SkyREPORT.COM News Headlines
News Update For 1/3/00
As Expected-Satellites Escape Y2K
As expected, the satellite industry didn't see any major Y2K glitches as the planet crossed into the new millennium. No problems were reported with commercial satellites circulating the earth. Most Defense Department satellite systems also entered the new millennium without any issues. However, one Y2K problem was discovered with ground equipment that processes information from reconnaissance satellites. The blackout lasted a few hours, according to the Defense Department, and the glitch didn't affect early warning satellites or other critical systems. While the satellite business and others have apparently escaped any early Y2K woes, observers warn problems could surface in the coming days or weeks. In addition, some doomsayers fear computer crashes on Feb. 29, an extra day added for leap year, and on Oct. 10. That fall date marks the first eight digit number of the new millennium. Past warnings turned out to be false alarms, however. There was April 9, 1999, the 99th day of the year that was expected to upset computers. Glitches were expected for Sept. 9, represented as 9-9-99. GPS satellites rolling over their clocks in August also didn't present problems.
Globalstar Shares Jump
Globalstar USA, the unit in charge of selling the sat-phone offering in the United States, got Federal Communications Commission authorization for early distribution of the service. That news followed a year-end rally for the Globalstar stock. Shares shot up more than 50 percent last week, closing at $44 after rising to a 52-week high of $49.50. The stock more than doubled in 1999. A "Special Temporary Authorization" was granted to Globalstar USA for 180 days while the FCC reviews the company's license application. The authorization granted by the FCC is subject to an agreement reached between the company and three federal agencies: The Department of Defense, the Federal Bureau of Investigation and the Department of Justice. The deal with the three agencies centers on U.S. wiretap measures. Globalstar USA plans to launch full commercial service in early 2000. It's now offering service on a limited basis.
EchoStar Abandons SkyView Deal
EchoStar terminated its proposed $23 million purchase of certain assets belonging to SkyView Media Group. EchoStar first announced the proposed purchase on Dec. 15. The company offered no explanation for its decision not to buy the ethnic program provider. SkyView provides ethnic programming for the DirecTV Plus platform. The Ft. Lee, N.J.,-based company filed for Chapter 11 bankruptcy reorganization during the summer.
SkyBOX: What To Watch In 2000
Now that we’ve safely passed the first few days of Y2K with nothing worse than some severely overstocked cellars (some families we know will be eating freeze dried food into the NEXT millennium), it’s time to look ahead. Here for your Y2K edification, are 10 trends, companies and people to watch in the months to come.
- (1) TCI Satellite Entertainment and Dr. John Malone: Since mid-December the TSAT stock has soared from the low single digits to close the year at $16. A fluke of 1999? No way. Dr. John has been busy consolidating his wireless and satellite assets under the TSAT umbrella and word is that he has big plans for the year ahead.
- (2) Media Rooms: What with hot sales in satellite, new HDTV receivers, DVDs popularity and the dawn of the interactive everything, look for home media rooms to multiply as fast as last year’s help wanted signs. Great news for retailers, satellite folk and technologists of all stripe.
- (3) Globalstar: Some analysts love it; some hate it. Now that the system is (at least temporarily) authorized in the U.S., we’ll be watching the sales closely. Can a global satellite phone system make it? We’re not sure, but if Globalstar goes down in flames we’d guess that the worldwide sat phone will go on hold for at least a decade.
- (4) Cable Company Promises: They’ll continue to make ‘em; satellite will continue to fulfill ‘em. What more can we say?
- (5) The Sun: Not that we suggest you go blind looking at it, but be warned that our mid-sized star should hit the peak of its 11-year sunspot cycle in mid-2000. That could spell trouble for satellites (to say nothing of nationwide power grids) as huge streams of charged particles shoot toward Earth. Watch NOAA’s Space Environment Center website (noaa.gov) for solar storm warnings.
- (6) DISH: What can we possibly say about a stock that started the year at $11.81, split twice and closed at $93.25? Just that you’d do well to keep your eye on it.
- (7) GMH: Can you say "spin-off?" A lot of analysts wish GM would as many feel DirecTV is severely undervalued in the current stock structure. We’re betting 2000 will be the y ear that DirecTV breaks free.
- (8) William Kennard (aka "Duck"). The Duck will be making some crucial satellite decisions this year, especially in regards to signal standards and local stations. Keep an ear out for a lot of quacking at the FCC as home satellite continues its uphill battle against the cable and broadcast cabals.
- (9) Customer Service: Our bets are that this will be THE hot issue of 2000 as DBS audiences continue to swell. Both DirecTV and DISH got the new year off to a good start with fabulous programming freebies, but the days ahead will be more marked by such mundane concerns as telephone answer times and technical support.
- (10) SkyRETAILER: It’s our new web site/e-mail offering, a complete guide to the latest in programming, equipment, manufacturer specials and more. Like skyreport.com it’s absolutely free to readers. So check it out at skyretailer.com. We hope you find it useful in the year ahead.
PEOPLE: Lifetime Hires VPs
- Lifetime Hires VPs - Lifetime Television appointed Mary Dixon as vice president, public affairs. Marilyn McAleer joined Lifetime as vice president, creative services.
- SSET Gets Haraka - SSET Telecom, a provider of digital satellite communications products, hired Bill Haraka as director of sales for southern Europe, Africa, and the Middle East. Based in The Netherlands, Haraka will oversee expansion in key SSET markets for both SSET's traditional products and its new IP solutions.
- Blonder Tongue Promotes Wescott - Norman A. Westcott was promoted to senior vice president of operational services at Blonder Tongue Laboratories. He previously was vice president in charge of material control, production control and purchasing.