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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (4053)	7/23/1998 10:30:00 PM
From: Don Limb	Read Replies (1) \| Respond to of 10852

Come on Mike...just a little more G*, please. Besides, you don't tell the little one everything, now do you? I got some on Tuesday @ 26 1/4 only to see it down today by 2. But what the heck, I gotta have more now that my greed gland is kicked into high gear. BTW, check out the news clip on ATSI. Kind of an interesting niche, don't ya think? And their HQ is just down the road a couple hundred miles. Also, it looks like Mr. Greenspan just created a buying opportunity for us with cash on the sidelines. Yeeehaaaaaw! Hot'n Dry. Don

To: JMD who wrote (4053)	7/23/1998 11:01:00 PM
From: Valueman	Read Replies (2) \| Respond to of 10852

Mike: I don't think this is a big deal as far as raw numbers, but it is a further implementation of Loral's plan to increase the revenue per transponder over and above average. Telstar 5 is busting at the seams with business--I guarantee you that they are above the average in revenues. This deal sounded more like a sharing of resources--Loral lets E* use Telstar 5 in exchange for E* letting Loral use their customer service abilities and their ground segment for the DVB biz of Skynet. I would hope that E* would have to pay a lease fee to boot though, since 20 channels+ will use 2-3 tranpsonders at the very least. I think each companies segment will be separate--at least that is what I assume after 3 or 4 readings--but they will share resources. E* can manufacture a box and a dish that they can use, and Skynet can use the same mass produced equipment for their more specialized services. I believe that all the DTH services must, by law, provide service to Alaska and Hawaii--this gets E* off the hook for that as well. As far as quality, Skynet Direct should broadcast just like the Dish Network with equal quality--note the larger dish size though. E* makes the box, and that is where the real processing occurs as far as quality picture/sound. E* gives SkynetDirect the ability to use their sophisticated compression, encoding, uplinking, format conversion and multiplexing abilities=no cap-ex for Loral. I would love to know the exact financial details.