News Archive
Iridium Pleased with Q2 Results -- Posted by soullezz
on Monday, July 30 2007
Iridium Satellite released its second quarter earnings last week, saying its data services are helping to drive subscriber gains and its next-generation constellation is getting closer to fruition. Company execs said the period was "exceptionally strong" and customers are switching to Iridium because its competitors have "serious network quality issues."
Iridium said it finished the quarter with 203,000 subscribers worldwide at the end of June 30, an impressive 27.7 percent increase over the same period last year (159,000). Revenue for Q2 was $66.7 million compared to $53.6 million in the same quarter last year - a 24.4 percent increase.
Second quarter EBITDA (earnings before interest, taxes, depreciation and amortization) of $20.2 million was 53 percent greater than Q206 of $13.2 million, the company said.
Iridium attributed much of its quarterly success to a growing "ecosystem" of partners. The company signed eight new partners during the period, including Astrium Services (a subsidiary of EADS Astrium), Blue Ocean, LogicaCMG, Microdesign, NRG Telecom, Qinetiq, Solara and Upwards Innovation. Officials also said the company is making progress on the development of its next-generation constellation Iridium NEXT.
BSkyB Reports Strong Year-End Results -- Posted by soullezz
on Monday, July 30 2007
Strong operational and financial results for BSkyB this period resulted in a 27 percent increase in the company's full-year dividend. While the return should be quite pleasing to investors, the company seems to be happy as more customers are choosing Sky products than ever before.
For its full-year results, Sky said its annual new customer additions of 1.446 million is a 13 percent increase over last year, and annual net customer growth of 406,000 boosted its total subscriber base to 8.582 million. The company reported record Sky+ growth of 821,000 to 2.374 million and 28 percent base penetration.
BSkyB said it now has 292,000 high-def customers, which is the fastest uptake for one of its "additional" TV products, and SkyBroadband subs now tally 716,000.
Financially, BSkyB reported a 10 percent increase in revenue to $9.215 billion and an underlying gross margin of 63 percent, up from 61 percent last year. The company said its operating profits reached $1.650 billion, which includes losses of $342 million from residential broadband and $46.5 million from Easynet Enterprise. Underlying operating profit increased to $1.939 billion, an annual growth of six percent, the company said.
XM, Sirius File Merger Analysis -- Posted by soullezz
on Monday, July 30 2007
The satellite radio merger of Sirius and XM has long been debated in Washington, on Wall Street and among the public. Now, the companies have filed with the Federal Communications Commission an economic analysis of the deal and some feel its the satcasters' best shot at shaping opinions in their favor.
The analysis addresses a few key issues that have been sources of contention for the Department of Justice, members of the FCC and the volumes of organizations that have filed comments with the government voicing opposition to the deal. According to some analysts, the filing represents the first time either XM or Sirius have offered a sophisticated economic analysis to support the idea that a unified satellite radio company would be in the public's best interest.
"The analysis points to, among other things, usage data and data correlating satellite radio penetration with terrestrial radio coverage, as evidence that consumers see other products as substitutes for satellite radio," Stifel Nicolaus' Blair Levin said. The analysis also suggests that taking into consideration the characteristics of the satellite radio business, "it would be irrational for the merged companies to raise prices."
Coupled with the companies' recent announcement that they would offer a la carte programming, Levin said the economic analysis "helps recapture momentum for the deal."
Still, the analyst said, based on the firm's review of the report, the merger "remains a close call" and it is "more likely than not that the deal is approved." Levin also said significant portions of the report was redacted - or classified - and opponents have yet to have a chance to offer their take on the data.
EchoStar Seeks Condition on DIRECTV Swap -- Posted by soullezz
on Friday, July 27 2007
Last week, EchoStar filed a petition with the Federal Communications Commission asking the agency to declare the News Corp.-backed Big Ten Network is a regional sports network, not a national network. Now, because the company feels that ruling will have an impact on the DIRECTV swap from News to Liberty, EchoStar is also asking that the pending transfer contain a condition that would apply arbitration to all Liberty- and News-owned programming.
In a letter to the FCC, EchoStar said its ability to maximize consumer choice and design customer-friendly packages is damaged without clear cut - and enforceable - programming conditions. The company said forcing expensive sports programming into basic tiers designed for cost-conscious subscribers goes against Chairman Kevin Martin's desire for more a la carte options.
