Shares in U.S. Satellite Broadcasting jumped 38 percent on speculation that it may combine with another satellite operator, and the name being tossed around by Wall Street as the potential buyer is Hughes-backed DirecTV.

USSB closed up more than $2 to $9.69. At one point, the stock was trading at $10.

DirecTV has always been mentioned as a potential buyer. The two companies have maintained in the past that they are happy with their relationship and with sharing the same satellite platform at 101 degrees. DirecTV provides basic, pay-per-view and sports programming while USSB offers premium movie channels.

DirecTV wouldn't comment on the rumors. USSB officials didn't return phone calls.

Some are betting that the industry may go through some consolidation due to EchoStar's agreement with News Corp. to buy satellites, licenses and equipment from the troubled American Sky Broadcasting service. The 110-degree orbital location EchoStar could get from ASkyB - after it acquires the necessary regulatory approvals - would allow the DBS operator to provide around 500 channels of programming.

A week after announcing it was carrying Outdoor Life Network and Speedvision, EchoStar's DISH Network lost carriage of the two channels and was served a lawsuit by the networks' cable-backed owners.

The breach of contract claim was filed by the programmer in Connecticut against EchoStar. In a statement, EchoStar blamed TMJV (affiliated with Cox Communications), Comcast Programming Ventures, Fostoria Communications (affiliated with Media One), Daniels Properties, and TM Programming (Times Mirror) for the loss of channels.

According to EchoStar, the companies, "appear once again, on the news of the recent transaction between the company and News Corp., to be attempting to undermine DISH Network's satellite television business by withholding some of the most requested programming through a spurious claim of breach of contract."

EchoStar spokesman Marc Lumpkin said the special "Action Plus" package put together for the channels did win over some subscribers after its debut Dec. 2. The two networks went off the air Monday. Outdoor Channel, a separate network from Speedvision and Outdoor Life, was also part of the package but wasn't taken off the air.

Fox/Liberty Sports, backed by News Corp. and Tele-Communications Inc.'s Liberty Media, owns a third of Outdoor Life and Speedvision under a deal that closed last March. Fox/Liberty reportedly paid between $80 million and $100 million for a stake. Cox kept its one-third ownership while the remaining owners hold the other third interest.

There were no surprises from the Satellite Broadcasting and Communications Association (SBCA) and the National Rural Telecommunications Cooperative regarding Grade B issues, with both organizations suggesting the need for a new standard determining local TV signal strength.

In their filings with the Federal Communications Commission Friday, the SBCA and NRTC said a Grade B signal strength determination should be updated to reflect consumer demands today. The original Grade B guidelines were made in 1952, "and are based on assumptions about key factors that affect signal strength," according to the SBCA.

"Viewers today have much more heightened expectations of picture quality than did viewers in the 1950s," the NRTC said in its filing.

"To ask these types of viewers to forsake their high quality distant network satellite service in return for analog, over-the-air local pictures deemed 'acceptable' pursuant to some 1950s standard is wholly inappropriate, as well as counterproductive to the development of a vibrant, competitive market."

The SBCA recommended the use of the "Terrain-Integrated Rough Earth Model," or "TIREM," to better predict whether a household can receive a signal of Grade B intensity from a local TV station. Developed by the National Telecommunications and Information Administration, TIREM deals with a specific point-to-point path that can predict a household's ability to receive an acceptable signal.

The SBCA recommended use of TIREM with an overlay of data showing vegetation and urban clutter from the U.S. Geological Survey.

The NRTC said its constituents, most of whom live outside urban areas, could be big losers under current Grade B guidelines. "NRTC believes the commission has unfairly prejudged certain critical issues in this proceeding, and has failed to protect adequately rural consumers who are currently unable to view acceptable pictures over-the-air but are prohibited from receiving distant network signals by satellite," the organization said.

Thomson Multimedia approved stock agreements as well as partnership agreements the company signed in July 1998 with Alcatel, DirecTV, Microsoft and NEC.

Each of the partners will receive more than 3 million shares of stock valued at the price of (French currency) 130.59 per share. That gives each company a 7.5 percent share interest in Thomson and a seat on the board of directors.

With DirecTV, Thomson will work with the satellite giant to develop a new generation of interactive digital receivers and advanced interactive service. They will also collaborate to accelerate the transition to digital terrestrial TV in the United States

Agreements also cover the following areas:

• With Alcatel, the companies will collaborate in the development of technologies for future digital home networks linking home electronic appliances and in areas related to the communication devices activities.
• In collaboration with Microsoft, the companies will focus on developing and operating interactive television products and services, including built-in Electronic Program Guides, as well as developing and marketing Internet-television products.
• NEC and Thomson will collaborate in the development, production and sales of flat-panel plasma screens.

Thierry Breton, Chairman and CEO said, "The extremely promising technological, commercial and industrial agreements that we have just concluded stand as proof of our accomplishments and of the confidence that our new partners have...in the development potential and quality of Thomson Multimedia."

EchoStar Communications and News Corp. formally announced Monday that they entered into an agreement in which EchoStar will acquire highly-coveted satellite assets in a $1 billion stock transfer.

The deal also means News Corp. and MCI/Worldcom, which held their DBS assets through their American Sky Broadcasting venture, will become minority shareholders in EchoStar.

In conjunction with this deal, the litigation between the two companies will be dismissed.

Specifically, EchoStar will receive:

• The transfer of license for 28 DBS frequencies at the 110 degree orbital slot;
• The construction, lunch and insurance of two Loral-built satellites;
• The direct broadcast center in Gilbert, Ariz.;
• A worldwide license agreement to manufacture and distribute set-top boxes internationally using NDS encryption/decoding technology with a minimum of 500,000 units purchased by an affiliated entity of News Corp by Dec. 2002;
• And a three-year retransmission consent agreement for the DISH Network to rebroadcast Fox Network owned-and-operated local station signals to their respective markets.

In addition, EchoStar will enter into a carriage agreement to carry Fox Channels on DISH Network (expected Jan. 8, 1999) and EchoStar and MCI agreed that MCI will have the non-exclusive right to bundle the EchoStar's DBS service with MCI's telephony service.

In return, EchoStar will issue to both News Corp. (approximately 24 million) and MCI/Worldcom (approximately 6 million) newly-issued shares of Class-A Stock. This transfer will give News Corp. a 30 percent share in EchoStar and will give MCI/Worldcom a 7 percent share.

By combining the capacity of the newly acquired satellites at the 110 degree orbital slot and EchoStar's current satellites at 119 degrees, with one 18-inch dish, EchoStar's DISH Network will be able to provide 500 channels of programming, Internet/data delivery and HDTV across the entire United States, including Alaska, Hawaii and the Caribbean.

During a press call, Charlie Ergen, CEO of EchoStar, labeled this deal as "win-win" for both companies. "Its still very much a David vs. Goliath marketplace out there, this synergy allows us to become true competitors with cable and the timing allows us to give News Corp. the true value of their assets. U.S. consumers also win by getting a real choice in television programming."

Chase Carey, co-chief operating officer at News Corp., said his company entered into the deal with EchoStar because "all the positives were greater than any other company. This relationship shows real potential to move forward and work well. There is a real upside to the securities we now own."

The deal must still gain FCC approval, but Ergen is optimistic. "The Department of Justice is on record as saying they are supportive of deals like this."

EchoStar plans to have this new service running by 2000 with the launch of the two satellites this year, one possibly as early as April.

Beginning Dec. 1, DIRECTV offers you a boarding pass to the Travel Channel. Fasten your seatbelts as the network, recently acquired by Discovery Communications, takes you to some of the world's most spectacular destinations. The newly revamped channel offers "Lonely Planet," which focuses on adventure travel, and "Travel Daily," a travel news and information series hosted by the "Today" show travel editor, Peter Greenberg. You'll take island excursions with "Meshach Taylor's Hidden Caribbean" and get romantic vacation ideas from "Best Places to Kiss." Travel Channel is included in all Total Choice programming packages on Channel 216.

CNN/SI, the most comprehensive sports news service on television, hits DIRECTV sets of all Total Choice subscribers on Dec. 1. Tune to Channel 205 for a combination of talent from Cable News Network and "Sports Illustrated," featuring "Insider Reports" from "SI" writers and editors and live updates from top games, coast-to-coast. The day's major sports stories are featured every evening on "Page One," and the CNN/SI ticker carries scores in progress, game highlights and outcomes continuously, at the bottom of your screen. You'll also find live press conferences, international sports and breaking sports news on CNN/SI.

In a judgment that goes to the core of technology used in the DirecTV/USSB digital satellite system platform, the U.S. Federal Court of Appeals ruled that the International Trade Commission must reconsider one of the patent infringement claims filed by Personalized Media Communications.

The claim, which pertains to receiver decoders, was originally denied on grounds it was "indefinite." The federal court, however, disagreed and sent the case back to the ITC for further consideration.

Should PMC win its suit, which is only one of several filed by the company, DirecTV, USSB, Hughes Network Systems, Thomson Consumer Electronics, Hitachi, Toshiba and Matsushita could be held liable for patent payments going back to start of DBS. A spokesman at DirecTV, however, expressed confidence that the ITC would uphold the original ruling.

The Federal Communications Commission ruled Thursday that DBS companies must provide non-commercial, educational and informational content through one out of every 25 channels they deliver to customers.

