SkyREPORT.COM News For 7/24/97
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Today's Headlines:
SBCA Nashville Show Begins Today
Loral To Buy Back AlphaStar Transponders
Canada Welcomes More U.S. Channels
News Corp. Sues Over India Satellite Ban
Time Warner, News Corp. Dispute Ends
SBCA Nashville Show Begins Today
As the Satellite Broadcasting and Communications Association opens its
Nashville show today, a handful of industry leaders won't be making an
appearance at the three-day event inside the Opryland Hotel. 
The most obvious absentee is AlphaStar, which is in bankruptcy
proceedings in Delaware. Uniden, which manufactures DSS equipment,
also reportedly won't be at the show. 
And Thomson Conumser Electronics, makers of the popular RCA
brand for DSS, won't have an exhibit in Nashville. Instead, the company
is relying on distributors to show off its next generation DSS system. 
The RCA-brand equipment has an off-air antenna allowing reception of
local channels as well as programming from DirecTV and U.S. Satellite
Broadcasting. The antenna is built into the 18-inch dish, following an
industry pattern which is tackling critics' assertion that local 
programming
isn't available via DBS. 
The third generation systems retail for between $599 and $449. The
system was first unveiled at SBCA's Las Vegas show in March. 
Satellite show attendees can see the new RCA system at exhibits
operated by Earth Terminal or DSI/Consumer Satellite System. The
show floor opens today at 11 a.m. 
Kicking off the SBCA Nashville show will be Encore Chairman John
Sie, who will deliver opening remarks at 9 a.m. Rep. Billy Tauzin, a
Louisiana Republican and chairman of the House Telecommunications
Subcommittee, will speak Friday at 9:15 a.m. That follows a technology
forum at 10 a.m. 
Loral To Buy Back AlphaStar Transponders
AlphaStar, Tee-Comm Electronics and its court-appointed receiver in
Canada signed an agreement with Loral that will allow the satellite
operator to buy back transponder leases from AlphaStar and share
future proceeds from the resale of those assets with the troubled DTH
provider. 
The deal announced Wednesday calls for a transfer of value to
AlphaStar of $8.7 million, including a cash component of $5 million, 
plus
a share of any profit over and above AlphaStar's existing rent 
obligations
earned by Loral through its re-leasing of Telstar 5 satellite 
transponders
to other companies. 
The deal is part of a "larger market process" involving the sale of
AlphaStar and Tee-Comm assets, said Brian Denega, senior vice
president at Ernst & Young, Tee-Comm's Canadian receiver. AlphaStar
filed for bankruptcy protection in the United States in May and
Tee-Comm went into receivership in Canada in June. 
Interested buyers can continue to make bids on AlphaStar or assets
such as uplink facilities in the United States and Canada or a better 
deal
on the Telstar 5 transponders. Until then, the future of the home 
satellite
service is still up in the air. 
"As for a buyer or buyers, that process is coming to a head," Denega
said. "Some have expressed interest in keeping (AlphaStar) on as an
ongoing concern. There is hope those parties can be successful." 
AlphaStar's switch from the Telstar 4 satellite to Telstar 5 is still 
set for
next week, Denega said. 
"We recognize there is a lot of uncertainty. We just ask everyone out
there to hang on until the 5th and continue to monitor the situation," 
he
said. 
Through the transponder deal with Loral, AlphaStar will receive
between 35 and 50 percent of any such future profit, depending upon
the average contract term of the new leases entered between Loral and
other companies. The agreement also entitles Loral to be paid $7.3
million under a letter of credit held by it in satisfaction of 
AlphaStar's rent
arrears to Loral. 
The deal requires court approval in the United States and Canada,
which is expected Aug. 5. 
Canada Welcomes More U.S. Channels
The Canadian Radio and Telecommunications Commission revised its
list of non-Canadian networks and channels eligible for DTH satellite
services throughout the country. 
New non-Canadian services will not be subject to any additional
requirement concerning the Canadian services they may be packaged
with - other than the existing packaging rules - or concerning the
technology used for their distribution. Distributors will be provided 
with
maximum flexibility to add non-Canadian services to discretionary tiers,
without placing at a competitive disadvantage distributors that have yet
to roll out digital technology. 
Services added to the list are America's Health Network, ART
America, BBC World, Court TV, Deutsche Welle, The Filipino
Channel, Fit TV, The Golf Channel, Speedvision, TV Food Network,
TV Japan and TV Polonia. Services added to Section B of the Part II
list and to the Part III non-Canadian list are American Movie Classics,
Game Show Network and KWGN in Denver. 
Playboy TV was added to Section B of the Part II list and to the Part 
III
non-Canadian list, but with carriage restrictions 
A request to add Bloomberg Information Television was denied since
the service was considered to be competitive with a Canadian specialty
service, ROBTv. A request to add Newsworld International was denied
as well, and the commission directed the network to file a license
application or apply for an exemption from licensing. 
News Corp. Sues Over India Satellite Ban
A unit of Rupert Murdoch's News Corp. is taking the Indian
government to court over its ban on home satellite broadcasting
throughout the country. 
News Television India filed its case Tuesday in India's Supreme Court,
according to company lawyer Kapil Sibal. The issue is likely to be heard
late next month. 
India government officials have been quiet regarding the ban since it
went into effect last week. Apparently, they are concerned broadcasters
may broadcast anti-India programs. 
For decades, the Indian government had a monopoly on radio and
television broadcasts. About six years ago, it opened the market to
foreign television companies with conditions on content. 
Time Warner, News Corp. Dispute Ends
Time Warner and News Corp. settled an outstanding dispute between
the two companies concerning carriage of News Corp.'s Fox News
Channel on Time Warner's cable system in New York City. 
According to a joint statement, all litigation between Time Warner and
News Corp. will be discontinued. In addition, all litigation between 
Time
Warner and New York City will be discontinued. 
Terms of the settlement, which the companies said include Time Warner
Cable's agreement to carry the Fox News Channel, are confidential. 
The agreement ends a nasty legal fight that will give the Fox News
Channel a slot on New York's largest cable system with 1.1 million
subscribers. According to reports, New York City would surrender one
of its municipal channels on Time Warner's system to open space for the
Fox channel. 
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SkyREPORT.COM News For 7/24/97
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