An unusually high net growth in subscriptions of 35,000 in January was the only
good news the German digital pay TV platform Premiere was able to announce when
it presented last year's business figures.
After an increase in the entire year of 2002 of 18 percent or 153,000 subscriptions
to almost 2.6 million, Premiere continues its recovery process. In the fourth
quarter of the year Premiere cut operational costs 21 percent to E308 million
from E389 million against the same period the previous year. In the same period
revenues rose by 48 percent to E247 million from E167 million.
Negative EBITDA was lowered from E223 million to E61 million. "In the second
half of the year, in total we did about E40 million better than we had projected
in our new business plan. And we started the new year the same way", says Premiere
CEO Georg Kofler. He predicts they will have 2.9 million subscribers by the
end of this year and turn the first profit in 2004. Kofler hinted an IPO could
be possible as early as 2005. Back to top Portugal
and Nordic markets to lead digital TV uptake
The UK, currently the most developed digital TV market in Europe, with 39 per
cent of households digital at the end of 2002, is the leading innovator in interactive
TV. However, a new report by independent market analysts Datamonitor says it
will fall behind in the race to complete analogue switch-off.
Developments in France, Italy and Spain which were among the pioneers of digital
TV, have also slowed considerably following the initial rapid growth of digital
pay-TV services on satellite and have been further held back by substantial
delays to digital terrestrial plans.
According to the report, "Digital and Interactive TV Markets: Service development
and uptake to 2007," as the digital TV market develops beyond its satellite
pay-TV roots, Portugal and the Nordic markets will take the lead in digital
TV uptake. Infact, Datamonitor expects Portugal and the Nordics to become Europe's
first entirely digital broadcast markets before 2010. Back to top Telefonica
dragged down by internet charge
Telefonica, Spain's largest company, reported a full-year E5.58bn ($5.59bn)
net loss as it bore the brunt of the E1.4bn charge made by its internet affiliate,
Terra Lycos, to reflect its sliding value since the dotcom boom reports the
FT.
The »5.58bn net loss compared with net profits of E2.11bn in the previous year,
mainly attributed to internet and mobile telephony write-offs. The figures were
broadly in line with market expectations and shares in morning trading were
flat at E8.63.
Telefonica recently signed a long-term strategic alliance with Terra Lycos,
its listed internet subsidiary, making the company the sole provider of Telefonica's
value-added internet services.
The deal was announced after Bertelsmann, the German media giant, scrapped a
E675m advertising agreement it had signed up to at the height of the internet
boom, which had provided about 40 per cent of Terra's online advertising revenue.
Telefonica said sales for 2002 dropped from E31.05bn in 2001 to E28.41bn and
earnings before interest, tax, depreciation and amortisation (ebitda) for the
full year also declined to E11.72bn from E12.84bn in 2001. Back to top Spanish
DTH break even by 2005?
From David del Valle in Madrid
The Spanish merged DTH platform, result of the marriage between loss-making
companies Canal Satelite Digital, and Via Digital, a subsidiary of Telefonica,
says it expects to reach break even in 2005 when it achieves the forecast three
million subscribers.
The single platform, with a share capital of E650 million, will face a debt
of E1.5 billion and pay the merger bill estimated at E300 to 400 million (including
programming costs) between 2003 and 2004. For 2005, the company hopes that programming
costs will represent less than 50 per cent of its revenues.
According to Sogecable, the EBITDA of the company will go from the present 12.5
per cent on revenues to 26 to 28 per cent in 2005 and 34 to 36 per cent in 2008.
The company expects that subscribers fees represent 73 to 79 per cent of its
revenues in 2005.
Sogecable estimates that the ARPU will go from the present E37-40 per month
to E42 -45 in 2005 and to E45-47 (40-42 from the basic package and E48-53 from
pay-per-view) in 2008. The company forecasts that in 2005 the DTH platform will
count 2.3 to 2.4 million DTH subscribers and between 575,000 and 625,000 terrestrial
clients (Canal Plus). In 2008, the number of DTH subscribers is expected to
be 2.7 to 2.8 million and between 550,000 and 600,000 terrestrial clients.
Back
to topABS-CBN
expands satellite programming
ABS-CBN International, North America, a subsidiary of ABS-CBN Broadcasting (the
largest media company in the Philippines and one of the largest in Asia), has
inked a deal with Irdeto Access, which will allow the broadcaster to expanded
the number of programming channels it airs in the United States and Canada.
