SKYBroadband: The Satellite Internet Source

Issue #41 - November 16-21, 2002

Industry

Canal Sees 11% Revenue Growth and 2.16 million Subs

XM Named Communications Leader by Scientific American

Spot Image Creates Joint Venture for Japanese Market

CimeCom Places Order for New Solante VSAT Platform

Satamatics and SkyWave Mobile Establish Global Partnership

Spot Image Adds Raytheon Australia as Distributor

Hughes Network Systems Signs OneTouch Systems as Broadband Alliance Member

Grafton Technologies to Use QuickBird Imagery for Airport Management

Concurrent's MediaHawk VOD Solution Chosen by TWC

SND to Provide HUGHES DIRECWAY Broadband Internet Services in Latin America

Hughes Network Systems Europe Signs Deal With Wind Telecomunicazioni S.p.A.

Spacenet's Connexstar Service Chosen as High-Speed Networking Platform for 4,000-Store Hardware Cooperative

HNS Supplies Maqsat - Atlantic Coast Telesys with Satellite

Digital Angel will receive a $5 million, three-year revolving credit facility from Wells Fargo Business Credit

Canadian Space Agency Makes $7.4 Million Investment in Emerging Space Technologies

Internet & Broadband

BT Targets Business Customers Farther Down the Demand Curve

High Performance Wireless Research and Education Network, or HPWREN brings Broadband to Remote Locales

Steak n Shake Picks Spacenet to Connect Stores

Analysis

Satellite TV Viewers Could Top Out at 60% of Premium Cable Subs

Financial

iBasis Stock to Move to OTC Bulletin Board Trade on Over-the-Counter Bulletin Board

Pegasus Reports 3Q Results

Upcoming Events

Satellite Internet Forum 2002


Industry

Canal Sees 11% Revenue Growth and 2.16 million Subs

The French digital platform Canalsatellite recorded 11% growth in revenues in the third quarter, driven by higher subscriptions, combined with flat ARPU (average revenue per user); its subscription base grew by 13% over one year, reaching 2.159 million individual and collective subscriptions at the end of September.

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XM Named Communications Leader by Scientific American

XM Satellite Radio was named by Scientific American magazine as one of the Scientific American 50, the magazine's first list recognizing contributions from the past year to science and technology.

"Scientific American's editors wanted to recognize some of the most outstanding visionaries who are advancing technology and guaranteeing a brighter future for all of us," said Scientific American editor-in-chief John Rennie. "Scientists aren't the only ones doing this. That's why Scientific American 50 includes business leaders, policy leaders, companies and other organizations that influence how society puts innovations to good use."

Look for the article in the December issue, due out 12/18.

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Spot Image Creates Joint Venture for Japanese Market

Spot Image France and ImageONE created a joint venture, Tokyo Spot Image, to distribute SPOT products and services in Japan. The venture will market Spot's mapping applications ranging from urban planning to land management, agriculture, telecommunications and environmental management, with Japan's fisheries and natural resource market segments as the primary targets.

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CimeCom Places Order for New Solante VSAT Platform

STM Wireless says it has received an order for a new Solante platform to CimeCom S.A (brand name Nortis). The Solante VSAT platform, introduced by STM in 2002, will serve the needs for data and voice communication for CimeCom's private network customer base in Morocco.

CimeCom operates VSAT satellite networks from a facility located in Casablanca, and will deploy the Solante system in the Ku-Band for offering Pan-African services within its satellite coverage area. Laurent Mahieu, Director General of CimeCom, said, "Our selection of STM's Solante platform was based on the product performance, track record, and value proposition, along with a focus on technology innovation that is complementary to our goals as a service provider. The product's high quality and committed support from STM was key to our decision." CimeCom intends to use the new Solante system for offering voice and data services to corporate customers, particularly for private networks requiring on demand connectivity.

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Satamatics and SkyWave Mobile Establish Global Partnership

Satamatics Ltd and SkyWave Mobile Communications Inc. announced a strategic
partnership on technology, network infrastructure and intellectual property for the ultimate benefit of their global satellite telematics customers. Both SkyWave and Satamatics currently develop and market products and solutions for global asset tracking, monitoring and control solutions over land, sea or air. Services offered by the partnership will utilize the Inmarsat D+ network.

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Spot Image Adds Raytheon Australia as Distributor

Spot Image has added Raytheon Australia as a distributor of Spot products and services to government, commercial and academic markets in Australia. The agreement with Raytheon includes installation of receiving and processing equipment for the new Spot 5 spacecraft. The deal follows a recently-signed (September) agreement with Resource21 for distribution to U.S. civilian government and academic markets.

