News Corp. said early speculation that it will consolidate its global
satellite operations and investments into a single public company
are "premature." On Monday, The Wall Street Journal said News Corp.
Chairman Rupert Murdoch was close to executing such a move, which
would include DTH platforms in Europe and Latin America as well as
the company's Star TV endeavor in Asia. The aim, according to the
financial publication, is to take hold of a growing broadband pipeline
into the home. Some consider satellites the best platform outside
of the cable-dependent United States. News Corp. didn't dismiss the
possibility of grouping its satellite interests into a new entity.
"We have under serious consideration plans to consolidate our worldwide
satellite platforms and certain related assets under one umbrella
entity," the company said in a statement. However, "It is premature
to speculate on the final format of this umbrella entity, the makeup
of its assets, the identity of its investors or whether the entity
will be a public company," News Corp. added. News Corp.'s satellite
businesses include its 40-percent ownership in British Sky Broadcasting,
its majority interest in Sky Latin America and stakes in a DTH platform
in Japan. There's also the satellite-dependent Star TV broadcast operation
in Asia. News of a possible spin-off pushed up American Depositary
Receipts for BSkyB. The very hot BSY ADRs rose $8 to $181 during trading
on the New York Stock Exchange Monday.
DISH-Comedy Resolve Program Dispute
The Cable Services Bureau at the Federal Communications Commission
dismissed a program access complaint EchoStar filed against Comedy
Partners, which delivers the popular basic network Comedy Central.
According to the FCC, EchoStar said it has entered into a settlement
with Comedy Partners that resolves the program access dispute. EchoStar
asked the FCC to dismiss its complaint earlier in the month, a move
that is part of the company's agreement with Comedy Partners. EchoStar
filed the initial complaint in December. Even with the filing, EchoStar's
DISH Network has continued carrying Comedy Central as part of its
America's Top 100 CD and America's Top 40 packages.
OpenTV Reaches 6 Million Boxes
OpenTV, a provider of interactive television features, said its software
is now in more than 6.1 million digital set-top boxes worldwide. OpenTV's
wares were shipped in more than 1.6 million digital set-top boxes
during the fourth quarter. The record shipments, which were attributed
to strong Christmas sales, represent a 62 percent increase from the
prior quarter and a 177 percent increase from fourth quarter 1998.
To date, 20 digital television network operators have deployed OpenTV
systems. They include six cable operators, 12 satellite companies,
one terrestrial platform and one MMDS operator. In the United States,
OpenTV is available on EchoStar's DISH Network.
Globalstar Inks Deal In Mexico
Nuevo Grupo Iusacell, Mexico's second-largest telephone operator,
and the Mexican unit of Globalstar Telecommunications announced Monday
they will form a joint venture to provide nationwide telephone coverage.
Globalstar's deal with Iusacell, controlled by Bell Atlantic, will
allow the phone operator to expand its coverage to all corners of
Mexico. Presently, the company covers four regions and 69 percent
of Mexico's population. The Globalstar-Iusacell venture "reaffirms
the goal of satellite telephone services to complement existing communications
systems," said Lauro Gonzalez, executive president of Globalstar's
Mexican unit.
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