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Cover Story - HD goes for Gold
July/August 2005

Asia Watch - Healthy Outlook for Asia Media

July/August 2005

Broadband - Anga Cable 2005
July/August 2005

US Watch - Satellite Radio: Can Everyoone Win?
July/August 2005

Telecoms - Wireless Watch
July/August 2005

 


NEWS Monday 9th June 2003 to Monday 16th June 2003

Scroll down page or click below for news - latest first

Tuesday

Friday 13th June 2003
Bronfman wants Universal units back
NTL's PTV boss quits
Worldwide DSL up 15 per cent Q1
KPN hits back at Hutchison
Five to limit UK shows
New Telco Industry Council formed
Fox Kids Europe back into the black
Pakistan telco to launch broadband distribution
Harmonic: new IRDs

Bronfman wants Universal units back

Edgar Bronfman, is said to be planning to regain the entertainment assets of Vivendi Universal. The US businessman has lined up a team of investors that includes the Blackstone Group and Thomas H. Lee Partners - which add to Bronfman's consortium formed by Cablevision Systems, Merrill Lynch and Wachovia Securities, the NYT reported.

Blackstone Group, already owns 50 per cent of Vivendi's theme park business (VUE). Thomas H. Lee Partners has previously acquired Vivendi assets that include the book publisher Houghton Mifflin.

Bronfman, who would be putting up some of his own money, intends to regain the entertainment properties his family sold to the French conglomerate Vivendi in 2000. The plan under consideration would call for the consortium to acquire a controlling stake, or about 70 per cent of the Vivendi entertainment assets, leaving Vivendi with a small holding. Such a structure would let Vivendi avoid incurring heavy taxes in the deal.

It is believed that the Bronfman group has already raised enough money - $3 billion to $4 billion - to make a serious offer. Acquiring a 70 per cent stake might require $14 billion or so, with the Bronfman group borrowing the rest.
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NTL's PTV boss quits

The CEO of NTL's Premium TV (PTV) subsidiary, Jonathan Sykes, has resigned. PTV has contracts with Newcastle United and the Football League and the resignation of its CEO raises concerns about the company's involvement in football.

According to reports Sykes quit because NTL's new owners - bondholders and creditor banks - refused to give assurances on on-going investment. PTV spent E150m on stakes in a number of Premiere League clubs and in 2000 went up against Sky for Premiere League TV rights. It has a number of JV and sponsorship deals with clubs and the Football League but the collapse in the sports rights market, the mixed fortunes of the clubs and NTL's restructuring has left the business stranded.
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Worldwide DSL up 15 per cent Q1

The global DSL market continues to expand at a healthy rate. The total of DSL lines in the world grew by 15.3 per cent in the first quarter of 2003 to 41.4 million, up from 35.9 million at the end of 2002. According to point-topic.com.

Taking a worldwide view, the installed base of DSL has grown by 90 per cent in the 12 months to March 2003, maintaining the rate set for 2002. Comparing the first quarter of 2003 with the last quarter of 2002 there is a slight dip, down from 17.3 per cent to 15.3 per cent, but we believe this is a seasonal effect. The first half of the year is generally weaker for sales of DSL services as for many other technology products.

The absolute number of quarterly additions continues to creep up, from 5 million in Q3 2002, to 5.3 million in Q4 2002 and 5.5 million in Q1 2003 - the highest figure ever.

The rate of growth varies greatly between regions and countries. Japan is far ahead of the rest in terms of absolute numbers, adding almost 1.4 million DSL lines in the quarter. With 7 million subscribers it has narrowly overtaken the USA to become the country with the world's biggest DSL market (Figure 1). Japanese DSL customers generally benefit from a combination of low prices and high speeds, with 8 or 12 Mbps the norm in major cities. In contrast, European subscribers pay higher prices for services offering under 1 Mbps.
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KPN hits back at Hutchison

Dutch telco group KPN Mobile has retaliated Hutchison Whampoa's legal suit by allegedly saying it would "strenuously resist" Hutchison claims that it has refused to pay E217 million in additional loans to fund the third-generation mobile phone operator, '3'. KPN also said that it believed Hutchison was, in fact, in "material breach" of the shareholders' agreement itself. According to the FT, KPN is demanding that Hutchison buy it out of '3'.

KPN revealed it had served notice on May 27 requiring the Hong Kong group to buy its shareholding at "140 per cent of the fair price". The Dutch operator said it had not yet decided if it would take that claim to court and did not clarify what "140 per cent of the fair price" meant - whether that was based on the current price, or the value of its 15 per cent stake at the time that the shareholders' agreement was signed.