ABS-CBNI relies on Irdeto M-Crypt conditional access (CA) system to protect
its direct-to-home, satellite-based content, which includes three television
channels and two radio channels. The company has purchased 75,000 smart cards
that allow customers subscribing to The Filipino Channel, Cinema One, and ABS-CBN
News Channel to access the purchased content seamlessly. Back to top Prime
TV, flat future
Australian free-to-air broadcaster Prime TV posted a flat interim result and
forecast more of the same for the full year. Prime posted a net profit for the
second half, of E7.7 million, down 0.6 per cent from the previous first half,
on flat revenue of E78 million.
Prime, which is affiliated with the Seven Network in Australia and has a joint
venture with Publishing & Broadcasting's Nine Network in New Zealand, said that
the advertising market began to recover in the December quarter.
Last year the broadcaster lost top executives - CEO Brent Harman and Finance
Director Darryl Guihot - and cut back operations. It shifted its headquarters
to Canberra from North Sydney and began debt-refinancing negotiations with ANZ
Banking.
Group general manager Chris O'Connell said Prime had looked at several potential
acquisitions in recent years but "in this climate the more prudent thing is
... focus on the core business".
It posted non-recurring costs, mostly from the restructuring, of E7.6 million.
Back to topOptus,
3G trial in July
Australian telco Optus will begin a 3G network trial in July. The 3G licence
holder, parent company of SingTel, says it has 12,500 subscribers on its existing
GPRS-based multimedia messaging service (MMS).
Speaking at the launch of video MMS services in Sydney, Optus Managing Director
Allen Lew was reported as saying that the company's 12,500 subscribers send
at least one MMS per week and that the existing GPRS network had sufficient
capability to deliver services like video.
Nevertheless, Lew said the trial of 3G services would begin in July, involving
"hundreds, not thousands" of users. Optus' 3G network infrastructure will be
provided by Nokia, although Lew said the trial would be open to all handset
vendors that wished to take part. Back to top Chello-UPC
reaches 700,000 Austrians
Chello broadband internet, a subsidiary of UPC, has reached 700,000 customers
in Vienna. Chello is one of Europe's leading broadband ISPs via cable networks.
At the same time the Chello service has now reached over 190,000 broadband internet
subscribers in Austria. Chello offers 'always on', internet access for a fixed
price without telephone costs. Back to top Rai
bosses send conditional resignation
The two chief executives at Italy's state broadcaster Rai have offered their
conditional resignation by telegram, after Italy's deputy Prime Minister called
for their dismissal because of planing the move of 'RAI Due' from Rome to Milan
without the government's blessing.
Rai President Antonio Baldassarre and General Director Agostino Sacco's telegram
to the government was reported to say: "We are informing you that we will only
step down from our posts on the board of Rai when we receive unanimous confirmation
that you will nominate a new board for Rai." Back to top RTL
sells stake in Stormy
German broadcaster RTL has sold a 45 per cent stake in German light-entertainment
group Stormy Entertainment GmbH to Dutch production firm Eyeworks. RTL will
retain a 45 per cent stake in the company, with the remaining 10 per cent held
by Stormy founder and managing director Kai Sturm.
Rupert Murdoch's News Corp and Liberty Media will not be jointly bidding for
Hughes DirecTV after all but now both companies are said to be planning to bid
independently, according to a report in the Wall Street Journal yesterday.
When announcing its results recently News Corp's Chief Peter Chernin said: "We
continue to believe that having such a platform would be a great advantage to
us in a rapidly consolidating world. But let me add this one caveat: we will
not be drawn into a bidding war. Having gone down this path before, we have
a very clear sense of what we believe these businesses are worth." Back to top France
Telecom to get E30 bn
France Telecom shareholders approved plans for a rights issue to raise up to
E30 billion to help the troubled telco with its E70 billion debt.
However Chief Executive Thierry Breton told the shareholders he would need only
E15 billion to shore up the balance sheet as he promised profits would rise
above E20 billion by 2005.
Breton admits that sorting out the debt is a priority, but he refused to name
a date for issuing the new shares. "We will do it when it is in the interests
of our shareholders," he said.
The French government owns 56.5 per cent of the company and is already committed
to taking up its portion of the new shares. Back to topSpanish
cable market opens up
From David del Valle in Madrid
The centre-right Government is finalising a plan to open the cable market up
for new smaller operators throughout the Iberian Peninsula.
The minister of Science and Technology, Josep Piqu, announced its total liberalisation
as a way to foster the massive use of telecommunication services and intensify
competition in a market dominated by the three largest companies: the incumbent
Telefonica, Auna Telecomunicaciones and Spaincom-controlled ONO.
The new Telecommunications Law - that the Government is about to send to the
Parliament - will give carte blanche to complete liberalisation. The 43 franchises
of the Spanish cable map is set to change its layout, five years after the awarding
of licences on public tenders. The duopoly model in which two operators (Telefonica
and either Auna-AOC or ONO) were competing in each franchised area is to come
to an end.
