The Satellite Broadcasting and Communications Association, in a letter sent to the Federal Communications Commission last week, asked the agency for additional tests of the controversial Northpoint technology. Northpoint wants to use DBS frequencies to deliver terrestrial-based services. Both DBS providers, DirecTV and EchoStar's DISH Network, are worried that Northpoint's technology will interfere with their satellite-delivered services. The SBCA said it shares those concerns. "The SBCA and the entire satellite television industry remain convinced that allowing Northpoint to share the DBS band will disrupt service to many of the 11 million consumers the industry currently serves and to many of the millions more it hopes to serve in the future," SBCA President Chuck Hewitt said in his letter to FCC Chairman William Kennard. Hewitt said limited testing performed by Northpoint in the past "confirms that consumers will experience harmful interference from Northpoint's proposed terrestrial service. "This interference was observable despite the fact that the Northpoint demonstration was designed and implemented in a manner that minimized the measurable interference caused by the demonstration," the letter said. "Clearly more data is needed before the commission can reach an informed conclusion about the extent of interference, and the impact on consumers, that will result if Northpoint is allowed to share the DBS band."

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McCaw Closer To Iridium Deal

Bloomberg reported during the weekend that cellular phone pioneer Craig McCaw will lead a group of investors that will pump $600 million into bankrupt Iridium. The offer will be made to Iridium's banks. Motorola, which owns about 18 percent of the troubled sat-phone company, will pay lenders about $250 million in cash and $50 million of Iridium's convertible notes as part of the proposal, Bloomberg said. In return, banks will get some equity in a restructured Iridium. The buyout would eliminate interests held by common shareholders, however. In November, McCaw bailed out ICO Global Communications, another satellite-based company that filed for Chapter 11 bankruptcy protection in August. He also leads the development of the Teledesic satellite broadband platform.

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iSKY Partners With Arianespace-Readies Birds

iSKY formed a strategic alliance with Arianespace, a deal that will allow the emerging broadband satellite platform to finance the launch of its first two satellites, iSKY-1 and iSKY-2. iSKY-1 will launch in the third quarter of 2001 and iSKY-2 will launch in mid-2002. As part of the launch agreement, Arianespace Finance will provide iSKY more than $100 million of construction period and long-term financing. The Colorado-based company, dubbed "@Home-In-The-Sky," wants to deliver cable-modem like services to consumers as soon as its first satellite is operational. iSky's partners include Kleiner Perkins Caufield & Byers, TV Guide and Liberty Media.

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Telesat Wins XM Contract

Telesat Canada was awarded a 15-year contract to manage the satellite-based infrastructure for XM Satellite Radio, one of two DARS players that is expected to launch service in early 2001. Under the agreement, Telesat's control center in Ottawa will monitor and control XM's satellites. Telesat also will build primary and back-up satellite control centers in Washington, D.C., and Calgary, Alberta. Telesat, which has more than 30 years of satellite experience, provides telecommunications and broadcast distribution services throughout the Americas and is a leading consultant, operator and partner in satellite ventures around the world.

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SKYBOX: Satellites and a Chinese Curse

"May you live in interesting times," says the ancient Chinese curse. And in the past week, the U.S. satellite industry has outdone even its own very interesting record. Bad enough that home satellite must battle the well-heeled interests of the broadcasting and cable industries in Washington, D.C. Worse that it faces the continuing specter of intra-partnership lawsuits filed by the NRTC and Pegasus Communications against industry giant DirecTV. Now comes news of a bitter lawsuit launched against the Hughes Electronics' wunderkind by No. 2 rival, EchoStar. When word of the lawsuit first broke, we happened to find ourselves at a Congressional dinner in the heart of the aforementioned lobbydom. Amid canapes and chardonnas, the speculation was breathtaking. "Charlie just always needs an enemy," said one somewhat maimed veteran of an earlier battle against the feisty DISH network founder. "It's really about retransmission consent," intoned another. "He's having trouble getting the local stations signed up." "DirecTV tried to blacklist my company," said a third. And so it went. By the following morning, however, further news had appeared. According to the DISH lawsuit, DirecTV allegedly threatened to withhold HDTV equipment from Ultimate Electronics stores unless the company's popular Sound Track chain dropped its allegiance to DISH. Now we're certainly not privy to the inner counsels of DirecTV or DISH, to say nothing of Ultimate Electronics. But one thing we do know for sure.... That faint rustle you hear in the background is most certainly the sound of the cable industry circling.

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PEOPLE: JVI Makes Move