CYBERSTAR DATA SERVICE TO GET $20 MIL AD PUSH: INITIAL INTRO AT NAB MEETING IN LAS VEGAS, THEN BIZ LAUNCH

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Loral Space & Communications this week launches the latest competitor in the developing Internet-in-the-sky business, with a $4 million ad blitz directed at the National Association of Broadcasters conference in Las Vegas.

The NAB schedule includes ads at Las Vegas' McCarran International Airport, on buses and on cable TV service to the city's hotels.

CYBERSTAR SERVICES

Loral's new CyberStar will provide high-bandwidth data communication services, including high-speed Internet access and per- sonalized content for businesses and consumers.

The service will begin trials later this month, with a full-scale business launch scheduled for summer and the consumer launch slated by yearend.

The consumer introduction will get an additional ad budget in the $20 million range.

In 1999, Loral will launch a sister satellite telephone service called GlobalStar.

CyberStar will go up against such satellite competitors as DirecPC, from Hughes Network Systems; WavePhore Networks from WavePhore; and two services that aren't expected to be launched until at least 2002-Teledesic from Microsoft Corp. and Celestri from Motorola.

CyberStar's TV campaign, from Winkler Advertising, San Francisco, includes a 30-second spot showing a trailer in the desert as opera music plays in the background.

Copy touts the quick delivery of data to thousands of locations simultaneously.

The tag is "Global bandwidth services like nothing on earth."

`TERRESTRIAL SOLUTIONS'

Agency President Agnieszka Winkler said the new technology's biggest challenge is that "the market tends to look to terrestrial solutions," such as laying cable and digging up the earth.

Satellites, she said, will lower costs and the "very attractive price will make new applications possible that weren't possible before."

Manish Gupta, CyberStar's executive director of marketing, said the consumer Internet service's price per month will be competitive with the de facto industry standard of $19.95.

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