The liberalisation comes at a time when Auna Telecomunicaciones and ONO have
confirmed merger plans predicting they will join together in 2004. Back to topTPS
enhances its bouquet
TPS, the French satellite platform is launching three new channels in April:
two for kids, one for wildlife fans.
TPS is adding interactive channel Eureka to its kids bouquet, which so far comprises
only Teletoon. Joining Eureka on April 2 is Tfou TV, offering kids programming
from broadcaster TF1. Tfou's schedule combines shows from TF1's terrestrial
kids' block and those aired on pay-tv channel TF1 Jeunesse.
Rival Canal Satellite had added pre-school service Playhouse Disney, Toon Disney
and the Disney ChannelPlus1 time shift service to its basic tier last October.
TPS has recently signed a multi-year deal with Warner Bros International Television
Distribution, securing an exclusive window on new WB releases as well as rights
to the studio's catalogue. Back to top Carter
got E3m compensation from NTL
Former head of NTL, Stephen Carter, received E3.1 million in compensation from
the troubled cable group that has just emerged from Chapter 11 bankruptcy protection.
Carter is now to be the head of Ofcom the new super-regulator for UK media.
NTL was reported as saying that the payment was in line with a confidential
employment contract agreed upon Carter's appointment in 2000, but refused to
comment on why he was granted severance after he announced a voluntary resignation. Back to top Communication
bill's third readings
The UK's communication bill is to have its third reading in the House of Commons.
The role of the new media and telecommunications super-regulator, Ofcom, is
expected to be further defined - underlining Ofcom's responsibilities for scrutinising
media takeovers and ensuring plurality in TV and radio services.
The move follows criticism that the bill left too much room for interpretation
in relation to media ownership rules and the protection of consumer interests.
Tessa Jowell, the culture secretary, was reported as saying: "The changes we
are making are a belt and braces guarantee that the bill will deliver our policy
commitment to safeguard and further the interests of the community as a whole
and consumers." Back to top Orange
European subsidiaries for sale?
Paris-based mobile group Orange is reportedly planning to sell off its Dutch
and Danish subsidiaries. The sale of Orange Denmark and Dutchtone would save
Orange an estimated E200 million per year.
Although Orange Denmark and Dutchtone are ranked second and third in their respective
markets in terms of subscriber numbers, both remain loss-making. In the year
to 31 December 2002 Dutchtone had E400 million in revenues, while Orange Denmark
contributed just E241 million to the group's coffers. In contrast revenues at
Orange France and UK were E7.65 billion and E5.96 billion respectively.
Potential buyers for the networks are: in the Netherlands O2 - which is also
thought to be actively looking to sell or merge its operations, in Denmark Hutchison-backed
Hi3G is currently the only 3G operator without a GSM network. Back to top T-mobile
Austria and Philips ink deal
Philips Electronics' business unit Speech Processing, announced that T-Mobile
Austria has signed an exclusive agreement to use MobileVoice, from one Voice,
in the T-Mobile Future House, a product centre, showcasing T-Mobile's upcoming
wireless subscriber services including 3G products, located in Vienna, Austria.
Speech Processing is a provider of speech recognition technology, and One Voice
Technologies, developer of 4th Generation voice solutions for the Wireless,
Telematics, TV/Internet appliance and Interactive Multimedia markets
Dean Weber, president and CEO at One Voice said: "It is a great opportunity
to work with T-Mobile Austria, one of the industry's leading global wireless
providers. We have just completed the installation of MobileVoice at the T-Mobile
Product Center for all customers to see. We look forward to working closely
with Philips on launching the industry's first mobile Voice-to-Text SMS and
E-mail messaging solution. A launch date is to be decided. "
"The successful partnership of One Voice and Philips Speech Processing will
enable us to feature the industry's latest and most revolutionary development:
the very first voice-to-text SMS solution!", said Marcel Wassink, Managing Director,
Philips Speech Processing. Back to top BBC
exports TV to al-Jazeera
The BBC has signed one of its biggest television export deals this financial
year with al-Jazeera as part of the Qatar-based satellite group's ambitious
expansion plans. Al-Jazeera, renowned for broadcasting taped messages from Osama
bin Laden, has agreed to purchase 1,000 hours of BBC documentaries for an undisclosed
sum as it adds two more channels to its core Arabic news service. Back to top
Alcatel
and Sun, new wireless solution
Alcatel and Sun Microsystems are launching a new initiative aimed at service
providers looking to offer enterprise applications over wireless networks.
