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Technology Stocks : CDRD (CD Radio)

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To: bikepath who wrote (755)11/2/1998 10:18:00 AM
From: Jeff Vayda  Read Replies (1) of 904
 
Just for some background on afristar. Note last paragraph, seems to be a bunch of 'free world' content, I dont think there is a underlying agenda other than suppling information entertainment for a profit.

AFRICA GAINS FIRST DEDICATED
SATELLITE, UNIQUE RADIO
SERVICES

The successful launch of an Ariane 44L rocket carried Africa's first dedicated satellite into orbit
to provide the world's first digital audio radio services (DARS). The continent generally has been
passed over by existing commercial satellite operators.

AfriStar, owned by Washington-based WorldSpace Corp. and designed for 15 years of life, will
use an orbital location at 21 degrees E to provide digital audio, text and image transmission services
to Africa and the Middle East. It was launched as part of a dual-payload by Arianespace that
included GE-5, a satellite intended to complete GE Americom's [GE] coverage of the United
States by providing telecommunication and television transmissions from 79 degrees W.

Following the launch Wednesday (10/28), euphoric WorldSpace Chairman and CEO Noah
Samara said, "If I could put my feelings inside a bottle, I think it would sell better than Viagara.
Thank God for allowing us to see this day."

Samara, who conceived the idea of the planned three-satellite WorldSpace system eight years ago
on a napkin, said his vision is to deliver information as inexpensively and reliably as possible.
Behind that vision are two main goals of giving the African people new and expanded radio
programming and allowing them to broadcast their ideas across the continent for the first time. The
other two satellites are slated to be launched next year and serve Asia and the Americas. All three
birds combined could reach up to 5 billion people or close to three-quarters of the world's
population that now lacks radio reception.

"Information is an extremely valuable commodity for everyone," Samara said. "We are all
connected by threads of information. We are only as developed as the information we have."

Samara envisions AfriStar's continent-wide radio service as a way to enhance the quality of the
African people's lives, environmentally, politically and spiritually. Nelson Mandela, South Africa's
president, sent Samara a message before the launch wishing him good luck. Mandela's support
could become a key factor because legislation still must be passed in South Africa to give
WorldSpace the right to offer its service there. A number of other African countries still need to
authorize the system to operate as well, but the system's benefits could prove to be compelling.

"It's the type of information that can promote democracy and peace," Samara said. The
broadcasting capacity will be used for music, news and information programming, encompassing
health education and women's issues, he added.

...Radio Services Should Be Available Next Spring, Profits
May Take 5-10 Years

The first boom box-size, portable receiver should be on the market by April next year and be
priced in the $200-300 range. As with other consumer electronics products, the price of the
receivers should fall as sales volume increases. Within a few years, the units may cost $100 each,
said Steve Blum, president of Tellus Venture Associates, a Marina, Calif.-based consultancy.

"What distinguishes WorldSpace's business plan for everybody else's is that will be a free,
over-the-air service," Blum said. For example, direct broadcast satellite TV services in the United
States charge monthly subscription fees. Two proposed digital audio radio services (DARs)
planned for the United States also will generate revenues with monthly fees.

WorldSpace may begin to offer certain channels for an additional fee in the future, but the
first-generation receivers are not expected to include the conditional access components required
to do so, Blum said. Once a conditional access system is available, premium channels could be
offered to listeners for an additional fee. To include conditional access now would raise the cost of
the system and potentially discourage price-conscious consumers, he added. However, if
conditional access can be included in the first-generation receivers, the units would still appeal to
affluent people who could afford the price, Blum said.

The marketplace success of WorldSpace ultimately will hinge on the consumer electronics
industry's distribution and sale of the receivers, along with the programming that is offered to entice
people to buy the units, Blum said. WorldSpace must differentiate itself from other broadcasters,
he added.

That challenge should not be difficult in Africa, where a good radio now may receive only three or
four signals, WorldSpace officials said. The two direct-to-home satellite TV services that operate
in Africa only offer five to 10 channels each. AfriStar would offer 70-plus channels of digital
audio.

"WorldSpace can make a profit long-term, but in the mid- to short-term it will lose money," Blum
said. "It can probably turn a profit within 10 years. At the earliest, it might become profitable within
five years."

Leslie Taylor, president of Washington-based satellite consultancy Leslie Taylor Associates,
predicted WorldSpace could be profitable within two years.

"I'm a big believer in satellite-delivered radio," Taylor said. "It's an untapped market. Parts of the
world, like Africa, are thirsting for information and entertainment. I think it's going to be a huge
success."

AfriStar is the first of four satellites ordered by WorldSpace from France's Alcatel. Programming
will include Bloomberg L.P., of the United States; Capital Radio, of Turkey; Kaya FM, of
South Africa; the Egyptian Radio and Television Union; Ghana Broadcasting Corp., Metro
East FM, of Kenya; Horizon FM, of Burkina Faso; Lebanon's Radio One and Radio Sud of
Senegal. The service will be heard on L-band receivers built by Hitachi, Matsushita
(Panasonic), Sanyo and JVC. AsiaStar is due to be launched in June and placed at 105 degrees
E, while AmeriStar will follow in October and use 95 degrees W. Arianespace will launch both
birds, while the fourth satellite will serve as a ground spare.
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