The Zee bouquet of 14 channels, which will be fully encrypted by 1 June, is likely to witness a drop in revenues in the Middle East markets, according to sources within the network.

There has been a drop in ad sales in the Gulf region for the channel following the news that the Zee bouquet is going fully pay. Advertisers have been pulling out because they see a massive fall in subscriber base once the channel is no longer free to air, the sources say. The Gulf market is very sensitive to price because expatriates from the Indian subcontinent who largely make up the viewership of channels like Zee have comparitively low purchasing power.

With conditional access systems well in place, subcontinental subscribers mostly access free to air channels which is why even Star Plus, which is doing phenomenally well in India, cannot really claim viewership relative to population in the region.

Though Zee officials have not given an exact date as to when the network will be encrypted other than saying it will happen sometime in May, sources say it will be from 1 June.

Deepak Shourie, whose last posting as CEO of Zee Publishing ended rather abruptly, will be taking charge of Discovery India on 7 May, putting to rest all speculation over who would fill managing director Kiran Karnik‘s shoes.

Karnik had announced on 13 December last year that he would be leaving Discovery in May after a successful stint where he provided the lead in establishing the channel in India. Karnik was at the helm when Discovery Communication India was launched in in 1995.

Shourie was formerly publisher of the weekly news magazine ‘Outlook‘, belonging to the Raheja group, before becoming executive president of the ‘Hindustan Times‘ newspaper in January 1999.

His last stint as CEO Zee Publishing ended on a controversial note last November when, according to company sources, he was asked to go by the top brass when he failed to agree to management consulting firm, AT Kearney‘s recommendation that Zee‘s news television division be merged with the entertainment television division.

Shourie‘s appointment comes as something of a surprise as market speculation was that Ambika Srivastava, vice-president advertising sales & marketing, would be taking over from Karnik.

India‘s dreams for its odyssey in space seem to be going askew somewhat after the GSAT-1 satellite, launched by the indigenous GSLV D-1 into orbit successfully, couldn‘t be placed in the correct geo-stationary orbit.

Scientists of the Indian Space Research Organisation (ISRO) have been watching helplessly as the GSAT-1 drifts at the rate of 13 degrees a day. It will probably go out of sight of ISRO‘s master control facility in Bangalore by the month-end, reports United News of India, quoting ISRO sources.

At the time of the last orbit raising event carried out on 23 April, the satellite was located at 53 degrees east.

Tests could be conducted only when the satellite became visible again, ISRO chairman K Kasturirangan had said on Tuesday.

At a press conference in Bangalore, capital of the southern state of Karnataka, Kasturirangam said a shortfall of 10 kg of propellant was the reason why orbital correction could not be made. It could only be placed in a 23 hour and two minute orbit instead of a 24 hour orbit.

He, however, added that the GSAT-1 was in excellent health. As the GSAT-1 was not meant to be an operational satellite, it would not affect any user, he claimed.

The next target would be to increase the GSAT payload to 1,750-1,800 kg. The target was to reach a two tonne payload by the third flight which will lead to changes in configuration.

The second GSLV launch will be held in the third or fourth quarter of 2002.

Meanwhile, the Polar Satellite Launch Vehicle (PSLV) launch has been scheduled for August. It will carry a payload of two satellites - one from Poland (Probo) and another from Germany (Bird). ISRO has scheduled the launch of the Insat-3C satellite also in August.

The question remains how ISRO expects to get orders for its upcoming launches after this big setback to its space programme.