EchoStar said because it is in a "stalemate" over the Big Ten Network issue, the company wishes for the FCC to ensure that News Corp. abides by its earlier agreement that all of its affiliated programming be subject to the commission's program access rules. EchoStar sited previous FCC language that said "combining News Corp.'s programming assets with DIRECTV's national distribution platform" ends up having anti-competitive effects.
Also, according to conditions placed on News Corp.'s initial takeover of DIRECTV, News agreed that its broadcasting and RSN properties would be subject to mandatory arbitration rights for programmers seeking access to "must-have" content. The letter said the extra precaution was found necessary by the FCC due to the importance of regional sports programming and the absence of acceptable substitutes.
"At a minimum, the Commission should ensure that a fully vetted definition of RSN that protects against any gamesmanship or uncertainty going forward is included in this merger's conditions," EchoStar said. Instead of finding a perfect definition for an RSN, "the more logical course of action is to broaden the arbitration remedy to all Liberty and News Corp.-owned programming: any line drawing would be subject to potential abuse or manipulation."
EchoStar also said that with this request, Discovery should be included in the arbitration as well - even though it is not a part of Liberty Media. Discovery is under the Discovery Holdings umbrella, of which Liberty's John Malone serves as Chair, Director and CEO and owns 27.6 percent aggregate voting power.
"Promising that Dr. Malone's right hand (Liberty Media) will satisfy requirements is of little consequence, if Dr. Malone's left hand (Discovery Holdings, Liberty Capital, Liberty Global, or a new Malone programming entity) is not under the same restrictions," EchoStar said. "Such a loophole must be avoided."
EchoStar Petitions For Big Ten Network -- Posted by soullezz
on Tuesday, July 24 2007
EchoStar has filed a petition with the Federal Communications Commission seeking an expedited declaratory ruling to classify the Big Ten Network as a regional sports network. The ruling would effectually categorize the soon-to-be-launched net as affiliated programming accessible to pay-TV competitors under terms of News Corp.'s 2003 takeover of DIRECTV.
EchoStar said in its petition that defining the Big Ten Network as an RSN would ensure that it and other unaffiliated pay-TV providers - or multichannel video programming distributors - can carry the channel "on reasonable terms." The network, a joint venture of the Big Ten and Fox Cable Services, is slated to air in late August covering sports from the conference.
As part of the commission's approval process in 2003, News Corp. agreed to allow competing pay-TV providers access to affiliated programming. The Big Ten Network has failed to reach carriage agreements with EchoStar, Comcast, Time Warner and Cox due to what the satellite TV company says are exuberant rates requests and unrealistic demands to be carried nationwide on basic programming tiers.
"Terms of the Big Ten Networks carriage demand would impede EchoStar's ability to offer a low-priced basic programming tier that the vast majority of consumers can purchase, which is key to EchoStar's business model," the petition said. "The pricing and packaging structure proposed by the network is comparable to that of a traditional RSN, and bears little relation to the greatly reduced pricing structure of existing national college sports-based networks (like) CSTV and ESPNU."
EchoStar also said that the Big Ten Network wants to avoid being tagged an RSN in order to circumvent arbitration provisions from the original 2003 order.
"Regardless of how the Big Ten Network might try to cast itself, those provisions were designed precisely for the type of programming - live, high-profile regional sporting events - that the Big Ten Network offers," the company said. Failure of the FCC to classify the network as an RSN would allow other affiliated RSNs to "escape commercial arbitration merely by requesting national carriage."
XiriuM Would Offer A la Carte -- Posted by soullezz
on Tuesday, July 24 2007
In a move being seen as an attempt to please federal regulators, officials at Sirius and XM said that if the companies are allowed to join forces, the newly combined company would offer consumers in the U.S. the choice of a la carte programming. With the lower-cost service option, the companies are hoping to show that a unified satellite radio industry would no doubt be in the public's best interest.
According to the companies, subscribers will have the option of buying a "basic" package of 50 channels for as low as $6.99 - nearly half of what satellite radio customers of either company are used to paying now. A second tier a la carte option will offer customers a 100-channel package.
