teleco.com.br

12/10/2010

SKY

In this page: Sky results in Brazil and the merger process between SKY and DirecTV

www.sky.com.br

-	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	3Q10
Suscribers (thousand)	1.7	1.7	1.8	2.0	2.0	2.1	2.2

In 08/25/2006 the joint venture of Sky with DirecTV was concluded. Sky Brasil, the new company after joint venture, is controlled by Grupo DirecTV ( 74%) and Globo (26%).

In Jun/10, Globo announced selling 19% of the capital share for DirecTV, operation approved by shareholders since 2004, reducing its stake in Sky to 7%.

Joint Venture Chronology

In 10/11/04, a Globopar and DirecTV announced an agreement to the joint venture of DirecTV and Sky, in Brazil. The new company, even keeping the name Sky Brasil, will be controll by DirecTV ( 72%) keeping Globopar with 28% left. The management of Sky Brasil will be done by DirecTV ( commentary)

In 11/18/05, the operation received previous consent of Anatel and was sent to CADE with approval recommendation with restrict to probable impacts caused in the competition.

In 05/25/2006, CADE approved the joint venture of Sky with DirecTV putting some restrictions following presented:

In relation to the price's politics, CADE finished, for the stated period of 5 years, Sky practice iqual prices in the whole country to the channel packs, allowing local promotions for the maximum stated period of 90 days . The referred packs must be offered in the whole national.

CADE forbade, for the state period of 5 years, that the companies News Corporation Limited ( owner of Directv) and Hughes Eletornics Corporation, work, for the companies of Grupo News, in the supplier of audiovisual content, as well as the exclusiveness in the transmission of the main championships of Brasilian Soccer Championship, Brasil Cup, Libertadores das Américas and Campeonatos Estaduais de São Paulo and Rio de Janeiro.

Brazilian content, CADE obligated SKY:

Continues transmiting channels of brasilian content available in the DirecTV to the actual subscribers that came to Sky, for the stated period of 3 years.
Guarantee to the programmers of national content, the same revenue nowadays done with the commercialization of this content, because of the contracts that had with DirecTV
In the stated period of 180 days, increase in 20% tha base of subscribers that received channels of brazilian content, keeping ay least the 30 months left.

Still obligates Grupo Globo to veet or determinate the conditions of transmission of programs or national audiovisual content of brazilian company, in the operations of Sky and determined that will be changed the contracts in a form which Sky can contract program or national audiovisual content of brazilian company, new or already existent, for most simple partners or shareholders.

Sky Brasil Serviços Ltda is a digital TV operator via satellite direct-to-home (DTH), It shareholders, before the joint venture with Directv, wer Globopar (54%), News Corporation (36%) and Libery Media Corporation (10%).

SKY Brasil (1Q07)

-	1Q07
Subscribers (thousand)	1,342
Service (Channels)	163 Video 41 Audio
Satellite	IS 6B 14 transponders
Employed	2,341

Sky's results

DirecTV Latin America's president presented data about Sky and according to him Sky counted 1.8 million subscribers in the third quarter of 2009. Its penetration reaches 27% in Brazil according to the operator.