Combining their key strengths of telecom and IT infrastructure, Alcatel and
Sun have developed an end-to end-mobile environment to assess content usability
to allow service providers to offer new applications on live 2.5G and 3G network
scenarios.
Alcatel has been using its 3G Reality Centres to allow live tests on 2.5G
and 3G network infrastructures while Sun has deployed its own "iForce" centres
to enable end users and partners to test network applications. The combination
of both structures will allow service providers to reduce risk and the time
required to deploy new over the air downloadable applications and content. Back
to top
BBC3
ratings down
The BBC's new digital channel, BBC3 is performing worst than its previous
incarnation as BBC Choice, the local press reported.
Now that the channel doesn't have the big shows that ran for the channel's
first two weeks - such as the EastEnders premieres Ñ it's struggling to keep
up the ratings.The repeat of EastEnders got just 128,000 viewers compared
with a peak of 504,000 last year on BBC Choice.
When the channel was still showcasing EastEnders ahead of BBC1, its audience
swelled to 700,000 - one of the station's highest ratings.
Back to top
The EU's on going investigation into the packaged sale of football rights could
mean a serious risk to Sky's soccer monopoly, reports Mediaguardian.co.uk.
If the EU's rulings on deals in Italy and France are anything to go by it is
likely the Premiere League will be forced to package out rights to free-to-air
broadcasters as well as Sky. This could seriously undermine Premiere League
revenue and Sky's dominant position in football broadcasting.
But the Premier League, convinced it can beat the EU case and says it will fight
all the way. It is already preparing a legal challenge in the event of an EU
order to sell live games to terrestrial TV as well as BskyB. The problem is
a case could take three and half years and cost tens of millions of pounds.
And it is a high stakes gamble - if it loses the Premier League would face a
fine of up to 10 per cent of its annual turnover.
Both ITV and the BBC have confirmed to MediaGuardian.co.uk that they will go
for a secondary package of live rights, likely to be around 20 matches per season,
if they become available under the expected reorganisation of the deals at the
behest of the EU. Back to top
MTV:
Blair one-hour special
Tony Blair UK Premier and one-time rock band member, has made it on to MTV.
On March 7 he will appear in one hour 'hard hitting' special. The programme
aired across Europe will debate the potential war in Iraq with members of
a pan-European 'youth forum'. The show follows protracted negotiations between
the channel and the PM's office.
MTV is said to be laying out plans to cover any potentialconflict, aiming
at becoming a news source and sounding board for teenagers and young adults.
Several reports on the build up to war have already been aired, and correspondent
Gideon Yago is just returning from Kuwait after visiting soldiers and young
Arabs, compiling a diary for MTV and its Web site.
According to MTV, the interest in the conflict, tested in a poll taken a few
weeks ago, ranked equal to drug abuse as the top concern of people aged 14
to 24.
Dave Sirulnick, MTV's Vice President of news and production said that the
potential Iraq war looms as a bigger worry than terrorism did in the immediate
aftermath of the Sept. 11 attacks. Back to top
Saban
eyes EM.TV
US media billionaire Haim Saban is said to be interested on buying a 25 per
cent stake in struggling German media rights group EM.TV from its Chief Executive.
"A few weeks ago Haim Saban expressed in writing his interest in my stake,"
EM.TV Chief Executive Werner Klatten was quoted as saying by weekly magazine
Focus.
Saban, is currently in the running to take over German film and television rights
company KirchMedia, after making a late bid to rival one from German publisher
Bauer. Back to top RAI
heads to go?
Italian state broadcaster RAI's Chief Executives have been asked to resign by
Deputy Prime Minister Gianfranco Fini.
The government claims that without approval RAI announced that RAI Due one of
three state networks, was being relocated from Rome to Milan, Italy's financial
capital. Fini has indicated he wants both RAI President Antonio Baldassarre,
who heads the board, and its General Director, Agostino Sacca, ousted from their
jobs.
Prime Minister Silvio Berlusconi, controls the country's largest private television
network, Mediaset. Back to top Optus
fast-tracks multimedia launch
Optus is on target to reach E3billion in revenues for its mobile business this
year and is introducing video services to one of its mobile networks as well
as announcing trials for its next generation 3G network.
Optus Mobile said the company would reach its target for this financial year
after reporting an 18 per cent increase in revenues for the first nine months
of the year to E2.125 billion. The Singapore Telecommunications-owned company
also reported a 12 per cent increase in customer numbers to 4.5 million.
The announcement focused on the availability of new multimedia messaging services,
including the ability to send, receive and retrieve, video clips and messages
on its existing 2.5G network.The impending launch of Hutchison Telecommunication's
3G network, which will target high-value consumer and small business users from
Telstra and Optus, seemed a clear target for the announcement.Analysts have
predicted that Hutchison may resort to aggressive pricing in order to lure customers
to its network.
