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JANUARY THROUGH APRIL
Jan. 22:
AT&T announces plans to buy
2.5 percent of DirecTv Inc. owner Hughes Electronics Corp. for
$137.5 million. The agreement gives AT&T sales and marketing
rights to DirecTv's programming packages. (Satellite Business
News, Satellite Business News, Jan. 31, 1996, 1996)
Jan. 23: Galaxy Services Group sells its subscriber base
to Turner Vision Inc. after Galaxy experiences authorization
and billing problems. Galaxy later shuts down. (Satellite
Business News, Jan. 31, 1996)
Jan. 24: MCI Telecommunications Corp. bids $682.5 million
for 28 channels at the 110-degree orbital slot during the Federal
Communications Commission's DBS auction. (Satellite Business
News, Jan. 31, 1996)
Jan. 25: EchoStar Communications Corp. bids $52.3 million
for the 148- degree half-CONUS slot during the FCC's DBS auction.
(Satellite Business News, Feb. 14, 1996)
February: Power DirecTv Chairman Joel Bell pulls his company
out of the Canadian DBS race. However, Power Direct later eyes
the 91-degree orbital slot, a plan met with skepticism. Power
Direct scuttles that plan in August but then applies for and
receives a permit extension to Dec. 20, 1997. (Satellite Business
News, Feb. 14, July 3, and Sept. 11, 1996)
February: Tele-Communications Inc. begins discussions
with Telesat Canada about possibly using a Canadian orbital slot
for a U.S. DBS service. TCI completes its agreement with Telesat
May 10. (Satellite Business News, Feb. 28 and May 22,
1996)
Feb. 1: U.S. Satellite Broadcasting Inc.'s initial public
stock offering of 8.3 million shares opens trading at $35 per
share. (Satellite Business News, Feb. 14)
Feb. 1: Congress passes the Telecommunications Act of
1996, which President Clinton signs into law a week later. The
law exempts satellite TV programming from local taxation and
grants the FCC authority to override local zoning ordinances.
(Satellite Business News, Feb. 14, 1996)
Feb. 14: China Great Wall Industry Corp.'s troubles continue
with the third failure in seven launch attempts when a Long March
rocket carrying an Intelsat satellite veers off course seconds
after liftoff. (Satellite Business News, Feb.28, 1996)
March: United Video Satellite Group Inc.'s Superstar Satellite
Entertainment and Liberty Media Group Inc.'s Netlink officially
announce their merger, creating the largest C-band distributor.
(Satellite Business News, MarcH 13, 1996)
March 4: EchoStar officially launches the DISH Network
DBS service at the Satellite Broadcasting and Communications
Association trade show in Las Vegas. EchoStar sells more than
2,000 reception systems to TVRO dealers at the show. (Satellite
Business News, March 13, 1996)
March 6: MCI lays out its plans for its satellite TV service
in its application for a DBS construction permit flied with the
FCC. MCI says it plans to launch the first of two Space Systems/Loral
Corp. satellites into the 110-degree slot by fall 1997. (Satellite
Business News, March 13, 1996)
March 13: TelQuest Ventures L.L.C. applies for permission
to uplink U.S. and Canadian DBS services via satellites that
would be owned and operated by Telesat Canada Inc. TelQuest,
owned by the same people who own multichannel multipoint distribution
service equipment manufacturer CAI Wireless Systems Inc., plans
to offer the satellite signals to MMDS operators using rectangular
flat antennas. (Satellite Business News, March 27, 1996)
March 26: ExpressVu's hopes to launch a Canadian DBS service
are shattered when Anik El, the satellite it planned to use,
loses two- thirds of its transponder capacity. (Satellite
Business News, April 10, 1996)
April: MCI and Rupert Murdoch's News Corp. form American
Sky Broadcasting to market their consumer DBS service and Sky
MCI to market their business DBS service, both using the channels
MCI bought from the FCC at 110 degrees. (Satellite Business
News, May 8)
April: Rep. Carlos Moorehead (R-Calif.), chairman of the
House Intellectual Property Subcommittee, introduces a bill to
settle disputes between the satellite TV industry and local network
affiliates over "white area" rules that determine whether
a satellite dish owner is allowed to buy satellite-delivered
network superstations. The bill never makes it out of committee.