What makes the announcement interesting is that with an a la carte system, Sirius customers would have the ability to choose some channels that are available exclusively on XM - and XM subs from Sirius channels as well. The companies said the two a la carte packages would be available to subscribers within a year of the merger.
While the companies hope the news pleases those at the Federal Communications Commission, not all are as excited about the development as Sirius and XM. In maintaining its staunch opposition to the proposed merger, the National Association of Broadcasters did not take long to blast the a la carte maneuver.
"Policymakers should not be hoodwinked by the announcement, since nothing is stopping either XM or Sirius from individually offering consumers a more affordable choice in limited program packages," said NAB EVP of media relations Dennis Wharton." After reading the fine print, one discovers that XM and Sirius customers have to buy a new radio for an undisclosed fee to reap the alleged rewards" of an a la carte system.
Wharton also said that two "hotly-competitive" companies like XM and Sirius would "promise anything to become a monopoly."
Intelsat's Galaxy-17 Ready for Business -- Posted by soullezz
on Saturday, July 21 2007
Commercial satellite services provider Intelsat revealed that its Galaxy-17 satellite is now fully operational and providing services for clients worldwide. The Thales Alenia Space-built satellite, launched in early May of this year, recently arrived at its temporary home (74.05 degrees west) where Intelsat took control of the new unit.
Intelsat said Galaxy-17 will eventually be relocated to 91 degrees west and join the company's North American community within its Galaxy fleet. Made up of 15 other birds, the fleet serves Central America and the Caribbean in addition to North America.
Once "on station," Galaxy-17 will offer new capacity via its 24 C- and 214 Ku-band transponders for Intelsat's video and corporate and consumer broadband customers throughout its service regions. The company said Galaxy-17 (Intelsat's 52nd overall satellite) was its first launch of 2007.
Intelsat said it expects to launch two more satellites by the end of the year: Intelsat-11 and Horizons-2 (a joint venture with JSAT). Intelsat-11 is scheduled to launch in September on an Ariane rocket, the company said, and Horizons-2 is slated for a launch sometime "in late 2007."
Report: WiMax Presents Opportunities, Not Threats, to Satellite -- Posted by soullezz
on Saturday, July 21 2007
Recently DIRECTV and EchoStar shook the satellite industry by unveiling joint plans to work with Clearwire for a WiMax solution. This week, Sprint Nextel took the wraps off an agreement with the company to expand the deployment of its nationwide mobile WiMax network plans. So with Clearwire working with the nation's DBS companies and with multiplatform competitors, how will WiMax services impact the satellite industry?
Not to fear, suggests a new report, because WiMax will actually present more opportunities for satellite than it will create market threats. The study, issued by NSR, said satellite backhaul, DBS triple play efforts and ancillary terrestrial component (ATC) spectrum will in fact generate greener pastures for satellite-WiMax demand.
The research firm's new study, "WiMax: Opportunity or Threat for Satellite Communications," says satellite-WiMax "inter-working" will produce a variety of distinct opportunities, ranging from C-band and Ku-band satellite backhaul in developing regions and remote areas, to DBS WiMax triple play retail bundles in mature satellite TV markets. Other areas of opportunity include lowering capex and installation costs per broadband users via satelltie WiMax integration at the VSAT, to a satellite derivative of mobile WiMax potentially applied to hybrid satellite/wireless handsets using ATC spectrum.
"WiMAX momentum and high-growth expectations will prompt satellite players to leverage the distance indifference and quick deployment characteristics of satellite services to opportunistically address supply-demand disruptions in backhaul bandwidth requirements," the study said. "Two-tier satellite-WiMAX backhaul also presents leapfrog advantages in developing regions and remote areas that lack terrestrial broadband infrastructure."
The NSR study also suggests the WiMAX play and the role for satellites will be largely shaped by triple play and quad-play battles aiming to integrate service offerings. "WiMAX is a newcomer to the triple play game, and cross-platform complementary offerings such as DBS-WiMAX bundles will continue taking place," said Christopher Baugh, NSR president. "These deals will facilitate the introduction of triple and quad-play services in an increasingly technology-agnostic way."
