EchoStar Signs Pact To Purchase Media4, Inks OpenTV Deal For Interactive Services

EchoStar Communications Corp. [DISH] took two key steps last week to further its involvement in two major growth areas: the deployment of broadband satellite networking equipment and the delivery of interactive TV services.

In one deal, EchoStar signed a letter of intent to acquire privately-held Media4 Inc. of Atlanta, which supplies broadband satellite networking equipment for personal computers. Under that agreement, EchoStar would issue approximately 400,000 shares of DISH common stock for 100 percent ownership of Media4. The second deal involves a partnership with OpenTV Inc., a provider of operating system technology for digital interactive television. The seven-year agreement involves the distribution of domestic interactive television services.

EchoStar currently serves more than 1.5 million U.S. subscribers with its direct broadcast satellite (DBS) service and plans to become the first DBS provider to offer full interactive TV services across the United States with the help of OpenTV. The partnership calls for EchoStar to license and deploy OpenTV’s technology and software with EchoStar’s digital set-top boxes, which will be available to EchoStar’s DISH Network subscribers in the summer of 1999.

OpenTV’s software technology let the company develop a diverse set of partners, including 15 digital cable and satellite TV operators, 24 set-top box builders, four conditional access providers, seven chip-set vendors and dozens of content developers and service providers. Jan Steenkamp, OpenTV’s CEO, said, "EchoStar’s DISH Network is the ideal medium for the first U.S. deployment of truly interactive services for people who enjoy watching television."

In the other deal, the planned acquisition of Media4 is part of EchoStar’s continuing effort to enhance the viewing experience of its consumers and take the industry lead in offering business TV and data delivery applications, said Charlie Ergen, EchoStar’s chairman and CEO. Media4, founded in 1995, is a supplier of PC-based, digital video broadcast (DVB) compatible satellite transmission products. Its flagship product line, MediaStream(R), provides a complete software-driven, DVB-compatible satellite uplink system along with low-cost, PC-resident DVB receiver technology and application software.

"Combining our MediaStream technology with EchoStar’s satellite network would allow us to provide a full range of broadband content delivery solutions for our customers," said Jim Stratigos, co-founder and CEO of Media4.

ICO Global Orders $25 Million In Handsets From Nera ASA

ICO Global Communications [ICOGF] placed a $25 million order with Nera ASA<P> of Norway for mobile handsets and marine communications terminals. Delivery is set for 2000 when ICO plans to start service. The order is the first Nera has secured to build pocket-sized handsets. It also is ICO’s first deal with a European handset supplier. Earlier this year, ICO placed its initial handset orders with NEC and Mitsubishi of Japan and Samsung of Korea. Nera manufactures maritime satellite terminals for Inmarsat.

"This is a great opportunity for us to secure a European supplier and we look forward to working with Nera in the development of these new exciting products," said Olaf Lundberg, ICO’s CEO. "Demand for our terminals will be ramping up rapidly once we launch the service, and we will need a diversity of sources." ICO was founded in 1995 as a private company by Inmarsat signatories to provide global mobile personal communications services by satellite. ICO has raised more than $2 billion in equity from 93 investors, including 60 partners that consist of telecommunications and technology companies from over 50 markets worldwide. (Joseph Tedino, ICO, 202 887 8111.)

Globalstar Adds Iceland To Its Worldwide Mobile Satellite Services Network

Globalstar LP [GSTRF] gave Martel Ehf. of Reykjavik, Iceland, exclusive rights to provide its satellite services in Iceland, Greenland and the Faeroe Islands. Martel will team with Rome-based Elsacom, an exclusive Globalstar service provider in 24 European countries, to offer satellite telephone services to land-based and maritime users throughout the North Sea and North Atlantic Ocean regions. Globalstar is expected to start commercial service in the fall of 1999. (John Cunningham, Globalstar, 408/933-4434.)

Time Warner Cable To Use Loral Skynet’s Telstar 7

Time Warner Cable [TWX] is the newest customer of the Loral Skynet Telstar satellite fleet. Loral Skynet will distribute an array of digital services for cable operators and their customers. Time Warner Cable is testing its AthenaTV on Loral Skynet’s Telstar 5 satellite at 97 degrees W. The service will migrate to Loral Skynet’s Telstar 7 satellite in the second quarter of 1999, anchoring a cable neighborhood at 129 degrees W.

Loral will support Time Warner Cable’s AthenaTV service introduction with an aggressive antenna seeding program. Loral Skynet will furnish antennas to participating cable operators and will provide program management services to ensure a seamless transition when the service migrates from Telstar 5 to Telstar 7. Telstar 7 is expected to begin service during the second quarter of 1999. (John McCarthy, Loral Skynet, 908-470-2347.)

Comsat Plans To Offer U.S. Internet Link To Portugal

Comsat Corp. [CQ] intends to help CPR Marconi (CPR), a telecommunications company in Portugal, connect to a U.S. Internet backbone. The Portuguese company will access the Internet using Comsat’s state-of-the-art asynchronous transfer mode (ATM) via satellite link. ATM is an advanced, broadband technology that enables high-speed, high-bandwidth applications to be sent over a single network simultaneously. The applications include voice, data, image, video, multimedia and Internet. Comsat Digital Teleport Inc. will provide CPR Marconi with 2 mbps ATM to the United States and 8 mbps back to Portugal on the Intelsat 706 satellite. Terms of the deal were not disclosed.

"Satellites are a powerful solution for the rapidly growing demand to transmit Internet and other networking traffic because they offer reliable connections to virtually anywhere in the world," said Betty Alewine, Comsat president and CEO. (Dave Groobert, Comsat, 301/214-3420.)

Industry Veterans Win Election To SSPI Board Of Directors

Three seasoned satellite industry executives were elected to the 22-member board of directors of the Society of Satellite Professionals International (SSPI). Priscilla Davis, executive vice president and chief operating officer of The Spaceconnection Inc.; John (Jack) Morse III, partner in North Star Telecommunications LLC; and James Vautrot, president & CEO of BAF Satellite & Technology Corp. will serve three-year terms, beginning Jan. 1, 1999. Current board members Mary Frost, vice president and regional general manager of ICO Global Communications Services Inc.; Lon Levin, vice president of American Mobile Satellite Corp.; and Licia Salice, Intelsat’s manager of corporate strategy were re-elected for their second three-year terms.