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NEWS FROM MON 26TH FEB TO MON 5TH MARCH 2001
MONDAY 26 FEBRUARY 2001
MTV
in deal with TwoWayTV
AT&T
plans 25.5%
Time stake
Kirch to buy 75% of F1
No data at News Ltd
Soccer coup for ESPN STAR
Cable vote of confidance
Canadian licence renewal hearings
CTV to sell Sportsnet
ONdigital launches
weekly guide
Liberty
drives Euro consolidation
MTV
in deal with TwoWayTV
Pay TV music channel, MTV has signed a deal with Two Way TV to create
enhanced music programming for its channel in the UK, in a move which
will see the two groups develop a range of interactive quizzes and video-based
programmes.
MTV viewers will be able to test their own music knowledge, learn more
about their artists and put together their own fantasy record label. Also
running on Two Way TV's interactive TV games channel on digital cable
networks and ONdigital, will be on-demand and prize games based on the
music industry.
Chris Sice, MTV UK Managing Director, said, "Two Way TV's content fits
in perfectly with the MTV brand and will bring us even closer to our key
audience."
Matthew Tims, Two Way TV Managing Director, commented, "MTV is the most
recognised television music brand in the world and has unrivalled music
content. Two Way TV will be working with MTV producers to take that content
and add an interactive layer."
AT&T plans 25.5% Time stake
AT&T plans a public offering of its 25.5 per cent stake in Time Warner Entertainment after failing to reach an agreement to sell the stake to AOL Time Warner.
AT&T is dissatisfied with AOL's offer of $9 billion to $10 billion, despite the fact that the two companies have made some progress in negotiations in recent weeks.
AOL, which owns 74.5 per cent of Time Warner Entertainment, wants AT&T to accept various agreements related to programming, Net access and cable systems. Sources said the two are far apart on the valuation of these parts of the deal.
AT&T is expected to register its Time Warner Entertainment stake for sale in a public offering, possibly before Wednesday (Feb 28) because of regulatory deadlines.
Kirch buys 75% of F1
Kirch, the German Media group, has secured about $1 billion to buy 75 per cent of the F1 auto racing circuit, although the source of financing is unclear.
The group said it has obtained guaranteed financing to carry out an alliance with EMTV & Merchandising which owns 50 per cent of Formula One, but Bernie Ecclestone who owns the other half of the racing circuit, has put his veto on any deal with Kirch.
Also the Federation International de l'Automobile, the governing body of motor sport, opposes any move to put Formula One broadcasts on pay TV and said it is considering invoking clauses in the Concord master agreement between it, Formula One and SLEC, Ecclestone's family trust.
Kirch agreed to pay $550 million for 25 per cent of EMTV, a 24 per cent Formula One stake from EMTV's holding, and to put up $987 million EMTV need to perform its Formula One option. EMTV's share price dropped last year when it acquired The Jim Henson Company and Formula One stake for E3 billion, then showed drastically different figures from its earlier projections.
No data at News Ltd
News Ltd has made it clear that it will not be among the first generation of Australian datacasters, after it failed to lodge an application to bid for a licence.
When applications closed seven groups had registered to join the auction process, John Fairfax Holdings, NTL Australia, Telstra, Open YB, Online Media Group (OMG), Barwix Pty Ltd and the Australian Datacasting Corporation.
News Ltd had made it clear in 2000 that the government's definition of what can be carried by datacasters was too narrow and that the rules only allowed them to produce a text service only able to carry a strictly limited range of genres.
Officials made it clear that the datacasting licences were not to be used as back door broadcasting operations after guaranteeing the commercial terrestrials they would not face any new competition before 2007 in exchange for investing several hundred million dollars to introduce digital transmissions.
One of the entrants, OMG, said after declaring its interest that it still had, "Strong reservations about the viability of the Federal Government's current regulatory model.
Fairfax had been as vocal as News Ltd but nevertheless decided to apply for the auction process run by the Australian Communications Authority. The organisation is offering two 10-year datacasting transmitter licences in each of eight geographic service areas.
Soccer coup for ESPN STAR
ESPN STAR Sports in Australia has acquired the exclusive terrestrial and cable and satellite television broadcast rights of the English Premier League for the next three seasons beginning August 2001. The deal is said to be worth $256 million over the three years of the contract.
ESS Managing Director Rik Dovey said that the network would also expand its current coverage with an extra match a week to a total of 165 games per season. In addition, it will introduce daily support programming on air.
The deal is a coup for ESS since Premier League coverage is avidly-followed in Asia and with the 2002 World Cup being held in Korea and Japan, the region's interest is going to be doubly renewed.
The deal also gives the service leverage with individual affiliates like i-Cable in Hong Kong that had their own local pay TV distribution deals with the English Football Association and BskyB who jointly own the rights to the Premier League. ESPN excited the i-Cable platform last year a dispute between the two parties.
ESPN STAR Sports is a 50:50 joint venture between ESPN Inc and News Corp's STAR platform.
"We're thrilled to have the FA Premier League headlining our programming line-up," Dovey said. "This, along with the UEFA Champions League, Spanish Primera Liga, the Chinese National Football League, the Korean Football League, major Asian internationals and in some territories the Italian Serie A, completes what is the strongest football programming line-up of any sports broadcaster in the world.
Cable vote of confidance
The word is out at AT&T that CEO C Michael Armstrong wants to become CEO of AT&T Broadband when the corporation completes the carrier's restructuring. After spending several years and $115 billion in assembling the world's largest cable company, in order to provide wireless, cable, local and long distance, voice, data and video services, AT&T decided to split into three independent companies, Broadband, Wireless and Business Services.
Becoming CEO of AT&T Broadband would allow Armstrong to pursue his original bundled services vision at a time when the cable industry is coming under increased competitive pressures and capital markets are shrinking.
Canadian licence renewal hearings
Canadian regulator Canadian Radio-television and Telecommunications Commission has slated April for public hearings on licence renewals for Canadian broadcasters CTV, CanWest Global and French-language TVA.
While TVA will doubtless fly through its hearings on the wings of high ratings for locally produced content CanWest and CTV will be forced to run the gamut of failed promises to increase ratings for Canadian content. Canadian content ratings for both CTV and CanWest plummeted between 1997 and 1999. In 1997 CTV's prime time Canadian content took 17 per cent of the market.
That fell to 12 per cent in 1999. In 1997 CanWest's Canadian content attracted 7 per cent of the audience. That fell to 5 per cent in 1999. To counter the poor ratings, both broadcasters will argue that they increased Canadian content funding.
