Pegasus Communications and Golden Sky Systems are putting more heat on DirecTV, this time amending their lawsuit and listing new allegations that the DBS giant is interfering with manufacturers, distributors and dealers delivering and selling product for the two companies. In the amended complaint, filed in U.S. District Court in California, Pegasus and Golden Sky said DirecTV has "coerced agreements to supply equipment exclusively to DirecTV's own dealer network for sale, installation and use." That has kept product away from DirecTV affiliates associated with the National Rural Telecommunications Cooperative, including Pegasus and Golden Sky. "DirecTV's wrongful conduct has both interfered with plaintiffs' (Pegasus and Golden Sky) economic relationships with equipment dealers and distributors, and has impeded the plaintiffs' ability to sign up new subscribers" in NRTC territories, the lawsuit said. Pegasus and Golden Sky are the largest providers of DirecTV through the NRTC. In January, Pegasus agreed to buy Golden Sky for $1 billion. DirecTV spokesman Bob Marsocci said the amended complaint "does not raise any new issues with us." He also said DirecTV isn't engaged in any activities that may hurt NRTC members. "We do not whatsoever interfere with or damage the business of any NRTC members or affiliates," he said. In the amended suit, Pegasus singles out DirecTV's principal equipment manufacturers, Hughes Network Systems (HNS) and Thomson Consumer Electronics. DirecTV parent Hughes controls HNS and holds a minority interest in Thomson. HNS and Thomson are not listed as defendants in the amended suit, first reported by SkyREPORT.COM on Thursday. In the new complaint, DirecTV is blamed for interfering with equipment manufacturers and their relationship with the two DirecTV/NRTC providers. "DirecTV has caused equipment manufacturers and distributors to refuse to provide equipment to or for the benefit of the plaintiffs (Pegasus and Golden Sky) or their affiliated dealer networks for sale, installation and use anywhere in their NRTC territory," the suit said. The distribution/equipment issue doesn't get the total blame for Pegasus' sluggish subscriber acquisitions in January. Net subscriber additions were 5,530, taking the company's total to 726,585. Pegasus' Yolanda Robins said the low subscriber enrollments can be attributed to - among other things - adverse weather throughout the country and a new commission structure that kicked in Feb. 1. That new structure provides for more favorable commissions, which may have led to some salespersons to complete any sales on or after the first of the month. Both EchoStar and DirecTV reported tight equipment supplies for January. In the amended suit, Pegasus and Golden Sky also withdrew previous class action allegations to allow for a new class action to be filed on behalf of members and affiliates of the National Rural Telecommunications Cooperative.

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DISH-Gilat Partner On Technology

EchoStar is working with Gilat Satellite Networks on a number of "technology activities" related to broadband services, but the effort hasn't yet developed into a closer business-like relationship. Dianne VanBeber, vice president of investor relations at Gilat, said the VSAT giant is working with the DBS provider on the technical effort, but wouldn't provide details. "It's not necessarily a business partnership," she said. "We have been talking. But it's more like a technology partnership." An EchoStar spokesperson wouldn't comment on the relationship. On Wednesday, Microsoft partnered with Gilat to develop two-way broadband access for consumers. The high-speed Internet offering will be delivered via two-way satellite connections. Trials of the product have started, and availability of the service is expected at the end of 2000. Next week, EchoStar could announce its plans for spot-beam satellites, one analyst said. Those birds will not only help the company with its local TV effort, but could allow for the delivery of Internet and interactive services.

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Mega March Madness Is Back

Mega March Madness, the college basketball package delivered by CBS and DirecTV, is returning to the high-power service for a second year. The package supplements CBS Sports' coverage of the 2000 NCAA Men's Basketball Championship. The DirecTV-exclusive package is available to residential subscribers for $49 and DirecTV commercial accounts with an appropriate licensing agreement. Individual games sell for $19.95 each. Fans who purchase Mega March Madness will receive up to 37 out-of-market telecasts from the first three rounds of the tournament.

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Time Warner Revs Up Digital

Time Warner Chairman Gerald Levin is putting his money where his mouth is when it comes to digital cable, according to The Yankee Group. The Boston-based firm said in a recent research report that cable operations owned by Time Warner will increase spending for digital set-top boxes and other equipment by 25 percent - or $400 million - during the next year. That cash infusion will help Time Warner jump digital cable subscribership from 430,000 in 1999 to 2 million by the end the year. "Even more striking was Time Warner's long-term perspective, in which as many as 70 percent of the company's subscribers could adopt digital service within the next few years," The Yankee Group said in its report. However, "We worry that like so many cable executives before him, Levin may be creating a credibility problem down the road once investors and other concerned parties (like Time Warner's merger partner America Online) begin to wonder why adoption in the real world hasn't matched expectations," the firm said.

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ON TV: Showtime-Sundance Debut Short Films