Pegasus Asks SBCA to Drop Suit


Nashville, Tenn. -- The satellite industry should drop its must-carry legal
fight with local broadcasters, Pegasus Communications Corp. chairman Mark Pagon
said Friday in a keynote address at the Satellite Broadcasting &
Communications Association convention here.

Pagon also called for the satellite industry to find a way to deliver local
channels to even the smallest television markets within the next five years.

Pegasus announced early Friday that it won licenses from the Federal
Communications Commission that will allow it to deliver video and Internet
services across the country through its own satellites.

The FCC granted Pegasus licenses to launch and operate Ka-band satellites at
the 107 and 117 degrees west spectrum.

The slots are 'smack in the middle of the DBS arc,' Pagon said, referring to
the full-CONUS (continental United States) Ku-band spectrum controlled by
DirecTV Inc. and EchoStar Communications Corp.

Pegasus plans to launch next-generation satellites of its own, which could be
operational within four to 10 years, Pagon said. The high-capacity satellites
could deliver any combination of digital video, audio and data services,
including local broadcast channels.

'I hate to disappoint you all, but Pegasus is here for the long term,' he

There had been speculation that Pegasus would be pressured to sell out to
DirecTV, especially given DirecTV's likely merger with News Corp.'s SkyGlobal
Networks division.

Pegasus resells DirecTV video service and Hughes Network Systems' 'DirecWay'
broadband service.