CTV to sell Sportsnet
Canadian broadcast regulator the Canadian Radio-television and Telecommunications Commission has refused to grant CTV Inc, Canada's largest broadcaster, an extension in the sale of cable channel Sportsnet. CTV was ordered to sell its controlling interest in Sportsnet within one year, as a condition to its purchase of TSN last year.
Canada's largest MSO, Rogers, has a right of first refusal in buying CTV's 40 per cent stake and says it had a deal but that CTV reneged. Since purchasing TSN, CTV itself was purchased by Bell Canada Enterprises, which controls DTH operator Bell ExpressVu, a Rogers rival.
ONdigital launches weekly guide
As part of its drive to win subscribers from Cable and Satellite homes, digital terrestrial TV company ONdigital in the UK is increasing customer services and has become the first Pay TV company to launch a weekly listings magazine.
With a million subscribers, the launch of ON7 magazine is believed to be Britain's biggest ever contract publishing deal, awarded to TPD (GB) Ltd, with television listings specialists The Big Listings company (a sister company of advanced-television.com), contracted to supply TV listings on some 150 cable and satellite channels. Big Listings clients include providing EPG listings for ONdigital and BSkyB as well as listings for numerous publications and TV channels.
Liberty drives Euro-consolidation
US Deal-maker extraordinare John Malone is behind compex dealmaking which is driving European cable consolidation, and via his major sharholding in News Corp, and its putative Sky Global international satellite service, could be at the forefront of cable/satellite integrated broadband services.
Malone's latest move is via his US media investment vehicle Liberty Media, which, through its 38 per cent stake in United Global Com, parent of Europe's largest cableco UPC, already contols the continent's largest broadband operator. A partnership of Liberty Media and UK investment company Klesch & Co plans to acquire 55 per cent stakes in each of Deutsche Telekom's six regional cable TV companies in Bavaria, Berlin/Brandenburg, Hamburg/Schleswig Holstein/Mecklenburg Vorpommern, Lower Saxony/Bremen, Rhineland Palatinate/Saarland and Saxony/Saxony Anhalt/Thuringia plus an option to buy an additional 20 per cent minus one vote in each of the six regions. Liberty is forecast to put the newly acquired cable assets into UPC, rather than UK cable company Telewest, in which it has a 25 per cent stake.
(Also see weekend news February 23 - 26)
The Liberty/Klesch
partnership also intends to acquire the parts of Deutsche Telekom Kabel
Service GmbH, and digital platform operator Media Services GmbH in each
relevant region. Klesch & Co bought Deutsche Telekom's Hesse network last
April: Liberty controls Europe's largest cable operator United Pan-Europe
Communications NV (UPC).
The deal current, valued at about E5 billion by the Wall Street Journal,
is expected to close by mid year giving Liberty Media access to more than
10 million German homes.
Deutsche Telekom has already sold, or agreed to sell, majority stakes
in its networks in the states of North Rhine Westphalia and Baden-Wuerttemberg
to US company Callahan Associates.
Callahan is interested in bidding for other parts of the network but Reuters
reports Deutsche Telekom spokesman Hans Ehnert as saying that DT expected
to sign a final contract with the Liberty/Klesch partnership shortly.
Deutsche Telekom is selling assets to reduce its debt of some E60 billion,
and to comply with EC regulations requriing it to divest its cable assets.
* Bonds issued by United Pan-Europe Communications NV rose on Friday,
on news it had raised E1billion from parent company UnitedGlobalCom (UGC).
UPC shares were 3.61 per cent higher at E10.05 at 1025 GMT. The cash injection
is part of a larger deal between Liberty Media and UPC parent UGC, in
which Liberty will give UGC $1.4 billion in exchange for increasing its
stake to about 43 per cent. UGC will in turn buy E1 billion in the new
UPC rights issue.
The deal follows bondholders' rejection of UPC's planned purchase of a
25 per cent stake in Britain's Telewest.
TUESDAY 27 FEBRUARY 2001
Pathe'
group takes 30% of Histoire
South Korea selects final 3G
operator
Cartoon Network Italy's nominees
Terra
Lycos' new CEO
Qualcomm's
delay in 3G
Turk
Board bans ten
Online
Classic blames BT
Vivendi
against Polish Elektrim
YesTV
selects NDS
Pathe
group takes 30% of Histoire
The French media group Pathe, which already has holdings in a number of
thematic channels, has taken a 30 per cent stake in Histoire, a thematic
channel which specialises in history. The other shareholders of the channel
are: France Television, La Sept Arte, INA, France Telecom and Lyonnaise
Communications. The channel has 1.2 million subscribers.
The longstanding negotiations with the other French history channel, 'La
Chaine Histoire', owned by the AB Group, with a view to merger, are still
under way.
South
Korea final 3G doubts
South Korea postponed plans to select a third and final third-generation
mobile service operator, as doubts about the only willing consortium caused
it to reconsider offering two competing 3G technologies.
"The government decided to delay the deadline until a consortium takes
concrete shape," Information and Communication Minister Ahn Byung-yub
told a news conference.
The government awarded two licences in mid-December to consortia led by
state-run Korea Telecom and SK Telecom, which opted to use the W-CDMA
platform, touted by handset manufacturers such as Nokia and Ericsson,
because it has a wider worldwide user base.
Ahn said the government had given up on its hopes of finding a CDMA 2000
operator by March, though added he did not expect the search to last beyond
the first half of this year.
Internet service provider Hanaro Telecom offered to provide CDMA 2000
in December's auction but was rejected due to its lack of experience in
mobile services and concerns it might not be able to raise sufficient
funds.
Cartoon Network Italy's nominees
Simona Fabbri has joined Cartoon Network Italy in the newly created position of Director of Content. She will be responsible for the schedule, the website and acquiring Italian programming, as well as overseeing the promos and on-air look.
Cartoon Network Italy is available in 1.6 million homes in Italy and Italian speaking Switzerland. It is broadcast by Stream and Tele+ in Italy and by Cablecom Ticino in Switzerland.
Fabbri comes from the Italian Disney channel where she started as Acquisitions Manager moving to Asset Manager where she built a considerable reputation in the Italian kids television market.
Cartoon Network, the all-animation channel is available on eight feeds in eight languages on digital and analogue satellite, cable and DTT in Europe, the Middle East and Africa. It is operated by Turner Broadcasting System Europe Limited, a Time Warner Company.
Terra Lycos'new CEO
Abel Linares has resigned as chief operating officer of Terra Lycos, as Bob Davis quit as chief executive after a struggle with Joaquim Agut, the company's new chairman.
