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Sat-Na August 18th 1997
Sat-na
August, 18
1997
FAA releases commercial space market projection
DIRECTV Offers Free DSS Equipment
BBC Offers Live Coverage of India/Pakistan 50th
EchoStar Reports 37% increase
U.S. Satellite Broadcasting to Offer World Cup
Scientific-Atlanta Reports Record Fiscal Year
Sinclair to Use HDTV to Broadcast Multiple channels
INTELSAT announces joint marketing ...
Gary Torrens
Editor
FAA releases commercial space market projection
Based on research and input from industry, the Federal
Aviation Administration (FAA) Office of Commercial Space
Transportation released its annual projection of Low Earth
Orbit (LEO) commercial payload and launch markets for the
period 1997 through 2006. The report evaluates market
trends for commercial satellite services, including
communications, remote sensing, and scientific research.
This report covers all non-Geostationary Earth Orbit
(GEO) systems; that is, it covers those satellites that
orbit at altitudes between 100 miles and the distance
required for geostationary orbits of 22,300 miles. Since the
annual report's inception in 1994, over the last three years
the information has been used to support government policy-
making, interagency working groups, and international
negotiations, concerning space launch trade agreements.
In its 1997 baseline "modest growth" forecast, the
FAA's commercial space transportation office projects that
four Big LEO constellations and two Little LEO systems will
be deployed from 1997 to 2006. Big LEO constellations
support voice communications by hand-held phones. Little LEO
constellations support non-voice data communications such as
paging, remote monitoring, and tracking. The 1997 baseline
forecast projects the successful deployment of at least one
more Big LEO constellation than was projected in the 1996
forecast. During the forecast period, the modest growth
scenario estimates the demand for launch services is between
96 and 130 for "small launches" (less than 10,000 pounds to
LEO), and between 74 and 100 for "medium-to-large launches"
(greater than 10,000 lbs. to LEO).
In its 1997 "high growth" forecast_based on assumptions
of aggressive growth in the market for satellite-provided
services_FAA's commercial space office projects that five
Big LEO systems, three Little LEO systems and one large
broadband LEO system will be deployed from 1997 to 2006.
A broadband LEO system will support high-speed data,
video conferencing, and other advanced technologies
communications. The 1997 forecast includes an increase of
one Big LEO system over the 1996 "high growth" forecast.
This year's "high growth" forecast marks the first time
FAA's commercial space office has included broadband LEO
communication systems in its Commercial Market Projections.
Last year, several proposals for broadband LEO systems
forwarded by industry made considerable progress in terms of
financing, licensing, and systems design. The inclusion of
one LEO broadband system in the high growth forecast
contributes to a 57 percent increase in the total number of
payloads projected during the forecast period.
The "high growth" forecast for demand for launch
services is projected to have between 132 and 174 small
launches during the forecast period and between 120 to 156
medium-to-large launches during the forecast period.
DIRECTV Offers Free DSS Equipment
Subscribers of satellite television service AlphaStar
are eligible to receive a special offer of free DSS
equipment. The offer was made available on Friday just
hours after the AlphaStar service was turned off as a result
of the ongoing bankruptcy proceedings of AlphaStar parent
Tee-Comm Electronics.
DIRECTV will provide former AlphaStar subscribers in
the continental U.S. with a free DSS system. These
subscribers need only sign up for any DIRECTV Total Choice
package and arrange and pay for shipping, handling,
applicable taxes and DSS system installation through an
affiliate
BBC Offers Live Coverage of India/Pakistan 50th
BBC News is planning one of its largest ever live
broadcasting operation to cover celebrations marking the
50th anniversary of the independence of India and Pakistan.
In Delhi, BBC has constructed a temporary studio at its
headquarters in Rafi Marg, near the parliament. Presenters
Nik Gowing for BBC World TV and Max Perrson for BBC World
Service Radio will anchor coverage in India.
