Three groups backed by U.S. satellite interests submitted bids to the Mexican government Friday in an effort to privatize part of the country's satellite business. Bids were received from Mexico's Telefonica Autrey along with Loral Space and Communications, Mexican mining giant Penoles and Hughes-backed PanAmSat, and GE Americom with ControlSat, a unit of Megacable Comunicaciones de Mexico. Due to the weekend, no other details were available regarding the bids. The bids were made for up to a 75 percent stake in state-owned Satelites Mexicanos, which owns the Morelos I and Solidaridad I and II satellites.
NextLevel, the equipment manufacturer formerly known as General Instruments, took a big nosedive on the stock market. NextLevel's CEO Richard Friedland resigned amid news the company would not meet analysts' expectations. Friedland's resignation heightened concern that the cable and satellite equipment maker has lost direction. Said Edward D. Jones & Co analyst Dave Otto, who cut his rating on NextLevel to hold from aggressive buy, "They don't have a captain steering the boat and there's going to be more charges to earnings. I don't know what's going on with them and I don't feel comfortable putting investors into the stock." In all, NextLevel, which is one of three entities that split from the former General Instrument earlier in the year, lost nearly 30 percent of its value to close at $13.44, down more than five points.
European Union Seeks U.S. Cooperation Over Satellite Issues
The Economic Affairs Committee for the European Union adopted a proposed action plan for satellite communications throughout the continent that calls for more cooperation with telecommunications interests in the United States and other nations.
The committee, noting that Europe's satellite industry is risking falling behind global competitors, urged the commission to support satellite projects of common interest within member nations, and to include multimedia satellite communications in any future program.
The committee report also called on the union to step up efforts internationally, both in terms of increased cooperation with other nations such as the United States and Russia, and by adopting a common approach to international negotiations over allocation of satellite frequencies.
Any action, however, should only be taken after consultations with the member states and industry leaders. All efforts also must be based on a market-driven approach, the committee stressed.
PrimeStar Partners added Nobody Beats The Wiz, a chain that operates 52 stores in the Northeast, to its list of consumer electronics retailers.
PrimeStar said it hopes The Wiz, with operations in New York, New Jersey and Connecticut, will help the service expand its penetration in surrounding suburban areas.
"The Wiz has a great track record as a distributor of satellite television services," said Merle Eakins, vice president of retail sales. "We are thrilled to add the experience and skills of their staff, as well as the advantage of their suburban retail locations, to our sales arsenal during the highly competitive fall selling season."
Lawmakers Debate Intelsat Privatization
The House Telecommunications Subcommittee debated a bill Tuesday that would privatize satellite communications services such as Intelsat in an effort to promote competition.
House Commerce Committee Chairman Thomas Bliley (R-Va.) said few Americans know the world's largest fleet of communications satellites is owned and operated by Intelsat. His bill pending before lawmakers would require the administration to negotiate for the privatization of Inmarsat by 2001, with Intelsat privatization following a year later.
While Intelsat supporters call the operation a cooperative effort among signatories from other nations, Bliley said, "where I come from it is called a cartel."
"Either way it is high time for them to be privatized," he said.
FCC International Bureau Chief Regina Keeney told the subcommittee the agency favors privatization.
EchoStar's DISH Network reported its best subscriber acquisition month in its short 19-month history, signing up 105,000 new customers in September. That puts the service at 820,000 total subscribers. In August, DISH enrolled 75,000, putting it over the 700,000-mark. EchoStar's Judianne Atencio said the company's home installation promotion, which gives a customer a choice between a free self-installation kit or $100 off a professional installation, was the reason for the big subscriber jump in September. The subscriber leap puts the DISH Network closer to its year-end goal of 1 million subscribers. The milestone also comes on the heels of EchoStar's third satellite launch into the 61.5 degree slot.
EchoStar III, considered one of the most powerful communications satellites ever built, successfully launched from Cape Canaveral in Florida.
EchoStar's third satellite will launch from Cape Canaveral Air Station in Florida on Sunday, moving up 24 hours from its previous lift-off time.
The satellite, an A2100 bird built by Lockheed Martin, will be placed in the 61.5-degree orbital slot by an Atlas IIAS launch vehicle, designated AC-135 for the EchoStar III mission.
