Hearst-Argyle TV will use Harris Corp. DTV transmitters under new agreement. Deal at start covers 17 stations, allowing them to begin DTV broadcasting this year, companies said. Hearst-Argyle owns or manages 26 stations.
Word is that Fox TV Network will tell its affiliates at meeting this weekend in Las Vegas that it’s dropping annual spring convention that has been held since network began in 1981. Session will be held just before start of ALTV-NATPE convention and fewer than half of affiliates are expected to attend. Many of what are now Fox affiliates were prominent in forming association for independent stations before Fox network started and have remained members. Financial factors reportedly are reason for dropping spring meeting, which in 2000 was held in Scottsdale, Ariz.
VoiceStream and Deutsche Telekom (DT), in brief filing Wed. with SEC, disclosed they had entered into agreement with U.S. Dept. of Justice and FBI on issues related to proposed mergers of VoiceStream, DT, Powertel. Pact addresses national security and law enforcement matters in proposed deal, companies said, but didn’t outline details. They said they and federal law enforcers jointly had petitioned FCC to defer granting applications for merger approval until after agreement was reached with DoJ and FBI. Merger still must be approved by Commission, Committee on Foreign Investment in U.S., VoiceStream and Powertel shareholders.
STM Wireless and Alcatel said Wed. they signed OEM partnership agreement under which Alcatel will integrate STM’s VSAT products into its range of carrier grade systems and software in order to offer satellite broadband solutions to service providers using current satellites and emerging Ka-band systems.
PanAmSat Net36 and Hughes Network Systems (HNS) said Net36 would provide additional streaming content delivery for DirecPC services. With addition of new service, Net36 now has access to half of N. American broadband households via satellite-to-edge servers. Meanwhile, HNS said it was expanding its relationship with Telkom SA Ltd. of S. Africa. HNS will supply Telkom SA with 14,000 very small aperture terminals (VSATs) that will meet 90% of nation’s VSAT needs. HNS technology will support delivery of Telkom SA’s VSAT service to provide advanced communications systems for election monitoring, air traffic control, rapid financial transactions, multimedia, other services. No terms were disclosed.
DirecTV is facing another class action lawsuit for alleged monopolistic practices that resulted in increase in price subscribers must pay for its products and services. Suit filed last Sept. in U.S. Dist. Court, L.A., alleged that DirecTV engaged in activities intended to stifle competition in violation of various federal and state antitrust laws. Suit said all DirecTV subscribers from March 1996 to Sept. 2000 had been damaged by DirecTV conduct and were entitled to damages. Best Buy, Circuit City, RadioShack and Thomson Consumer Electronics also were named in suit. Sears Roebuck also sued DirecTV claiming, among other things, that latter had canceled its contract after Sears didn’t stop selling EchoStar products and services.
Paxson closed on purchase of 51% of KPPX (Ch. 51, Pax) Tolleson, Ariz. (Phoenix market) from Hector Salvatierra, broker Kalil reported. Paxson, which earlier had acquired 49% of station, paid $6.6 million for rest.
NBC revenue fell 11% to $1.55 billion in 4th quarter ended Dec. 31, but operating profit was up 10% to $476 million, parent GE reported. GE gave little explanation of changes, although it cited higher ratings for broadcast network, “tremendous ratings” for MSNBC during election period and 40% full-year profit growth for CNBC. For full year, NBC revenue was up 17% to $6.8 billion and operating profit up 14% to $1.7 billion.
Telecom officials didn’t get answer from Bush Administration representatives Wed. to question who would be named FCC chmn., and when, we're told. Industry officials, primarily contributors to campaign, met with Bush transition office Wed. afternoon in what was described as “very generic and nonspecific” meeting. Most of attention focused on FCC reform, expediting agency decision-making and similar broad issues, we're told.
PanAmSat said it had record $1.02 billion revenue and $694 million in earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of 2000, up from $810.6 million revenue and EBITDA of $618.8 million last year. Net income edged up to $125.5 million from $122.2 million in 1999. Company said 4th-quarter earnings were $202.9 million, with $136.2 million in EBITDA. Company said it also signed $400 million in new long-term service agreements in 4th quarter. PanAmSat also projected total revenue of $1 billion for 2001, including $205-$210 million for first quarter.