On March 5 Optus will offer its customers the choice of two video-capable handsets,
and content including video clip updates of news from Channel 7 and movie previews
from film website Urban Cinefile.
It will come at a cost though, either for users, who will pay up to E1489 upfront
for a video-capable phone, or Optus, who is offering to subsidise handsets with
a 24-month contract that will cost users nothing upfront. The E99 per month
contract includes daily delivery of news and E55 worth of free calls and text
messaging.
Users will be able to view high-quality audio and video clips of around 30 seconds
in duration, with the service costing 75c per download, or per message sent.
Videostreaming from the internet would be charged at Optus GPRS data rates,
the company said.
Optus said the initiatives would help keep it on track to push mobile data to
25 per cent of mobile revenues by 2005.
Meanwhile, 3G trials are set to begin in Sydney in July this year. Optus said
the trial would last six to nine months, with the company testing applications
that will differentiate 3G from those now possible on 2.5G networks. Back to top DirecTV
to add uplink centres
American satellite operator, DirecTV is to open two new regional uplink centres
later this year to support its future satellite, DirecTV 7S. The bird is scheduled
for launch sometime in the fourth quarter. The new centres will be located in
Oakdale and Winchester
This month DirecTV restructured some of its operations at its Castle Rock, uplink
centre, a move that includes staff reductions at the facility. Castle Rock will
be responsible for the uplink of DirecTV's local TV signals. Back to top NTL/Vodafone
dispute settled
NTL and Vodafone have settled a dispute over charges where Vodafone had complained
the UK cable group was overcharging the mobile phone operator for the use of
its network. No details of the settlement have been released, however NTL reportedly
said that the agreement would not have an adverse material impact on its earnings
and said the deal was "well within the bounds of its business plan." Back to top Pace's
Chief leaves
Micro Technology announced that Tim Fern, Pace's Chief Technology Officer, will
leave the Company on Friday 28th February 2003, the company said. Callum Gordon
and Roger Lambert, will take over Fern's responsibilities. Back to top Teleca,
3G solution for streaming media
Stockholm-based Teleca is to provide third generation mobile operator '3' with
a solution that transforms high-resolution video, such as TV, into the standardised
formats for mobile multimedia in the Nordic countries. In Sweden and Denmark,
'3' is owned by Hutchison Whampoa (60 per cent) and Investor AB (40 per cent).'3'
is due to launch its 3G mobiles in the UK next week. Back to top UK
groups join action against C&W
Three UK institutional investors have joined a US class legal action filed yesterday
against Cable and Wireless, its auditors and directors of the company, seeking
up to E3 billion (£1.8bn) in damages.
The class action has been filed in the West Virginia courts for damages on losses
suffered by investors in C&W by San Francisco-based Milberg Weiss Bershad Hynes
& Lerach, one of the biggest class action specialists in the US. It is being
joined in the action by Class Law, the UK group.
The action has been widened to take in KMPG, C&W's auditors, as well as Graham
Wallace, former chief executive, Sir Ralph Robins, former chairman, deputy chief
executive Robert Lerwill, and David Prince, finance director.
The lead plaintiffs in the action are the West Virginia Investment Management
Board and State Universities Retirement System of Illinois.
The new filing alleges C&W made false statements about its finances by failing
to disclose a potential tax liability of £1.5 billion resulting from the sale
three years ago of its One2One mobile arm to Deutsche Telekom. The action also
alleges C&W had "billions of dollars worth of property lease commitments that
had not been disclosed". Last November C&W made the surprise disclosure of property
lease commitments totalling £2.2 billion.
The planned merger of Spanish pay TV operators Via Digital and Canal Satelite
Digital might be delayed by Brussels. The European competition regulators are
said to be considering a second examination of a merger that would create a
de facto monopoly in Spain's pay-television market.
Canal Satelite Digital is owned by Sogecable, a joint venture between Vivendi
Universal's Canal Plus and Spanish media company Prisa. Telefonica owns Via
Digital.
Regulators are considering whether there are grounds for the case to be formally
re-notified due to changes in the terms of the deal since Brussels passed the
case back to Spanish authorities last year. The Spanish regulators cleared the
deal in November after setting a series of conditions.
The Commission was reported as saying last week: "What is known is the deal
has changed. Whether we have to look at it again or not remains to be seen."
If the case is re-notified, EU authorities would have to examine it for at least
a month. If they have serious competition concerns they could open a four-month
inquiry and force the companies to offer concessions.