The FCC ruling, mandated by Congress through the 1992 Cable Act, will allow satellite companies to select the channels, but they won't be able to interfere with programming decisions made by the individual networks.

DBS companies would also be required to abide by political broadcasting rules that apply to television stations and require equal access for all political candidates with political advertising charged the lowest rates.

At least one commissioner felt DBS companies shouldn't have any control over content. Gloria Tristani voted for the rules, but said she opposed the provision allowing satellite services to select which channels they could carry to meet requirements.

"As a practical matter, the DBS operator is bound to have some influence over some of the programming that is shown," Tristani said. She noted that the 1992 law said operators should not have "any editorial control."

In a fit of wishful thinking, The expected peak of the Nov. 17 Leonid meteor storm at 2 a.m., Eastern Time, which would put top viewing hours in the United States.

Seems, however, that 2 p.m. Eastern Time is the more popular estimate for when the most meteors will pass through the earth's atmosphere. So those of you who told us you plan to rush out to the desert skies: Don't. You could end up with nothing more than a sunburn.

Still our experts say that early Tuesday morning could provide some spectacular viewing in the United States, even if the peak storm occurs over China and Japan as expected. And then, of course, the experts admit they could be wrong: Last time the Leonids passed by, in 1966, the those-in-the-know goofed by several thousand miles as the fire storm of meteors expected to blaze across Europe's night skies instead appeared over North America.

As for the odds of a meteor from the storm damaging a satellite: To date, only one bird has been destroyed during a shower. That was the European Space Agency's Olympus, which was hit in 1993, according to NASA. For serious damage from the Leonids, we've now heard estimates ranging from one in four to one in 100,000. Think we'll stick with our original one in 100.

Hughes Network Systems' DirecPC service will make up a third of Compaq's "Triple Play" speedy Internet access product line, winning the right to supply the company's Presario computer users with access to data and the web over satellite.

DirecPC will enable Presario PC users across the country to access the Internet at speeds up to 14 times faster than current analog modems. New Presario computers will be available with satellite modems from DirecPC, or services from cable operators or xDSL offerings from phone companies, at a price starting at $1,599.

In addition to DirecPC, Compaq also announced "Triple Play" partnerships with Time Warner's RoadRunner, Tele-Communications Inc.-backed @Home, five regional phone companies and Sprint. The Compaq announcement was made at COMDEX in Las Vegas, the largest computer convention on the planet.

The Federal Communications Commission is expected to rule this week on regulations that will require DBS operators to devote between 4 percent and 7 percent of their channels for informational and educational programming.

The agency will need to decide if DBS operators will maintain control over the educational/informational content. That is opposed by public interest groups, which are arguing for no editorial control by DBS operators.

And the FCC must decide whether traditional networks, such as Discovery Channel and C-SPAN, will qualify as educational or informational programming.

The FCC action is expected Thursday.

The Federal Communications Commission said that the high-power orbital slot bought by MCI Communications at auction for $682.5 million must be occupied by Dec. 20, 2000, or the license will be revoked under due diligence rules.

MCI and News Corp. announced last week that they had terminated a deal to use the slot at 110 degrees for a high-power effort at PrimeStar. In January 1996, MCI had bought the orbital location for its American Sky Broadcasting venture with News Corp.

The 110-degree location is one of three providing full coverage of the United States, and is the last remaining full-CONUS slot. The 101-degee position is occupied by DirecTV and U.S. Satellite Broadcasting, while the 119-degree position is owned by EchoStar Communications and TCI Satellite, a PrimeStar partner.

U.S. Satellite Broadcasting, the premium movie channel provider sharing the same satellite platform with DirecTV, passed the two million subscriber mark.

According to the Minnesota-based company, 51 percent of all DirecTV/USSB households receive premium movie networks from the DBS provider. The cable's industry's movie channel penetration, according to USSB, is 34 percent.

When compared to the cable industry, USSB would be the seventh largest MSO based on subscriber numbers.

"Reaching the two million subscriber milestone is a testament to the creativity and passion of the USSB employees who aggressively execute our strategic vision," said President and CEO Stanley E. Hubbard. "We plan to continue building on our strengths and the power of our solid and highly successful programming and distribution partnerships."

EchoStar Communications will "vigorously" pursue the suit it filed against broadcasters in Colorado federal court last month, that despite another suit brought against the company by the network giants.

The suit against EchoStar was filed Nov. 6 in Miami, the same setting for the broadcaster suit and trial against PrimeTime 24. The suit, according to EchoStar Senior Vice President and General Counsel David Moskowitz, "raises no new issues and is nothing more than transparent forum shopping. Neither the plaintiffs nor the defendants are based in Miami.

"This is a blatant attempt on the part of the broadcasters to hinder a fair judicial process," Moskowitz said. "Broadcasters fear the ruling will go against them in Colorado where consumers know from experience that trees and mountains affect the quality of off-air broadcast signals. The broadcasters simply want the issue to be considered in Miami, one of the flattest pieces of ground in the United States."

According to EchoStar, consumers who live in areas that dont get a Grade B signal from their local network affiliate are entitled, under the Satellite Home Viewer Act (SHVA), to receive non-local network channels by satellite. EchoStars Denver lawsuit notes that broadcasters claim Grade B intensity and consumer eligibility should be determined with Longley-Rice Grade B contours.

"The Longley-Rice model advocated by broadcasters shows over-the-air network signals bouncing over 14,000-foot mountains and through the nearly two-mile-long Eisenhower Tunnel. This is absurd and unrealistic," Moskowitz said.

DirecTV will add the Travel Channel, acquired by Discovery Communications last year, to its lineup on Dec. 1.

The Travel Channel will be added to all of DirecTV's Total Choice program packages at no additional cost. It will appear on channel 216.

Since Discovery's acquisition of the network, ratings have improved for the Travel Channel. Third quarter 1998 household ratings are up 69 percent over the same period in 1997. In the 25-54 age demographic, third quarter 1998 prime-time ratings are up 67 percent over third quarter 1997.

In an effort to drive holiday sales, DirecTV will give away the remaining six weeks of its NFL Sunday Ticket package to new subscribers.

The offer, which runs from Nov. 16 to Dec. 27, is available to all new DirecTV residential subscribers who purchase a satellite system and subscribe to a Total Choice programming package.

The out-of-market football package shows up to 13 NFL games every Sunday during the regular season. Customers who take advantage of the offer can get up to 71 NFL games between Nov. 21 and Dec. 27, including match-ups with potential playoff implications.

Local black-out restrictions apply for each game. To get your DirecTV system go to our DSS Page where you can get a complete system starting at $49.95.

After many months in the doldrums, U.S. Satellite Broadcasting finally got some good news from Wall Street.

USSB's third quarter report revealed lower losses and higher subscriber gains than generally expected by analysts. What's more, USSB recorded its third consecutive quarter of positive EBITA (adjusted for non-cash manufacturer incentives) and appears poised to remain EBITA positive in the fourth quarter.

Reaffirming his near-term Accumulate and long-term Buy rating on the USSB stock, Merrill Lynch's Tom Watts predicted a valuation of between $8 and $9 for 1999 and, given ongoing positive EBITA and the resolution of some DirecTV-related uncertainities, "substantially higher valuations" in the future.

DirecTV Acquires Ivy League Games - The Ivy League and FOSSTONE Productions announced that for the first time Ivy League basketball will be broadcast nationally when DirecTV, who acquired exclusive national rights to the games, presents "Ivy League Friday Nights," from Jan. 8, to March 2.
DirecTV will also be the only place for fans across the country to watch the Harvard vs. Yale football game live from Harvard Stadium on Nov. 21. DirecTV said it is also holding discussions with prominent Ivy League graduates to provide commentary for the games. "Ivy League Friday Nights" will be included free of charge with the DirecTV Total Choice Gold Platinum programming packages. The Harvard vs. Yale game will be offered to all DirecTV residential subscribers.

	Orbit Communication is proud to announce that our  website is featured on USSB's channel 999 this month.
	On behalf of everyone here. Thank you for the good word Adam

U.S. Satellite Broadcasting took a step closer to the 2 million sub mark during the third quarter, adding around 87,000 net paying subscribers and taking its paying customer total to 1.929 million.  That 1.929 million makes USSB the third biggest home satellite provider in the United States.  During the third quarter, 150,000 homes were receiving their free promotional month of USSB programming, a 35 percent increase from the same period a year ago.  Average monthly subscriber revenue for the quarter was $23.53, well within the company's stated target range.

For the quarter, revenues increased 19 percent to $136.6 million, up from $114.4 million in the year-earlier period. The company's net loss for the quarter was $8.7 million, or 10 cents per share, improved from $28.1 million, or 31 cents per share, for the prior-year quarter.  For the nine months ended Sept. 30, revenues increased to $406.1 million, up 24 percent from $327.8 million in the year-earlier period. The company's net loss for the nine-month period was $25.7 million, improved from $59.9
million for the comparable prior-year period.

USSB said positive cash flow was obtained for the quarter and the year to date after adjusting for the non-cash component of the Manufacturer Incentive program.

The Military Channels live broadcast of the Oct. 10 Navy-Air Force football game
quadrupled its basic subscriber base for the day. The game was made available to at least 11.5 million homes by 19 carriers, including direct broadcast system EchoStar. Overseas, one million servicemen and women based in 156 countries - and sailors and marines embarked on ships in the sea - were able to see the game live courtesy of the Armed Forces Radio and Television Service.

