DTH in India. Murdoc can't be far behind.....................................
Loral and Modi Entertainment to Pursue Direct-to-Home Television Venture in India
ÿÿÿÿBusiness/Entertainment Editors
ÿÿÿÿNEW YORK--(BUSINESS WIRE)--Nov. 6, 1997--Loral Space & Communications Ltd. (NYSE:LOR) today announced that it has formed a strategic alliance with India-based Modi Entertainment Networks (MEN), a K.K. Modi Group company, to jointly pursue business opportunities in direct-to-home (DTH) satellite broadcasting in India.
ÿÿÿÿSigning the memorandum of agreement (MOA) in Bombay, Bernard L. Schwartz, Loral chairman and chief executive officer, stated: "As the company that designed and built India's first-generation INSAT-I satellites, we are pleased to extend our relationship by entering into this joint venture agreement with Modi Entertainment. The Modi Group has experience with several joint ventures with leading media companies, and its strength in program distribution will complement Loral's in satellite-based services and technology. The signing of the MOA with Modi furthers Loral's strategy of becoming a global provider of satellite-based broadcast and communication services. We are eager to complete the development of our business plan with Modi, and applaud the Government of India's efforts to finalize its broadcast legislation."
ÿÿÿÿK.K. Modi, chairman of Modi Enterprises, said: "We are delighted that our association with Loral will enable us to be at the cutting edge of this exciting new technology -- direct-to-home broadcasting
-- once the Information & Broadcasting Ministry of India promulgates the Broadcasting Act. This service is especially relevant in the Indian context, given our geographical spread and diverse socio-cultural milieu. For a vast section of this country's populace, which inhabits the hinterlands, this may well be an important catalyst for socio-economic change."
ÿÿÿÿThe MOA forms the basis of an exclusive arrangement between Loral and MEN to pursue opportunities in DTH satellite broadcasting, as well as to jointly pursue any required licenses from the Indian government to provide such services. It provides for the appointment of a joint technical and business development team to assess DTH satellite broadcasting opportunities, or any other areas selected by Loral and MEN.
ÿÿÿÿThe Indian government is currently working on the details of enacting broadcast legislation for the country of about 1 billion people.
ÿÿÿÿMEN is part of the K.K. Modi Group (KKM), headquartered in Bombay. KKM is among the leading industrial conglomerates in India, with wide-ranging business interests in chemicals, tobacco, tea, home care, consumer products and media and entertainment. MEN is a pioneer and leader in providing distribution and subscriber management services, or encrypted "pay" television services, in India. Covering over 1,800 cities and districts across India, MEN has, as an exclusive distributor of ESPN, secured a subscriber base exceeding six million subscribers within a short time span. In addition to ESPN, MEN has formed other joint ventures and strategic alliances with some of the world's leading entertainment companies, including Buena Vista International, Walt Disney Consumer Products, Miramax International and Multimedia (Universal).
ÿÿÿÿLoral is a high-technology company that primarily concentrates on satellite manufacturing and satellite-based services. It was through its subsidiary, Space Systems/Loral, one of the leading manufacturers of world's communications and weather satellites, that Loral recently established a joint venture with Mabuhay to provide DTH services to the Philippines. Loral Skynet, also a subsidiary, is a leading U.S. satellite communications service provider that owns and operates the Telstar satellites. Skynet is also under contract to provide tracking, telemetry and control for Echostar's DTH satellites.
ÿÿÿÿIn addition, Loral manages and holds a 39 percent equity interest in Globalstar, the global, mobile satellite-based telephony system, scheduled for service initiation in late 1998. Loral also is the developer of CyberStar, a geostationary satellite-based, open protocol, digital telecommunications system that will offer a variety of low-cost, high-speed, data and telecommunications services worldwide, initially from leased Ku-based satellites.
ÿÿÿÿLoral recently entered into a definitive agreement to acquire Orion Network Systems Inc., a corporate data networking and satellite services company, in a transaction expected to close in the first quarter of 1998. Most recently, Loral's joint venture bid with Telefonica Autrey was selected as the winner of the auction to acquire a 75 percent stake in Satelites Mexicanos, S.A. de C.C. (SatMex). SatMex's assets consist of three operating satellites, and one under construction, along with a state-of-the-art tracking, telemetry and control site and three government concessions for orbital slots.
CONTACT: Jeanette Clonan
Loral Space & Communications
(212) 697-1105
or
Purti Hajela
Modi Entertainment
91-22-645-8000 |
