A couple news bits:
--G* is calling for redemption of the CPEOs. That adds about 10.36 million total GSTRF shares in if all are converted. It also will add $300 million to the kitty.
--Also, the TEMPO sat is in the news again. What will happen????
PrimeStar Partners began its first day as a nationally-focused company by
positioning itself for a limited high-power launch and possible spectrum
sale.
PrimeStar President Dan O'Brien announced that a limited 120-channel,
high-power service will debut in two markets - Dallas and Charlotte - on
April 17. The "test" product will use a satellite and spectrum at 119
degrees and the sales support of RadioShack.
Use of the 119-degree slot could change, however. O'Brien said the company
has held discussions with two entities regarding the purchase of DBS assets
at the coveted orbital location. O'Brien wouldn't offer names, but he said
PrimeStar hasn't spoken with EchoStar Communications, another DBS provider
which shares the 119-degree slot.
Adding to speculation is the fact that Loral, manufacturer of the satellite
at 119 degrees, hasn't formally released the bird to PrimeStar due to
technical glitches discovered soon after launch last year. Loral hasn't
been named a potential buyer at 119 degrees.
Divestiture of 119-degree assets could allow PrimeStar to use a bigger
orbital slot at 110 degrees, a move that may become necessary if the
company wants to escape increased scrutiny from federal regulators. The
Federal Communications Commission and the Department of Justice are
investigating the transfer of DBS spectrum to PrimeStar from News Corp. and
MCI, which own the 110-degree slot, and TCI Satellite, a PrimeStar partner
and holder of the 119-degree license.
The two federal agencies could have their separate inquiries wrapped up in
May or June, nearly a year after PrimeStar announced restructuring plans.
While those efforts continue, O'Brien said PrimeStar won't aggressively
push the 119-degree high-power service, which will be aimed at suburban
customers outside of the company's typical rural base.
Meanwhile, O'Brien said the company's move to Denver is nearly complete.
The full transition into a nationally-focused company should be completed
in the next 90 days. PrimeStar will have 3,800 employees, several regional
offices outside of its Denver hub and three call centers.
O'Brien added that PrimeStar will look for high-yield financing between
$500 million and $750 million within the next two weeks. |