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Hughes Network Systems Signs OneTouch Systems as Broadband Alliance Member

OneTouch Systems recently became a member of the Hughes Broadband Alliance. Hughes Network Systems has established the Alliance to facilitate development of cutting-edge broadband applications utilizing SPACEWAY(TM), the next-generation satellite platform.

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Grafton Technologies to Use QuickBird Imagery for Airport Management

DigitalGlobe announced that its QuickBird satellite imagery is being used by Grafton Technologies Inc. to aid in airport development, management and maintenance. Grafton Technologies began using orthorectified QuickBird satellite imagery in July 2002 to map airport features at the Portland International Jetport in Portland, Maine. Combined with a geographic information system (GIS), the 60-centimeter resolution satellite images provide airport planners and developers with spatial data that can support airport expansion and improvement projects as well as environmental analysis.

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Concurrent's MediaHawk VOD Solution Chosen by TWC

Concurrent Computer Corporation announced the successful launch of VOD services in Time Warner Cable's Western Ohio system. Serving over 419,000 basic subscribers and over 133,000 digital subscribers, Time Warner Cable's Western Ohio market is its seventh largest system.

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SND to Provide HUGHES DIRECWAY Broadband Internet Services in Latin America

SND Electronics Inc. and Hughes Network Systems have signed an agreement which enables SND to provide HNS DIRECWAY(R) Internet services to Latin American customers. According to the agreement, SND will provide its customers with DIRECWAY broadband satellite service utilizing HNS' hub and centralized network management center located in Germantown, Maryland. In addition, the contract calls for HNS to supply all support services, equipment, software and technology necessary for SND to deliver a wide range of two-way, IP-based services to its customers, including broadband Internet connectivity, VoIP (Voice over IP), video conferencing, electronic payments, content delivery services and other applications.

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Hughes Network Systems Europe Signs Deal With Wind Telecomunicazioni S.p.A.

Hughes Network Systems Europe has signed a contract with Wind Telecomunicazioni S.p.A. for mobile and fixed line telephony and Internet access. Wind will use the satellite services to provide a SCADA (Supervisory Control and Data Acquisition) network to its customers.

The HNSE satellite solution Wind is deploying connects customers' sites not reachable by terrestrial lines, allowing remote management without on-site personnel. The satellite network enables Wind to link additional remote sites quickly. Also, it can be used to provide back-up for terrestrially connected sites.

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Spacenet's Connexstar Service Chosen as High-Speed Networking Platform for 4,000-Store Hardware Cooperative

Gilat Satellite said its U.S. subsidiary, Spacenet Inc., has been selected by Do it Best Corp. to provide a nationwide, broadband wide area network to serve members of its retailing cooperative.

Do it Best serves more than 4,000 independent hardware and building materials retailers throughout the United States. Recently, the company embarked on a program designed to improve the operating efficiency of its nationwide store network, principally by connecting all its U.S. stores to its Indiana corporate headquarters. Connexstar will be an integral component of this objective. Spacenet's Connexstar broadband satellite service will be used to support a variety of critical business communications requirements, including high-speed Internet/intranet access, e-mail, fast credit authorization, store polling, distribution of advertising materials and price file update distribution to stores for accurate and consistent pricing.

Do it Best's goal is to have the vast majority of its 4,000 members equipped with Connexstar service by late summer 2003.

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HNS Supplies Maqsat - Atlantic Coast Telesys with Satellite

Hughes Network Systems is providing its TES Quantum(R) solution to the Maqsat Satellite Communications and Atlantic Coast Telesys (ACT) joint venture, enabling them to provide on-demand telephony services throughout Africa and the Middle East. The Maqsat-ACT joint venture will offer a wide range of services from Maqsat's gateway and newly opened teleport facility located in Amsterdam, The Netherlands, including voice, fax, data, and Internet access.

The HNS TES Quantum solution employs advanced, low-bit rate voice encoding to maximize bandwidth efficiency and reduce costs and supports a least-cost routing option. In addition, billing, pre-paid and calling card services can be tailored to meet the customer's specific requirements.

Speaking for Maqsat, Kees-Jan Mink said, "We have been providing the full range of HNS' solutions to our customers, including the DIRECWAY(R) broadband- by-satellite service and along with ACT are very pleased to offer the TES Quantum mesh telephony solution to customers in Africa and the Middle East."

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Digital Angel will receive a $5 million, three-year revolving credit facility from Wells Fargo Business Credit

Digital Angel, located in South St. Paul, Minn., sells a GPS locator targeted primarily for adults for $399, with service plans starting at $29.95 a month. According to company executives the company has only shipped about 100 units to date. The company has been plagued by significant losses - $24 million on sales of $17 million for the first six months of 2002 - and saw its auditing firm resign this past May. It's shares have dropped from $15 earlier this year to around $2.50.