Another recent resignation from the industry was Fabiola Arredondo, the high-profile managing director of Yahoo! Europe, who resigned last week. In the recent management reshuffle he was given a new job as head of special projects, which would have come into effect on Wednesday (February 21).
Qualcomm's delay in 3G timetable
Qualcomm, the US electronics group behind third generation mobile phone technology, is warning of a two year delay in the roll-out timetable promised by European operators, predicting that the services currently in development were not likely to be commercially viable until late 2004 or early 2005.
The comment increases fears that operators have over-estimated the speed with which new Internet and video services can be introduced on mobile phones, as most European operators are already paying for unused radio spectrum earmarked for the services.
Irwin Jacobs, founder and CEO, believes a rival 3G standard known as CDMA-2000 will be quicker to market, although its critics claim Qualcomm is biased against W-CDMA because of closer ties with CDMA-2000.
Michel Rahier, head of Alcatel's mobile phone business, told reporters at a mobile conference in Cannes that 3G handsets were likely to be launched in late 2003 or early 2004, a year later than previous forecasts, and would only take off in 2004 or 2005. Motorola, the US manufacturer, announced that it would have its 3G first handset available this year in Japan.
Turk Board bans ten
The Turkish Supreme Board of Radio and Television temporarily banned the broadcasts of 10 separate institutions. RTUK officials stated that Radyo Soz stationed in Bursa was sentenced to a broadcasting ban of 180 days on the grounds as it had 'explicitly incited hatred and enmity.' Cine 5 TV was hit with a one-day ban for broadcasting a 'pornographic' movie during the day.
Online Classic blames BT
Online Classic, which broadcasts music and arts over the Internet, intended to rely only on the web for delivery of its service, but the delays to the development of broadband networks in the UK obliged the group to launch a satellite channel.
In the UK the satellite channel will be available on a subscription basis to home connected to British Sky broadcastingØs network, while in the US, the Internet will remain the only source.
Chris Hunt, Chief Executive, commented, "Had broadband been developed as quickly as BT said it would, or even half or a quarter as fast, then we would not involving ourselves in a satellite channel. The satellite channel was an interim measure until broadband widespread enough to deliver television to a mass market through the Internet."
Vivendi against Polish Elektrim
Vivendi Universal has begun arbitration proceeding against Polish telecoms and power group Elektrim, in a move to force an end to the planned investment by Deutsche Telekom.
Vivendi accused Elektrim of violating the investment agreement when it transferred two Internet companies bought last year to its holding companies rather than Elektrim Telekomunicacja, which owns 51 per cent of PTC Era, Poland's mobile phone firm. The other 49 per cent is owned by Deutsche Telekom.
YesTV selects NDS
Yes, Israel's
satellite broadcaster, has selected technology from NDS Group, a News
Corporation company, to provide interactive services to Yes customers.
Based on NDS's Value@TV interactive infrastructure, these services will
provide a range of interactive features such as horoscopes, weather, traffic,
various games and e-mail services.
Yes digital customers will be able to use these services on their television
screens at the touch of a button. Future subscriber services are expected
to include T-commerce, banking applications and other enhanced television
applications.
"Israel continues to be an early adopter of digital television, and specifically
interactive television," said Raffi Kesten, Senior Vice President and
General Manager, NDS Technologies Israel. "Through our interactive technology,
Yes will be in a position to provide this demanding market with the highest
quality interactive television services."
Shlomo Liran, Managing Director, Yes said, "Last year NDS and Yes worked
together to provide Israeli viewers with a new digital satellite TV service.
This year Yes and NDS are working together again to provide YES viewers
with some of the most exciting interactive services. Using a remote control
or cordless keyboard, our subscribers will be able to play games online,
send and receive e-mail messages and send text messages to mobile phones."
WEDNESDAY 27 FEBRUARY 2001
French free Internet dies
nCube supplies Kingston VOD
Terra Lycos'nominees
Telecom Italia gets green light
SkyStream's $44m round
W-CDMA Vs cdma2000
Carrier1 provides broadband services
CHTTL selects Nokia
AT&T seeks a public offering for AOL
First Russian digital channel
French
free Internet dies
Oreka, probably the most original of France's free ISPs, is changing its
model and revenue structure from Thursday (March 1st), after less than
one year of operation.
It started out last April offering completely free Internet access via
a toll free number while the other nominally free services were accessed
via a local rate call. Oreka's strategy is one of keeping costs down,
with no expensive portal to maintain, no advertising costs and a low budget
hotline. Recruitment of new subscribers, by word of mouth alone, brought
in 600,000 subscribers in six months.
A navigation banner with direct links to a range of sites is permanently
displayed while surfing, bringing in advertising revenue. A few other
ISPs followed suit, offering completely free access, although usually
limited to six hours a month for the first subscribers only, as a means
of building up subscriber numbers quickly.
However, Oreka found that the advertising revenue was not sufficient to
cover the phone costs. Average telecoms costs come to Fr30 per subscriber
per month, while advertising brings in just Fr12 per subscriber per month.
At the beginning of this year Oreka introduced a quota system, whereby
subscribers had the first six hours a month via the toll free number,
the remaining connect time being at local call rate. But it found that
the majority of subscribers were perfectly happy to use the six hours
free and then switch to another ISP for the rest of the month. Customer
loyalty to ISPs is found to be very low.
The downturn in the economics of Internet companies is largely to blame
for the change of tack at Oreka. It had hoped to bring in Fr150 million
of new investment last autumn, but in the event only got 65 million francs.
From March 1st subscribers will access Oreka at local call rates but will
gain 'bonus time'. For every three hours surfed at local call rate they
can access one hour free of charge during off peak times.
nCube supplies Kingston VOD
California based nCUBE Corporation and Kingston Communications of the UK announced yesterday (February 27) that Kingston will deploy its video-on-demand service (VOD) using the single streaming media server.
The first phase of the n4 server build-up for Kingston is already installed and remainder of the initial phase will be completed by the end of March. It is supposed to be twice as large as any VOD server on the market today delivering more than 6,600 simultaneous streams at 2 to 4 Mbps from a single piece of content.
Kingston Communications already deploys an ADSL-based suite of interactive digital television services including digital broadcast television, high-speed Internet access, local information and on-demand services to several thousand subscribers in East Yorkshire. nCUBE will provide the enabling technology for Kingston's VOD offering.
"nCUBE provides us a rare opportunity to offer our customers a full bouquet of interactive services," said Steve Maine, CEO of Kingston Communications. "The n4's unique scalability and architecture allows us to respond to changing consumer demands and give them the ability to watch what they want, when they want it Ý the ultimate in customer service."
nCUBE Corporation also announced its annual revenue generated from the company's video-on-demand (VOD) solutions. For the year ended December 31, 2000, nCUBE aggregated $17.4 million for residential VOD, while experiencing a quarterly revenue increase throughout the year.
