- - - An Independent Hughes In The Making? - - -

The elimination of Hughes Electronics' tracking stock and more independence from majority owner General Motors could happen for the El Segundo, Calif.,-based satellite powerhouse in the near future, a Wall Street analyst said Wednesday.

According to Tom Watts of Merrill Lynch, Hughes CEO Mike Smith indicated that a restructuring of the company's relationship with GM "was likely to happen in the next six months if it were ever to occur." A more independent Hughes entity could become a top priority for the parties involved after GM completes contract negotiations with the United Auto Workers.

The companies involved, however, denied there is such a plan in place. Both GM and Hughes said Wednesday they have no immediate plans to restructure their relationship.

Acording to Watts, Smith said a restructuring of the company could involve a sharply reduced role for GM ownership. "This should address investors' concerns that Hughes has often been managed to meet GM corporate objectives rather than benefit Hughes public shareholders," Watts said in a research brief.

He also said to expect Hughes, the parent of DirecTV and the world's top satellite manufacturer, to change from a tracking stock to a "real" stock.

- - - DirecTV Gets Fox-Is NBC Next? - - -

DirecTV hopes its retransmission agreement with Fox will provide the right incentive to lure the other three networks into deals that will allow the DBS giant to carry their local stations.

"We are talking to all of the necessary parties to make delivery of local channels a reality," DirecTV spokesman Bob Marsocci said. "We expect to make similar announcements in the near future."

Marsocci said the Fox deal will hopefully provide "the incentive needed to get the other broadcasters" to complete retransmission agreements with DirecTV.

Rumored to be the next network to join up with DirecTV is NBC. The broadcast giant recently closed deals with the DBS provider for carriage of its MSNBC and CNBC networks. There was no comment available from the companies on the NBC move.

On Wednesday, DirecTV and Fox Entertainment announced a multi-year deal under which DirecTV will provide its customers in major metropolitan areas with signals from local Fox stations. Fourteen of 22 Fox stations reside in the top 20 TV markets. DirecTV was granted retransmission consent rights to the other Fox-owned stations for potential local-into-local services in the future.

Financial terms weren't disclosed for the Fox/DirecTV deal.

EchoStar's DISH Network also has a retransmission agreement in place with Fox. The three-year deal was announced between the two companies in June.

- - - Turner South Debuts Friday With Elvis - - -

Turner Broadcasting System's first regional entertainment network, Turner South, has secured charter distribution agreements totaling nearly one million subscribers. The network will launch on Friday.

Turner spokesperson Alyssa Donelan said there are no agreements with EchoStar's DISH Network or DirecTV to carry the network, but the companies are discussing that possibility.

Turner South will present a mix of original programming, movies, sitcoms, regional news and sports and will be available in Alabama, Georgia, Mississippi, Tennessee, South Carolina and regions of North Carolina. Initial distribution agreements have been forged with MediaOne, Bell South, Cox, Prestige Cable, Galaxy Cable, Foster Communications, Winslow Communications, Cable TV of Belzoni and Knology.

Andrew Heller, executive vice president and COO of Turner Network Sales, said, "The strong support of Turner South from our affiliates demonstrates the value they see in regional programming tailored to their customer base."

Turner South will debut at 2 p.m. Eastern Time with a five minute segment celebrating the South that will feature famous Southerners such as Anne Rice and Marty Stuart. The first day will continue with E-DAY!, a 28-hour Elvis Presley marathon.

- - - CD Radio Raises $200 Million - - -

CD Radio announced Wednesday it completed the previously-announced concurrent offering of three million shares of common stock for $74.25 million and $125 million of its 8 3/4 percent Convertible Subordinated Notes due in 2009.

The company said the proceeds will be used for the continued development of its satellite-to-car radio broadcast system, and for general corporate purposes.

CD Radio is building a digital satellite radio system that will broadcast up to 100 commercial-free channels of music and other programming to motorists throughout the United States. The service, which will debut in about a year, will have an anticipated subscription fee of $9.95 a month.

- - - AOL-AT&T Deal In Works - - -

America Online is reportedly in a position to acquire part or all of AT&T's stake in Excite@Home, the cable broadband service.

According to Reuters, Excite@Home's stock price has risen sharply on expectations that a deal is in the works. One source close to the companies said that there was nothing suggesting a share swap was on the horizon.

Excite@Home stock jumped more than $5 Wednesday, closing at $43.44.

- - - INTERNATIONAL: - - -

• France Sees Satellite TV Surge -
  Satellite television surged in France between June 1998 and June 1999 with the number of households receiving the service rising 69 percent to 3.5 million, according to European satellite operator Eutelsat. The company referenced a recent study that said the total number of households in France that received satellite or cable TV service grew 40 percent to 6.205 million, or 27 percent of French households. Satellite overtook cable during this period, the report said.

• AOL, Star Choice Offer Bundled Package -
  AOL Canada and Canadian DTH provider Star Choice Communications will begin offering bundled satellite television and online service before the end of the year. Current and new customers of both companies will be able to buy the bundled package.

• TV Azteca Upgrades to Digital -
  Duluth, Ga.,-based Wegener Corporation announced this week it received an order in excess of $1 million for digital video broadcast steaming equipment from Mexico's TV Azteca. The order consists of Wegener Unity 4422 digital Integrated Receiver Decoders, the Unity Mux 4010 data multiplexer, plus Compel Network Control with encryption. TV Azteca will use the equipment for digital video feeds throughout Mexico.

• Pace Boxes Secured For Israeli Service -
  Pace Micro Technology has announced a deal to supply 75,000 digital set-top boxes to Yes, the Israeli digital satellite broadcaster, which will launch Israel's first digital TV service later this year.

• Streaming Audio, Video Offered in Latin America -
  Houston-based integrated communications company Telscape International has begun providing high-speed Internet broadcast services via satellite in Latin America through its subsidiary, Interlink Communications. The service will include multimedia data, audio and video in point-to-multipoint applications. Telscape says potential customers include government agencies, corporate users and universities.