"Everyone at EchoStar (is pleased with) the launch of EchoStar III, and we are excited about the expanded capabilities we will be able to provide our customers," said Charlie Ergen, EchoStar chief executive. "The launch of this satellite will further solidify DBS service as the better television programming option over cable."
EchoStar hopes to offer local broadcast signals with the new satellite, targeting TV markets east of the Mississippi. But regulatory hurdles the company is fighting in Washington will keep plans shelved.
Once placed into EchoStar's 61.5-degree orbital slot, EchoStar III will carry international, educational and business programming, together with data delivery and possible retransmission of local channels to select markets. EchoStar I and II at 119 degrees provide television programming offered by the DISH Network. EchoStar III is equipped with 32 transponders operating at 120 watts per channel.
NextLevel Systems' Broadband Networks Group and Scientific-Atlanta signed a cross-licensing agreement that will allow both companies to jointly develop digital systems for cable television based on a common set of standards. The companies said the "harmony" agreement "represents a step forward in the cable industry's goal of developing a unified digital broadband platform." Scientific-Atlanta supplies broadband communications systems and satellite-based data networks. The NextLevel unit makes systems and components for communications networks delivering video, voice and Internet/data. The companies agreed to use NextLevel's new DigiCipher core data encryption standard and Scientific-Atlantic's PowerKey security and access control systems for the "harmony" platform.
PrimeStar is offering the NHL Center Ice package, with up to 600 out-of-market games, for a full-season price of $129, payable in 4 installments of $32.25. "We are very excited about the start of another hockey season," said Denny Wilkinson, senior vice president of marketing and programming at PrimeStar. "With all of the changes we've made this year - such as the addition of eight regional sports networks and the reorganization of our lineup with a dedicated sports area - our subscribers will find our hockey offering better than ever." In addition to NHL Center Ice, PrimeStar is offering the NBA League Pass for an early bird discounted price of $139 until Oct. 15. PrimeStar will kick off the season with a free preview between Oct. 31 and Nov. 3, offering viewers up to 27 NBA games
A Chinese Long March 3B rocket was successfully launched October 16th by the China Great Wall Industry Corp. (CGWIC) carrying the Apstar 2R telecommunications satellite from the Xichang Satellite Launch Center (XSLC) in Sichuan Province. In January 1995, a Long March 2E rocket carrying the original Apstar 2 blew up shortly after lift-off. Apstar 2R is to provide telecommunications services over the Asian region, and is positioned at 77 degrees East longitude on the earth's equator. The system, equipped with 28 C-band and 16 Ku-band transponders, has a design life of 15 years. The C-Band transponders will cover four continents: Asia, Europe, Africa & Australia. The Ku-Band will mainly cover China (including Hong Kong, Macau and Taiwan). This was the third launch of a Long March 3B booster;
The 40th anniversary of Sputnik, the world's first man-made satellite that initiated a global space race when it was launched by the former Soviet Union, was marked by space enthusiasts during the weekend. Sputnik was the size of a basketball and emitted a high-pitched beep that could be heard on short-wave radio across the world. The Oct. 4, 1957, launch was followed a month later by Sputnik 2, which put a dog into orbit. A month after Sputnik 2, the United States attempted to put its own satellite entry on the launch pad. At a critical moment before lift-off, its top fell off and then the rest of the craft exploded. Soon after, Congress formed the National Aeronautics and Space Administration, the first U.S. agency set up specifically for space exploration. It also provided money for students to study science and technology to support space endeavors.
Following the successful launch of its third broadcast satellite, and with preparations for a fourth launch in 1998, EchoStar's next step in space may be involvement with a low-earth-orbit satellite system.
E-SAT, a proposed LEO system jointly owned by DBS Industries and EchoStar, is awaiting licensing from the Federal Communications Commission to construct and launch its roving satellite constellation.
The effort took a step closer to fruition after DBSI announced it will retire debt previously issued to EchoStar for around $4.64 million. In exchange for EchoStar's retirement of the debt, DBSI transferred back to EchoStar 270,414 shares of EchoStar Class A common stock valued at approximately $4.480 million in addition to $936,000 cash for accrued interest owing on the debt and fees related to the transaction.