Liberty Could Buy All of DIRECTV -- Posted by soullezz
on Monday, July 16 2007
Late last week, Liberty CEO Greg Maffei hinted that the company definitely sees benefits in buying all of DIRECTV and spinning off the satellite television provider into another tracking stock.
DIRECTV "is a good business and having access to those cash flows, being able to have it operate synergistically with our content businesses can be attractive under the right conditions," he said at a media conference in Idaho. Although the company has yet to make a decision on its plans, Maffei said Liberty could "liquidate its position" in DIRECTV as well.
The exec said spinning off DIRECTV's assets into a tracking stock for Liberty would benefit future investors looking to get involved more directly into certain assets. "It makes sense to give investors a way to invest in those assets directly rather than the pile of companies," he said.
Liberty's acquisition of the controlling stake in DIRECTV is expected to close by the end of the year.
DARS Preview: What to Expect from Q2 -- Posted by soullezz
on Monday, July 16 2007
Both XM and Sirius have been on the minds of many during the past several months as regulators begin to decipher the raging debate surrounding the companies' proposed merger. Wall Street especially has been paying close attention, and analysts are now preparing to take a stab at how the nation's satellite radio players are performing so far this year.
According to Wedbush Morgan's William Kidd, XM seems to have sustained its first quarter market share gains which has led the analyst to positively revise his second quarter net adds. And although retail sales for both satellite radio companies continue to be "anemic," Kidd said XM is the one to have rebuilt much of its market share lost to Sirius last year. With this in mind, Kidd increased his Q2 net additions to 295,000 (from 235,000) on a stronger-than-anticipated retail showing.
The analyst also said a strong OEM result could push XM ahead of forecast. "In spite of our revised Q2 net adds estimate, we believe the incremental direction from Q1 is positive," Kidd said. "OEM sales for both Sirius and XM should show progress throughout the remainder of 2007." Out of the two companies, it is XM which has a greater potential to positively surprise, he said.
As for Sirius, Kidd said he expects the merger process to continue to overshadow the company's operational results, which should show a positive transition to an OEM-driven mix from retail. The analyst raised his Q2 net adds estimate from 423,000 to 460,000 with OEM gross adds jumping from 419,000 to 526,000.
"Bear in mind, we expect retail sales to continue to be soft, as mid-quarter NPD data suggested that retail sales were down roughly 20 percent Y-o-Y and that XM was holding its recent market share gains at -45 percent," Kidd said.
With regards to the merger, Kidd said now that the FCC is considering a rule change that would reverse the license provision that currently prevents the companies from joining forces, "the issue of market definitions will dominate the regulatory thought process, with regulators having to decide whether or not substitutes, like MP3s and free radio, could serve to restrain a monopoly's pricing power." Also, the analyst said, regulators must determine whether customers would benefit from a combined XM/Sirius entity.
Another Obstacle for Rupert's Dow Jones Plans -- Posted by soullezz
on Monday, July 16 2007
A Dow Jones board member - who is also a member of the family that controls the company - has gone on the offensive to keep News Corp.'s Rupert Murdoch from taking it over. A Sunday report in the Wall Street Journal said the board member has launched a last-ditch effort to keep the media mogul from gaining control of the publication company.
According to the paper, Christopher Bancroft recently approached hedge funds, private equity firms and General Electric with the hopes of buying enough voting shares of Dow Jones to give him authority to squash any sale Murdoch has in mind. It has been widely reported that Murdoch's News Corp. has offered $5 billion - or $60 per share - for the company.
Sources close to the negotiations said Bancroft is trying to secure more "supervoting" shares from other Bancroft heirs who may be considering selling their stakes while sharing an aversion to giving the family's business over to Murdoch. The Journal reported that Bancroft, his two siblings, his niece and their children are beneficiaries of trusts that control nearly one-third of the Bancroft's stake in Dow Jones.
Overall, the Bancroft's control more than 60 percent of the company's voting power, the paper said. Christopher Bancroft is one of three family members on the Dow board.
DISH Expands High-Def Package -- Posted by soullezz
on Wednesday, July 11 2007
It seems the majority of press surrounding satellite's high-definition movement has been focusing on DIRECTV's soon-to-be expanded HD offering. But quietly flying under the radar is DISH Network which currently has the nation's largest HD slate - which now is even bigger.
