- - - Market Quiet After Hindery Announcement - - -

Stock prices for AT&T and Excite@Home, the company's Internet services subsidiary, were relatively unaffected Wednesday by the announcement that Leo Hindery, CEO of AT&T Broadband and Internet Services (AT&T BIS), will leave the company.

AT&T announced Wednesday morning that Hindery plans to "pursue other interests." His departure marks the latest in a string of high-level resignations at AT&T, according to Reuters, and comes shortly after the company publicly contradicted Hindery with regards to plans for Excite@Home. The timing is doubly peculiar given that AT&T is awaiting the go-ahead from the Federal Communications Commission for its proposed merger with cable giant MediaOne Group. The commission is expected to rule on that deal Friday.

Hindery told reporters Wednesday he will see some pending deals through at AT&T BIS, such as the MediaOne merger, and that his departure has nothing to with John Malone, chairman of Liberty Media, a unit of AT&T. After he leaves, Hindrey's duties will be temporarily assumed by CFO Daniel Somers. Amos Hostetter, non-executive chairman of AT&T BIS and a member of the AT&T Board of Directors, will spend more time at AT&T BIS' Denver headquarters working on the development of AT&T's broadband strategy, staffing and industry relations until Hindery is replaced.

AT&T stock closed up $0.63 Wednesday at $46.63. Exite@Home closed up $4.50 at $46.56.

- - - SBCA Weighs In On Must-Carry Issue - - -

The Satellite Broadcasting and Communications Association weighed in on the must-carry for satellite issue Wednesday, sending lawmakers on Capitol Hill a letter outlining its feelings about attempts by cable to influence the legislative process.

Demands by the National Cable Television Association that the proposed 2002 deadline for DTH must-carry stay intact "is nothing more than an effort by the cable industry to protect its monopoly status in the multichannel video marketplace by limiting the number of consumers who have access to local-into-local service via satellite," the letter states.

"The cable industry's interest is clear: The more local stations that satellite television providers are required to carry in the largest cities - including "fringe" stations and those that are duplicated by a national feed - the less channel capacity that will be available on the satellite to utilize for serving other markets," the SBCA said. "That would mean that only consumers in the largest markets would have access to DBS service that is fully competitive with cable, and that consumers in other markets may not have the same choices."

NCTA President Robert Sachs said in an letter sent to House and Senate members last week that "it would cause great concern to our industry" if must carry mandates were reduced or delayed from taking effect Jan. 1, 2002. Must carry proposals and provisions governing the delivery of local stations via satellite are in pending DTH legislation being debated in a House/Senate Conference Committee.

- - - Gemstar Wins Case Against GI - - -

Gemstar's StarSight Telecast unit won a decision from an arbitrator panel against General Instrument over the breach of a 1992 license agreement and alleged misappropriation of trade secrets relating to StarSight's electronic program guide.

The arbitrators said StarSight is entitled to compensatory and punitive damages. General Instrument estimated that compensatory damages will be in the range of $25 million to $36 million. In addition, 50 percent of the final amount will be added as punitive damages, plus attorneys' fees and costs, the company said.

General Instrument said it wasn't sure it would contest the ruling. However, "In the event an award is ultimately confirmed by a court, GI would be able to satisfy the judgment without any material impact on its financial condition or future operations," the company said.

The case involved program guides in GI's analog set-top products. GI said it doesn't sell an electronic program guide with its digital set-top products.

- - - EchoStar 5 Reaches Orbit - - -

EchoStar 5, DISH Network's newest satellite launched from Cape Canaveral, Fla., in September, has reached its final orbit at 110 degrees.

The high-power DBS satellite found its final parking spot after 13 days of spacecraft maneuvers implemented by Space Systems/Loral, the bird's manufacturer. Solar panels were deployed a few hours after the launch. The satellite's antennae were successfully deployed, as expected, on Oct. 4.

In-orbit payload testing will begin Friday and is expected to continue for several weeks. To date, all systems on the satellite are operating normally, the company said. The satellite should become available for program delivery in November.

Meanwhile, EchoStar said the launch of its sixth satellite should take place in the second quarter of 2000. That satellite also will go into the 110 degree orbital location.

- - - ICO Chairman Leaves Post - - -

ICO Global Communications' Executive Chairman Olof Lundberg has resigned from the company.

Lundberg will be replaced by Klaus Hummel, former deputy board chairman. Lundberg, who served as ICO's chief executive since its founding in 1995, was replaced by Richard Greco in May.

ICO joined Motorola-backed Iridium in the bankruptcy ring in August after it failed to win investers for its $4.6 billion system. Hughes Electronics is helping back the sat-phone system.

- - - INTERNATIONAL: - - -

• Globalstar Passes Regulatory Hurdles -
  Satellite telephone company Globalstar and its manufacturer, Qualcomm, announced Wednesday that their portable phones have received further approval from regulatory authorities around the world. The U.S. FCC, the British Approvals Board for Telecommunications and Industry Canada all approved the Globalstar System recently. Applications are pending in Brazil and Korea. Globalstar has also completed registration under the International Telecommunications Union, a critical step to ensuring worldwide availability.

• BSkyB Picks Up Hallmark -
  British Sky Broadcasting has agreed to launch the 24-hour Hallmark entertainment channel in early 2000. Hallmark, a subsidiary of the greeting card company, is one of the world's largest producers of made-for-television movies.

• DirecTV Japan Up 7,900 Subs -
  DirecTV Japan reported 313,900 subscribers as of Sept. 30, up 7,900 from the previous month. The company has struggled in the race for subscribers against rival SkyPerfecTV. SkyPerfecTV reported 1.38 million users at the end of September.

• Murdoch May Back Ginger Group -
  London's Sunday Business recently reported that BSkyB, largely owned by Rupert Murdoch's News Corporation, and Scottish Media Group are considering buying stakes in Ginger Group, a radio and television company with an estimated value of $330 million. Scottish Media is reportedly wants to expand in England and News Corp already has a working relationship with Ginger's founder, Chris Evans.

• Globecomm Wins Six New Contracts -
  New York-based Globecomm Systems, a supplier of satellite earth stations and networks, has been awarded six new contracts with an aggregate value of roughly $3.2 million for satellite communications systems in Germany, the Netherlands, Curacao, the United States, Chile and the Cook Islands. The technology will be used both for civilian and military applications.