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SkyREPORT.COM News Headlines
News Update For 09/15/99

- - - Canadian DBS Count Passes 500,000 - - -

Canadian DBS provider Bell ExpressVu said it has reached the 300,000-subscriber milestone.

When taking into account Bell ExpressVu's 300,000 subs and the estimated 245,000 customers enrolled so far by competitor Star Choice Communications, Canada's DBS business is projected to have more than 500,000 customers.

With 300,000 customers, Bell ExpressVu becomes the sixth largest broadcast distributor in Canada. The company said it's adding 30,000 new customers per month, and within a few years it expects to reach more than 1 million subscribers.


- - - Cable Open Access Rule North Of The Border - - -

The Canadian Radio-Television and Telecommunications Commission directed the country's cable carriers to sell part of their high speed Internet infrastructure to other Internet providers at a discounted rate - as much as 25 percent lower than their lowest retail rate.

Cable operators in Canada have 90 days to make their lines available to other Internet providers.

"Until cable carriers are equipped to provide competitors with access to their higher speed Internet service, resale at a wholesale price is the best alternative" says Francoise Bertrand, CRTC Chairperson. "This will provide Canadians with increased choice and permit other Internet service providers to compete in the higher speed segment of the Internet market."

In the United States, federal regulators have resisted forcing cable operators to open their lines to outside Internet providers. Some municipalities, however, have pushed the open-access issue.


- - - Floyd Ravages Coast-But Not DISH - - -

Hurricane Floyd was expected to sweep just short of Cape Canaveral and some $8 billion in space and satellite hardware.

As of late Tuesday night, the hurricane eye was expected to pass Cape Canaveral about 40 to 100 miles off shore. Although Floyd's center would remain at sea, the storm was expected to lash the coast with strong winds and a lot of rain. The worst of the storm, however, was not expected to hit Cape Canaveral facilities.

While facilities around the Cape Canaveral area were threatened, officials now consider Hurricane Floyd a close call.

The EchoStar 5 satellite remains on the pad - secure in the launch vehicle tower. If Hurricane Floyd should damage EchoStar's satellite or the rocket that will carry it into orbit, the DBS company wouldn't be directly impacted, sources said.

Evan McCollum of Lockheed Martin, maker of the Atlas 2AS vehicle that will carry EchoStar 5 into orbit, said the satellite is under the control of manufacturer Space Systems/Loral while it's grounded on the pad. The satellite and the Atlas 2AS launch vehicle are covered by insurance, he said.

If something should happen to the satellite, the only challenge for EchoStar would be meeting its 500 channel goal.

"This one is important," C.E. Unterberg, Towbin's William Kidd said of the launch. "If EchoStar were to suffer a setback, EchoStar 6 would have to fill in for the 500-channel service.

"It's important to mention that existing EchoStar services would not be affected by a launch failure. Also, it's important to note that there is no EchoStar 7 satellite on order," Kidd said.

EchoStar Chairman Charlie Ergen said this weekend that all his company needs is one successful launch - whether it's EchoStar 5 or EchoStar 6 - for DISH Network to meet its 500-channel goal.


- - - CD Radio To Offer Securities - - -

CD Radio said Tuesday it will offer 2 million shares of common stock and $125 million in 10-year convertible subordinated notes.

Securities that will be offered are covered by a $500 million universal shelf registration the company filed with the Securities and Exchange Commission in August.

The company said it would use proceeds to expand its satellite-to-car radio broadcast system and for general corporate purposes.


- - - Former PrimeStar Execs Make Moves - - -

High Speed Access Corp. (HSAC), a data over cable provider targeting mid- and small-sized cable operators, appointed former PrimeStar executive Dan O'Brien as chief operating officer.

O'Brien succeeds co-founder Kent Oyler in the position. The appointment is effective Oct. 1. Oyler will become HSAC's chief strategy officer focusing on new broadband services and business strategy.

At PrimeStar, O'Brien was president and chief operating officer. Prior to that, O'Brien served as president of Time Warner Satellite Services.

HSAC is backed by Vulcan Ventures, a company formed by Microsoft co-founder Paul Allen.

Meanwhile, AT&T Broadband and Internet Services restructured the roles of Chief Operating Officer Bill Fitzgerald and Executive Vice President and COO of data services Carl Vogel. Vogel is the former chairman of PrimeStar.

Fitzgerald will be chief operating officer for operations, supporting functions such as marketing, ad sales, franchising and customer care. Vogel will keep his data responsibilities and also will be chief operating officer of field operations.


- - - COMP WATCH: - - -

  • Cable Companies Form Lobbying Team -
    The newly-formed Cable Competitive Coalition - which is comprised of Ameritech New Media, BellSouth Entertainment, McLoudUSA/DTG, RCA, Seren Innovations, Hiawatha Broadband Communications, Mainstreet Communication and others - has urged the Federal Communications Commission to take stronger action to enable cable competitors to have greater access to programming, customers and existing MDU wiring.

  • Blonder Tongue Signs With CSC -
    Blonder Tongue Laboratories, the manufacturer of cable TV electronics, and CSC Holdings, a Cablevision subsidiary, have signed a contract to supply HomeControl Interdiction units for approximately 100,000 basic cable subscribers in the New York metropolitan area. The contract provides for the delivery of field trial units, with all equipment scheduled for delivery over a six-month period ending March 31, 2000.

  • Oxygen, WINK To Develop Enhanced TV -
    Oxygen Media will partner with WINK to deliver enhanced cable programming and e-commerce advertisements to households with WINK-equipped TV, cable or satellite boxes.

 

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Last Updated: September 15, 1999