Also in April, KAMR-Amarillo, an NBC affiliate, sues programming
packager PrimeTime 24 for allegedly failing to adequately enforce
white area rules with its Amarillo-area subscribers. (Satellite
Business News, April 24, 1996)
April 28: Led by the FCC International Bureau, the United
States and Mexico sign a framework treaty to allow U.S. and Mexican
satellite companies to service each other's countries. They sign
the final treaty Nov. 13. (Satellite Business News, May
8 and Nov. 20, 1996) |
MAY THROUGH AUGUST
May 6:
The U.S. Court of Appeals for the District of Columbia upholds
the FCC's decision to revoke Advanced Communications Corp.'s
construction permit for the 110-degree orbital slot (Satellite
Business News, May 22, 1996).
May 6: The FCC announces 11 new medium-power, fixed satellite
service orbital slot assignments. AT&T, Hughes Communications,
GE American Communications, Orion Atlantic, EchoStar, and Loral
Corp. are recipients. (Satellite Business News, May 22)
May 10: Don Gips becomes new FCC International Bureau
Chief, replacing Scott Harris, who departs for Washington D.C.
law firm Gibson, Dunn & Crutcher. Gips had been deputy chief
of the Office of Plans and Policy (Satellite Business News,
May 22, 1996).
June: EchoStar announces the satellite industry's lowest
DBS hardware price: $199. It eventually pushes EchoStar's competitors
into similar pricing plans. (Satellite Business News, June
19)
June: General Instrument Corp. names Michael Bernique
to head its San Diego operations. Bernique makes sweeping changes
in the division, and several longtime GI executives abruptly
resign. (Satellite Business News, June 19 and Sept. 11,
1996)
June: All-Star Programming files for bankruptcy, blaming
the drop in C- band sales. (Satellite Business News, June
19, 1996)
June: Satellite TV industry and programming copyright
holders begin negotiating copyright fees satellite services must
pay to retransmit network and superstation signals. By the end
of the year, with talks yielding little progress, both sides
expect an arbitration panel to decide the new rates, which are
scheduled to take effect July 1, 1997. (Satellite Business
News, June 5, 1996)
June 19: TCI announces plans to spin off its TCI Satellite
division into a separate company controlling TCI's share of the
Primestar Partners L.P. DBS service. (Satellite Business News,
July 3, 1996)
June 26: Tee-Comm Electronics Inc.'s AlphaStar Digital
Television announces it has begun its consumer rollout, more
than six months after its originally planned launch date of December
1995. (Satellite Business News, July 3, 1996)
June 27: In its first public acknowledgement of the existence
of DirecTv/USSB piracy, DirecTv sues 11 people in Canada, the
United States, and the Caribbean for allegedly developing and/or
distributing pirated smart cards. (Satellite Business News,
July 3)
July: DirecTv, USSB, and their equipment manufacturers
draft plans to introduce a $199 DBS hardware price.
July 1: In a letter to FCC Chairman Reed Hundt, four federal
agencies urge the FCC to defer action on TCI's and TelQuest's
applications to use Canadian orbital slots for U.S. DBS service
until other foreign trade issues are resolved with Canada. On
July 15, the FCC dismisses cross-border uplink applications by
TCI and TelQuest. (Satellite Business News, July 17 and
July 31, 1996)
July 10: A group of Canadian programmers file suit in
Canadian Federal Court against nine distributors and retailers
selling DirecTv/USSB systems in Canada, allegedly enabling them
to break Canadian laws prohibiting the viewing of certain foreign
channels. (Satellite Business News, July 17, 1996)
August: GI reveals plans to introduce a digital/analog
C-band receiver, dubbed 4D-TV. GI's suggested retail price for
the unit, $1,000, meets with skepticism from programmers. (Satellite
Business News, Aug.14, 1996)
August: AlphaStar draws interest from long distance telephone
reseller Excel Communications Inc. But talks fizzle when Excel
questions AlphaStar's reliability. (Satellite Business News,
Sept. 11 and Dec. 4, 1996)
Aug. 6: The FCC finalizes rules that pre-empt zoning ordinances,
private covenants, and homeowners association rules that restrict
installation of DBS dishes one meter or less in diameter in residential
areas. The rule does not address local restrictions on C- band
dishes. (Satellite Business News, Aug. 14, 1996)
Aug. 15: Amway Corp., citing rollout delays and initial
technical problems, terminates its relationship with AlphaStar.
Amway was the centerpiece of AlphaStar's distribution plan. Another
AlphaStar multi- level marketer, AsOne Corp. of Las Vegas, drops
AlphaStar in December (Satellite Business News, Aug. 28
and Dec. 18, 1996). |
SEPTEMBER THROUGH DECEMBER
September: AlphaStar
drops its wholesale hardware prices to $269 and $299 in response
to its competitors' $199 retail hardware prices.