Terra Lycos' nominees
The Spanish-US Internet company Terra Lycos appointed Stephen Killeen on Monday (February 26) as president of US operations, a move designed to fill the gap after the recent defection of CEO Bob Davis.
When Terra Networks merged with Lycos last October, Wall Street analysts said that keeping Davis at the helm was the key to ensuring the continued success of the company's US operations.
But Davis stepped down earlier this month after repeatedly clashing with Joaquim Agut, Chairman and CEO in Spain, over control of the company.
"That's definitely good news," said Jeff Fieler, senior Internet analyst at Bear Stearns in New York. "It shows the company is still able to attract good talent and should help stem the tide of bad sentiment after the recent resignations."
Telecom Italia gets green light
The Italian Communications Authority gave the green light to extension of Telecom Italia's price list reserved for other telecoms operators, as well as to the request for access by Internet service providers.
"After final technical checks the infrastructure and networks committee has approved Telecom Italia's proposals for the supply of permanent virtual path service in connection with broad-band access technologies of the XDSL type," said and Authority spokesperson. The committee has also arranged to complete technical discussions regarding a flat-rate arrangement for the HDSL technology within 60 days.
SkyStream's $44 round
SkyStream Networks, a US hardware and software producer for delivering multimedia content over broadband networks, announced a $44 million round of financing, which included funding from the venture arms of AOL Time Warner and Canadian communications company Shaw Communications.
Chief Executive Jim Olson said, "We raised enough money that we should not need another round." The company said it will use money to enhance its networking hardware platforms and for marketing efforts aimed at cable, telecommunications and satellite service providers to educate them about using both broadcast and land-based networks together for distributing media-rich content.
W-CDMA Vs cdma 2000
Kouji Ohboshi, chairman at Japan's NTT DoCoMo announced that the group will be the first to introduce 3G services this May, launching broadband mobile phone services capable of delivering video, CD-quality sound and fast Net access using the W-CDMA standard.
But Qualcomm Inc chief executive Irwin Jacobs is instead promoting the use of cdma2000, commenting that European mobile phone operators currently developing systems on the W-CDMA standard were unlikely to launch them until next year and not in volume until late 2004 or early 2005.
At issue are two competing 3G standards, W-CDMA and cdma2000, which are based on a technology called code division multiple access (CDMA), which send and receive information using multiple frequencies.
Ohboshi said, "I am mindful of Jacob's criticism and we will work harder to improve our technology.'' Many mobile phone operators are still undecided whether to invest further in buying telecommunications equipment on either the W-CDMA or cdma2000 standard.
Carrier 1 provides broadband services
European Telecom operator Carrier1, and Swedish optical broadband equipment vendor Net Insight, has signed a deal to provide professional broadband services for the media industry.
Carrier1, will own 60 per cent and Net Insight, listed at Stockholm Stock Exchange: NETI-B, will be the owner of 40 per cent in the new company.
The new company intends to offer professional streaming and file transfer video services to TV and media companies across Europe's major cities. The ability to transfer real-time video will allow production companies to cut costs of satellite transmission and will enable centralised editing and efficient access to archives.
"There are hundreds of TV-broadcasters in Europe,"says Bengt Olsson, CEO at Net Insight. "They all need to transfer footage between numerous fixed locations such as local studios, arenas and independent production companies."
CHTTL selects Nokia
Chunghwa Telecom Labs (CHTTL), the technology development group of the state-owned telecommunication operator in Taiwan, has selected Nokia to conduct its 3rd Generation trials.
Based on the trial results, CHTTL will build up its WCDMA testbed using Nokia's 3G technology, preparing for the introduction of advanced mobile services and mobile Internet access in Taiwan. Nokia will provide CHTTL with the core and radio network, network management system and technical consultancy services.
"We remain firmly committed to helping our customers here prepare for the arrival of 3G, offering innovative services and applications which their customers will want," said Petri Reijonen, Country Manager, Nokia Networks Taiwan.
Lung-Sing Liang, president of CHTTL said, "Through this trial, CHTTL will enrich its 3G WCDMA capabilities, strengthen Chunghwa Telecom's competence in 3G mobile communications, and speed up the provisioning of new services to our customers in the ever-evolving wireless marketplace."
AT&T seeks a public offering
AT&T is seeking an initial public offering for its stake in AOL Time Warner's entertainment unit and it is expected to "lay the groundwork" for a public offering of its stake.
In addition to its $9 billion to $10 billion offer, AOL, the parent of CNN, is looking for several side agreements to be part of the deal with AT&T, spanning cable systems, Internet access and programming interests.
AT&T, which must sell its stake for regulatory reasons, has the right to offer its Time Warner Entertainment stake to the public during a 60-day window every 18 months and the current window ends on Wednesday. AT&T believes it has a right to force AOL to pay an appraised value, the report said.
AT&T, which must sell its stake following its purchase of MediaOne Group, is at a disadvantage because no other buyers have emerged besides AOL.
First Russian digital channel
TeleMedium, which is wholly owned by St. Petersburg-based holding Telecominvest, is about to launch the first television channels in Russia to be transmitted digitally. The company will be carrying out tests of the signal in the city to find the optimal combination of signal strength and area of coverage.
Dmitri Volobuyev, general director of TeleMedium, said on Friday Feb 23, "After this, we'll be ready to provide commercial channels. But we don't see the point in starting broadcasts in the summer when half of the people are out of the city. So we're going to wait until autumn."
Volobuev would not comment whether viewers will be able to receive the digital signal directly once it is up and running, or if the signal will be scrambled, meaning that they will have to pay a monthly rate for a converter in order to see channels.
THURSDAY 1 MARCH 2001
Networks in Pacific Century deal
Vizzavi supports CGoogle.com
6 cable modems certified
Swedish TV advert rules relaxed
Alcatel launches DSL voice
OpenTV's service Platform Suite
What's slowing Murdoch DirecTV progress?
38m homes go digital
China Telecom completes fibre net
EMTV raise its stake in F1
Networks
in Pacific Century deal
Hong Kong-based Alive Networks, a multimedia company that distributes
travel and learning material over TV, the Internet, mobile devices and
in print, signed a deal with broadband satellite service Pacific Century
Matrix.
"PCM offers Alive the best possible technology platform to deliver the
first of our planned channels to viewers across Asia. As a key driver
in our business model, television services will lead the charge in introducing
consumers to Alive's unique travel and learning products," said Ian Henry,
Alive Networks Chairman and Chief Executive.