The head of Time Warner, which owns Cable News Network, said his company is in talks with CBS, ABC and NBC about supplying news as the broadcast networks cut back. The networks have been cutting costs, according to Standard & Poors analyst
Tom Graves, due to "higher costs for hit programs and sports rights." Graves said he saw CNN acting "much like a White House pool reporter, but on international stories. The CNN Correspondent would be broadcasting on one or more networks." Both CBS and NBC have recently announced layoffs in their news divisions.

Current law covering distant broadcast signal reception is so patently unfair to both consumers and competition that you might expect the Beltway powers-that-be to
embarrassed. As we all know, however, our federal lawmakers are virtually impervious to embarrassment (especially when it comes to those, like local broadcasters, who hold sway over ballot boxes). Thus we find ourselves saddled with a federal law that prohibits consumers from receiving distant broadcast signals (from companies
that make millions on, but pay no price for, publicly-owned spectrum) if they live in an area where just 50 percent of the people have a 50 percent certainty of receiving decent local broadcast signals with rooftop antennas 50 percent of the time. Do the math on that one and you find that if just one house out of eight gets a decent round-the-clock signal, the other seven households are automatically disqualified from subscribing to distant signals by satellite - even if their rooftop antennas catch nothing but static! Only extensive testing will get these folks qualified, testing that the some local broadcast affiliates reportedly refuse to accept. Hats off then to Charlie Ergen in his probably quixotic, but certainly laudable, attempt to get the U.S. District Court in
Colorado to clarify the current white area cacophony. We can only hope that the courts show a better sense of fair play than the Congress.

The results of a long-smoldering lawsuit caught fire this week as retailers across the country began to receive letters from DIRECTV directing them to replace the "DSS System" name and logo with a "DIRECTV System" name and logo. "Effectively immediately please replace the DSS trademark with the DIRECTV brand name in relation to all hardware products, marketing collateral and promotional materials," the letter read in part. It added that even the term "digital satellite system" can no longer be used.

Several retailers reacted with fury as they said the DIRECTV-only edict would isolate U.S. Satellite Broadcasting, making the USSB sale more difficult. "We are currently in
negotiations with DIRECTV as to what will be the name of the system as we go forward," said USSB CEO Stan Hubbard. "Until we come to an agreement," he added, "we will use the small case digital satellite system term."

The trademark infringement suit was launched by a computer peripherals maker known as Decision Support Systems, a.k.a. DSS. When the DSS symbol was initially selected by DIRECTV and USSB it was thought that the Decision Support and DBS businesses were far enough apart to avoid infringement issues. However, when DIRECTV began to move into interactive TV, Decision Support Systems filed suit. As part of a court-ordered settlement, DIRECTV agreed to abandon use of the DSS trademark and logo after November 1, 1998. Hardware makers were informed of the
settlement in mid-summer and DIRECTV-branded equipment has already reached some warehouses.

Said the "Dear Retailer" note from DIRECTV Senior VP Scott Nordhaus, "Unifying the hardware platform under DIRECTV, the strongest and most widely recognized brand
name in the satellite industry, will help you sell the value of DIRECTV, reduce the number of logos required in your advertising, and simplify the purchase decision
for your customers."

EchoStar today confirmed press reports that it has asked a CO Federal Court to force broadcasters to abandon the current method of establishing which households qualify
to receive non-local network signals by satellite.

The current law under Section 119 of the Satellite Home Viewer Act provides that consumers are eligible if they cannot receive a Grade B intensity local network channel
using a conventional rooftop antenna. Some broadcasters claim that Grade B intensity and consumer eligibility should be predicted with a method called Longley-Rice
version 1.2.2. This method defines a Grade B intensity signal as one that can be received by 50 percent of the consumers 50 percent of the time with a 50 percent level
of confidence. Ultimately this method can leave a majority of homes in an area without a clear and dependable local network signal.

EchoStar has asked the Court to confirm that the Longley-Rice model is an inappropriate methodology for SHVA screening. EchoStar indicated that it wants to work with the broadcasters to find a solution to this issue that is fair to all, and noted that it has asked the Federal Communications Commission to assist in this
process as well.

PRIMESTARs deals continue to unravel in the wake of the mid-powered services failed bid for the News Corp./MCI 110 degree spot. In the latest shakeout, United Video Satellite Group abandoned its $480 million sale to the troubled DBS service. Since the sale was contingent on a PRIMESTAR high-power DBS launch, the move was not unexpected, but still discouraging to those who have tracked the services struggles. Meanwhile, high-power cable partner execs are gathering to discuss
PRIMESTARs future. Expect more news shortly.

Even a quarter-point interest rate cut failed to help PRIMESTAR on Thursday as the bloody aftermath of the companys cancelled News Corp. plans left its fractious
cable company partners backed into a corner of their own making.  With churn rates double and even triple those of  its competitors, anemic growth over the past two quarters, and equipment that hasnt been upgraded since the platform launched in 1994, PRIMESTAR has more than its share of problems, a fact reflected in the stock market hammering that pushed the companys TSAT stock down -.75 to 1.

Clearly the endless bickering of the cable partners has taken its toll. If PRIMESTAR is to survive and thrive (a possibility which we certainly dont discount) it will have to be in a completely new form.  Problem is, with financial markets more risk adverse than seen in many years, the money for necessary changes may be very hard to come by.   Which leads us to Thursdays oft-repeated rumors that DIRECTV, EchoStar or
even (gasp) Rupert Murdoch might seek to buy the service and its 2,000,000+ subscribers at a bargain-basement price - say something close to the sub  $100 per subscriber now reflected in the companys market valuation.

Whither 110?

After the PRIMESTAR deal, the next big question is what News Corp. will do with its highly prized spectrum at 110 degrees.  Most industry experts agree that attempting
a new DBS start-up in the slot would be an invitation to certain doom.  While Rupert Murdoch is famed for beating such invitations, few believe that he would make such an
attempt in todays highly competitive U.S. DBS market.  
Thus the thinking goes to the strategic importance of the slot, neatly fit between DirecTVs spectrum at 101 degrees and EchoStars at 119 degrees.  According to our technical experts,  both DIRECTV and DISH equipment can view the slot.
Recent chip developments would allow broadcasts from the slot to be received by both platforms.  Therefore, some industry hopes have begun to turn to thoughts of local
channel broadcasts from the 110 degrees spectrum - broadcasts which could be resold to both DIRECTV and DISH subscribers in an ironic resurfacing of the old News Corp/EchoStar Death Star concept.

By the end of the week, EchoStar Communications and Loral Space and Communications will launch their joint SkyVista DTH service, a niche programming service targeted for North America and U.S. territories in the Caribbean.

SkyVista will use Loral Skynet's Telstar 5 satellite, the bird once slated for the AlphaStar service that went dark in August of last year. While former AlphaStar customers can use their dish for the new service, they will need to buy a new receiver, an EchoStar spokesperson said. The SkyVista system itself will cost $399.

EchoStar will charge $19.99 per month for the "Best of Satellite" offering, which will include up to 20 channels. SkyVista also can serve Hawaii and parts of Alaska.

EchoStar Communications is acquiring privately-held Media4, an Atlanta, Ga.,-based supplier of broadband satellite networking equipment for personal computers, in its continuing efforts to expand into the data and interactive realm.

EchoStar said it would issue approximately 400,000 shares of DISH common
stock for 100 percent ownership of Media4.

The purchase of Media4 follows EchoStar's other announcement, a partnership with OpenTV. OpenTV's technology will allow the satellite company to provide a nationwide interactive-TV service featuring e-mail, Internet access and electronic commerce.

EchoStar will use interactive-TV software and technology from OpenTV. The Mountain View, Calif.,-based company supplies interactive content and services to 1 million TV viewers, mostly in Europe.

Media4, founded in 1995, is a supplier of PC-based, digital video broadcast (DVB) compatible satellite transmission products. Its flagship product line - MediaStream - is a software-driven, DVB-compatible satellite uplink system that provides DVB receiver technology and application software.

Products can be used for video distribution, distance learning, remote caching and broadband Internet access.

Media4 will continue to sell MediaStream to private network operators and corporations that have broadband IP traffic over satellite. The company's
35 employees would become part of EchoStar, and will operate an East Coast
base for EchoStar's engineering and satellite services organizations.

EchoStar announced plans in August 1998 for broadband data delivery and high-speed satellite broadcast. The goal is to provide subscribers with higher quality video, audio and more multimedia options than that offered in wire-based technology.

"By converging TV and the Internet, EchoStar could offer a new medium for producers, broadcasters and viewers to create interactive content for nationwide broadband delivery, allowing subscribers to interact with programming and with other viewers at the same time via personal computers," the company said in a statement.

News Corp. Chairman Rupert Murdoch apparently has exited the deal to buy into PrimeStar, a day after hinting that he may abandon the satellite provider for other options.

The Justice Department said Wednesday that News Corp. had left the deal, taking with it the high power DBS assets owned by its American Sky Broadcasting venture. PrimeStar wanted the spectrum at 110 degrees in order to switch to a smaller dish and compete more effectively with DBS providers EchoStar and DirecTV.