In the initial merger accord, Telefonica agreed to swap its stake in Via Digital
at book value for a share of the merged company and would not be part of the
shareholders' agreement between Groupe Canal Plus and Prisa that would control
the new platform. The three companies would be equal. Back to top Meheut,
new CanalPlus boss
CanalPlus has appointed Bertrand Meheut as its new Chairman and CEO. Meheut
will be replacing Dominique Farrugia. Meheut was already promoted to group Chairman
earlier this month. Guillaume de Verges, Deputy Managing Director of Canal Plus's
publishing arm, has also been named to the board and made Deputy MD of Canal
Plus.
Farrugia, who was in the job less than a year, will remain on Canal Plus' board
of directors, the company said. Back to top SCH
Bank, key to Spain's cable merger?
From David del Valle in Madrid
The Spanish bank SCH has taken a key position in a possible merger between two
of the Spain's largest operators, Auna Telecomunicaciones and Spaincom-owned
ONO. Shareholder in both companies with a stake of 23 per cent and 20 per cent,
respectively, the bank has now strengthened its position following the decision
of the Spanish Telecommunications Market Commission (CMT) to authorise its leading
participation in the two cable operators.
CMT had initially decided to rule against it in accordance with the law that
prohibits a single partner from holding stakes in two dominant operators- but,
it finally backed down. SCH will be able to keep its executives on both boards
and, from its position, foster a merger between both companies.
The bank has been backing an agreement between them that would give rise to
a cable giant with more than one million subscribers, capable of competing with
Telefonica throughout the Iberian Peninsula. Back to top TPS
inks deal with Warner
French digital satellite platform TPS has signed a multiyear pay TV and pay-per-view
agreement with Warner Bros.
Under the terms of the deal, TPS has acquired the exclusive pay TV window and
PPV window on new theatrical productions, together with rights to a number of
films, series and animated properties from WB's library, which will air across
TPS' various movie channels. With this move TPS outbid rival pay TV group Canal
Plus. Back to top
Alcatel
and DoCoMo team up
Alcatel and DoCoMo Engineering Inc, have inked a Frame Agreement on consulting
services and cooperation for network design, operations and enhancement of
3G/UMTS indoor coverage.
DoCoMo will collaborate with Alcatel, supporting system development such as
network design and planning, network enhancement including quality of service
assessment, radio optimisation, and new radio features introduction.
The service is made available by connecting radio base stations located underground
or inside buildings with NTT DoCoMo's mobile network.
DoCoMo Engineering, a subsidiary of NTT DoCoMo Inc Japan, and Alcatel signed
the deal at the 3GSM World Congress in Cannes (France).
DoCoMo is also to put Macromedia Flash support in its next range of mobile
phones. The deal is the first between Macromedia and a cellular network operator
and part of the company's strategy to get Flash support into a broad range
of portable and consumer electronics devices in addition to personal computers.
The first handsets that will have Flash support as a result of the agreement
will be NTT DoCoMo's 505i line-up that is due to be launched sometime during
2003. Back to top
Make
changes MTV Canada told
From Gail Chiasson in Canada
Craig Broadcasting Inc, Winnipeg-based owner of MTV Canada in a partnership
with a Viacom subsidiary, was on the losing end of rulings by the Canadian Radio-television
and Telecommunications Commission last week, with the result that major changes
are expected in the popular channel.
In a lengthy series of decisions, the broadcast regulator said that Craig must
alter its agreements with Viacom to guarantee that the New York-based firm will
not use its influence to control MTV Canada (currently only available via a
digital TV signal).
Further, the CRTC said that MTV was showing more than 20 per cent music video
clips, double the amount allowed by its licence, and was either not showing
educational programming or was showing them at times when its target audience
would be unlikely to see them. More than 60 per cent of the channel's programming
was devoted to music or was music-related. (The original licence given to Craig
was for a general interest teen channel called Connect, but it subsequently
made the deal with Viacom to launch MTV Canada).
The CRTC also quashed an agreement between Craig and Viacom that would have
allowed Viacom the right to buy up to 51 per cent of MTV Canada. The CRTC put
a 20 per cent cap on ownership of the channel and a 33 per cent cap on any ownership
in the holding company.
The CRTC looked closely at MTV Canada following complaints by CHUM Ltd, which
operates rival MuchMusic channels. Back to top Telenor,
new satellite IP
Norway-based Telenor Satellite Services, is demonstrating its latest wireless
packet data satellite service - Regional Broadband Global Area Network (BGAN)
- at the 3GSM World Congress 2003.