Alive's television channel will be multiplexed onto PCM's DVB/IP satellite
platform and it will join the existing PCM television and data services
being uplinked from Hong Kong, for distribution via PCM's four C-Band
transponders on the AsiaSat 3S satellite to television broadcasters, Internet
Services Providers, multinational corporations and content providers,
across the Asia-Pacific.
Vizzavi supports CGoogle.com
California based search engine Google.com is to provide its services to European portal Vizzavi, which offers a range of personalised services and content for desktop PC and mobile device users.
"Vizzavi is rapidly becoming one of Europe's leading Internet businesses for online services and mobile data with a prospective user base of more than 80 million," said Google CEO and co-founder Larry Page.
6 cable modems certified
The Euro-DOCSIS Certification Board (ECB) announced yesterday (February 28) the certification of a further six cable modems. The new cable modem suppliers include D-link, Elsa, and Scientific Atlanta while Askey, Ericsson and Motorola are re-certified with the latest version of their respective cable modems.
An ECB decision to certify and qualify Euro-DOCSIS 1.0 compliant products is based on results produced by tComLabs, the independent certification laboratory that runs the certification test on behalf of the ECB.
Swedish TV advert rules relaxed
by Inge Naning
Swedish television advertising rules, some of the strictest in Europe, are about to be radically changed. A recent top governmental decision is paving the way for one of the most controversial changes for many years in Swedish television history, the allowing of centre breaks in programmes.
Swedish Minister of culture, Marita Ulvskog, a well-known left-winger in the governing Social democratic party, seems to be abandoning her resistance to more liberal advertising rules. The rules have seen two of the three major Swedish commercial operators, satellite delivered MTG's TV3 and SBS's Kanal 5, locating their head-quarters and play-out centres to London, mainly to avoid the rigid Swedish advertising laws and instead submitting themselves being governed by the far more liberal British ITC rules.
Sweden's biggest commercial operation, TV4, awarded a state-granted national terrestrial licence in 1992, has long opposed the rules. One of the most spectacular, and criticised, initiatives to circumvent the rules has been the creation of a number of 'presenting X' mini-programmes, 'X' meaning other programmes in TV 4's regular schedules. These 'presenting X' programmes have been inserted into running TV4 shows, just like commercial breaks in many other European countries.
The Ministry of culture supposed to deliver its results some time next year, but suddenly, earlier this week, he announced that another committee will now take over, with the mission to make an 'express survey' of this controversial issue. Some days ago the Minister admitted that a major change of these rules is about to happen, but she will not see any extension of the general space for advertising, "We might allow centre breaks, but not more advertising space," Ulvskog comments.
According to EU directives, centre breaks are no longer against the law, even if most Scandinavian commercial stations have, reluctantly, accepted them.
A liberalisation of the Swedish advertising laws is expected to increase TV4's annual revenues by several hundred millions of Swedish krona (£1 = 14 krona), which is not particularly welcomed by TV3 or Kanal5. This hot issue also has a bearing on the future of the ailing Swedish DTT project, where Ulvskog has taken a much-debated lead, and where particularly TV3 and its owner, multi-billionaire Jan Stenbeck, have made it a major mission to invent obstacles.
Ulvskog has also announced that she might even consider a change of the sacred licence financing system, "The licence system might not be there for ever, but my personal belief is that it will last for quite some time. For me it is a question of independence for the public service television system."
Alcatel launches DSL voice
Alcatel in France has launched the Alcatel integrated voice gateway module for the 7300 ASAM DSL Subscriber Access.
Multiplexer, Alcatel's integrated voice gateway module, enables highly scalable voice-over-digital-subscriber-line and represents an important step towards deploying bundled broadband services from a single platform.
Alcatel's 7300 ASAM now offers transparent analogue services, placing it at the heart of converged voice and data networks by enabling carriers to launch high quality and value-added voice services while leveraging their existing operations and support systems.
For networks where the DSL access multiplexer (DSLAM) and voice switches are not co-located, Alcatel provides the voice gateway module capability in the new standalone 7310 Loop Voice Gateway (LVG).
Norbert Holzle, Managing Director at Callino, a leading German alternate service provider, said, "Alcatel's DSL solution means we are able to enjoy the benefits of a next generation network today. Voice over DSL gives us the opportunity to offset the cost of unbundled access by getting maximum value for each copper line."
OpenTV's service Platform Suite
Interactive television and media solutions company OpenTV, announced yesterday (February 28) at the Annual OpenTV User Group Conference in the US, its iTV Service Platform Suite, an integrated turnkey software solution intended to give network operators the ability to manage the operational and transactional demands of a full-featured, revenue-generating interactive TV service.
"The good news for network operators, be they cable, satellite or digital terrestrial, is that they don't have to try to build an iTV solution in bits and pieces," said Alec Livingstone, Senior Vice President, Technology, OpenTV.
The iTV Service Platform Suite is scheduled for deployment by the middle of 2001 leading with commerce and advertising functionality. The remainder of the initial service capability is projected to be deployed over the remainder of 2001.
What's slowing Murdoch's DirecTV progress?
Rupert Murdoch, chairman of News Corporation said on Tuesday (February 27) that merger talks with Hughes, the US firm that owns DirecTV, are proceeding but only, "slowly."
Murdoch has made no secret of his desire to deal with Hughes, in a move which carries an estimated value of about $70 billion. However, one commentator suggested somewhat speculatively that a reason why the deal might be going so slow is that Murdoch could even be considering buying Hughes' 81 per cent share of Pan Am Sat - a move which would really shake up the global satellite industry.
At the 'Front Row' media conference in New York Murdoch said, "We have had a few false starts. This may be another false start." He added that he did not need the US market to expand his satellite operations. "There is more opportunity outside the US than inside it."
Murdoch also
outlined how he could increase revenues from DirecTV, by boosting subscriptions
through taking customers from cable 'churners' in the US where service
levels are often poor. "The quality of management at cable companies
varies. I would sy service has got to get better." commented Murdoch,
outlining his opportunity. It was suggested that bringing churn down to
single figures could help boost DirecTV subs from 10 million to 30 million.
38m homes go digital
According to a study entitled "Interactive Digital Television Worldwide Market Forecasts" published recently by Strategy Analytics, by the end of 2001 38 million homes worldwide will have access to interactive digital television services, up from 20 million today.
Western Europe accounts for 62 per cent of the audience this year, North America 18 per cent, Asia-Pacific 10 per cent and Latin America 1 per cent. 74 per cent of digital viewers use a satellite-based service, 21 per cent cable and 5 per cent terrestrial.
