- - - NAB Echoes Rural TV Concerns - - -

As Congressional leaders prepare for today's discussions on DTH legislation, including provisions allowing for delivery of local channels via satellite, broadcasting's top lobbyist is echoing the need for representation of rural TV stations.

Eddie Fritts, president of the National Association of Broadcasters, said his organization is exploring ways to provide local-into-local service to TV markets beyond those proposed by the two DBS services. His comments follow recent statements from Capitol Hill lawmakers that rural TV markets are being left out of pending DTH legislation.

Fritts made the comments before the "Interface" conference in Washington, D.C., sponsored by Broadcasting and Cable magazine.

NAB spokesman Dennis Wharton said work on a local-into-local solution for rural areas and other markets that are not included in DBS plans is in its early stages. "We are just beginning to develop a game plan," he said. He added that the call isn't a mandate, but rather a proposal.

Wharton said the NAB recognizes there are limitations preventing DBS from delivering all local channels for some 200 TV markets. "We know there are capacity issues," he said. "Eventually, the development of technology could resolve those issues."

He said plans by DirecTV and EchoStar to deliver local channels for top markets is "all fine and good. But we would like to see delivery of as many channels to as many communities as possible."

An idea floated by Fritts included delivery of small-market TV stations by satellite under a plan that mirrors universal phone subsidies.

- - - DirecTV/Broadcaster Deal In Works - - -

DirecTV may announce a local station carriage deal with a broadcast network, possibly next week.

DirecTV President Eddy Hartenstein, speaking at the Broadcasting and Cable conference in Washington, D.C., said a deal is in the works, but he didn't identify the company. However, Fox Entertainment Co-Chairman Chase Carey said he expected to have an agreement with DirecTV in the near future.

DirecTV and competitor EchoStar need the agreements to carry local TV stations. Both reportedly have been negotiating agreements in preparation for passage of satellite legislation.

- - - TV Guide/Gemstar Fight At Crossroads? - - -

Speculation has surfaced that TV Guide is ready to settle a 5-year legal battle with Gemstar International over competing interactive program guide technologies.

TV Guide closed down to $39.12 during Monday's trading. Shares were up more than 5 points on Friday, to $41.50, when news circulated about a deal. Friday's close marked a three month high for the stock, or a jump of 15 percent.

TV Guide, which is banking on the success of its TV Guide Interactive program guide, and Gemstar, which has the Star Sight interactive guide technology used by DirecTV and others, have been in court-ordered talks for some time.

According to Janco Partners, "We continue to believe that ultimately the two companies will come together in some kind of technology sharing/cross licensing agreement in which both parties will benefit."

A settlement could be crucial for TV Guide's near-future plans in the interactive program guide market. The company is expected to release the newest version of its guide in October, with new features such as local weather and interactive advertising.

- - - Teledesic Steps Up Launch Plans - - -

Teledesic is rethinking partners and deadlines for its "Internet in the sky" service, eyeing a debut for the service prior to its previously planned 2004 launch.

"Teledesic has decided to explore a variety of early-entry opportunities that will help us fulfill our long-term vision of delivering global, broadband communications services," said Bill Owens, Teledesic's co-chief executive officer. "We believe these new opportunities may enable Teledesic to more quickly establish a leadership position in the satellite communications marketplace while also generating early revenue."

The company did not disclose the options under consideration.

The Wall Street Journal reported that the company also is considering deals with two troubled mobile phone operators, Motorola-backed Iridium and Hughes-backed ICO Global Communications. Both filed for bankruptcy protection last month.

Any partnership with Teledesic, which has strong backing from its partners and money in the bank, could help the two financially troubled firms regain some footing in their business.

So far, Teledesic has raised more than $1.5 billion. Cellular phone pioneer Craig McCaw and Microsoft founder Bill Gates are the company's two primary founding investors. Other partners include Motorola, Saudi Prince Alwaleed Bin Talal and Boeing.

- - - Lockheed Martin Realigns Business - - -

After weeks of rumors, Lockheed Martin formally announced plans to realign its businesses, flatten the company's management structure, reduce staff and evaluate the possible sale of non-core operations.

The new organizational structure will take effect Oct. 1. Management said the actions are not expected to adversely affect the earnings outlook for 1999 and 2000.

Lockheed Martin Global Telecommunications will continue work as a separate subsidiary, and Lockheed will seek strategic partners for the unit. The company said the telecommunications business may access the public equity markets in the near future.

The unit is an integral part of Lockheed Martin's plan to buy Comsat. "Global Telecommunications and Comsat have complementary capabilities in the commercial space and terrestrial telecommunications industry," the company said in a statement. "It's a strong combination that is positioned to compete very effectively in the rapidly growing global telecommunications market."

- - - TECHNOLOGY: - - -

• Network Announces Enhanced Programming -
  Showtime Networks announced an agreement to enhance programming with synchronized, relevant Web content and community chat made possible by ACTV's patented HyperTV software solution for TV-Internet convergence. Initially a targeted consumer group will be able to access the programming. The network will consider further HyperTV integration based on initial consumer response.

• Norsat Provides 3,000 LNBs for the AP -
  Norsat International has delivered 3,000 Low Noise Block downconverters (LNBs) to the Associated Press for use in a new Ku-band network the news agency is implementing for the satellite delivery of print and audio news feeds. The AP's new receive-only network will service roughly 4,500 news outlets.

• Telesat, IBM To Operate Ford Network -
  Canadian satellite operator Telesat recently announced it signed a three-year service contract with IBM to serve Ford Motor Company. Telesat and IBM will oversee hardware maintenance and support all components of FordStar, a satellite-based network that links 5,500 Ford dealerships across the US.
• Orbital Wins Transportation, Defense Contracts -
  Virginia-based Orbital Sciences announced last week its Fairchild Defense Division has been awarded a $23.6 million contract to supply an advanced version of its Data Transfer Equipment to the United Arab Emirates. The company also announced its Transportation Management Systems Division has been selected by the Delaware Transit Corporation (DTC) for a $10 million contract to supply the SmartTrack satellite-based location system to monitor the DTC's fleet of vehicles.

• Philips Teams Up With American Multiplexer -
  Philips Digital Video Systems Company will deliver its CleverCastPC Data Broadcasting System to American Multiplexer (AMC) of Sunnyvale, Calif., to facilitate the debut of AMC's high-speed multimedia delivery platform over satellite.

• Microspace Announces New Paging Capabilities -
  Raleigh, N.C.-based Microspace Communications has enhanced its satellite paging network. First, the company's shared Glenayre C2000 service will now be available for distribution as a dual satellite solution. Second, Microspace will continue to support the Motorola shared CNET controller.