The Justice Department in May had sued to block PrimeStar's cable backers from acquiring high power assets on the grounds that it would blunt competition. The ASkyB deal would have given PrimeStar the last of three national orbital locations to provide DBS service in the United States. 

"This is the right result and a big win for consumers," said the Justice Department's antitrust chief Joel Klein. "It will ultimately mean lower prices, more innovation and better service and quality."

PrimeStar had informed the department recently of its decision to abandon the planned merger, said Gina Talamona, spokeswoman for Justice's antitrust division.

During a news conference with reporters in Adelaide, Australia, Murdoch said PrimeStar is an "alternative" for ASkyB's high-power DBS assets, and that News Corp. isn't stuck to any deal involving the DTH service.

"We certainly do not have to buy them out," Murdoch said Tuesday following News Corp.'s annual meeting. "We have a large asset in ASkyB with the very valuable spectrum, some satellites, and we are looking at a number of alternative ways to go forward. PrimeStar is one of them."

News Corp.'s exit spells more trouble for PrimeStar. The satellite provider may have trouble finding the money and the spectrum it needs to go to high power, and could face the possibly of being sold off by its cable backing.

DirecTV To Move Into Interactive Realm - DirecTV's Vice President of Programming Larry Chapman announced at a recent Carmel Group conference that the DBS company is set to introduce four new "interactive-ready" receivers. According to Chapman, DirecTV plans to debut new set-top receivers in 1999 that will have e-commerce capability, an advanced interactive program guide, Internet access, as well as many other functions.

EchoStar Communications Corporation's Chairman and CEO Charlie Ergen has
voiced the company's support of Rep. Billy Tauzin's HR 4675 bill that was introduced in Congress last week.

HR 4675 - the Satellite Consumer Protection and Competition Act of 1998 - would offer DBS providers the right to retransmit local signals into their local markets.

"With cable rates far outpacing the rate of inflation, we believe that Mr. Tauzin's bill, if enacted, will help DBS providers go a long way toward attracting the 87 percent of television subscribers who are still held captive by their local cable monopoly," said Ergen. "The number one reason consumers decline to give DBS a second look is because it doesn't offer local channels."

In areas of the country where DBS cannot provide a local signal, Tauzin's bill directs the FCC to complete a rulemaking regarding the definition of unserved households.

EchoStar announced that an anomaly aboard its EchoStar III satellite has resulted in the loss of four transponders out of a total of 44 transponders.

Although the EchoStar III carries 44 transponders, EchoStar is only licensed to used 11 of the frequencies at 61.5 degrees. The company's satellites at 119 degrees carry the bulk of the transponders that provide the DISH Network service.

According to EchoStar, the cause and potential implications of the anomaly is being investigated. Lockheed Martin - the satellite's manufacturer - has informally advised EchoStar that it's possible the anomaly may result in the loss of additional transponders in the future.

EchoStar has instructed its broker to notify its insurance carriers of an occurrence under the terms of the EchoStar III launch insurance policy.  Under that policy, the company has until early 1999 to file a claim for a constructive total or partial loss.

Pending completion of the anomaly investigation, EchoStar will transition to a 60-day, $200 million in-orbit insurance policy on EchoStar III at standard industry rates. However, the policy contains an exclusion for future transponder losses based on similar anomalies. 

As a result of the exclusion, and in the event that comprehensive coverage for similar transponder anomalies is ultimately denied under the launch policy, EchoStar could potentially experience uninsured losses of capacity on EchoStar III, up to and including a loss of all capacity.

According to Lockheed Martin, the transponder failures experienced by EchoStar III probably resulted from the same anomaly as the EchoStar IV bird experienced earlier this year.

EchoStar's DISH Network and DirecTV reported that September was another solid month for subscriber additions. PrimeStar, however, reported another disappointing month.

DirecTV added 121,000 new subscribers in September. That takes the DSS provider 4.058 million. DISH added 81,000, taking its total to 1.609 million.

PrimeStar reported a gain of 10,002 subscribers for the month. That takes its total to 2.166 million.

U.S. Satellite Broadcasting settled a dispute alleging "Canadian gray market" sales of USSB programming by upstate New York satellite dealer, Northern Tek Inc.

Northern Tek acknowledged that it had sold digital satellite systems for use in Canada. Although the exact terms of the settlement remain confidential, USSB has reported that Northern Tek agreed to refrain from future sales in the Canadian market and from assisting customers in receiving USSB programming in Canada.

"U.S. Satellite Broadcasting continues to be very concerned about the Canadian gray market," said Stanley E. Hubbard, president and chief executive officer of USSB. "Our most recent settlement with Northern Tek is a part of our ongoing effort to ensure that USSB services are received only in the United States in accordance with our programming contracts."

USSB said that it has been advised by the Canadian Federal Court that many Canadian residents are "in jeopardy of losing a substantial investment in equipment they purchased to receive gray market service in Canada from the U.S."

The Federal Communications Commission is preparing for an Oct. 22 meeting to vote on DBS public service obligations that are required under the 1992 Cable Act.

Under the Cable Act, DBS operators are required to make available between four and seven percent of their channels for noncommercial, educational programming. After being held back due to a 1993 ruling that stated the set-aside dictum was unconstitutional, the DBS public service obligation was again put on the drawing block by the FCC in 1996.

The cable industry is making the most noise in regards to DBS public service requirements, arguing that satellite's carriage of networks such as Discovery Channel and C-SPAN do not count as public service programming.

programming package on channel 191 today.

The computing and technology network will feature original programming including "GameSportTV," a weekly show that highlights the computer industry's best games; "Internet Tonight"; and ZDTV News.

"ZDTV's unique, interactive programming, including chat rooms and the use of netcams, is a valuable addition to DISH Network's already diverse programming line-up, providing customers with an entertaining, informative and unique viewing experience," said Michael Schwimmer, vice president of programming for EchoStar.

The ZDTV network also provides simultaneous content on its companion integrated website - ZDTV.com.

Sony Electronics is readying the debut of its new SAS-AD4 DSS system receiver featuring Dolby Digital audio.

"More and more consumers are looking to experience home theater surround sound   when viewing satellite programming at home," said Greg Gudorf, vice president of Digital Media Marketing at Sony Electronics. "When paired with an audio/video receiver and multichannel speaker system, Sony's new Dolby Digital satellite receiver offers a compelling home entertainment experience."

The satellite receiver also features a Dual Output LNB for additional receivers throughout the home and an RF Remote Commander remote control.

The new SAS-AD4 DSS system receiver will be available in November for an estimated price of $550 Retail and $349.95 OrbitSat Price.

Federal Communications Commission Chairman William Kennard suggested he may
not go with digital must-carry rules, that despite broadcaster pleas to implement the regulations that would force cable TV operators to air digital TV signals.

"Cable operators increasingly create local programming, particularly news and public affairs shows, and with almost three-quarters of Americans actually paying to receive these channels, what remains that makes broadcasters unique?" Kennard asked.

Stations in the top 10 television markets are preparing to begin airing digital signals in seven weeks. Broadcasters have until 2006 to convert to digital and will broadcast both analog and digital signals as the transition is made.

"The transition to digital TV is inevitable, but the pace of the transition is going to be set by the private sector," Kennard said, speaking to the International Radio & Television Society Foundation luncheon. 

"We in government should not set up the industry for failure by creating false expectations or false deadlines, or worse, micro-managing what you should do with this promising technology."

Telesat Canada's decision to delay launch of its first high-power DBS satellite is a "precautionary" measure given recent launch failures and satellite anomalies.

Nimiq, Canada's first high-power DBS satellite, was going to be launched aboard a Lockheed/International Launch Services Proton rocket from the Baikonur Cosmodrome in Kazakstan on Sept. 23. A re-scheduled launch is more likely to take place in early 1999, Telesat's Len Stass said.

"It's a prudent measure. It's one we agree with totally," Stass, vice president of space systems, said. "We are happy Lockheed Martin is taking this step, even if it means a delay."

Lockheed Martin said the satellite performed well during pre-launch testing. "To ensure the satellite is free of anomalies that have affected the operation of other similar satellites in recent months, Lockheed Martin has extended the testing period for several more weeks," Telesat said in a statement.

Canada's two DBS providers are slated to use Nimiq. ExpressVu has 17 transponders aboard the satellite, while Star Choice is set for 15 transponders.

With the help of Nimiq, small dish services were going to be unveiled in Canada late this fall, in time for the holiday shopping season. While he satellite launch postponement will prevent that debut, it won't stop at least one service from pushing its product during Christmas. 

"At about 160 channels, ExpressVu's TV channel line-up will be significantly larger than that of any Canadian cable company going into the Christmas season," said Michael Neuman, ExpressVu president and CEO.

PrimeStar, EchoStar's DISH Network and DirecTV continued their strong performance in the pay TV industry, outperforming cable competitors in all factors contributing to overall customer satisfaction, according to the J.D. Power and Associates 1998 Cable/Satellite TV Customer Satisfaction Study.

PrimeStar, for the second consecutive year, received the highest overall customer   satisfaction score out of fourteen Pay TV providers, with DISH Network finishing only one point behind the leader. Of the three satellite providers, DirecTV experienced the most improvement over 1997 study results in all areas of customer satisfaction, the study states.