Hutchison contributed E910 million and the venture's other partner, Japan's NTT DoCoMo, injected E280 million in line with its stake in the company. KPN, however, did not contribute what Hutchison argues was its E217 million share. The Hong Kong company made up the shortfall.

In March, '3' requested E1.4 billion in loans from its shareholders as part of a deal with banks to extend the maturity of financing for the project.

Hutchison is '3' majority shareholder with 65 per cent stake, KPN has a 15 per cent share and Japan's NTT DoCoMo has a 20 per cent holding. KPN had previously written E8.4 billion off the value of its third-generation phone licences in Germany, Belgium and the UK.
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Five to limit UK shows

Fears about the consequences that a US owner could have in the programme quality of Channel Five, have rekindled in the UK TV market after a report said that the channel has signed a secret deal with TV regulators to keep down its quota of British programmes.

The independent television commission has lowered the baseline of UK and EU programmes. Instead of increasing the quota of British and EU programmes from 53 per cent last year to 71 per cent this year - as previously envisaged by the channel's licence - it will go up only slightly, to 55 per cent, according to the Guardian. After that, it will rise by one percentage point a year, reaching 60 per cent in 2008, where it will remain until a new deal is negotiated.

The ITC says Five will be able to spend its comparatively small E210 million a-year programme budget more effectively if its British production quota is less punitive than had originally been planned.
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New Telco Industry Council formed

RosettaNet, the technology industry's e-business standards consortium, has announced the formation of a Telecommunications Industry (TC) Council. BT, Cisco, Deutsche Telekom, Ericsson, Motorola, Nokia and Siemens are among the first major industry players to join as founding member companies with the goal of promoting RosettaNet to streamline the exchange of information throughout the global telecommunications trading network.

Jennifer Hamilton, CEO of RosettaNet said: "Our goal in establishing a formal Telecommunications Industry Council is to ensure more cohesive relationships between key players in the respective industry supply chains. On behalf of RosettaNet and the greater business community, we look forward to the extended collaboration, leadership and expertise that this esteemed group will bring."

RosettaNet is a non-profit consortium dedicated to the collaborative development and rapid deployment of open internet-based business standards that align processes within the global technology trading networks. More than 500 companies, representing over E86bn in annual information technology, electronic components and semiconductor manufacturing revenues, currently participate in RosettaNet's standards development, strategy and implementation activities.
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Fox Kids Europe back into the black

Fox Kids Europe, the Disney-owned children's entertainment group, announced a return to the black, posting net income before taxes of $3.3 million for the six months to March 31, compared with losses of $700,000 at the same stage a year ago.

Total revenues in the six months to March 31 were up eight per cent to $74.8 million, and despite a tough market across the region, chief executive Bruce Steinberg said group advertising revenue has bucked the regional slump, ending up 21 per cent to $15.9 million. Fox Kids also revealed that it has added 2 million subscribers to its network, taking it to 33 million homes across 57 countries. The group operates 12 local-language feeds as well as operates branded blocks on local terrestrial networks.
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Pakistan telco to launch broadband distribution
From Shveta Malik in New Delhi

Pakistan Telecommunication Company Limited (PTCL) has announced it plans to launch a broadband distribution system to deliver value added services to its customers by the end of next year.

At the initial stage we have planned to provide 70 channels, high speed Internet and Virtual Private Network (VPN) services to our customers by end of 2004, said a spokesperson of PTCL. The upgrades will be launched initially in Karachi, Lahore and Islamabad by end of 2004.
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Harmonic: new IRDs

Harmonic's new ProView product line supports a wide range of applications from programme origination to broadband delivery over cable, satellite, telco and terrestrial broadcast networks.

The standards-based ProView systems are MPEG-2 and DVB compliant ensuring interoperable solutions for applications such as digital turnaround; distribution in broadcast, cable, telecom and satellite networks; and decryption for transport stream re-multiplexing. The systems support DVB SimulCrypt and Multicrypt, offering multiple channel decryption up to the full incoming transport stream. The ProView product family supports a variety of front-end options-QPSK, 8PSK, 16QAM, QAM, G.703, STM-1/OC-3, DS-3-and support for all of the leading DVB conditional access systems.
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Thursday 12th June 2003
FT to invest E600m to boost broadband
Apax calls Hollick back to ITV
MTG: We'll take over TV4
Premier League must review deal with Sky
ITC teleshopping seminar
AOL launches 'Theatre B'
CASBAA: Asia's broadband industry buoyant
Sci-Atlanta, new HD set-top over the counter
'3' to sue KPN
TiVo and Gemstar settle patent suit
Telewest customers can 'red-button' on QVC
Dish adds Spanish 'GOL TV' to English package

FT to invest E600m to boost broadband

Thierry Breton, France Telecom Chairman and CEO, has announced a series of initiatives designed to make broadband Internet available to everyone in France who wants the service.

