Chuck Dolan Prepared to Spend $400M on VOOM

Cablevision chairman Charles Dolan said in an FCC filing yesterday that he is in the process of lining up $400 million in financing to fund VOOM's continued operations, various news outlets are reporting. The elder Dolan also is attempting to block the proposed sale of VOOM's Rainbow-1 satellite from Cablevision to EchoStar on the grounds that it would hurt competition and leave VOOM's 46,000 customers without service.

Chuck Dolan's opposition to EchoStar's purchase of the Rainbow-1 satellite is hardly unexpected given what will likely happen to VOOM's customers if the sale goes through. Without the satellite, an independent VOOM would be hard-pressed to continue offering service to current or future customers given that EchoStar would likely balk at leasing any capacity back to VOOM. EchoStar is facing tremendous pressure from DIRECTV, which is utilizing two new satellites for local HD channels in the top 12 U.S. markets by the end of this year. EchoStar has not announced any plans for HD locals, which will soon put it at a tremendous competitive disadvantage to its larger rival. EchoStar needs this bird, and won't give it up without a fight.