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MURDOCH, MCI REACH FOR SKY\Joint venture bets satellite TV will win over cable, buys $682\million FCC license.


Byline: Russ Britt Daily News Staff Writer

News Corp. and MCI Communications This article is about MCI before it merged with WorldCom. For other uses, see MCI.
MCI Communications was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and
 Corp. are betting the communications revolution will come faster by air than by land and have put down $682 million for a federal license to provide direct broadcast satellite signals.

In the first venture since Rupert Murdoch's media conglomerate allied with the long distance phone carrier in May, the two companies said they planned to compete with such firms as DirecTV, providing entertainment and data transmission via two satellites to serve the United States.

"The important thing is it does confirm our major partnership which we formed eight months ago," Murdoch said.

As the plans of several Baby Bells The nickname given to the regional Bell operating companies after Divestiture in 1984. See Bell System and RBOC.  to rewire re·wire  
v. re·wired, re·wir·ing, re·wires

v.tr.
To provide with new wiring: rewired the old house.

v.intr.
To install new wiring.
 the United States via fiber optic lines have become stalled in recent months, MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device.

(2) (Microwave Communications Inc.
 and News Corp. said using airwaves appears to be the most practical way of transmitting information to consumers.

Cable firms attempting a similar broad-band rewiring effort will face the same hard road, Murdoch said.

"The cable industry, to get out and match what we can do will have tremendous costs ahead of it," Murdoch said.

MCI chairman Bert Roberts said: "I'm not a believer in the technology that the (Baby Bells) currently are putting in place."

As the communications revolution begins to take shape, there appears to be a parting of the ways in philosophy between cable firms, Baby Bells and companies like News Corp. and MCI. In fact, the nation's largest cable provider, Tele-Communications Inc., withdrew from the FCC auction earlier this week.

Murdoch added that Fox will not pursue any other venture with MCI to transmit information via land lines.

There are two other direct broadcast satellite providers This is a list of direct broadcast satellite providers, operating around the world. Africa
South Africa and southern Africa
  • Multichoice
Asia
India
  • DD Direct Plus
  • Dish TV
  • Tata Sky
  • SUN Direct
Indonesia
 currently offering service, Hughes Communications Corp.'s DirecTV and USSB USSB United States Satellite Broadcasting
USSB United States Shipping Board
USSB Upper Single Sideband
. Those services offer 175 channels or more of entertainment programming that include several movie channels and increased sports programming.

Murdoch said he hopes to expand beyond what those two companies offer and use satellites for data transmissions via computers.

News Corp.-MCI's $682 million Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest.  license bid, beat out EchoStar Satellite Corp.'s $650 million offer.

The tentative title of the new business will be called ASkyB, a variation on Murdoch's BSkyB (British Sky Broadcasting British Sky Broadcasting (BSkyB — formerly two companies, Sky Television and BSB) is a company that operates Sky Digital, a subscription television service in the UK and the Republic of Ireland. It produces TV content, and owns several TV channels. ) sports programming venture in the United Kingdom, he said. Murdoch said he also hopes to move some executives from BSkyB over to run the new operation.
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Jan 26, 1996
Words:390
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