SkyREPORT.COM News Headlines
News Update For 1/19/00
@Home In The Sky To Make Ka-Band A Reality
iSKY, the proposed broadband platform calling itself the "@Home In The Sky" of the satellite world, has won the backing of Kleiner Perkins Caufield & Byers, TV Guide and Liberty Media. When investments from those companies close, TV Guide will own 19 percent, Kleiner Perkins will get 18 percent and Liberty Media will have 17 percent. The deals, announced Tuesday, will allow iSKY to move ahead with the launch of its consumer-based, two-way interactive satellite platform as soon as next year. iSKY's first Ka-Band satellite is expected to fly in the third quarter of 2001 into its orbital location at 109 degrees. "We should start delivering to the consumer soon after a successful launch," Brad Greenwald, iSKY vice president of marketing and business development, said. The company also has full-CONUS Ka-Band spectrum at 73 degrees. While iSKY will be able to deliver content-rich offerings such as TV programming, Greenwald said the company won't try to compete head-on with the DBS services. "Certainly we will be able to deliver video," he said. "But we see it as providing a consumer adjunct to TV." iSKY can help with the delivery of interactive TV and other advanced offerings, he said. iSKY's Ka-Band dishes will have built-in Ku-receive technology. That will allow equipment to get DBS signals from Ku-Band satellites operated by EchoStar and DirecTV, though no deals are in place with those companies at this time. It's expected DirecTV will utilize the Spaceway broadband platform being developed by its parent, Hughes Electronics. That would leave EchoStar as a prime candidate for iSKY's services. Greenwald wouldn't comment on any specific deals with other companies. Liberty's investment in iSKY is expected to be held by LSAT LLC, which holds Liberty's satellite interests such as TCI Satellite. Kleiner Perkins Caufield & Byers is a backer of the @Home cable-modem service used by AT&T Broadband and others.
Companies Outline Financial Deals
Two DBS players released financial news Tuesday. EchoStar Communications announced the declaration of a quarterly dividend on the Company's 6 3/4% Series C Cumulative Convertible Preferred Stock ("Series C Preferred Stock"). The Quarterly Dividend, equal to $0.84375 per share, will be paid in cash as of Feb. 1 to holders of record at the close of business on Jan. 21. And Pegasus Communications, along with its subsidiary Pegasus Media & Communications, said Tuesday it has closed on a new $500 million credit facility. The financing consists of a $225 million revolving credit loan and a $275 million term loan. The agreement also set the terms for additional loans for up to $200 million. Pegasus specified that the announcement referred to pending transactions and that there is no assurance that these transactions will be completed.
AT&T-MediaOne Seek FCC Flexibility
Cable giant AT&T asked federal regulators for an additional 18 months after it completes the purchase of MediaOne Group to comply with ownership limits, that is if the combined company violates the rules. AT&T wants Federal Communications Commission approval for its $61 billion purchase of MediaOne. In addition to ownership limits, the agency might review relationships with Time Warner Entertainment, a partnership between MediaOne and Time Warner. Time Warner is the top MSO in the country, while AT&T is the No. 2. cable operator. If AT&T fails to get the FCC's blessing, the agency may require the company to shed customers before it approves any transaction.
PanAmSat Revenues Jump-Net Income Down
PanAmSat's fourth-quarter net income fell to $27.2 million, or 18 cents a share, from $31.6 million, or 21 cents, reported in the same period for 1998. Revenues for the three-month period jumped 4.8 percent to $206 million, from $196.6 million reported in fourth quarter of 1998. For the year, revenues increased to $810.6 million, compared to revenues of $767.3 million in 1998. Cash flow was $618.8 million for 1999, compared to cash flow of $553.3 million for 1998. Meanwhile, the company reported that the launch for its next satellite, Galaxy XR, is scheduled for Jan. 24 from Arianepace's facility in South America. PanAmSat is on an aggressive launch schedule, hoping to place six additional satellites into orbit by mid-2001.
COMP WATCH: ViaSat Gets Satellite Assets
- ViaSat Gets Scientific-Atlanta Assets - ViaSat will buy the satellite networking business of Scientific Atlanta for $75 million under a deal it said would more than double revenues and immediately add to its earnings. The purchase includes Scientific-Atlanta's satellite network operations center as well as products lines encompassing satellite network gateways, telephony and data, remote monitoring and space imaging. Scientific-Atlanta will focus on cable and broadband services.
- ACA Holds National Summit - The American Cable Association is asking representatives from independent cable businesses in the U.S. to come to Washington, D.C., March 27-29, for an Emergency National Summit that will highlight independent cable issues and then take those concerns to Congress and the FCC. For more information about the event, which will feature political speakers, Washington insiders and key legislators, call Stacey DeLisio at 412-922-8300, Ext. 10.
- Black Families Dominate Premium Channels - New data from the market research and consulting firm Horowitz Associates indicates that black households have the highest premium channel subscription rate (83 percent), followed by Hispanic households (52 percent), white households (45 percent) and then Asian households (43 percent). The information is part of the study "State of Broadband Urban Markets," which is available by calling (914) 834-5333.
- Comcast Enhances Motorola Contract - Comcast has ordered one million digital consumer terminals and cable modems from Motorola Broadband Communications Sector, formerly General Instrument Corporation. Comcast, which initiated at contract with General Instrument in 1997, plans to deploy the Motorola DCT-2000 and DCT-5000+ interactive digital set-top boxes during the next two years.
- MediaOne Subs Get Rush-Hour TV - SmartRoute Systems, a provider of traffic and traveler information, recently launched a live, continuous rush-hour cable television program called SmarTraveler to 575,000 of MediaOne's subscribers in Eastern Massachusetts.