The most advanced market in the world is the UK, where 40 per cent of homes will have interactive digital television by the end of 2001.
Other leading European markets include Denmark, Spain and Sweden. The success of advanced digital television services is leading to the emergence of a fast-growing new industry of iTV application and software developers eager to build on the potential of the new platforms.
China Telecom completes fibre-net
China Telecom, the country's dominant fixed-line operator, plans to complete a broadband fibre-optic network in three to five years.
China Telecom official said, "Copper cable, the symbol of the narrowband telecom network, will disappear in China soon. Within the next three to five years, a nationwide flexible and reliable broadband access network will be established by China Telecom.''
China's telecommunications sector would invest 263 billion yuan ($32 billion) in infrastructure this year, 23 per cent more than last year.
(Also see regional report, China)
EMTV raises its stake in F1
EMTV confirmed it would raise its stake in Formula One from 50 per cent to 75 per cent despite mounting opposition to the transaction.
Car manufacturers competing in F1 said they could set up a rival championship if Kirch gained de facto control of the sport through this deal. Kirch will finance a $1bn (E1.1bn) option held by EMTV to buy 25 per cent of SLEC, which holds broadcasting and commercial rights to Formula One.
Wolfgang Reitzle, Chief Executive of Ford's Premia Automotive Group, and Jurgen Hubbert, DaimlerChrysler's board member for Mercedes-Benz, warned that carmakers could launch their own championship if Kirch sought to steer coverage towards its own pay-TV services.
Fiat's chief executive and president of the European car manufacturers' association Paolo Cantarella, said European carmakers involved in F1 were determined to ensure the sport would continue to be shown on worldwide, free-to-air television.
EMTV said it would be open to ceding part of its stake in SLEC. But Hubbert said that Daimler's interest in F1 would collapse if Kirch were to gain control of the trust.
FRIDAY 2 MARCH 2001
AT&T
cable divestment continues
Economy
drive at Canal Plus
Thailand
payTV's 17.4% rise
K-World
goes only on digital
CNN
Interactive delivers banners
Eutelsat
deals with Boeing Satellite
Media
Audit forecasts
EMTV
forward talks
Fox
Kids benefits from News Corp
Spanish
Quiero launches cinema channels
AT&T
cable divestment continues
US billionaire Paul Allen's Charter Communications, which spent $14 billion
buying cable systems in 1999, has agreed a $1.79 billion asset swap and
purchase with AT&T Broadband.
Under the terms of an agreement signed February 28, Charter Communications
gets cable systems from AT&T serving 574,000 customers in the St. Louis
area; areas of Auburn, Birmingham, Montgomery and Selma, Alabama; and
the Reno area of Nevada and California - a net gain of 512,000 customers
for Charter.
AT&T Broadband gets $1.79 billion composed of Charter cable systems valued
at $249 million serving 62,000 customers in Miami Beach and Sebastian,
Florida; up to $500 million in Charter common stock; and the balance in
cash.
Jerry Kent, president and chief executive officer of Charter said, "These
additional customers in St. Louis will give us the opportunity to provide
service to nearly all of our headquarters marketplace. As we interconnect
existing Charter markets throughout Alabama with those we're acquiring
from AT&T Broadband, we'll be able to reduce the number of acquired headends
from 13 to three.
AT&T agreed on Tuesday (27th February) to sell some of its US cable television
systems and its 10 percent stake in Japan Telecom for a combined total
of $3.6 billion. AT&T is reducing its $46 million debt prior to splitting
into four separately traded companies later this year.
Economy
drive at Canal Plus
Canal Plus has undertaken a major economy drive following the deal with
Vivendi Universal last year, reports French daily Le Monde, with the channel's
losses last year in the region of a billion francs (E 160 million) to
be mopped up. A disappointing result compared with Pierre Lescure's original
expectations announced in 1999, of equilibrium in 2000 and 1 billion francs
of profit in 2001. Some 200 posts are expected to be axed, but internal
mobility will be used to take up the staff and so avoid redundancies.
The declared aim is to balance accounts within two years. Vivendi-Universal
head Jean-Marie Messier is reported to have given CanalPlus six months
to start showing an improvement.
Economies are likely to include a reduction in internal program production.
A figure of 10 per cent for cost of programs from next autumn is bandied
about. Substantial cuts are expected in the programs during the channel's
FTA windows, which have grown considerably in recent years. Costs of the
pay programs are also to be cut. The channel could reduce the amount of
sport carried and be more selective in its choice of matches.
However, the fee paid to the French football federation is to double this
year, to 1.6 billion francs. Canal Plus will retain its exclusive deals
and will compose its new sports channel when the one year non-competition
clause with Eurosport comes to an end, following Canal's withdrawal from
Eurosport share structure.
Other economies include the sale of 50 per cent of its news channel i-Television.
It is also negotiating the sale of its cable subsidiary NC-Numericable
(UPC is said to be a candidate), and the sale of 45 per cent of its Italian
subsidiary Telepiu. Another possibility is the merger of its Polish bouquet
Cyfra+ with rival platform Wyjza.
Finally, interactive services could bring in an increase in revenue per
subscriber, but the likely delay in introducing its new generation decoder,
the Net Top Box to early 2002, is no help in this matter.
This economy drive would explain the reduction in the number of press
lunches, justifiably reputed to be very sumptuous.
The question to be asked is how subscribers will react to such economies.
The premium channel, the most expensive in Europe at 185 francs (E30)
a month for a single channel, has built up its reputation as being some
kind of 'exclusive club', with a distinctly up market image. Luxury has
very much been its selling.
Thailand pay-TV's 17.4% rise
Thailand pay TV platform, United Broadcasting Corp (UBC) has announced a 17.4 per cent rise in subscriber numbers reaching 380,000 and a fall in net losses, $49 million for the year, compared to $63 million for 1999.
As the company allocated $80 million to upgrade existing set top boxes and moved to a Q2 launch of interactive services, revenues had risen 19 per cent, and operating costs fell by $2.3 million.
UBC is planning a three-phase rollout to launch interactive services that start with an investment of up to $25 million in its new digital DTH boxes. Deputy Chief Financial Officer Basil Sgourdos said, "We would like to launch services like e-mail, banking, commerce, games, value added and enhanced TV content as well as information and infotainment portals."
K-World digital exclusive
K-World, the Swedish e-learning and educational service, launched in the autumn of 1999, is about to switch off its analogue transmissions and goes digital only. No other Scandinavian television service has yet taken this radical decision.