In Islamabad, Nisha Pillai will anchor live coverage of
Pakistan's Independence Day for BBC World and Peter Biles
will be reporting for BBC World Service.
BBC World and BBC World Service will be covering key
events of the 50th anniversary celebrations live, such as
the midnight parliamentary session and Prime Minister I.K.
Gujral's speech from the Red Fort.
EchoStar Reports 37% increase
EchoStar Communications Corporation reported total
revenues of $100.8 million for the three months ended June
30, 1997, a 37% increase compared to total revenue of $73.5
million for the three months ended June 30, 1996.
For the six months ended June 30, 1997, EchoStar
reported total revenue of $172.8 million, a 50% increase
compared to $115.0 million for the six months ended June 30,
1996. These increases were the direct result of the
Company's rapidly growing DISH Network(SM) subscriber base.
During the three months ended June 30, 1997, the DISH
Network experienced strong subscriber growth, adding
approximately 110,000 net subscribers. Subscriber growth
has accelerated in the third quarter and the Company expects
this trend to continue throughout the second half of 1997.
Since December 31, 1996, EchoStar has added 240,000 net
subscribers to the DISH Network and had approximately
590,000 DISH Network subscribers as of June 30, 1997.
EchoStar's earnings before interest, taxes, depreciation and
amortisation ("EBITDA") was $3.0 million for the three
months ended June 30, 1997, compared to negative $7.6
million for the same period in 1996. EchoStar's EBITDA was
negative $842,000 for the six months ended June 30, 1997,
compared to negative $12.9 million for the same period in
1996. The improvement in EBITDA was primarily the result of
the increases in revenue combined with decreases in
subscriber acquisition costs.
As expected, EchoStar reported net losses of
approximately $63.8 million for the three-month period ended
June 30, 1997, as compared to $22.6 million reported for the
comparable period in 1996. EchoStar also reported net
losses of approximately $126.7 million for the six-month
period ended June 30, 1997, as compared to $29.8 million
reported for the same period in 1996. The increases in
EchoStar's net losses resulted principally from increases in
non-cash depreciation, amortisation and net interest
expenses. These non-cash expenses increased approximately
$39.8 million and $91.9 million during the three- and six-
month periods ended June 30, 1997, respectively, as compared
to the same periods in the prior year.
Total revenues increased $28.8 million during the
second quarter of 1997, as compared to the first quarter of
1997 (from $72.0 million for the quarter ended March 31,
1997). The increase in total revenues resulted principally
from subscriber growth during the quarter just ended.
EBITDA improved from negative $3.8 million during the
quarter ended March 31, 1997 to positive $3.0 million during
the quarter ended June 30, 1997, principally due to the
increase in revenues.
U.S. Satellite Broadcasting to Offer World Cup
U.S.S.B. will broadcast a World Cup Soccer `98
Qualifier and five Friendship Cup `97 Cricket Matches.
Italy takes on the Republic of Georgia in the World Cup
qualifier game, live on pay per view Wednesday, September
10, from the Republic of Georgia National Stadium from 1:30
p.m. to 3:30 p.m. EDT Channel 905
India faces Pakistan in five individual one day cricket
matches for the Sahara Friendship Cup `97, live September
13, 14, 17, 20 and 21, from 9:30 a.m. to 6:30 p.m. EDT also
on pay per view Channel 905
Scientific-Atlanta Reports Record Fiscal Year
Scientific-Atlanta reports sales for the fourth quarter
ended June 27, 1997 increased 18% to $322.7 million, an all-
time record for the company, compared to the prior year's
fourth quarter sales of $272.7 million.
Orders booked in the fourth quarter were $321.1
million, an increase of 28% over the previous year's fourth
quarter, and were a record for any fourth quarter. Backlog
at fiscal year end was $483.5 million, also a record for any
fourth quarter.
