To: Bernard Levy who wrote (5787 ) 4/21/1999 1:32:00 AM From: SafetyAgentMan Read Replies (2) | Respond to
CYBERSTAR SHOULD CLIMB OUT OF THE RED WITHIN A YEAR -MAEHL
(Satellite Today; 04/20/99)
Apr. 20, 1999 (SATELLITE TODAY, Vol. 2, No. 75 via COMTEX) -- LAS VEGAS--The
fledgling Cyberstar unit of the **Loral** Corp. [LOR] is expected to achieve
profitability within the next 12 months by focusing on the distribution of
broadband content to private networks, Cyberstar president Ronald Maehl told us
here.
Business customers will be targeted by Cyberstar, but the consumer market will
"grow dramatically," Maehl said. Cyberstar is developing into a software
company that will lease capacity from **Loral** Skynet satellites to provide
services - not operate its own satellites, he explained.
"Cyberstar is focusing more narrowly and driving to the market faster," Maehl
said. "It is incumbent upon satellite players to get to the market as soon as
possible. As the infrastructure builds out, the market share for various
technologies is going to be more solidified. Satellites are in an ideal
position because they supply broadband services."
One area that Cyberstar is looking to enter is business television, an
estimated $100 million-a-year market, Maehl said. The business TV market's
growth has been fairly flat, but data applications could transform it into a
different product, he added.
A key aspect of developing the business will be to use satellites in situations
when they offer a competitive advantage, compared with other technologies,
Maehl said. "It's important not to do things that technologies don't naturally
do," he said. "Customers are focused on cost-effectiveness. They don't care
how a service is delivered."
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Copyright Phillips Publishing, Inc.
{C:SatelliteToday-0420.05052} 04/20/99