The two primary drivers of customer satisfaction - cost of service and program offerings - are the key areas where PrimeStar and DISH Network recorded some of their strongest results.

"The satellite companies continue to exceed the cable/satellite industry average by 29 points," said Peter Dresch, director of telecommunications market analysis at J.D. Power and Associates. "However, the differentiation between the top three satellite providers has narrowed."

ExpressVu reported that its satellite provider, Telesat Canada, will not proceed with the launch of Canada's first high-power DBS satellite, a postponement which will delay start-up of an expanded, small dish service not only for ExpressVu but also for its competitor Star Choice.

ExpressVu was going to use 17 transponders aboard Nimiq, the DBS satellite planned by Telesat. Star Choice was slated for 15 transponders.

Telesat officials weren't available for comment. A statement from ExpressVu said Telesat and manufacturer Lockheed Martin Aerospace said the companies decided against launching Nimiq this month, but offered no details as to when lift-off might take place.

Nimiq was going to be launched aboard a Lockheed/International Launch Services Proton rocket from the Baikonur Cosmodrome in Kazakstan on Sept. 23. 

ExpressVu said the postponement won't affect its business. "While a new DBS satellite this fall would have enabled us to further expand our service, our new compression systems give us the ability to add about 25 percent more programming on our existing satellite, on top of an already powerful 130 channel line-up, with even greater picture quality," said Michael Neuman, ExpressVu president and CEO.

"At about 160 channels, ExpressVu's TV channel line-up will be significantly larger than that of any Canadian cable company going into the Christmas season."

DISH Network Offers Local Channels In Pittsburgh - DISH Network is now offering DISH NETS local broadcast network channels in Pittsburgh. The DISH NETS package is available for $4.99 per month, with new customers receiving a free local off-air or dish antenna with the purchase of a $49 installation and a $50 local network installation.

New Frontier Media signed a definitive multi-year agreement for the carriage of TeN (The Erotic Network) on EchoStar's satellite at 119 degrees on channel 495.

TeN won't be part of any DISH Network package. It will be offered a la carte, like Playboy and AdultVision services on DISH, and can be ordered through EchoStar.

"This agreement provides New Frontier Media with critical mass in terms of an addressable subscriber base," said Mark Kreloff, Chairman and Chief Executive Officer of New Frontier Media. "Our total addressable universe is now close to 4 million households, including DBS, cable television and C-Band, putting us on track to achieve our projected universe of 8 million households by December 1998.

Headquartered in Boulder, Colo., New Frontier Media is a diversified entertainment company engaged in the electronic distribution of adult entertainment content through subscription/pay-per-view television, DVD and the Internet.

DirecTV inched closer to the 4 million subscriber mark, adding 101,000 subscribers in August and taking its total to 3.937 million. 

With the subscriber additions, DirecTV could easily break the 4 million mark in the next week or two. It was the best August on record for the DBS service. In August 1997, DirecTV added 87,000.

For C-Band, the big dish lost close to 13,000 subscribers in August. That dropped the total number of C-Band authorizations to 1.992 million, according to data from General Instrument's Access Control Center.

C-Band authorizations haven't been below 2 million since July 1994.  Earlier in the week, PrimeStar reported a net subscriber increase of 22,400 for August, taking its total to 2.156 million.

EchoStar Communications announced late Tuesday that DISH Network President
John D. Reardon tendered his resignation effective Sept. 30.

"John's contributions to the growth of the DISH Network have helped position EchoStar as a leader in the DBS industry," said Charlie Ergen, EchoStar CEO. "We thank him and wish him all the best in his future endeavors."

Reardon's responsibilities will be assumed by Ergen and other EchoStar executives. 

Beginning today, EchoStar Communications and its DISH Network launch HTV - a 24-hour, all-Spanish-language television music network - in its Spanish Language Package, which also includes Telemundo and FOX Sports Americas.

HTV provides a mix of old and new music videos by artists from Spanish-speaking countries. Its format includes balada, salsa, merengue and other popular Latin rhythms, introduced by the artists themselves rather than from VJ's.

DISH Network's Spanish Language Package is available to DISH Network subscribers for only $4.99 per month.

DISH Network is adding Univision and Galavision Spanish-language networks to its "America's Top 60 CD" package.

Univision is now available on DISH Network channel 270 while Galavision will be launched on channel 272 later in the month. 

"DISH Network is proud to offer Univision and Galavision, the leaders in providing entertainment, sports and news to the Hispanic community in the U.S.," said Michael Schwimmer, vice president of programming for DISH Network. "With Univision and Galavision, DISH Network affirms its commitment to providing high quality programming for the many millions of viewers who enjoy or prefer to watch Spanish-language television."

DISH Network also offers a Spanish Language package for $4.99 per month that includes HTV, Telemundo and Fox Sports Americas. A Spanish Language Audio Option is available free of charge for HBO, Cinemax, Showtime and the Cartoon Network.

DISH Network has launched its DISH NETS local broadcast network channels in five more cities - Denver, Salt Lake City, Phoenix, San Francisco and Miami.

The DISH NETS' channels include ABC, CBS, NBC, FOX affiliates and a national PBS channel for a monthly cost of $4.99.

"EchoStar is the only DBS company today offering local channel access through satellite and providing consumers with a true, fully-competitive alternative to cable," said Charlie Ergen, chairman and chief executive of EchoStar. "Because consumers spend most of their time watching their local channels, DISH Network is now offering customers in 12 cities the ability to disconnect from cable and get their local channels seamlessly, either with an off-air antenna or from our satellites."

The DISH NETS packages include a free local off-air antenna with the purchase of a $49 Professional Installation Special and a $50 local network installation.

EchoStar is also offering local channel access in Boston, New York, Washington D.C., Atlanta, Chicago, Dallas and Los Angeles.

CommTek Communications, publisher of Satellite DIRECT magazine - a television guide for DSS subscribers - has purchased Satellite Choice magazine from Fortuna
Communications. Satellite Choice magazine will cease to exist after the September issue and its subscribers will receive Satellite DIRECT for the remainder of their subscription. "The addition of Satellite Choice subscribers builds on Satellite DIRECT's leadership position in the marketplace, and we now deliver to more DSS households than the DIRECTV and USSB guides combined," said John Misrasi, president and chief executive officer of CommTek.

U.S. Satellite Broadcasting will distribute HBO HDTV programming nationwide when the premium movie network begins delivering high definition content in early 1999.

USSB will deliver the HBO HDTV signal from a PanAmSat satellite located at 95 degrees. The transponder space will be leased from DirecTV. That is the same location from which DirecTV will deliver its HDTV programming, and is the current home for ethnic and niche offerings provided on the DSS platform.

"The digital satellite system continues to be on the cutting edge of the movie and entertainment industry," said Stanley E. Hubbard, president and CEO of USSB. "With HDTV being the biggest technological entertainment revolution since color television and HBO being America's premier premium movie provider, it's a perfect fit for the digital satellite system."

HBO's HDTV programming will be previewed in retail stores at the end of this year. The new feeds from the 95-degree position will require new equipment like the DSS-2 system from Hughes Network Systems.

USSB is speaking with DirecTV about obtaining increased capacity aboard DirecTV's fourth satellite. DirecTV is awaiting Federal Communications Commission approval for the launch of that satellite, which will be located with DirecTV's other high-power satellites at 101 degrees. The new bird will allow DBS-1, which delivers USSB to about 1.85 million customers, to provide back-up capacity for DirecTV.

While testimony wrapped up in a Miami federal courtroom involving PrimeTime 24 and broadcasters, the provider of satellite-delivered network signals suffered another blow in a different legal setting - this time a permanent injunction forbidding the company from sending any ABC signal to DTH subscribers in the Raleigh area.

The permanent injunction was handed down Wednesday by a U.S. District Court judge in North Carolina, and forbids PrimeTime 24 from selling any distant ABC signal to customers in the Raleigh market. In its order, the court said, "PrimeTime 24 has engaged and continues to engage in a willful or repeated pattern or practice, within the local market of ABC's local affiliate WTVD, of delivering primary transmissions made by a network station to subscribers that are not eligible to receive such service under
the Satellite Home Viewer Act."

The National Association of Broadcasters praised the ruling. "We are gratified by the court's decision that further vindicates broadcasters' long-held contention that PrimeTime 24 has willfully and repeatedly violated federal copyright law," NAB President Eddy Fritts said in a statement.

It marks the first permanent injunction against PrimeTime 24. In June, the U.S. District Court in Miami handed down a preliminary injunction that temporarily stopped the company from delivering network signals. 

In that Miami court, testimony in a separate case came to an end. Broadcasters are betting they will prevail against PrimeTime 24. "We are pretty confident the ruling will be in our favor," NAB spokesman Dennis Wharton said.

The case, in which broadcasters and local affiliates are suing PrimeTime 24 over the alleged delivery of broadcast network signals to customers deemed ineligible to receive the feeds, began Aug. 10. CBS, Fox Broadcasting and several of their Florida affiliate stations filed against PrimeTime 24, accusing the company of violating provisions of the Satellite Home Viewer Act.

In an effort to marry the PC to the dish, EchoStar entered into an agreement with EnterMedia Network Company to distribute EMNetwork - an interactive broadcasting network that will become available to DISH Network subscribers by the end of the year.

