07.20.2006 08:00 AM
USDTV files for bankruptcy protection
Wireless cable competitor USDTV has filed for Chapter 7 bankruptcy protection and is negotiating with the bankruptcy court to allow it to continue operations so its assets can be sold.
The multichannel pay video service provider has about 16,000 subscribers in Albuquerque, NM, Dallas, Las Vegas, and Salt Lake City.
As of last week, USDTV was still on the air. In its service markets, USDTV leases DTV bandwidth from television broadcasters. Consumers must acquire a set-top box to receive USDTV programming.
Last year, USDTV received $26 million from several broadcast groups seeking a stake in the operation, including McGraw-Hill Broadcasting, FOX Television Group, Hearst-Argyle Television, LIN TV, Morgan Murphy Stations and Telecom DTV. However, the service has experienced slow acceptance among consumers as a viable alternative to cable services. USDTV estimates assets totaling between $1 million and $6 million and debts between $10 million and $50 million.