PanAmSat is partnering with US West and RealNetworks for NET/36, a high-speed network capable of broadcasting IP video, audio and data to DSL providers, cable headends, ISPs and broadband wireless providers. NET/36 will provide an overlay to the current terrestrial Internet network. PanAmSat's satellite fleet, which consists of 20 spacecraft, will support the endeavor. US West, one of the largest DSL service providers in the United States, will use NET/36 for IP content delivery to DSL and Internet subscribers. RealNetworks, which provides streaming media delivery on the Internet, will provide RealSystem G2, which offers architecture for the delivery of video and audio programming to large audiences worldwide. According to Douglas Kahn, PanAmSat president and CEO, more deals could be on the way. "PanAmSat will vigorously pursue strategic relationships with additional last-mile service providers as well as other hardware, software and network providers to enhance NET/36's market penetration and service capabilities," he said. However, the unveiling of the Internet partnership didn't save PanAmSat's stock from a dive Wednesday. During a conference call with analysts, the company reported guidance changes on depreciation and amortization and net interest expenses in 2001. That sent the stock down more than $15 to $47. During the conference call, PanAmSat management also said earnings per share EPS for 2001 should come in at 75 cents to 85 cents per share, down from the Street consensus of $1.49 per share.

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Thomson: Our RCA Systems Rule

Thomson Multimedia, the consumer electronics giant known best in satellite circles for its DirecTV systems, boasted Wednesday about the high level of customer satisfaction with its RCA DirecTV receivers. A recent survey of those who purchased a RCA DirecTV system showed "an extremely high level of satisfaction with the digital satellite product," the company said. According to the results, 91 percent of those surveyed said the RCA product met or exceeded their expectations. Two out of five owners reported their RCA DirecTV system exceeded expectations (41 percent), and one in five claimed that it exceeded expectations a lot (19 percent). Picture and sound quality continue to rate highly, with more than four in five of all respondents saying they are very satisfied with the product’s digital picture (87 percent) and CD-like sound capability (82 percent). About two-thirds of the respondents ranked three other features either very good or excellent: Programming quality, 68 percent; ease of use of program guides/menus, 62 percent; and ease of use of remote control, 62 percent. The main reasons for buying the system, according to respondents, were: Programming/channels available (39 percent); dissatisfaction with current cable system (29 percent), and cost (23 percent).

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AT&T Expands Presence At Excite@Home

Cable Internet provider Excite@Home said Wednesday that its principal partners - AT&T, Comcast and Cox - agreed to new extended distribution arrangements and a reorganization of the company's board. Under the companies' agreement, AT&T will gain a majority of board members and Excite@Home will amend its charter to allow board action by simple majority. Comcast and Cox will give up certain veto rights they have at the board level and their representatives will resign. Under new service agreements, AT&T and Excite@Home have extended their relationship through 2008, and Comcast and Cox have extended their relationship with Excite@Home through 2006. "The new distribution agreements reflect a common belief among Excite@Home and its cable partners that growing subscribers on high-speed cable Internet services is a key objective over the coming years," Excite@Home said.

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INTERNATIONAL: EchoStar Gets TVE