September: GI pushes back the introduction of 4D-TV until
the end of the first quarter 1997. (Satellite Business News,
Sept. 25, 1996)
September: PrimeTime 24 urges viewers in a grass roots
campaign to contact members of Congress to change the 1994 Satellite
Home Viewer Act. PrimeTime 24 wants picture quality, not signal
strength, to determine whether consumers are allowed to subscribe
to networks. (Satellite Business News, Oct. 9, 1996)
Sept. 21: Former Showtime Networks Inc. Chairman Winston
"Tony" Cox dies suddenly of a heart attack at 55. (Satellite
Business News, Oct. 9, 1996)
Sept. 30: Tee-Comm's rocky marriage with ExpressVu ends
when Tee- Comm agrees to sell its 21.2 percent stake in the DBS
hopeful. (Satellite Business News, Oct. 9, 1996)
October: GI fires approximately 100 employees as part
of a general restructuring by new West Coast chief Michael Bernique.
(Satellite Business News, Oct. 23, 1996)
October: France announces plans to sell defense and electronics
manufacturer Thomson S.A. to France's Lagardere Groupe for one
franc. As part of the deal, South Korea's Daewoo Electronics
plans to buy Thomson Multimedia, which incenses French citizens.
(Satellite Business News, Oct. 23, 1996)
Oct. 4: Primestar by TCI announces plans to join the escalating
DBS price wars by offering its medium-power DBS reception systems
for $199 retail and second-set receivers for $325. (Satellite
Business News, Oct. 9, 1996)
Oct 10: Time Warner Inc. and Turner Broadcasting System
Inc. shareholders approve the companies' $7.5 billion merger.
(Satellite Business News, Oct. 23, 1996)
Oct. 29: in a move that dashes TCI's and TelQuest's plans
to use a Canadian DBS slot for a U.S. service, the FCC again
rejects the companies' permit applications. (Satellite Business
News, Nov. 6, 1996)
Nov. 3: MCI announces a planned merger with British Telecommunications,
setting off a flurry of letters to the FCC urging the commission
to examine MCI's DBS application with the same scrutiny as TCI's
and TelQuest's applicationS to use Canadian orbital slots. As
a result of the merger plans, MCI Chairman Bert Roberts expresses
the desire to reduce the company's stake in AskyB. ASkyB courts
the nation's regional Bell operating companies to become distributors
of the DBS service. (Satellite Business News, Dec. 4 and
Nov. 20, 1996)
Nov. 5: Sen. Larry Presser (R-S.D.) loses his bid for
reelection, leaving vacant the Commerce Committee chairmanship.
Sen. John McCain (R-Ariz.) is awarded that seat. (Satellite
Business News, Nov. 20, 1996)
Nov. 22: Thomson Consumer Electronics chief Joe Clayton
resigns unexpectedly amid turmoil in France over the sale of
Thomson Multimedia to Daewoo Electronics. (Satellite Business
News, Dec. 4, 1996)
December: EchoStar increases its spending to lure new
subscribers to its DISH Network. The company mails $100 coupons
to current subscribers to give to friends who want to buy DISH
systems. Each referring subscriber will earn $100 for making
the referral. The program runs through February 1997. (Satellite
Business News, Dec. 18, 1996)
Dec. 6: The FCC approves MCI's and EchoStar's applications
for DBS licenses, nearly one year after they bought orbital slots
from the FCC to launch DBS services. The two companies make their
final payments on the bids Dec. 13. (Satellite Business News,
Dec.18, 1996)
Dec.11: At its annual Western Cable Show, the cable industry
meets to discuss how to serve their customers better. TCI Chairman
John Malone challenges cable operators to not only improve their
channel selection by changing to digital delivery, but also to
stand up to programmers and defend decisions to drop programming
that brings in the least revenue. (Satellite Business News,
Dec. 18, 1996)
Dec.12: Dominion Video Satellite Inc. launches Sky Angel,
its eight- channel religious DBS service, at the 119-degree orbital
slot using one transponder on EchoStar-2. (Satellite Business
News, Dec. 18, 1996)
Dec. 19: TCI announces plans to sell Telesat Canada a
32- transponder, high-power DBS satellite for about $300 million.
Telesat plans to use the bird to provide capacity for Canadian
DBS services. However, TCI retains the right to use some capacity
if the United States and Canada agree to allow companies in each
country to use the other country's orbital slots to deliver DBS
services (Satellite Business News, Jan. 1, 1997) |