The French telco said it will equip exchanges to provide ADSL access as rapidly as possible when service is requested by at least 100 customers in a given local area. France Telecom is also to equip all exchanges of over 1,000 lines (which serve areas with about 2,000 inhabitants) with ADSL access equipment by 2005. To carry out this program France Telecom will invest E600 million over three years to deploy ADSL technology on the French telephone network.

Satellite broadband Internet solutions are to be available from September 2003 for residential customers, businesses and municipalities in remote areas. In addition, this summer France Telecom will launch trials of alternative broadband technologies to meet customer demand throughout the country. France Telecom regional offices will pursue these initiatives in close liaison with local and regional authorities to assess customer demand and deliver responses adapted to broadband Internet needs.

Breton said: "Broadband is a compelling challenge for France Telecom, both as a key to enhancing the competitiveness of our business customers, and also as a means of facilitating access to knowledge and information for everyone. France is currently number two in Europe in the number of broadband connections. We need to go further and accelerate initiatives. This is why I have asked everyone throughout the France Telecom group to mobilise to meet the needs of our customers, whether residential or business, as well as public authorities in regions and municipalities of all sizes. Broadband figures at the centre of France Telecom's future - this is our new frontier. Our objective is very clear: make broadband Internet available to everyone."

To carry out this program France Telecom will invest E600 million over three years to deploy ADSL technology on the French telephone network.

At the end of 2002, 1.4 million people in France had broadband Internet connections. This figure will exceed 3 million by the end of 2003, as the customer base will have more than doubled in one year. ADSL technology was available to 74 per cent of the population at the beginning of 2003, and France Telecom estimates that coverage will reach 90 per cent of the country's population by 2005.
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Apax calls Hollick back to ITV

Apax Partners, the venture capital group said to be putting together a bid for ITV, has apparently tried to persuade Lord Hollick to buy back into the network, three years after he sold his interest to Granada for E2.48 billion.

Apax Partners, linked to US billionaire Haim Saban in the bid, is understood to have raised the subject of a possible bid for ITV at a recent meeting with senior executives at Hollick's United Business Media.

Labour peer Lord Hollick sold his Meridian, Anglia and HTV franchises to Granada in July 2000. At the time the deal was seen as a coup for the Granada chairman, Charles Allen, putting the company in pole position as ITV consolidated from 15 owners to two.
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MTG: We'll take over TV4

Modern Times Group has written to Sweden's Ministry of Culture, offering to take over TV4's national analogue commercial TV broadcasting license for Sweden. MTG says accepting its offer could net the government SEK1bn.

This follows the Swedish government's enquiry into the annual fee that TV4 has to pay for its licence that recommended a 20 per cent reduction in the license fee per annum over the next five years. MTG's letter to the Swedish Minister of Culture, Marita Ulvskog, states: "Modern Times Group MTG AB considers the current conditions of the licence - including the original concession fee - to be favourable to the extent that the company would be prepared to take up the license to broadcast commercial TV in the terrestrial network, without any changes to the existing agreement. The reason for introducing a license fee together with the terrestrial license was that the TV broadcaster controlling the terrestrial commercial license has a significant competitive advantage in terms of penetration over the channels distributed via satellite." Hans-Holger Albrecht, President and CEO of MTG, commented: "The terms and conditions of the concession are fair and the competitive advantage for the licence holder is considerable for the foreseeable future, so we would be more than happy to take over the license and all of its existing commitments".
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Premier League must review deal with Sky

Mark Oliver, a former head of strategy at the BBC, has warned the Premier League it must stand up to BSkyB in its forthcoming talks over TV rights or face a fall income for its already debt-ridden clubs. BSkyB paid E1.5 billion over three seasons for its existing package of 66 live matches a year, but has threatened to significantly reduce the amount it pays if it loses exclusive rights.

Oliver, speaking at the FT Business of Sport conference, said league executives were in danger of conceding too much power to Sky. The league, according to Oliver, should view the current European investigation into the way it sells its rights as "an opportunity rather than a threat", and use it to give more rights to clubs for their own channels and exploit services through the internet and mobile phones.

