DirecTV's high-power satellite service acquired 120,000 net new customers
in January, representing a new record for the month and a 32 percent
increase in net customer acquisitions over January 1999. An additional
80,000 customers were transitioned to the high power service from
the medium-power PrimeStar By DirecTV service last month. Those transitions,
which are not included in the net additions for January, take the
total number of PrimeStar conversions to 550,000. DirecTV said it
now serves more than 8.1 million customers, a number that includes
both the high-power and the medium-power service.
SBCA Cautions FCC On Program Exclusivity
The Satellite Broadcasting and Communications Association submitted
comments to the Federal Communications Commission Monday on the application
of network non-duplication, syndicated exclusivity and sports blackout
rules for satellite. In its comments, the SBCA cautioned the commission
against "importing mechanistically into the satellite arena the rules
applicable to cable systems." "Rather," SBCA said, "the commission
must apply syndex, non-duplication and sports blackout requirements
in a manner that takes into account the distinctive characteristics
of nationwide satellite coverage and associated issues of technical
feasibility and cost." Specifically, SBCA said the logistics, encryption
and software requirements that would be involved in scrambling different
parts of the programming of a nationwide superstation feed for a mosaic
of 35-mile zones scattered throughout the country are so overwhelming
that they simply cannot be overlooked in any attempt to impose meaningful
blackout regulations. If applied like cable's rules, they would likely
result in the cessation of superstation satellite retransmissions
by the satellite providers and a substantial loss for consumers, SBCA
said. The commission's goal of facilitating competition in the multichannel
video marketplace would not be enhanced if current cable rules were
applied to satellite providers, SBCA said. The association also noted
that Congress didn't ask for cable rules to be applied to satellite,
but rather sought a Notice of Proposed Rulemaking (NPRM) on the issue.
"The goals of SHVIA would remain unattained - indeed, would be resoundingly
defeated - if the operation of the law itself were to ironically create
yet another respect in which satellite carriers would be made less
attractive than cable operators because of a legal constraint," SBCA
said. SBCA filed comments in support of the DBS platform providers
and filed separate comments on behalf of its member companies which
offer satellite service to C-Band subscribers.
Loral Loss Widens
Loral's net loss widened for fourth quarter and full-year 1999 results.
The net loss for 1999 was $247 million, compared to a net loss in
1998 of $185 million. The increased loss was attributed to increased
costs with Globalstar and other Loral ventures. Loral's fourth quarter
loss widened to $112.9 million, or 42 cents a share, from a loss of
$53.7 million, or 23 cents, in the year-ago quarter. Revenue fell
9 percent to $426.2 million from $468.6 million. Loral's satellite
manufacturing arm, Space Systems Loral, recorded a $36 million charge
related to a contract extension for a satellite it's building for
ChinaSat. The satellite will be delivered during the summer. Loral
will provide transponders aboard one of its birds while work is completed
on the ChinaSat spacecraft.
Globalstar Launch This Afternoon
This afternoon, a Boeing Delta 2 will launch four Globalstar communications
satellites that will be used as on-orbit spares. The flight will complete
the 52-satellite Globalstar constellation. Forty-eight of the satellites
deliver the core sat-phone service. The launch will take place from
pad 17B at Cape Canaveral Air Force Station in Florida. The launch
window opens at 3:54 p.m. Eastern Time and closes at 4:24 p.m. *
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