Regional BGAN delivers reliable, 24-hour a day Internet Protocol (IP) connectivity
at data speeds of up to 144kbps via a secure channel says the company. The service
affords enterprise customers, governments, global and regional businesses, and
educational facilities the ability to securely extend their corporate networks
and access the Internet, via satellite, regardless of the local communications
infrastructure. Regional BGAN coverage incorporates Europe, North and Central
Africa, the Middle East, and the Indian sub-continent.
With regional BGAN a connection to the Internet or a private network can be
kept 'always on' as customers pay only for the amount of data sent or received.
Regional BGAN offers the additional benefit of using notebook-sized, highly
portable satellite IP modems. Back
to topAaron,
Comcast founder died
Daniel Aaron, founder of Comcast, the largest US cable company, died last Thursday
in Philadelphia at the age of 77.
The cause was Parkinson's disease, according to the company. Back to top Scopus
provides digital platforms to TARBS
Tel Aviv based Scopus Network Technologies, is to supply the head-end digital
broadcasting system for Television and Radio Broadcasting Services Australia
(TARBS). This new Direct-to-Home (DTH) system is targeting the ethnic television
market in North and Central America.
TARBS is using Scopus' digital platform, deployed at Panamsat's teleport in
the Napa Valley, California, to broadcast 52 channels over four satellite transponders
to North and Central America and greatly expand its operations in the Americas.
The coverage of Panamsat's Galaxi beam for the ethnic channels is estimated
in the hundreds of millions of viewers. TARBS is one of the world's leading
multi-cultural broadcasters. Back to top ANT
expands into games
Games4TV games package, from interactive TV developer Iacta LLC, is now available
for the ANT Fresco Browser. Iacta has also developed games specifically for
service operators that have adopted ANT Fresco as their interactive platform.
Service operators using an ANT solution will be able to offer their subscribers
a co-branded Games4TV package.
News Corp's take over of Italian satellite television company Telepiu is expected
to go ahead without further substantial concessions after the European Commission
raised only modest concerns over the final proposed deal.
The E893 million deal, in which Telepiu would merge with Stream, News Corp's
existing satellite joint venture in Italy, will result in the creation of one
dominant company. However, most of the concerns raised by the Commission have
already been addressed in a package of concessions offered by News Corp covering
movie rights, football coverage and supply of set-top boxes. Back to top
Karmazin
wants CNN now?
Mel Karmazin, the COO of American giant Viacom, wants to buy CNN. The local
press reported that Karmazin said that he would be more than happy to take
the cable news network off the hands of struggling AOL Time Warner.
For several months AOL had been in discussions over merging CNN with ABC News,
but the calls were called off early last week.
"I can't tell you what the price would be, but it certainly would be an asset
we would be interested in if it were available," Karmazin was reported as
saying in an interview with trade paper Electronic Media.
However Viacom said it's not involved in negotiations to acquire CNN.
Viacom's CBS has previously held merger talks with CNN. Analysts estimate
that combining CNN with a major broadcast network could result in about E400
million in annual cost savings and that CNN could be valued at close to E10
billion. Back to top
Spanish
Antena 3 TV in the red
From David Del Valle in Madrid
The Telefonica-controlled TV channel Antena 3 TV, is going through tough financial
times. A few years ago, one of the most profitable channels in Europe, the channel
has declared a loss of E30 million in 2002, against profits of E48 millions
the previous year.
The acquisition of radio station Onda Cero and Japan's Football Worldwide Championship
has hit Antena 3. Telefonica, its main shareholder with a 47.5 per cent stake,
is likely to sell the channel to comply with the Private TV Law that prohibits
one single partner to hold shares in two different channels; a result of its
agreement with Sogecable to merge the digital platforms, Via Digital and Canal
Satelite Digital, Telefonica is also an indirect partner in pay-TV channel Canal
Plus. Back to top Premiere;
investors on board
From Dieter Brockmeyer in Frankfurt
Another important step in the rescue of the German digital Pay TV platform Premiere
has been taken. The new shareholder structure has been announced with the investment
company Permira taking 65.13 per cent. The banks Bayerische Landesbank and Hypovereinsbank
each hold 10 percent, while the Austrian BAWAG holds 3.5 per cent.
CEO Georg Kofler will hold 10.09 per cent while his co-executives, the CPO Hans
Seger and the CFO Michael Boernicke hold 0.64 per cent each. The new structure
already passed the national and European antitrust authorities, Premiere says.
The new shareholders will provide new cash of up to E220 million and a long
term credit line of E150 million has been granted by the shareholding banks.
The banks will also get their old debt accumulated by former parent, insolvent
Kirch Pay-TV paid from future profits.