Until now K-World has been using the analogue services of Thor III, a satellite owned by Norwegian telco Telenor, also one of Europe's leading satellite operators.
By switching off the analogue transmissions the station will be able to save substantial amounts of money. But that is not the only reason. Patrick Staahle. MD of K-World, claims 2001 will become the year of digital break-through in Scandinavia, and particularly in Sweden, K-World's home country. "Later this year digital penetration will increase some 20 to 25 per cent," he said.
Presently the figure lies around 6 to 7 per cent, but on the DTH side a fierce marketing war is currently going on between Canal Digital ° owned in equal shares by French Canal Plus and Telenor ° and Swedish Viasat, part of the Modern Times Group, MTG. Also, digital cable and DTT penetrations are on their way up.
K-World is presently taken by Canal Digital, the Swedish DTT network and leading cable operators like UPC and Telia's Com.hem. Negotiations with Viasat have also been initiated.
CNN Interactive delivers banners
CNN Interactive, which includes CNN.com, CNNfn.com and CNNSI.com, announced on Tuesday (February 27) that it would become the first online news organisation to deliver full-motion video and audio streaming banner ads across its Web properties.
The advertisements will run on the CNN sites for a trial period ending on April 15 and will give online advertisers a preview of the full video and audio capabilities available in TV spots.
"We are always looking for ways to make a CNN advertiser's online ad campaign more effective," said Charles Theiss, senior vp of sales and operations at CNN Interactive.
Eutelsat in deal with Boeing Satellite
Paris-based Eutelsat, which enables TV and radio broadcasters, Internet service providers, telecommunications companies and corporations to transmit and receive content throughout Europe and Africa, Asia and the Americas, yesterday (March 1st) signed a deal with Boeing Satellite Systems Inc (BSS) for fast delivery of e-BIRD, a new satellite optimised for IP access networks with satellite return link capabilities.
Due for launch in the second quarter of 2002, e-BIRD will be positioned in geostationary orbit at 25.5 degrees East and will provide 20 active Ku-band transponders connected to four spot beams over the European region.
"The rapid procurement of e-BIRD supports Eutelsat's strategy to be an active player in fully interactive satellite networks where we believe there are tremendous opportunities for growth," said Eutelsat Director General Giuliano Berretta.
Tig H Krekel, President of Boeing Satellite Systems said, "This is a tremendous market breakthrough for us and an endorsement of our ability to deliver reliable, world-class technology on a demanding schedule. Clearly our commercial business is moving full speed ahead in 2001 following a very solid year 2000 for BSS."
Media Audit forecasts
According to Media Audit, television network affiliates have grown substantially in the battle for local Web audiences, outperforming some local newspapers. The survey of both online and traditional media in more than 80 US markets found that at least four network-affiliate Web sites have overtaken the daily newspapers in the communities they serve.
One interpretation is that the online public now trust TV stations more than newspapers for news.
EMTV talks move forward
EM.TV & Merchandising said on Wednesday (February 28) that it had exercised an option to buy an additional 25 per cent in Formula One racing.
Racing mogul Bernie Ecclestone, who retains a 25 per cent stake in Formula One holding company SLEC, the company that controls broadcast and commercial rights to Formula One events, and the International Automobile Association, are putting their vetoes on the deal.
Car makers involved in Formula One racing also are opposing the move, worried about broadcast rights falling into the hands of a single television operator, even though Kirch, which operates both pay and free TV stations, has said Formula One races would continue to be broadcast on German free-to-air television.
Nonetheless, the deal is still not finalised, and is still dependent on 'various conditions,' said EMTV, adding that it had exercised a call option to buy a further 25 per cent from Ecclestone for $987.5 million.
Fox Kids aided by News Corp
Children's broadcaster Fox Kids Europe said in a statement on Wednesday (February 28) that it expected strategic benefits from News Corp Inc taking control of Fox Kids' parent company.
Net income for the rapidly growing group came in at $250,000, up from a loss of $4.8 million in the same period last year and sales fell to $52.4 million from $56.3 million due to lower revenues in its programme distribution unit.
But an imminent deal by News Corp Inc, which now holds 49.5 per cent of Fox Kids Europe's parent company Fox Family Worldwide, had positively influenced operational targets.
"I cannot give you any details. All I can say is it's a great opportunity that will create some exciting opportunities. We know that," Fox Kids Chief Executive Officer Ynon Kreiz told Reuters in an interview.
Rupert Murdoch's News Corp has a contractual obligation to acquire another 49.5 per cent in Fox Family Worldwide from Saban Entertainment Inc in the coming months.
Spanish Quiero launches cinema channels
Quiero, the Spanish digital terrestrial TV platform, is about to add a cinema channel, Cinematk, to its line-up.
The channel will broadcast films from independent cinema with classic movies and specialist titles 24-hours per day.
Subscribers will also be able to read information on the programmes in a new magazine Quiero is planning to launch.
WEEKEND NEWS FROM FRI 2 TO MON 5 MARCH 2001
Australian
datacast plans hit
SeaChange
Comcast deal closes
Canadian
Videotron gets interactive
Showtime
stops piracy
A&E
named Pollock
Datamonitor's
forecasting
PanAmSat
gets anchor tenants
Fox
Kids to deal with Visiware
Alcatel provides China Telecom
Malone may quit AT&T
Australian datacast plans hit
Australia's attempts to create a datacasting sector have received further blows after one of the leading contenders, John Fairfax, withdrew from the race for a licence and two others failed to lodge cash eligibility payments.
Nigel Dews, head of Fairfax online offshoot, f2, confirmed the parent company would not proceed any further with its application after paying a $5,000 registration fee. Two other initial contenders, Online Media Group (OMG) and Open TV, also declined to proceed.
The withdrawal comes two weeks after News Ltd, which, like Fairfax, had been highly-critical of the government's proposed datacasting regime, declined to lodge an initial application. The remaining applicants are NTLl Australia, Telstra, Barwix Pty Ltd and the Australian Datacasting Corporation.
The surprise is that Fairfax even reached the initial application stage after it joined News in attacking what it says is a narrow definition of datacasting. To allay the fears of Australia's commercial broadcasters who feared that datacasting could be a backdoor entry into the market; regulators limit the genres of programming, the amount of moving images and permit just 10 minutes of news each hour.
Meanwhile the Australian Communications Authority (ACA) announced that the four had paid around $14.5 million to purchase bidding rights for the auction of datacasting licences to be held in April. They will compete for a total of 16 licences, two in each of eight broadcast areas.
