Last Thursday (March 30) PanAmSat’s stock price fell $15.25 following an analysts’ briefing given by PanAmSat chief executive officer Doug Kahn.

Kahn said that PanAmSat’s earnings likely would fall well below expectations this year. The reasons he cited were largely to do with rising interest rates and other factors unrelated to the company’s announcement the previous day that it intended to develop a bandwidth-intensive global network, which has been dubbed NET/36.

Kahn said that the NET/36 network will put the satellite operator at the forefront of those satellite companies that are involved in broadcasting IP video, audio and data simultaneously to DSL providers, cable headends, ISPs and broadband wireless providers around the world.

PanAmSat plans to spend about $350 million during the next two years on the development of the NET/36 system and operating expenses but will be able to launch the service in third quarter 2000.

The investment is also designed to ensure that the satellite operator will transmit and distribute full-screen, television-quality video using the Internet. About one-quarter of the network will be installed in the next 12 months, said the company.