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SkyREPORT.COM News Headlines
News Update For 09/27/99

- - - Rural Leaders Antsy About Legislation - - -

U.S. Rep. Barbara Cubin (R-Wyo.) released a statement urging members of the DTH Congressional conference committee to create a provision ensuring local-into-local service in rural areas as quickly as possible.

"Satellite dish owners in Wyoming and other rural areas deserve the same level of service and the same information and entertainment options that urban Americans will soon enjoy," Cubin said.

Cubin was the first representative to pen her name to a letter signed by 40 other House members urging the conference committee to ensure local service for rural satellite customers. "Until local-into-local is available in rural markets," the letter said, "Congress must insure that rural consumers do not unfairly lose the right to receive distant network signals via satellite."

Her statement came as members of the conference committee prepared to formally meet for the first time since being named in June. That meeting is expected to take place Tuesday. Staff members, however, met last week and are likely to meet again today to discuss the process of negotiating differences in the individual satellite bills passed by the House and the Senate last Spring.


- - - CD Radio Prices Stock-Debt Offering - - -

CD Radio announced Friday that it priced concurrent offerings of 3 million shares of common stock and $125 million of its 8 3/4 percent convertible subordinated notes due in 2009.

The price of the common stock was set at $24.75 per share. The transaction was increased from an original offering of two million shares. The notes will be convertible into the company's common stock at the price of $28.4625 per share.

The proceeds will be used for the continued development of CD Radio's satellite-to-car radio broadcast system. The company plans to offer 50 channels of commercial free music and up to 50 channels of news and other programming for an anticipated subscription fee of $9.95. Operations are scheduled to begin late next year.


- - - Loral Launches Telstar 7 Satellite - - -

Telstar 7, Loral Skynet's new satellite slated to provide a platform for a number of key cable programmers, was launched into space aboard an Ariane rocket during the weekend.

When Telstar 7 enters service, expected in early November, the satellite will cover the continental United States, Hawaii, Alaska, Puerto Rico as well as parts of the Caribbean and Latin America. The bird carries 48 transponders - 24 at C-Band and 24 at Ku-Band.

Meanwhile, Space Imaging celebrated last week's launch of the world's first commercial high-resolution imaging satellite from Vandenberg Air Force Base.

The IKONOS imaging satellite separated as planned from the Lockheed Martin-built Athena II rocket approximately 60 minutes after launch. Communication was established with the satellite about 90 minutes after lift-off.


- - - SkyBOX: Meeting the Milestones - - -

The DBS business took two giant leaps last week, with one achieving a significant milestone in its long-term plans to deliver local channels via satellite and the other preparing to expand its platform.

The first achievement was EchoStar's launch. A successful flight for the company's fifth satellite ensured that the DBS provider can proceed with its aggressive local-into-local plans (given that Congress provides the legislative fix), offer data services and move ahead with its 500-channel endeavor.

That 500 channel offering was promised by the cable guys several years ago, something EchoStar gleefully points out every time it talks about the package.

The second achievement was DirecTV's effort to grow its platform. The company is moving forward with the launch of its newest bird, with lift-off slated for Oct. 10, aboard the Sea Launch platform. Once in orbit, DirecTV 1R will help the company expand its HDTV slate, deliver data services and offer local channels.

The DBS giant also announced it's new Spanish-language packages. "DirecTV Para Todos" will debut in selected cities on Oct. 15.

If all goes well for the two companies and their satellites make it into orbit without catching any anomalies, DBS will be packing a significant punch in its quest to compete with cable.

The cable guys may quip that the risks involved and the dollars spent on launching DBS birds is a waste of money. But as EchoStar executives put it recently, "With DBS, we can spend $250 million and have a satellite in space with a national footprint 28 minutes after launch. Cable plans to spend $10 billion to deliver half of what we got, and it's going to take 10 years for them to get there.

"In the process, they are going to tear up everyone's back yard."


- - - PEOPLE: - - -

  • New XM Hire Heads Detroit Operations -
    XM Satellite Radio announced that George Lynch, director of original equipment manufacturer (OEM) sales, will head up the company's new office in Detroit. XM said it selected that city for the new facility to support its "quickly expanding relationships with automotive manufacturers."

  • Siegel Moves Up At Turner -
    Bradley Siegel has been promoted to the newly-created position of president, general entertainment networks, for Turner Broadcasting System. Siegel, who has served as president of Turner Network Broadcasting (TNT) and Turner Classic Movies, adds oversight of TBS, TBS Superstation and Turner South to his responsibilities.

  • Pace Announces Regional President -
    Neil Gaydon has been appointed President, The Americas, of Pace Micro Technology. The company, which manufactures digital set-top boxes, made the announcement in conjunction with officially moving its North and South American office to Boca Raton, Fla.

  • Oxygen Names Online Executives -
    Oxygen Media, the company that merges Internet and television technology, has selected eight new executive producers. They are: Amy Critchett, Martha McCully, Lynne Tapper, Giselle Benatar, Kathy Hammer, Anne Ashbey and Jim Brady. This team will report to Sarah Bartlett, Oxygen's editor-in-chief.

  • QVC Appoints Corporate Affairs Director -
    Bonnie Clark has been named director of corporate affairs for QVC, the television and online shopping network. Clark will oversee community and affiliate public relations and publicity efforts for QVC's divisions/subsidiaries.

  • WICT Selects Gala Chairs -
    Jim Robbins, president and CEO of Cox Communications, and Julia Sprunt, corporate vice president for Turner Broadcasting System, will be the honorary chairs of the 1999 Women in Cable & Telecommunications Foundation Washington D.C. Benefit Gala, which will be held at the Marriot Wardman Park Hotel on Thurs., Nov. 4. For more information call (312) 634-2330.

 

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Last Updated: September 27, 1999