SeaChange
Comcast deal closes
VOD supplier SeaChange International and third largest American MSO Charter
Communications have closed the deal that sees Comcast invest $10 million
in cash with SeaChange in exchange for 756,144 common shares and warrants
to purchase 100,000 common shares at $13.23 per share. Additionally Comcast
has filed an initial order with SeaChange for its iTV systems as part
of a previously agreed long term master purchase agreement.
Canadian
Videotron gets interactive
Canadian cable MSO Videotron has launched the first phase in its interactive
services rollout, PowerTV's SofaMail, an email over TV service that is
being launched at no cost to digital cable subscribers provided they cough
up C$99 for an infrared keyboard.
The service will be expanded in May with the launch of an interactive
EPG, web browser, chat, search engine and game portal. In September the
company will launch interactive programming and commercials and T-commerce.
In December multiplayer network games will be rolled out. In 2002 the
company hopes to launch a unified messaging system allowing telephone,
wireless, mobile computing devices, cable modem and Internet over TV services
to be connected.
Showtime stops piracy
Showtime, the Middle East pay-television channel prrovider, yesterday (March 2) changed its encryption code, which scrambles the television signals, rendering illegal pirate cards across the region inactive.
Hundreds of thousands of households were watching Showtime satellite television channels illegally, costing the network $100 million a year in lost revenue, cheating not only the network corporately, but as Showtime says, also its viewers. "Because this extra revenue would be largely spent on even more programming and quality premium television channels."
Peter Einstein, Showtime president and chief executive said, "It is imperative for all subscribers to obtain a new 'Smarter' card to ensure uninterrupted viewing of Showtime channels and to access a wide range of new services which will be introduced in the very near future. "
A&E
named Pollock
A&E Television Networks has named television industry veteran Simon Pollock,
whose more than 15-year career has included executive positions at The
Walt Disney Company, Columbia TriStar and most recently OpenTV, as Managing
Director, AETN International Division.
Pollock will supervise European operations for The History Channel and
The Biography Channel, develop the networks' expansion throughout the
region and coordinate marketing, advertising and publicity activities
between AETN headquarters in New York and the region.
Datamonitor's
forecasting
Datamonitor recent white paper 'Is the channel dead? The impact of interactivity
on the TV industry,' forecasts that by 2005, 45 per cent of European households
will have digital TV, a greater choice of programs and new interactive
services, evolving the TV industry from an individual channel focus to
a content brand focus.
There will be also new forms of advertising and commerce, forging closer
relationships with the audience. With interactive TV it will be possible
to directly link the most powerful advertising medium to the retail space.
Large brands such as Sky, CanalPlus and BBC will control their relationship
with the viewer through TV Portals, which, according to Datamonitor, are
set to become the key tool in the provision of interactive services.
PanAmSat
gets anchor tenants
HBO and Turner Broadcasting Systems Inc, subsidiaries of AOL Time Warner
Inc, will become anchor tenants for the next generation of PanAmSat Corp
satellites.
The AOL Time Warner companies have signed contracts for the distribution
of HBO and TBS programming on the replacement satellites that will run
through to 2015.
"The new satellites will also enhance HBO and TBS's ability to continue
to introduce new and advanced digital applications such as video-on-demand,
streaming media and other Internet services," the company said.
The agreement also provides HBO and TBS with additional capacity on Galaxy
9 at 127‚W so that will be able to introduce new services.
PanAmSat also said Warner Brothers has selected its Galaxy 4R satellite,
"As the new vehicle for digital distribution of The WB Television Network
and Warner Brothers Domestic Television Distribution services."
Fox
Kids to deal with Visiware
Fox Kids Europe, the pan-European integrated children's entertainment
company signed an agreement with Paris-based interactive TV company, Visiware,
to develop through a jointly owned company, subscription-based interactive
games channels for children aged 4-14 years. The channels will be branded
'Fox Kids Play.'
Visiware will be responsible for the development and technology of the
channels, as well as hardware interface with the cable and satellite platforms.
'Fox Kids Play' will be broadcast via cable and DTH satellite digital
platforms and distributed either on a stand-alone basis or as part of
the basic service. Children in subscribers' homes will be able to download
the games into the digital decoder box, easily access the games and play
them with the remote control system.
Marc-Antoine d'Halluin, Group Managing Director - Channels, FKE, says,
"Our agreement with Visiware marks another step in our objectives to expand
our channel offering and establish FKE as the leading integrated children's
entertainment brand. We are proud to be working in conjunction with Visiware,
who will provide the very best of their interactive television technology."
Alcatel
provides China Telecom
French Alcatel has been selected by Jiangsu Telecom, a subsidiary of China
Telecom, to provide 30,000 Asymmetric Digital Subscriber Lines to meet
the demand for high-speed Internet access.
ADSL enables Internet subscribers to use regular analogue telephone lines
to access the Internet at speeds 200 times higher than traditional dial-up
connections.
"Jiangsu Telecom wants to ensure that our customers can enjoy the benefits
brought by the Internet revolution,"said Li Chao, Vice General Manager
of Jiangsu Telecom.
According to statistics, there were 22.5 million Internet users in China
at the end of 2000, compared to only 8.9 million one year ago. The number
of Internet users is expected to continue to increase as demand accelerates.
Malone
may quit AT&T
Liberty Media Chairman John Malone may resigning from AT&T Corp's board
if Liberty is spun-off from AT&T according to the Wall Street Journal.
AT&T Chairman C Michael Armstrong is reported to want Malone to leave
the board should the Internal Revenue Service approve a Liberty spin-off.
Malone has denied that Armstrong is pushing him to exit the board though
it is known that the two have disagreed over strategy for AT&T.
Armstrong has said he would like Malone to stay on the main AT&T board
but he did not think that was possible because of the many tax, regulatory
and potential business conflicts of interest between Liberty and AT&T.
Malone said any decision to leave the board would be his and he was "perfectly
happy" to stay on the board until he decided otherwise.
Since being appointed to AT&T's board in early 1999, Malone had gained
a reputation for being one of a handful of board members who has openly
disagreed with Armstrong, the paper said.
* AT&T Broadband has completed a trade of cable systems with Cable ONE
Inc, a subsidiary of The Washington Post Company. The transaction was
first announced in August 2000.
Cable ONE now owns cable systems serving about 149,000 subscribers in
and around the Idaho communities of Boise, Idaho Falls, Twin Falls, Pocatello
and Lewiston, and the Oregon community of Ontario with total customers
now reaching 754,000 subscribers in 19 midwestern, western, and southern
states.
AT&T now owns the assets of cable systems serving about 107,000 subscribers
in Modesto and Santa Rosa, CA., and received undisclosed amount of cash.