MCI Communications Corp and News Corp Pty Ltd are planning to broadcast high-bandwidth multimedia services over MCI’s newly-won direct broadcast satellite spectrum. New high-power, low-altitude satellite technology enables subscribers to receive high-quality video, audio and data services using a satellite dish with a diameter of only 18. The firms expect to deliver software, databases, medical images, books and music to geographically- dispersed terminals, including personal computers. MCI, with 20 million customers for its intelligent communications network, and media conglomerate News Corp, are to use the combination of their content and infrastructure to beam mulimedia via satellite into televisions and personal computers. The two expect to take a considerable slice of the burgeoning Direct Broadcast Satellite video, audio and data market, which is expected to generate industry-wide revenues of up to $7,000m a year by the year 2000. Each company will own 50% of the new venture. In addition to receiving high-quality digital television and other entertainment programming, consumers will be able to use the new satellite technology for distance learning and to access libraries, museums and other multimedia educational and cultural resources. Businesses will be able to use digital satellite services to deliver software, corporate information, training programs and other value-added content directly to customers or employees. MCI already serves nearly every Fortune 500 company. The announcement follows its successful bid in the Federal Communications Commission auction for the last remaining direct broadcast satellite slot that provides coverage of all 50 states, plus Puerto Rico. MCI submitted a winning bid of $682m for the slot, located at 110o West longitude. News Corp’s satellite footprint now covers two-thirds of the world population. With its Fox Television Network, the Twentieth Century Fox film studio and its newspapers and broadcast outlets throughout the world, its access to content is well-nigh unrivalled.
