A New Italy Deal For News Corp.?

News Corp. Chairman Rupert Murdoch, close to signing a deal with Telecom Italia that would create a digital TV business competing with Canal Plus' Telepiu, may get more control of the venture than previously reported.

Last week, Murdoch said that Telecom Italia would hold 51 percent of the new company and newly formed News Corp. Europe would maintain 39 percent, while France's TF1 would take 10 percent.

But new reports suggest that Franco Bernabe, Telecom Italia's new chief executive, is studying various options for the company's participation. Bernabe, who took office just last week, is considering lowering Telecom Italia's participation in the new company below 51 percent to lighten the financial burden for Telecom Italia Under this proposal, Telecom would cede 20 percent or 30 percent to Murdoch or another partner, reports said.

Complicating the deal is opposition to Murdoch controlling too much of an Italian broadcaster, and possible Italian government limits on soccer television rights the media giants wants for the European operations.

Mexico, U.S. Prepare MSS Protocol

Mexico and the United States are ready to sign a protocol allowing mobile satellite services such as Iridium, Globalstar and ICO to operate south of the border.

Javier Lozano, head of Mexican telecommunications regulator Cofetel, said final negotiations were completed last week and the protocol was under review.

The deal is an extension of an accord on mobile satellite communications signed by Mexico and the United States in April 1996.

PanAmSat Fights Comsat/Lockheed Deal

PanAmSat urged federal regulators to block Lockheed Martin's proposed plan to buy satellite operator Comsat for $3.16 billion in cash, stock and assumed debt.

The Federal Communications Commission, which has a say in Lockheed Martin's proposed purchase, "should reject the proposed transaction because Comsat, created by the federal government and a competitor of PanAmSat, is the sole organization that can sell services of Intelsat, a global satellite organization, in the U.S.," PanAmSat said.

The FCC is looking at whether the transaction is in the public interest.

In addition, Lockheed Martin would need changes in legislation governing Comsat and Intelsat to secure its purchase. Bills to overhaul laws governing Comsat and Intelsat were introduced in the House and the Senate last session, but they never passed.

PanAmSat said it objects to Lockheed purchasing more than 10 percent of Comsat's stock. The company also said current law forbids Comsat from selling more than 10 percent of its voting stock to anyone other than a common carrier.

Lockheed, the defense contractor/satellite manufacturer looking to get into the commercial satellite services market, wants to purchase as much as 49 percent of Comsat stock for about $1.3 billion, or $45.50 a share. Lockheed will issue 0.5 share of its stock for each remaining share of Comsat, an exchange valued at about $1.4 billion. Lockheed will also assume $455 million in Comsat debt.

Bell ExpressVu Increases Programming, Offers New Financing Option

Bell ExpressVu unveiled 25 percent more programming and a new equipment financing option in time for the holiday shopping season.

Eastern Canadian (which includes Ontario and all points east) subscribers now receive an additional 26 video channels. Viewers can now watch nine local news channels from Toronto, Barrie, Ottawa, Montreal, Saint John, Winnipeg and Edmonton, 10 specialty and seven pay-per-view channels from Viewer's Choice Canada and Canal Indigo.

Western Canadian subscribers receive 21 new video channels. These include eight local channels, eight specialty channels and five pay-per-view channels from Viewers Choice Canada.

French-programming was also boosted by the company with the addition of MusiMax, Super Ecran 3, Le Canal Nouvelles and two pay-per-view channels from Canal Indigo. These additions bring ExpressVu's total number of French language channels to 21.

In a move to make DTH prices more attractive to the densely populated cable subscriber market, the company announced that new subscribers can purchase a Bell ExpressVu dish and set top receiver for $100 down and $12.49 a month for 37 months.