phone giant AT&T, which resells Dish Network service to its customers. AT&T is rolling out its own video service but has faced challenges winning franchises and ramping up its technology.

EchoStar's new CFO, Han, spent the past several years in the airline industry. He worked at Northwest Airlines before resigning without explanation in May 2005. Before that, he held CFO and chief marketing roles at America West Airlines.

Carl Vogel at a glance

• Age: 48

• Résumé:

EchoStar vice chairman, June 2005 to present. Charter Communications president/CEO, October 2001 to January 2005. On Command chairman, June to October 2001. Liberty Media senior vice president, August to October 2001. Liberty Satellite & Tech president/CEO, August 2000 to October 2001. AT&T-Liberty Media senior vice president, December 1999 to August 2001. ICG Communications chairman/CEO, August to September 2000. TCI Satellite president/CEO, April to August 2000. AT&T Broadband executive vice president/COO, July to December 1999. PrimeStar chairman/CEO, June 1998 to June 1999. Star Choice Communications CEO, October 1997 to June 1998. EchoStar president, 1994 to 1997. Jones Intercable various positions, 1983 to 1994.

Source: Bloomberg News

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