Mar 5 1980

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Newspapers reported a consent agreement in a suit by Ted Turner's Cable News Network (CNN) against RCA, for space on Satcom 1 to replace that lost when Satcom 3 disappeared, whereby CNN would use a Satcom 1 channel for six months and would drop a demand for $35 million in damages. RCA had said its clients could use transponders on the Comstar D2 leased by AT&T from Comsat General; however, cable operators whose antennas received Satcom signals would need additional expensive ground receivers to get signals from Comstar. Turner's CNN clients around the United States could now continue to receive the 24-hour all-news service for six months without the additional expense. The lawsuit would continue in Atlanta's U.S. district court. (W Star, Mar 5/80, C-5;W Post, Mar 7/80, C-10)

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