- - - DISH Sees Downgrade, Hughes Ratings Up - - -

Suggesting that the share price has ran ahead of the business, C.E. Unterberg, Towbin analyst William Kidd downgraded EchoStar from a buy to a hold.

In a research note on the company released Monday, Kidd said EchoStar still has a strong outlook, but a new valuation of the DISH stock suggests the company should only be around $92 per share as of year-end.

"In our opinion, many have mistakenly overpriced DISH shares by using questionably low discount rates instead of modeling in local-into-local and interactive television services," he said. "Unfortunately, it's easier to manipulate the share price through the discount rate than new revenue streams."

Meanwhile, Kidd upgraded Hughes Electronics to strong buy from buy and established a $69 year-end price target. He said EchoStar's meteoric share rise has made Hughes "extremely attractive on a relative value basis." Over a twelve-month period, Hughes shares will reach $80 to $85, he said.

EchoStar closed down $7 to $90. Hughes rose to $57.06.

- - - DirecTV Brazil Has Lock On HBO - - -

Galaxy Latin America and its DirecTV business in Brazil acquired the exclusive DTH satellite rights to HBO's three premium channels - HBO, HBO 2 and Cinemax - for delivery throughout the Latin American country.

The scoop for DirecTV and Galaxy Latin America also includes an agreement to future premium channels from HBO that will be offered exclusively on the satellite platform. The contract will also prepare the Brazil market for future services, such as HBO's premium digital platform dubbed Digiplex.

"As a result of this agreement, DirecTV is now stronger in the direct-to-home market in Brazil. This deal is part of our commitment to be the best sources of entertainment in the country," said Milton Torres, president of Galaxy Brasil.

- - - Another Weather Delay For EchoStar 5 - - -

For the third time, the flight of EchoStar's fifth satellite was delayed due to worsening weather conditions around the launch pad at Cape Canaveral, Fla.

EchoStar 5 is now expected to launch early Thursday morning, around 1:08 a.m. Eastern Time.

Officials are expecting three to five inches of rain to fall in the Cape Canaveral area as Tropical Storm Harvey pummels Central Florida today. Launch facilities in Brevard County, Fla., and the surrounding areas were put under a Tropical Storm Watch early Monday.

EchoStar 5 was rescheduled from its original launch date of Sept. 9 after lightning struck the rocket pad tower. The launch was then set for the 13th, but crews faced another delay when Hurricane Floyd turned toward the Florida coast. In addition to Floyd, technicians discovered a glitch with components aboard the rocket that will carry EchoStar 5 into orbit.

- - - Globalstar to Invest $180 Million in Brazil - - -

Emerging satellite telephone provider Globalstar Telecommunications said Monday it will invest $180 million in Brazil, where it plans to launch phone services in January.

The company is set to begin service in October in the United States, Canada, Mexico and parts of Europe through a network of 48 satellites. In Brazil, Globalstar will hold initial tests in October and start up in January, according to Reuters.

Globalstar plans to target mining, agriculture, sea transportation and other areas not easily accessed by traditional telephone systems, said Globalstar's Anthony Navarra. "We are not going to compete with cellular telephones," he said. "We want to cover areas where cellular telephones can't reach."

Loral Space & Communications is Globalstar's largest equity owner with a 45 percent stake in the company.

- - - TECH: - - -

• DigitalXpress Teams Up With AT&T -
  St.Paul-based satellite communications service provider DigitalXpress announced an agreement with AT&T Internet Services for its business customers. DigitalXpress will offer AT&T's private line services for video backhauls, and ATM or IP networks for data file backhaul. The company reports that these services will provide its customers with more convenience and savings.

• Imagery Bird Launch Broadcast on Web -
  IKONOS, the world's first commercial high-resolution Earth imaging satellite, is scheduled to launch from Vandenberg Air Force Base in California on Thursday. The bird will be carried on a Lockheed Martin Athena II rocket. The launch video will be streamed over the Web at about 10:20 a.m. Pacific Time. Once in orbit, IKONOS will undergo system calibration and testing for 60 to 90 days before imagery is available. After that, images will be sold and marketed by Space Imaging under the company's CARTERRA brand name.

• COMSAT Wins $30 Million Contract -
  COMSAT and Ericsson have secured a $30 million contract in which the former will design and implement resource management and network control software for the Astrolink satellite system, which will provide high-bandwidth communications capabilities.

• Orbital, Hertz Initiate Navigation Solutions -
  A joint venture announced earlier this year between Orbital Sciences and Hertz, called Navigation Solutions, is now delivering and installing 50,000 satellite-based car navigation systems that form the basis for the Hertiz NeverLost rental car service. The deployment of the new units in the U.S. and Canada will be completed this year.