According to the satcaster, DISH will launch eight new regional sports networks (RSNs) today that feature game-only baseball content. Included in the HD expansion are FOX Sports Network Arizona (channel 365), FOX Sports Network Northwest (channel 376), FOX Sports Network Cincinnati (channel 377), FOX Sports Network Pittsburgh (channel 378), FOX Sports Network Detroit (channel 380), SportsTime Ohio (channel 381), FOX Sports Network North (channel 386) and SportsNet New York (channel 388).
With the launch of nine HD RSNs earlier this year, the new additions bring DISH's total lineup to 17, with more channel launches planned, the company said.
Speaking of more channel launches, DISH also said that on Aug. 15, the satellite service will add seven more national HDs to its DishHD programming package. Included in the company's national expansion are MHD, featuring music programming from MTV, VH1 and CMT; Golf/Versus HD; Animal Planet HD; The Science Channel HD; TLC HD; Discovery HD, and History HD, which will debut on Sept. 1.
With these launches, and more slated for mid-September, DishHD subscribers will have access to "the largest national HD lineup in the United States," DISH said. The DishHD package currently offers more than 200 hours per day of HD content for a $20 add-on fee, the company said.
Successful Launch for DIRECTV-10 -- Posted by soullezz
on Monday, July 9 2007
A greatly expanded high-definition offering from DIRECTV is one step closer to reality. Thanks to the successful launch of the satcaster's newest satellite - DIRECTV-10- high-def junkies nationwide will soon be able to receive upwards of 150 national and 1,500 local HD channels through DIRECTV.
The launch procedure was completed by International Launch Services (ILS) using an enhanced version of Russia's Proton spacecraft.
According to ILS, the Proton Breeze M rocket carrying DIRECTV-10 lifted off at 9:16 ET on Friday from the Cosmodrome's Pad 39. The mission lasted about nine hours before the Breeze M upper stage placed the satellite into geosynchronous transfer orbit, the company said. ILS also said that after a couple months of in-orbit testing, DIRECTV-10 will move to its operating position of 102.8 degrees west.
ILS said this was the third DIRECTV satellite launched on a Proton vehicle. DIRECTV-8 was launched on May 22, 2005, and DIRECTV-5 was carried to orbit May 7, 2002.
Cable STB Costs Will Rise -- Posted by soullezz
on Monday, July 9 2007
The cable industry has been saying for months that once the newly-established CableCard mandate took effect consumers would be forced to pay more for their leased set-top box. Now the mainstream press has picked up on the story, and the cable crowd could be facing increased subscriber angst as well as higher STB costs.
Thanks to the FCC ruling that requires cable operators to use the same technology in their STBs as set-tops sold at retail by non-cable companies, the industry, not surprisingly, has said that it will be forced to pass the increased costs on to subscribers. (The rule only applies to digital cable boxes deployed after July 1.) The regulation is designed to allow cable subs the ability to plug a CableCard into any STB and receive their cable TV services.
Regulators say the rule will give consumers a choice when purchasing a set-top from any source - whether that be from their cable provider or not. The cable industry, however, will have to pay more to implement the strategy and will be forced to pass those expenditures to customers - somewhere to the tune of $2 - $3 per month.
According to the National Cable and Telecommunications Association's website, the FCC mandate "will likely cost cable consumers more than $600 million dollars per year in higher prices while offering no tangible benefits." Said American Cable Association president/CEO Matt Polka, "The FCC's regulations mean that box costs will go up for the same services customers are receiving today."
Television industry commentator Phillip Swann said like most efforts by the government to create competition for a private industry, the CableCard ruling is destined for failure. He said the FCC doesn't understand that cable subs don't want to buy a cable box - or any retail STB.
"Consumers like the convenience of leasing their set-tops (because) there's no up-front cost and its more convenient for the TV provider to send an installer to do the dirty work of connecting the box to the set." Swann also said the new (post-July 1) CableCard digital boxes from cable operators will be more costly to manufacture, which will undoubtedly increase cable subs' monthly bills.
SBCA Replaces EchoStar's Moskowitz -- Posted by soullezz
on Monday, July 9 2007
EchoStar's Corporate Counsel LORI KALANI has joined the Satellite Broadcasting and Communications Assocation's (SBCA) 2007 board of directors. Kalani will fill the board position previously held by EchoStar's recently retired General Counsel and Executive Vice President, DAVID MOSKOWITZ, the organization said.