In the last year Premiere cut costs between 50 and 60 per cent. The company
was able to negotiate new contracts with all major Hollywood studios and widen
its subscriber base from about 2.4 million to almost 2.6 million by the end
of last year. According to Kofler, in March Premiere will decide on the new
conditional access system, that's to replace the old Kirch Betacrypt that was
easy to hack by software pirates. Back to top Bertelsmann
sued over Napster
Bertelsmann troubles keep mounting, now with a E17 billion lawsuit launched
by composers and music publishers alleging that the German media giant helped
Napster deprive them of royalties.
The suit argues that Bertelsmann prolonged the life of online song-swapping
service Napster - - which closed in 2001 - by investing more than E100 million
into it. The lawsuit has been filed at a Manhattan federal court.
Bertelsmann has been regularly featured in the press in recent weeks after Didier
Bellens quit as boss of their broadcaster RTL and the company patriarch Reinhard
Mohn's decision to give his wife Liz Mohn more power.
Recent comments made by Mohn criticising modern corporate culture and questioning
the ability of Bertelsmann's own execs have sparked speculation of a cultural
revolution at the media group, leading some to believe the company is stepping
off the global stage and assuming a more modest and traditional stance. Back to top Intelsat
gets majority stake in Galaxy
Hong Kong's Television Broadcasts Ltd (TVB) has sold a 51 per cent stake in
its Galaxy pay-TV project to US satellite operator Intelsat Ltd, it's been reported.
TVB is required by the Hong Kong government to reduce its stake in Galaxy to
less than 50 per cent by the end of this month before the service can be launched,
in the interest of promoting competition between pay-TV operators in the territory.
The deal provides TVB with a strong partner to help it take on Hong Kong's pay-TV
industry incumbent, i-Cable Communications, while, for Intelsat, the venture
will broaden its business ahead of a possible initial public offering in the
next two years.
Intelsat will invest E69 million in cash and capacity with the deal valuing
the Galaxy project at over E136 million, the companies said in a joint statement.
TVB, the larger of Hong Kong's two free-to-air broadcasters, will contribute
HKE196.6 million in cash and programming valued at HKE324.15 million. Back to top French
DTT reviewed
From Sotires Eleftheriou in Paris
The follow up report on French DTT by Michel Boyon looks at the aspects of the
launch of DTT in France not covered in the report published last October (see
advanced-television.com archive). It also draws on the experience in the intervening
six months concerning the planning of frequencies.
The timetable published in the appendix to the first report is largely on time
for start of service at end 2004. However, it points out that the stages in
the coming weeks, concerning further work on re-arranging the spectrum, will
be crucial to keeping to the timetable. Only a small proportion, about 0.5 per
cent, of the 1500 frequency changes that will be necessary to achieve 80 per
cent DTT coverage, have been made, and TF1 and M6 have lodged appeals against
having their frequencies changed. So far, the costs and difficulties experienced
have been in line with provisions.
The other crucial aspect covered in the report is last year's 'must carry' decree,
whereby cable operators will be obliged to carry the free DTT channels free
of charge. According to Boyon, it is difficult to determine the real cost of
carrying the DTT channels; and if free to air DTT is a success there will be
spillover benefits to cable. Cable operators will also be able to use the wider
range of services they offer as a marketing advantage. However, the report recommends
that the principle and mode of operation of the "must carry" be re-examined
after the start of the DTT service. Back to top
Intelsat
Broadband goes to Mexico
The Intelsat Broadband Service has expanded into Mexico. Globalsat, a Mexican
service provider, is the first in the country to offer the Intelsat Broadband
Service.
Globalsat is offering the service to businesses via Intelsat's 706 satellite
at 307üE. In addition, Globalsat is using the Gilat 360E platform, a proven
technology that supports broadband applications world-wide. With the Intelsat
Broadband Service, Globalsat will be able to provide Internet backbone connectivity
to the entire country and provide access to businesses located throughout
Mexico that have not yet had the opportunity to connect into a reliable network
to access the Internet. Back to top
Telstra
to quit Foxtel stake?
The Australian Competition and Consumer Commission may push for Telstra to quit
its 50 per cent stake in Foxtel when it reports to the Government early next
month, the Sydney Morning Herald reported.
The ACCC has delayed finalising its report on the structure of the media and
telecommunications industries so it can examine the submissions to the Government's
aborted inquiry into splitting up Telstra. Although the ACCC approved the program-sharing
agreement between Foxtel and its pay TV rival Optus last year, the regulator
remains concerned Telstra will exploit its Foxtel stake to further entrench
its dominance in telecommunications.
The Government asked the ACCC to prepare a report on how the Foxtel-Optus deal
- which brings together the country's largest media and telecom players, News
Corp, PBL, Telstra and Optus - would affect competition in pay TV and telecommunications.