On the bright side, the company says it has signed two significant new contracts and saw its 3Q losses drop to $945,000, or 4 cents per basic and diluted share. Revenues for the third quarter were $ 9.3 million.

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Canadian Space Agency Makes $7.4 Million Investment in Emerging Space Technologies

Allan Rock, Minister of Industry and the Minister responsible for the Canadian Space Agency announced the awarding of 26 contracts worth a total of $7.4 million to Canada's space industry. Minister Rock made the announcement in the company of leading space industry representatives, gathered at the Hautes Etudes Commerciales Pavillion.

"The Government's investment in leading-edge research and the development of beyond-state-of-the-art technologies is a commitment to ensuring Canada's place in the global knowledge-based economy-driving recognition of Canada as a magnet for talent and investment," said Allan Rock, Minister of Industry and Minister responsible for the Canadian Space Agency. "Fostering public-private sector partnerships, these contracts ensure that the Canadian space industry is championing the development of Canadian expertise and excellence, leading it to niche markets worldwide.

Companies in British Columbia, Manitoba, Nova Scotia, Ontario and Quebec are being awarded contracts related to work in robotics and automation, to develop technologies required for future Canadian space missions, to support enhancements related to Earth observation and to foster industrial competitiveness in Satellite Communications.

"Investments in leading-edge space technologies and applications are providing, on a daily basis, positive benefits to Canadians, linking citizens from coast to coast, delivering tele-medicine and distance education to remote communities and helping us develop new ways to better understand and protect our planet and its inhabitants," said Marc Garneau, President of the Canadian Space Agency.

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Internet & Broadband

BT Targets Business Customers Farther Down the Demand Curve

BT Openworld has announced price reductions targeted at cash strapped companies wanting broadband access. The ISP has waived set-up fees and equipment costs for business-oriented ADSL to catch the attention of companies with less financial resources.

ZDnet

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High Performance Wireless Research and Education Network, or HPWREN brings Broadband to Remote Locales

University of California, San Diego is supporting an NSF-funded project to provide wireless broadband in the unlicensed 2.4 Ghz band, powered by solar energy. The systems have been installed in several Native American learning centers and are designed for rural areas without access to electricity. Battery backups would support the system for up to five days in case of solar 'outages.'

Cosmiverse  · Newsfactor

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Steak n Shake Picks Spacenet to Connect Stores

The Steak n Shake Company has selected Spacenet's broadband satellite-based IP network to provide management with timely information and new management tools. The value of the deal was not disclosed. Under the agreement, Gilat's US subsidiary Spacenet Inc. will provide a satellite-based network to a minimum of 350 Steak n Shake restaurant locations across the US.

Steak n Shake Marketing and Investor Relations VP Vic Yeandel said, "Improved data connectivity will improve the flow of information and give management access to web-based tools for improving performance. We expect this improvement to result in a better experience for our guests. After looking at a variety of connectivity solutions, we found that Spacenet's Connexstar service offered the most cost-effective solution for our needs."

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Analysis

Satellite TV Viewers Could Top Out at 60% of Premium Cable Subs

David Wilkerson believes both cable and satellite tv providers could be facing a plateau in demand.

CBS Marketwatch

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Financial

iBasis Stock to Move to OTC Bulletin Board Trade on Over-the-Counter Bulletin Board

iBasis, Inc., a provider of international voice services for carriers including AT&T, Cable & Wireless, China Mobile, China Unicom, Concert, Sprint, Telefonica, Telenor, Telstra, and WorldCom, announced that it received notice from The NASDAQ Stock Market that the it's securities will be delisted from trading on The NASDAQ National Market due to the company not meeting certain minimum listing requirements. iBasis stock will begin trading on the NASD-operated Over-the-Counter Bulletin Board (OTCBB) under the symbol IBAS as of November 14, 2002.

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Pegasus Reports 3Q Results

Pegasus Communications reported revenues of $225.9 million for the 3Q'02 (up 5% over 3Q'01), consolidated EBITDA of $52.1 million (up 154% over prior year), consolidated free cash flow from operations of $37.5 million (up 393% over 3Q'01), and 3Q'02 net loss applicable to common shares decreased to $45.9 million, or $0.77 per share, (down from $95.8 million, or $1.71 per share in 3Q'01).

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Upcoming Events

Satellite Internet Forum 2002

December 4-6, 2002
San Diego, CA
ACT Conferences                                                                                                                                             
http://www.actconferences.com/sif2002/

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