"Repayment of debt to EchoStar prepares the way for DBSI to enter into the next phase of our business plan - the deployment of a low-earth-orbiting satellite network to provide low-cost, automated data services worldwide through E-SAT," said DBSI President Fred Thompson.
EchoStar shares were held as security for the debentures and were received as a result of EchoStar's acquisition of Direct Broadcasting Satellite Corporation from DBSI, which was completed Jan. 8.
E-SAT was part of a joint proposal recently signed by all LEO applicants which was filed with the FCC on Sept. 22. "This proposal requests that the FCC adopt the frequency spectrum sharing plan agreeable to all applicants," Thompson said, "and we believe this industry-developed consensus agreement paves the road to fast track the licensing process."
PanAmSat is seeking Federal Communications Commission approval to launch a 12-satellite global network providing digital transmissions in V-Band frequencies.
The system, called V-Stream, is expected to provide high-power, flexible broadcast and telecommunications services after the year 2000. The company joins a long list of satellite interests considering the new high-frequency spectrum, including parent Hughes Electronics, Loral and Motorola.
The V-Stream system will consist of 12 geostationary satellites that use 3 GHz of spectrum in the 50/40 GHz band of frequencies. Key components of the system will include inter-satellite links, on-board processing and high-powered spot beams.
The V-Stream system is expected to provide a full range of digital satellite services on a global basis. PanAmSat has requested FCC authorization to operate the global V-band network in 11 orbital slots, ranging from 99 degrees West Longitude for service over North America to 124.5 degrees East Longitude for service over the Asia-Pacific region.
"With today's V-Stream application, PanAmSat continues to plan for the evolving needs of its customers as well as the satellite resources required for service applications just on the horizon," said Robert Bednarek, PanAmSat's chief technology officer. "We expect that this new 40 GHz system will become an important part of our existing global capabilities in C-band, Ku-band and emerging Ka-band frequencies."
PanAmSat operates a global network of 16 satellites providing C-Band and Ku-Band services. The company also has received FCC authorization to operate Ka-Band satellites in nine orbital slots.
Croce Advertising in Denver is preparing to sue TCI Satellite Entertainment, alleging the PrimeStar partner hasn't paid nearly $5 million for services provided in 1995 and 1996.
According to a story in The Denver Business Journal published this week, the breach-of-contract suit against TSAT hasn't yet been filed. A spokesperson at TSAT wasn't available for comment Monday, and Croce personnel wouldn't return phone calls.
According to the Denver Business Journal article, TSAT allowed bills to accumulate unpaid over time, and that forced the advertising agency to lose 18 employees through attrition and layoffs. There was no mention as to when a lawsuit will be filed by Croce Advertising.
Iridium successfully tested communications links between the 34 satellites it has in orbit, and is ahead of schedule in terms of building and running the network through trials, according to a company executive. Roy Grant, Iridium chief financial officer, said the company "successfully tested 75 percent of the equipment needed to make a voice call." "We're ahead of where we anticipated we'd be at this point," Grant said of the system tests. Iridium will offer a global voice and paging service through a network of 66 low-orbit satellites. Testing of the full system will begin in May, and the service plans to begin commercial operations in September 1998. Grant added the company will report anticipated third-quarter losses Thursday, including depreciation expenses on satellites Iridium has in orbit.
Many companies in several industries told the FCC that granting Primestar's application to gain control of 110 W slot that MCI won at an auction wouldn't serve public interest. Primestar has a deal with MCI and its partner News Corp. under which the cable-affiliated satellite provider would gain access to orbital locations and 28 channels in exchange for giving News Corp. a 33% stake in Primestar. Primestar also has sought FCC permission to access the 11 channels at 119 W now controlled by TCI-owned Tempo.
DBS competitors said Primestar's plans wouldn't advance the FCC and congressional goals of promoting competition to cable. Echostar said the FCC allowed MCI compete in auctions after the FCC promised to promote competitive DBS systems. Echostar said, "Primestar's prior record of not competing for cable subscribers is even more direct and conclusive evidence of its anticipated use of the MCI channels,".