Net earnings of $19.6 million, or $0.25 per share, in
the quarter increased 36% over the prior year's fourth
quarter, excluding one-time after- tax charges of $29.4
million, or $0.39 per share in the prior year. The one-
time charges included in the prior year's loss of $15.0
million, or ($0.20 per share) related to an arbitration
award and a write-off of in-process R&D purchased in an
acquisition.
In satellite communications, five Scientific-Atlanta
ground stations from Iceland to Hawaii are tracking the
first 16 IRIDIUM global communications satellites, the first
of which were launched May 5, 1997.
S/A continued its move into the US programmer market by
adding E! Entertainment Television and VH-1 to the growing
list of US programmers such as the Family Channel, Discovery
Channel, ESPN, Weather Channel and Turner Broadcasting which
have begun using Scientific-Atlanta's Power-Vu satellite
digital compression system for program distribution in the
United States and abroad. Group W Network Services launched
the new CBS Eye on People cable channel using a PowerVu
system as well.
Sinclair to Use HDTV to Broadcast Multiple channels
Sinclair Broadcast Group said it is planning to use its
digital television channels to broadcast multiple channels
of television. The decision to proceed to a "multi-cast"
application is based on the available technology already
employed by the direct-to-home satellite industry as well as
several European countries that already are proceeding with
multi-cast through terrestrial TV transmitters.
Sinclair plans to roll out a first demonstration of
multi-casting in its headquarters market of Baltimore in
January of 1998. The first demonstration will use at least
two television stations' digital channels. Later in 1998,
at the annual broadcasting convention in Las Vegas, where
Sinclair also owns a station, multi-casting will also be
demonstrated.
INTELSAT announces joint marketing ...
INTELSAT Director General and CEO Irving Goldstein
announced that INTELSAT and RASCOM, the Regional African
Satellite Communications Organisation, have established a
joint program to promote telecommunications services in
Africa and the more efficient use by African users of
INTELSAT's global satellite system.
Under the agreement, RASCOM will market INTELSAT
voice/data and video services to Signatories and other
authorised customers in over 50 African countries. The two
organisations will work with customers to capitalise on new
opportunities and to build a consolidated community of
African INTELSAT users by pooling individual satellite
leases onto one particular satellite.
Pooling leases onto one satellite will allow African
telecommunications operators to share satellite capacity
reservations in an efficient way. It is also an important
step in furthering direct inter-African communications links
by eliminating the need to have multiple antennas for
communicating with neighbouring countries or to route
traffic through third countries in order to interconnect.
As part of the deal, RASCOM will also co-ordinate
operational and technical training seminars on the latest
technologies and services applicable to African users of
INTELSAT. In addition, RASCOM will provide occasional
technical, administrative and operational assistance to
INTELSAT customers throughout the region.
Next Ariane Launch Next Atlas/Delta Launch
Hotbird 3 -September 2, 1997 Iridium-- August 19, 1997
In Brief
" ABC has reached a multimillion-dollar, multiyear
contract to increase and expand the broadcast transmission
services it buys from Vyvx Inc. ABC uses Vyvx for its video
transmission services primarily for backhaul news, sports
and special events programming from various locations to its
production studios in New York.
" Intelsat 806, due to be launched in March 1998, will
concentrate the Argentinean services now on the 706, 709,
and 601 satellites.
" Iridium will offer satellite cellular telephone
communications in Brazil as of March, 1998. It plans to
serve 60,000 users in the country during the first year, and
to reach 150,000 users until the end of 1999.
" Ariane Flight 99, is scheduled for September 2. An
Ariane 44L launch vehicle will carry two European
satellites: Eutelsat's Hot Bird 3, a telecommunications
satellite and Eumetsat's Meteosat 7, a weather satellite.
" Vyvx Advertising Distribution Services has converted
its satellite network to the digital platform. Nearly 600
television stations and cable systems across the nation
which currently receive commercials by satellite from Vyvx
have installed digital receivers to decode transmissions for
onsite storage and playback. The new units are "plug and
play" compatible for easy integration with stations'
existing satellite, audio, video, printer and VTR
interfaces.
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