- - - Iridium Phone Closes Spring/MCI Merger - - -

What one tool do you need to close the biggest merger in U.S. history?

An Iridium phone.

The $115 billion deal between Sprint and MCI/WorldCom was talked out by one company executive, in the middle of Colorado on horseback over the weekend, with a hand-held phone from the troubled mobile satellite company.

William T. Esrey, who helped build Sprint into the No. 3 long-distance company, used the Iridium phone in his conversation with Bernard Ebbers, president and chief executive of MCI WorldCom. "Bernie and I talked it all out," he said at a news conference announcing the deal. "I was on an Iridium phone, and it does work."

Iridium's 66-satellite constellation connects with phone users and pagers around the world. The company is in Chapter 11 bankruptcy proceedings, but continues to be at the center of buy-out rumors involving cellular phone pioneer Craig McCaw.

McCaw reportedly wants to buy a stake in Iridium to help propel his Teledesic project. Teledesic, which also has backing from Microsoft's Bill Gates and Boeing, hopes to launch a broadband "Internet-in-the-sky" business using low-earth-orbit satellites.

- - - DirecTV Announces Record Growth - - -

DirecTV, a unit of Hughes Electronics, announced Thursday its high-power digital satellite television service acquired 160,000 net new customers in September.

The company's September additions represent a record for that month and a 32 percent increase in net customer acquisitions over September 1998. An additional 77,000 customers last month were transitioned to DirecTV from the medium-power Primestar By DirecTV service.

Through the first nine months of 1999, DirecTV acquired 1,091,000 net new high-power customers, a 44 percent increase over the same period a year ago. DirecTV now has more than 7.6 million customers, including subscribers to Primestar By DirecTV.

In related news, Norsat America, a company appointed by DirecTV to be a master system operator for the multiple dwelling unit market, reported third quarter unit sales increased to 33,818, a 200 percent increase over third quarter 1998. The company said total year-to-date unit sales were 59,026.

- - - DISH Reaches 3 Millionth Subscriber - - -

EchoStar Communications announced Thursday its DISH Network satellite television service has grown to over 3 million customers, less than nine months after reaching its 2 millionth subscriber.

EchoStar added approximately 132,000 net new customers in September, a record month for the company and a 63 percent increase over the number of net new customers added in September 1998. This also marks the 12th consecutive month DISH Network has achieved customer growth of over 100,000 net additions.

"With the successful launch of our fifth satellite in September and with the passage of fair legislation currently being debated by Congress, DISH Network is well positioned to offer 500 channels on a one-dish solution which includes local network programming by satellite," said EchoStar Chairman and CEO Charlie Ergen. "DISH Network is on its way toward its goal of placing a dish in every home, business and school in America."

- - - XM Moves To High Tech Corridor - - -

XM Satellite Radio will move its permanent headquarters to the Eckington Place complex in Washington, D.C.

The company said Wednesday it has leased over 120,000 square feet - in what's being called the Washington, D.C., Virginia, Maryland High Tech Corridor - for its broadcast studios and corporate headquarters.

XM will create and package up to 100 channels of digital- quality music, news, sports, talk and children's programming at the new facility. The company's digital audio radio subscription service is scheduled to launch during the first half of 2001 for $9.95 a month.

- - - COMMENTARY: Echo Splits Again - - -

Big news on The Street yesterday came via EchoStar's second stock split announcement in five months. As the DISH shares passed $100 (closing at just under $100 on Wednesday and jumping to $105.75 on Thursday), the board of directors decided they'd better dilute once more. On or about Oct. 25, shareholders will see their shares as of Oct. 18 double.

Meanwhile, the board of General Motors continues to play the now-you-see-it, now-you-don't shell game with their Hughes Electronics (GMH, parent of DirecTV) subsidiary. Compared to the mighty DISH, GMH is clearly undervalued and several analysts tie that directly to the auto-bound General Motors management. Latest word came Wednesday as GM's Vice Chairman Harry Pearce apparently left the door open for a "future" GMH spin-off. "The question," quipped Morgan Stanley's Steve Girsky, "is how you define future."

GM has an excellent track record with its spin-offs (unlike its car sales, these days) so we can only hope it will take a look at those DISH shares as it considers the future for DirecTV and Hughes.

- - - PROGRAMMING: - - -

• AMF Center To Air DirecTV -
  DirecTV struck a deal this week with AMF Bowling, one of the world's largest bowling companies, to make DirecTV digital entertainment television service available in selected centers. The agreement enables DirecTV to equip any number of the more than 400 AMF bowling centers in the U.S. DirecTV said AMF is the first worldwide sports and entertainment operator to join its commercial network.

• Dish Offers New Racing Package -
  EchoStar will offer four channels of The Racing Network (TRN) on DISH Network starting Oct. 29. TRN will be offered as a sports package for $24.99 per month. All DISH Network subscribers can catch a sneak preview of TRN staring Oct. 15 on channel 900 or 901.

• TNT Premieres Hollywood Blockbusters -
  Turner Network Television and TBS Superstation have obtained the rights to the exclusive network television premieres of the Columbia Tri-Star films "Random Hearts," starring Harrison Ford and Kristen Scott Thomas, and "Blue Streak," starring Martin Lawrence. Also, this weekend TNT will present the broadcast network premieres of "Shine" and "Michael."

• VH1 Launches New Series -
  This marks the end of the first week of VH1's new series "The List," which features celebrities and musical artists in round-table debates about music history and highlights. The topic of tonight's show, "Rock's Most Significant Moment," will be discussed by Christopher Cross, Coolio, comedian Jeff Ross and journalist Phil Gallo. The show airs weeknights at 7 p.m. and 11 p.m. ET/PT.