Through EMNetwork, subscribers will be able to interact through the Internet with programming and other viewers via personal computers. Pre-selected offerings "permit the viewers to interact with programming on a scheduled basis with other viewers so that they never experience the same program twice - even with multiple viewings," according to the company.

"EchoStar is proud to be the first satellite distributor to provide interactive broadcast services," said Mark Jackson, senior vice president of Satellite Services at EchoStar. "Our technology provides high-speed broadband delivery to PCs that will enable our subscribers to experience quality audio and full-motion video. EMNetwork demonstrates a new paradigm in broadcasting."

All EMNetwork programming offers audio and full-motion video, animation, chat communications, real-time viewer polls, text with graphics and full interstitial advertisements. EchoStar will offer subscribers a platform that includes their personal computer and a small dish antenna. Plans for a special set-top box for the television, which would allow EMNetwork to function more like WebTV, are in the works.

Content that may be offered by EMNetwork in the future includes business, games, sports, news and information. Those offerings may become available during the fourth quarter of this year.

EMNetwork, launched on June 17, "provides a venue for content producers who want to explore a new production and revenue model for new forms of visual and audio programming," EchoStar said in a statement. The agreement EnterMedia scored with EchoStar will grow its business into more than 1.4 million homes.

In addition to EMNetwork, EchoStar has two data services: The financial news-based Signal service and the farm information offering AgCast.

On Wednesday, Rep. Thomas Bliley and Sen. John McCain wrote Federal Communications Commission Chairman William Kennard, urging him to find a solution to the white area issue impacting home satellite subscribers who can or can't receive broadcast network signals.

The letter from the two powerful lawmakers specifically addressed the ongoing trail in Miami involving local stations, broadcasters and PrimeTime 24, which provides broadcast network signals to DBS and C-Band customers.

The biggest concern from the trial, according to their letter, was the preliminary injunction issued by the Miami U.S. District Court judge forcing PrimeTime 24 to shut off service to customers deemed ineligible to receive distant network signals.

"Putting aside the question of whether the satellite television distributor in this case has actually violated SHVA (Satellite Home Viewer Act) - for that is a question the court should address - we are nonetheless concerned about the impact the court's preliminary injunction will have on consumers as well as competition in the market for multichannel video programming distribution," the letter states.

The injunction, according to the letter, "threatens to undermine the progress we have made in promoting competition. Network programming - be it local or otherwise - is widely viewed as critical to the competitive viability of any distributor of multichannel video programming.

"Our fear is that, once deprived of their network programming, consumers will abandon satellite television service in favor of other providers, namely incumbent cable service providers."

Both lawmakers asked Kennard to respond by Sept. 4 to several inquiries, including how many DTH subscribers the agency suggests will lose their network signals as a result of the injunction. The two also asked what impact termination of network signals would have on the multichannel marketplace, and what action the FCC could take "to protect consumers from having their network programming services terminated."

Bliley is chairman of the House Commerce Committee. McCain, an Arizona Republican, is chairman of the Senate Committee on Commerce, Science and
Transportation.

EchoStar's DISH Network will be offering England's Premier League Soccer on pay-per-view each Sunday through Dec. 20. All matches start at 11 a.m. Eastern Time, and will appear on DISH Network channel 500. The cost is $9.95 for each match.
Included in the featured matches are Arsenal vs. Manchester United on Sept. 20; Leeds United vs. Sheffield on Nov. 8; and Liverpool vs. Blackburn Rovers on Nov. 29.

The Copyright Office is telling satellite TV subsribers who face cancellation of their broadcast network TV signals that it isn't the one to blame for the loss.

In a fax offered to satellite TV customers, the agency states, "The Library of Congress, the Copyright Office and the Federal Communications Commission played absolutely no role in terminating your network service, or in the lawsuits that require service to be terminated to many subscribers. 

"The decision to terminate your service was solely that of your satellite carrier, not a federal agency." 

In the fax, the Copyright Office also said that the federal government is powerless in restoring network broadcast signals. Any loss in service, according to the agency, "could be that one or more of your local network affiliate stations have contacted your satellite carrier and alleged that you do not reside in an 'unserved household.' Your satellite carrier may be terminating your service in response to these challenges.

"Your satellite carrier has made a business decision that you are not, or may not, be eligible for network service under the copyright license granted satellite carriers by the Satellite Home Viewer Act." 

The Copyright Office effort follows the start of a Miami trial involving broadcasters, local affiliates and PrimeTime 24. Broadcasters are suing the company over the alleged delivery of satellite-delivered broadcast network signals to customers deemed ineligible to receive the feeds.

With the PrimeTime 24 court case in Miami entering its second week, observers suggest the trial is leaning strongly in favor of broadcasters hoping to cut off the company's satellite-delivered network feeds, a move some say will end service delivered to about a million subscribers.

However, as broadcasters mark victories achieved so far in that U.S. District Court, they may be losing a bigger battle in Washington. Angry DTH customers are reportedly phoning representatives in Washington over the potential loss of their broadcast network signals. And agencies such as the Federal Communications Commission and the Copyright Office at the Library of Congress also are fielding calls.

The FCC is referring mad callers to the Copyright Office. The Copyright Office, which can be contacted at 202-707-5932, is telling callers via a recorded statement that, "At this time, there is no government agency including the FCC that can restore your network TV programming."

Numerous DTH subscribers are learning about the impeding loss of network TV through Internet sites such as tvaccessnow.com, a service of the National Rural Telecommunications Cooperative. Consumers also are accessing the Copyright Office site at http://www.lcweb.loc.gov/copyright for additional information. We will update you with current information on satellite/network feeds, providing hot links on how to locate representatives and other information.

The Satellite Broadcasting and Communications Association also said it is receiving numerous phone calls from consumers who have been denied access to distant network signals, or have learned about the impending disconnection of network service.

The case, in which broadcasters and local affiliates are suing PrimeTime 24 over the alleged delivery of broadcast network signals to customers deemed ineligible to receive the feeds, began Aug. 10. With the powerful backing of the National Association of Broadcasters, CBS, Fox Broadcasting and several of their Florida affiliate stations filed against PrimeTime 24, accusing the company of violating provisions of the Satellite Home Viewer Act (SHVA).

Also last week, the U.S. Court of Appeals in Atlanta denied PrimeTime 24's emergency petition to stay the Miami court's preliminary injunction forcing the company to cut service off to subscribers.

As the trial involving PrimeTime 24 got underway in Miami, fallout increased from the court's preliminary injunction preventing the company from delivering broadcast signals to subscribers deemed ineligible for the feeds.

Twenty-three Members of Congress sent a letter to Federal Communications Commission Chairman Bill Kennard expressing their concern over the injunction. They urged the FCC to take immediate action to address the an emergency petition filed by the National Rural Telecommunications Cooperative concerning their worries over the issue.

The Satellite Broadcasting and Communications Association also said it is receiving numerous phone calls from consumers who have been denied access to distant network signals, or have learned about the impending disconnection of network service.

U.S. Satellite Broadcasting said it has begun discussions with DirecTV about the extra capacity that could be brought to the 101-degree orbital position with a proposed new satellite slated for launch next year.

USSB Chief Financial Officer Bernie Weiss said the two sides have begun discussions, described as preliminary, and that no agreement has been reached. He wouldn't comment on the nature of the discussions or their direction.

DirecTV had not comment on any discussions. Last Tuesday, DirecTV President Eddy Hartenstein said during an analyst call that his company had plans to discuss options with USSB concerning the new satellite and added capacity.

"They are building a new satellite, and they are talking with us (about possibilities)," Weiss said. "Really, both companies talk a lot (with each other)."

USSB uses DBS-1, which experienced a failure of its primary spacecraft control processor (SCP) on July 4. Officials from both companies reiterate that the satellite is functioning properly. "DBS-1 is working," Weiss said.

"It converted to the second SCP, which it was supposed to do. that had no impact on programming services."

As designed, DBS-1 automatically switched to that back-up SCP, enabling it to continue uninterrupted service to more than 3.8 million DirecTV subscribers and 1.85 million USSB customers. 

USSB owns 5/16 of the DBS-1 satellite, or, "5/32 of the DSS system," Weiss said.

DirecTV announced last week plans for the fourth satellite, which will expand channel capacity by 20 channels and strengthen the company's in-orbit redundancy. The new satellite will replace DirecTV's capacity on DBS-1. The new spacecraft is an HS-601HP model satellite that will be launched in mid-1999 and positioned at 101 degrees among the three existing DirecTV spacecraft, pending approval by the Federal Communications Commission.

DirecTV Vice President of Communications Jeff Torkelson said the new satellite will have no impact on the company's break-even goal of a little more than 4 million subscribers. The $200 million needed to cover construction and launch of the bird is "an issue of cash," he said. "The cost will be spread out during 1998 and 1999. So we will have two years, $100 million each year, to pay for it."

The National Rural Telecommunications Cooperative has launched a website for the more than one million satellite viewers that are facing a blackout of CBS and Fox networks.

The website - www.tvaccessnow.com - was launched after a July 10 injunction that prohibits satellite providers from selling CBS and Fox to subscribers in certain geographic areas; especially those in rural regions.

The NRTC will provide information on the website about the possible loss of network signals and link viewers to congressional members and 650 network affiliates.

