Satellite Legislation Called Encouraging

Satellite interests praised two pieces of legislation - one from Sen. Orrin Hatch and the other from Sens. John McCain and Conrad Burns - that would extend satellite's compulsory license, try to solve local-into-local issues and address other industry matters.

One bill was the subject of a Senate hearing Thursday.

The Hatch legislation before the Senate Judiciary Committee would extend the satellite industry s compulsory license for five years, and reduce copyright fees from the current rate of 27 cents per subscriber per month to 18.9 cents for superstations and 14.85 cents for network signals.

It also would eliminate any further Copyright Arbitration Rate Panel rate-making during a five-year period and eliminate the 90-day waiting period for current cable subscribers to receive distant network signals.

Several organizations, including the Satellite Broadcasting and Communications Association and the National Rural Telecommunications Cooperative, have voiced support for the Hatch bill.

Mike Peterson, an NRTC member, represented the association and its national membership at the hearing Thursday before the Senate Judiciary Committee. Peterson said, "by necessity, our members often rely on satellite technology to be connected to the modern world. Under current copyright and communications laws, rural consumers using satellite technology are not provided with fair access to programming. We do not have a fair alternative to cable."

Peter Martin, executive vice president and general manager of Mt. Mansfield Television, satellite dealer Charles Meinkey, and Bruce Reese, president and CEO of Bonneville International Corp. also testified before the committee.

SBCA President Chuck Hewitt praised satellite legislation introduced by McCain and Burns.

"We are encouraged that Sens. McCain and Burns are seeking to make the satellite industry more competitive and to protect some of the consumers who may unfairly lose the distant network signals they are currently receiving via satellite," Hewitt said.

The McCain-Burns legislation would allow satellite television subscribers to receive distant network signals by satellite in three situations: Where they is no local network affiliate; when subscribers cannot receive the broadcasts of the local affiliates over-the-air; and where receipt of distant network signals would not "materially harm" local television services.

EchoStar To Fight Program Access Denial

EchoStar said it was disappointed by an FCC Cable Services Bureau decision to deny a program access complaint it filed against Comcast.

The company said it still believes Comcast s conduct is an unfair practice within program access laws, and will appeal the decision.

"EchoStar is troubled by this decision as it means that Philadelphia consumers will continue to be unable to receive their sports programming from EchoStar or any other satellite company," the company said in a statement. "Comcast has admitted that its decision to withhold that programming from EchoStar was a purposeful one related directly to competition.

"In light of that admission and other publicly available evidence, EchoStar believes that Comcast s conduct qualifies as an unfair practice within the program access laws. Therefore, EchoStar will appeal the Cable Services Bureau s order."

Loral Telstar 6 Launch Delayed

Due to a problem with the digital computer on the fourth stage of the Proton launch vehicle, the launch of Loral Skynet s Telstar 6 satellite originally scheduled for launch Jan. 30, has been delayed more than 30 days.

The rocket had been delayed once before in October when a TWTA had to be replaced.

The Proton rocket manufacturer told Loral that replacing the computer involves removing the rocket from the launch pad.

Telestar 6, which carries a total of 52 transponders, 24 at C-band and 28 at Ku-band, will be one of the most sophisticated and powerful communications satellites available to broadcasters and program distributors in North America.

Lockheed Martin 1998 Earnings Down

Thursday, Lockheed Martin announced that its net earnings for both fourth quarter and year-end 1998 were down from the same periods in 1997.

Specifically, net earnings for fourth quarter, adjusted to exclude nonrecurring and unusual items, were at $308 million, compared with $363 million for the same period in 1997. The year-end earnings were $1.18 billon versus $1.29 billion the year previous.

Company officials say growth was lead by the Electronics businesses and disappointing performances were primarily in the Space and Strategic Missiles segments.

Yankee Group Reviews 1998 DBS Market

During the Yankee Group s "Cable and Its Competitors: State of the Union 1999" conference held Thursday, analysts said the newest DBS subscribers are very different than the customers who bought their small dishes in the past.

Analysts Bruce Leichtman and James Penhune said, "[DBS] is expanding beyond the typical bases of unsurpassed cable homes and angry cable customers." Currently, almost 55 percent of DBS customers now live in markets which are passed by cable.

The new customers are also buying their dishes for different reasons. In 1997, 42 percent purchased their system because it offered more channels than cable, in 1998, this number rose to 51 percent. "No access to cable" was also mentioned less frequently than last year.

New DBS subscribers are also more likely to keep their cable. Of the 46 percent of small dish owners who subscribed to cable, 71 percent kept basic channels only, 15 percent kept broadcast channels only and 14 percent kept all channels plus premiums. Overall, 61 percent of new DBS subscribers who maintained their cable subscription downgraded when they got DBS.

The analysts said the DBS industry in 1999 will see continued subscriber growth. Preliminary estimates show the DBS industry could add as many as 1.5 to 2 million new customers in the year ahead.