"The SBCA is truly vital to the industry's continued growth and I am excited to be a part of it," Kalani said.
According to SBCA Chairman Mary Davidson, Kalani has been an "instrumental" part of the organization in the past "helping the SBCA reorganize years ago." Davidson said Kalani "has shown tremendous support for our mission."
Kalani will begin her term on the board effective immediately, the group said.
Happy Fourth of July! -- Posted by soullezz
on Wednesday, July 4 2007
DssCentral.net would like to wish everyone a safe and happy Fourth of July!
Funny 4th of July Quotes
The 4th of July combines the two things Americans love most in one day: alcohol and explosives.
- David Letterman
You have to love a nation that celebrates its independence every July 4, not with a parade of guns, tanks, and soldiers who file by the White House in a show of strength and muscle, but with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness. You may think you have overeaten, but it is patriotism.
- Erma Bombeck
Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.
- Ronald Reagan
July 4. Statistics show that we lose more fools on this day than in all the other days of the year put together. This proves, by the number left in stock, that one fourth of July per year is now inadequate, the country has grown so.
- Mark Twain
Fireworks Facts
Some firework colors are safer than others. You can get silver and gold from heating charcoal or metals, such as aluminum or titanium, where the glow comes from incandescence. Other colors are produced by burning metal salts. Colors work a lot like the flame test, where the color actually produced results from the interaction between the emission and absorption of parts of the spectrum by the various components of the mixture. In general, metal salts burn in characteristic colors, but there are relatively non-toxic metals that can be used to produce any color of the rainbow. If your fireworks come from a reputable manufacturer, losing one in your yard won't produce Teenage Mutant Ninja clover. Keep in mind, there may be less expensive alternatives in use by other manufacturers that aren't as safe.
Fun Facts
Only two people signed the Declaration of Independence on July 4th: John Hancock and Charles Thomson. Most of the rest signed on August 2, but the last signature wasn't added until 5 years later.
If a statue in a park of a person on a horse has both front legs in the air, the person died in battle. If the horse has one front leg in the air, the person died as a result of wounds received in battle. If the horse has all four legs on the ground, the person died of natural causes.
Pound for pound, hamburgers cost more than most new cars.
editorial post
Happy Fourth of July! -- Posted by soullezz
on Wednesday, July 4 2007
DssCentral.net would like to wish everyone a safe and happy Fourth of July!
Funny 4th of July Quotes
The 4th of July combines the two things Americans love most in one day: alcohol and explosives.
- David Letterman
You have to love a nation that celebrates its independence every July 4, not with a parade of guns, tanks, and soldiers who file by the White House in a show of strength and muscle, but with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness. You may think you have overeaten, but it is patriotism.
- Erma Bombeck
Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.
- Ronald Reagan
July 4. Statistics show that we lose more fools on this day than in all the other days of the year put together. This proves, by the number left in stock, that one fourth of July per year is now inadequate, the country has grown so.
- Mark Twain
Fireworks Facts
Some firework colors are safer than others. You can get silver and gold from heating charcoal or metals, such as aluminum or titanium, where the glow comes from incandescence. Other colors are produced by burning metal salts. Colors work a lot like the flame test, where the color actually produced results from the interaction between the emission and absorption of parts of the spectrum by the various components of the mixture. In general, metal salts burn in characteristic colors, but there are relatively non-toxic metals that can be used to produce any color of the rainbow. If your fireworks come from a reputable manufacturer, losing one in your yard won't produce Teenage Mutant Ninja clover. Keep in mind, there may be less expensive alternatives in use by other manufacturers that aren't as safe.
Fun Facts
Only two people signed the Declaration of Independence on July 4th: John Hancock and Charles Thomson. Most of the rest signed on August 2, but the last signature wasn't added until 5 years later.
If a statue in a park of a person on a horse has both front legs in the air, the person died in battle. If the horse has one front leg in the air, the person died as a result of wounds received in battle. If the horse has all four legs on the ground, the person died of natural causes.
Pound for pound, hamburgers cost more than most new cars.
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