"We're already seeing the fallout from this judge's ruling. Consumers are telling us they can't receive over-the-air signals and we're cutting off their only access," said NRTC CEO Bob Phillips. "They are confused and angry, and are turning to their local satellite provider for answers. This website will serve as a helpful resource."

Saying he is waging "a one-man battle" against the influx of HDTV, Encore Media Group Chairman John Sie reiterated his stand that certain elements of the developing TV technology won't work.

At issue are plans by some networks to use a standard Sie suggests is not consumer-friendly. For example, HBO - Encore's main competitor in the premium movie channel business - plans to use the bandwidth-hungry 1080i format for its HDTV effort. Sie said that picture for an 1080i transmission could stretch bodies or cut off heads at the top of the screen.

Sie's comparisons are with world standard 4x3 pictures available today, compared to the ATSC/HDTV standard at 16x9, "With the push of a consumer button, they will stretch that 4x3 with the black bars on both sides to fit a 16x9," Sie said. "A slim Michelle Pfeiffer all of a sudden will look like Rosie O'Donnell. If that is not creative manipulation of art, I don't know what is."

Sie said the picture available to digital TV homes today, including those receiving Encore and Starz! networks he oversees, already get a superior picture. "All of the DSS homes, all of the digital cable homes, right in their living rooms, they have the capability of creating a high resolution 480p display without any new HDTV transmission."

And by November, when Encore unleashes Dolby digital AC3, the quality will get even better, Sie said.

Sie further pointed out that most regular programming - such as basic channels and local TV stations - are not in the wide-screen format. It's also hard for the average consumer to really tell the difference between the 1080i transmission and 720p, expected to become the format of choice.

Earlier, Encore reported that it is giving HBO a rough time in the ratings game. According to Nielsen data released by the company, STARZ! had a 1.O rating for total day, followed by HBO at 0.9 and Showtime at 0.2. 

As far as prime time ratings for flagship channels plus multiplexes, STARZ! and Encore's Thematic Multiplex at 4.9, virtually tied with HBO/Cinemax and their multiplexes, which earned a 5.0 rating. Showtime and its multiplexes again were third, with a 1.5 rating in prime time. That Showtime number is corrected from Wednesday's Encore/HBO story.

U.S. Satellite Broadcasting, in conjunction with England's Premier League soccer organization, is delivering to DSS dish owners some of the league's best match-ups every Sunday through Dec. 20.

The first match is set this weekend, with Southampton taking on Liverpool. Other games include Arsenal against Manchester United (Sept. 20), Leicester City vs. Wimbledon (Sept. 27), and Middlesborough and Newcastle United (Nov. 22).

All matches start at 11 a.m. Eastern Time/8 a.m. Pacific Time. They will appear on USSB channel 905. The cost is $9.95 for each match or $129.95 for the season. Matches are available to all residential DSS owners by using the remote or by calling the USSB automated system at 1-888-USSB-PPV. To order the season package, viewers must call 1-888-USSB-PPV.

Hughes Electronics is sticking to its story that recent anomalies aboard satellites it built are unusual, including the failure aboard PanAmSat's Galaxy IV satellite in May.

But the company said it will expedite the launches of replacement satellites for next year. That effort includes a new bird for its DirecTV service.

In a conversation with SkyREPORT.COM, Hughes Electronics Chairman and CEO Michael T. Smith said, "The satellite industry can't guarantee that it  won't lose any satellites, so we must have backups. We were lucky with the Galaxy IV because we had backups in place and we kept all our customers.  But this kind of thing can be very negative to the industry. So we've announced our sparing strategy."

The new DBS satellite will bring DirecTV's fleet to four spacecraft. It will allow DBS-1, which experienced a failure with the equipment that controls the satellite, to serve as an in-orbit back-up. When the control system on DBS-1 failed, it immediately switched to a back-up system, and never lost any of its operating ability.

Communications Vice President Jeff Torkelson said the company will still need to get the standard approval from the Federal Communications Commission to locate the new satellite at the company's 101-degree position. Torkelson added that the expanded capacity won't change DirecTV's plans for Ka-Band satellites it wants to locate at the same orbital parking spot, a proposal also at the FCC.

PanAmSat is also part of the plan to "strengthen the robustness" of Hughes' satellite fleets, said Smith. "These plans will provide our satellite services customers a very high level of assurance of continuity of service, while preserving Hughes' long-term growth opportunities." 

PanAmSat said its Galaxy X satellite has begun final preparations for lift-off later this month aboard a Delta III rocket. Galaxy X, the first of nine new PanAmSat satellites scheduled for deployment over the next 18 months, has been cleared for launch following the conclusion of an investigation into anomalies on other satellites.

Along with DBS-1, PanAmSat's Galaxy VII and Galaxy IV experienced similar problems.

Hughes said that a team of company engineers and outside experts confirmed that all three satellites experienced an electrical short within the spacecraft control processor, or SCP, resulting in blown fuses. The SCP is the on-board computer that controls the satellite. It executes a number of critical functions, such as propulsion for attitude control, solar wing positioning and antenna pointing. Hughes installs two SCPs, as well as other redundant systems, on each satellite to assure long life and
reliability.

Back-up SCP's on Galaxy VII and DBS-1 allow the satellites to operate normally. Galaxy IV suffered a loss of both the main SCP and its back-up, resulting in a total failure aboard the satellite. Hughes said the SCP failure on Galaxy IV is "distinctly different from the other three and is viewed as a random event."

Galaxy IV was the first operational HS 601 model satellite to suffer a complete failure. It delivered most of the paging traffic for the United States.

DirecTV and Thomson Multimedia formally announced yesterday that the two companies have signed a long-term agreement to develop and distribute new DBS receivers and services, and to accelerate the deployment of digital terrestrial television.

The two companies plan to design a new, low-cost DBS receiver platform that will include interactive services such as data enhanced video and electronic commerce. For higher-end consumers, DirecTV and Thomson will develop a "Webcasting" service, as well as software downloads and Internet access.

"Thomson and DirecTV pioneered digital television service and secured a leadership position by providing U.S. consumers the ultimate in programming choice, picture and sound quality," said Thierry Breton, chairman and CEO of Thomson Multimedia. "Through this agreement, we have strengthened our relationship and will extend our leadership to new media services."

DirecTV and Thomson also intend to promote digital terrestrial television by working with networks and local channel broadcasters as the transition from analog to digital format. The two companies are developing a universal digital box that will transfer local and satellite-delivered digital signals - from standard to high - to any brand of standard television set, and to an HDTV set as well.

The partnership will initially concentrate on the U.S. domestic market, and will explore opportunities and growth strategies in Latin America, Europe and Asia.

On Tuesday, the House Judiciary Committee approved legislation that would temporarily block an increase in the fees satellite TV companies pay to air network and superstation programming.

However, the committee also adopted an amendment requiring DBS companies to air every TV station in a market, the so-called "must-carry" mandate strongly opposed by DBS companies.

The controversial measure is designed "to even the playing field" between cable and DBS, said the amendment sponsor, Rep. Howard Coble, chairman of the House Courts and Intellectual Property Subcommittee. Not being able to air local signals has been satellite's "Achilles heel" in competing against cable, the North Carolina Republican said.

The adopted amendment goes further than simple must-carry, mandating that a satellite provider must deliver every TV station in each market "on contiguous channels and in a non-discriminatory manner on any navigational device, on-screen program guide or menu."

Satellite providers won't be required to carry a local signal that would "substantially duplicate" the signal of another broadcaster in a specific market.

Other amendments passed by the committee included keeping intact white area restrictions and the "CARP" copyright fee process administered by the Librarian of Congress.

Supporters of the Judiciary Committee's measure now face negotiations with backers of a House Commerce Committee-approved version of the bill. There is also a similar Senate measure. The House Commerce Committee version and the Senate version don't include must-carry provisions.

Last week, the Senate approved its measure, offered by Senate Commerce Committee Chairman John McCain, an Arizona Republican.

The House Judiciary Committee is set to vote today on Rep. Billy Tauzin's H.R. 2921, a bill which would hold the Library of Congress' DTH copyright fee jump.

Rep. Howard Coble, chairman of the House Intellectual Property Subcommittee, is expected to propose amendments to the bill requiring DTH must-carry.

The National Association of Broadcasters has shown its support of Coble's amendments to the bill in a letter to the committee from President Eddie Fritts. According to the NAB, the amendments will be a positive in that they will "allow DBS companies to begin providing local service to as many or as few local communities as they choose."

Most in the satellite industry are opposed to must-carry mandates for local stations. EchoStar has been one of the most vocal opponents of the measure, saying current capacity couldn't deliver every station in the country.

EchoStar revealed that it will carry the ESPN GamePlan college football package on its DISH Network service. 

The announcement was made by Chairman Charlie Ergen during his dealer "Charlie Chat" last week. Pricing is expected to mirror other satellite offerings, with customers paying $79 on or before Sept. 12 and up to $89 after that date.

The ESPN GamePlan college football package is also available to C-Band subscribers through TVN and Superstar/Netlink. PrimeStar and DirecTV also carry the package.

The package launches on Saturday, Sept. 5 and continues through Nov. 28.

EchoStar also announced its fall promotion, "The $49 Professional Installation Special." In addition to the reduced installation charge, customers can choose to receive a self-installation kit for free. Complete digital satellite TV systems for the DISH Network start at $69.95*

DirecTV will unveil more behind its proposed interest in consumer electronics manufacturer Thomson Multimedia today, including plans for a digital local TV solution.

DirecTV and Thomson have talked about building a digital receiver with the capability of receiving terrestrially-delivered digital local signals as well as programming from DirecTV and USSB. The developing box will collect and decode digital signals from local stations as well as DSS programming, and will make the switch between the two seamless for the user.

DirecTV expects to disclose plans and a test market for the local offering sometime in early 1999. According to government fiat, the top 30 TV markets will offer digital broadcasts by the end of that year. In an Interview with SkyREPORT, President Eddy Hartenstein noted that a DSS box Costing "under $500" will offer both DBS fare and digital broadcast "with the clarity of DirecTV."

The Thomson/DirecTV deal marks the DSS provider's first direct entry into the equipment side of the DBS business. Sister company Hughes Network Systems has been manufacturing DSS equipment for some time, including the new DSS-2 system capable of receiving programming from DirecTV's high-powered satellites as well as a slate of ethnic and HDTV offerings from a second satellite. Prior to Thursday's announcement, DirecTV was concentrated on programming.

Thomson has been one of the most successful DSS manufacturers to date. The company has built more than 4.5 million DSS systems under its RCA brand, the most popular line for the home satellite service.

DirecTV, Alcatel, Microsoft and NEC signed memoranda of understanding to jointly acquire 30 percent of Thomson Multimedia last week. Each company will take a 7.5 percent piece of French-owned equipment maker.

In a move sure to heat up both multichannel program guide battles and equipment wars, DirecTV, Alcatel, Microsoft and NEC have all signed memoranda of understanding to jointly acquire 30 percent of Thomson Multimedia.

Each company will take a 7.5 percent piece of French-owned equipment maker, known in the U.S. primarily for its RCA electronics brand and for its development of key pieces the DSS satellite system.

Through its intensified relationship with Thomson, DirecTV plans to focus on the development of a new generation of interactive digital receivers and interactive services. With the introduction of Microsoft and its Windows CE platform into the deal, Thomson's interactive products could make it a key competitor with digital set-top manufacturer, General Instrument, now partly owned by another DSS manufacturer, Sony. Plans to introduce a WebTV interactive program guide will compete directly with a similar offering soon to come from Sony.

Sony is also rumored to be looking at an increased investment in GI.

Thomson's Chief Operating Officer and Executive Vice President Jim Meyer also briefly spoke of its objective through a partnership with DirecTV as a step "designed to accelerate the transition to terrestrial digital television in the United States."

In a recent interview DirecTV CEO, Eddy Hartenstein noted that the next big step for his DSS platform is "digital terrestrial and how to integrate it into a single-receiver platform." DirecTV plans to release its official plans on the Thomson deal on Monday.  

The deal is subject to approval by the French government - majority owner of Thomson Multimedia - and is expected to be finalized in early fall of this year.

France has been trying to move Thomson Multimedia into the private sector, but efforts have encountered stiff resistance. The unit was sold for one "symbolic" franc by former Prime Minister Alain Juppe to South Korea's Daewoo Group as part of a botched privatization of Thomson SA in 1996. A French Privatization Commission blocked that sale.

The European Union in 1997 agreed to pump 11 billion francs ($1.84 billion) into Multimedia so long as it agreed to look for partners by the year 2000.

DMX Inc., a subsidiary of TCI Music, has signed an agreement with Microspace Communications Corporation to sublease space on the Galaxy 3R satellite to deliver two channels of DMX music programming.

Beginning on Jan. 1, the DMX music channels will provide service to 3M's music customers. In conjunction with the Microspace agreement, DMX will purchase the authorization and control equipment for 3M's direct broadcast satellite music services.

"The agreement with Microspace marks an exciting new business opportunity for DMX," said Sam Boskovich, senior vice president of affiliate sales for DMX. "The benefits of this new relationship are twofold. First, there is now a seamless and cost-effective solution which will allow the 3M dealer network to continue to serve their music customers as 3M phases out of the commercial music business. Second, DMX gains an additional, competitive service that our sales channels can market to provide our music services to any business customers nationwide."

By using 3M equipment, DMX will provide music programming that is similar in format to what is currently programmed and delivered by 3M. 3M dealers, as well as DMX's current sales offices, will be able to market the new service to potential commercial accounts. 

DirecTV is offering more than $200 of free programming to residential customers who purchase a DirecTV satellite system and subscribe to NFL SUNDAY TICKET and Total Choice PLATINUM programming packages between Aug. 5 and Oct. 11. The free 200
hours of programming includes four months of Total Choice PLATINUM and $8 of DirecTV programming certificates. The NFL SUNDAY TICKET features up to 13 NFL games every Sunday and nearly 200 games throughout the regular season. 

ZDTV On DirecTV - ZDTV - the 24-hour network featuring entertainment, education and information about computing, technology and the Internet - will become available on DirecTV Channel 273. The network is part of the Total Choice package. The official launch is Aug. 1.

The Senate approved a roll-back of the controversial 27-cent copyright fee increase for satellite-delivered network signals and superstations imposed by the U.S. Copyright Office late last year.

The measure sponsored by Sen. John McCain, an Arizona Republican and chairman of the Senate Commerce Committee, was added by voice vote to an appropriations bill for the Commerce, Justice and State departments. The Senate continued debating the bill after approving the amendment.

The amendment would freeze rates at the previous level for one year and direct the Federal Communications Commission to evaluate the situation. The House is considering a similar measure sponsored by Rep. Billy Tauzin, a Louisiana Republican and chair of the House Telecommunications Committee.

FutureTrak International, the Florida-based company offering satellite tracking and receiving systems for DBS systems, said it received recognition from DirecTV and EchoStar's DISH Network as providing solutions for the mobile DBS markets.

Officials in the DBS industry are quick to praise FutureTrak's innovations and are working with the company to further consumer adoption of the new technology.

"DirecTV is excited to be working with FutureTrak on the development of satellite tracking systems that allow our more than 3.8 million residential subscribers to take their DirecTV with them when they travel," said Terry Ferguson, vice president, Business Development and Strategic Planning for DirecTV.

Greg Dunn of EchoStar Communications Corporation said, "It's exciting to see companies like FutureTrak create and develop customer friendly 'mobile' DBS solutions. FutureTrak's mobile DBS products give boating and RV enthusiasts another way to receive the tremendous programming choice and value offered by DISH Network."

Steve Remondini, president of FutureTrak, said FutureTrak is in the process of engineering a solution compatible with PrimeStar's system. 

The Space Scanner II is the latest product from FutureTrak. The system offers satellite in-motion tracking for the mobile market.

Check our DSS page in our Cyberstore for more details on purchasing your unit.

U.S. District Judge Lenore Nesbit issued a permanent injunction against PrimeTime 24, a company that distributes network television service to home satellite viewers. This ruling will affect subscribers to the PrimeTime 24 service who signed up before March 11, 1997. These customers could lose service by April 30.

The temporary injunction issued last summer affected PrimeTime 24 subscribers who signed up between March 11, 1997, and July 10, 1998. They will lose their signals by February 28.

Many of NRTC customers live outside urban areas, and could be unfairly harmed by the current Grade B guidelines. "NRTC believes the commission has unfairly prejudged certain critical issues in this proceeding, and has failed to protect adequately rural consumers who are currently unable to view acceptable pictures over-the-air but are prohibited from receiving distant network signals by satellite," NRTC said.

NRTC asked the FCC to use new standards that reflect "more accurately which households can actually receive an acceptable signal through a conventional roof top antenna." NRTC recommended use of a predictive method called Terrain-Integrated Rough Earth Model (TIREM). Unlike the Longley-Rice model that is currently used to determine Grade B signal strength, TIREM takes into account important factors that affect signal propagation, such as terrain, interference, vegetation and urban clutter.

Pegasus Communications filed reply comments in the Federal Communications Commission’s rulemaking proceedings relating to the Satellite Home Viewer’s Act (SHVA). 

Pegasus said the FCC has the "authority under SHVA to  establish a definition of Grade B signal intensity for the purposes of the SHVA; set a predictive standard for determining ‘underserved households’ which would establish, without the need for an actual signal test, a rebuttable presumption that a household was underserved; and establish standards and methods for conducting actual Grade B signal intensity tests at individual households which are simple and inexpensive."

In its filing, Pegasus suggests that the FCC establish a "Red Zone" within 35 miles of each local affiliate in which retransmission of network signal would be prohibited.

Beyond the 35-mile zone, a "Yellow Zone" should be established in which a satellite distributor would be allowed to provide distant network service if a household is predicted to be underserved. 

Pegasus also said it believes the predictive method should predict signal intensity based upon usage of a conventional antenna mounted at a rooftop height (15 to 20 feet) rather than more sophisticated antennas mounted at 30 feet currently assumed by the Longley-Rice model.

The agreement would allow AT&T to use Time Warner's cable lines to provide high-speed Internet access and phone services. While the rumors are not new, recent published reports suggest the two companies could announce the pact as early as mid-January.

Any potential deal would require AT&T to finance most of Time Warner's upgrades in order to carry both voice and high-speed Internet access. AT&T would collect most of the revenue from the venture. Time Warner, in turn, would collect a fee from AT&T for each home along the network's path, along with another fee for each customer who signs up with AT&T.