The Premier League is currently in negotiations with Brussels competition watchdogs in an effort to retain the right to sell its main live package of games exclusively to a single broadcaster.
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ITC teleshopping seminar

The UK's TV regulator, the Independent Television Commission (ITC), is organising a teleshopping seminar on 30 June to discuss the future of the industry and the shape of its regulation. Five years ago, there were only five teleshopping channels licensed by the ITC, now it licenses more than 40.

At the seminar, delegates, including industry and consumer bodies, will be able to take stock of the current regulatory position and the future outlook under the UK's new 'super regulator' Ofcom. Speakers include Mark Cullen, Chief Executive of Interaction TV, who will talk about new retailing models and how to achieve a more targeted future approach, and Paul Lavers (freelance Presenter), reflecting on his experience in setting up and running teleshopping channels.

The day will also include a panel discussion led by Sarah Thane (Director of Programmes and Advertising, ITC and Advisor, Content and Standards, Ofcom), Brian Farrelly (Director of Broadcasting, QVC), Paul Marks (Chief Executive, Best Direct and Chairman of the British Television Shopping Association) and Laura Simons (Member of the ITC's Advertising Advisory Committee).
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AOL launches 'Theatre B'

AOL Movies, part of AOL Time Warner, has teamed up with broadband movie provider MovieFlix.com, to offer its broadband customers free broadband-enhanced movies on demand. With this new feature called "Theatre B," movies are instantly streamed on AOL for Broadband.

The inventory of titles to AOL for Broadband members can be accessed with AOL Keyword: Theatre B. Each month, Theatre B will offer a new movie theme with a new film available for on-demand viewing each week.

Meanwhile this month Time Warner Cable is introducing a new premium cable box that automatically records and stores up to 50 hours of TV. Similar to TiVo and ReplayTV systems, the box has no tape and allows viewers to pause live TV, record two programmes at once and play back two programmes at once using the picture-in-picture feature. For $9.95 a month, any Time Warner subscriber can swap out an existing digital cable box for this one, called the Explorer 8000.
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CASBAA: Asia's broadband industry buoyant

Asia's Cable TV system operators, satellite platform operators, equipment suppliers and content providers have reason to take an optimistic view of 2003, according to the Cable & Satellite Broadcasting Association of Asia (CASBAA).

Marcel Fenez, Chairman of CASBAA says, "this year we have seen cable operators and satellite platform providers ramping up the subscriber base and continuing their strong moves into profit; the pay-TV channels, too, are reporting increased penetration and healthy revenues as they either consolidate years of hard work or launch new services. And the broadband penetration figures continue to rise inexorably."

He goes on to quote some examples of the good performance of the cable and satellite industry in Asia:

In Hong Kong, dominant cable operator I-Cable Communications has signed 10,000 new cable subscribers in the first three months of this year, taking its total subscriber base to 620,000 with a target of 650,000 by year-end. I-Cable also has 250,000 broadband subscribers. EBITA for 2002 was $80.6 million with an operating profit of $42.6 million. In 2002, I-Cable's subscriber based rose by eight per cent. I-Cable, meanwhile, has announced a new carriage agreement in China for its Horizon entertainment and cultural channel in three-star and above hotels and foreign compounds via the SinoSat platform.

TVB, a Hong Kong based satellite operator, will be launching on November 2003. The launch package will comprise 24 channels with at least four channels supplied by 49 per cent investor TVB. The Galaxy package should increase to 40 channels within 18 months of the launch and will be distributed via satellite capacity leased from TVB Galaxy partner and Intelsat. In Taiwan TVB International, the overseas arm of TVB, recently revealed that its Taiwan-based cable network TVBS posted US$8.08 million in operating profits for 2002. TVBI's syndication arm produced $62.05 million in revenues for 2002.

Also in Hong Kong, ADSL-based VOD platform operator Yes Television continues to sign new content deals recently adding a Playboy adult service to its line-up alongside Channel NewsAsia, The Soundtrack Channel and soccer service MUTV (Manchester United Television). Yes has also announced a deal to deliver content to broadband companies Hutchison Global Communications and Powercom.

In Japan, satellite platform operator SkyPerfect TV reports that it will move into profit next year and now has 3.4 million subscribers (with 3 million DTH subs) and has exceeded its break even point with taxable profits set to begin rolling in March 2004.

Also in Japan, cable operator Jupiter Telecommunications (J-Com Broadband) increased its subscriber base by 271,000 to 1.6 million subscribers as of the end of March, an increase of 20 per cent over the previous 12 months. "The cable industry in Japan is experiencing the same dynamics as other parts of the world," said Tomoyuki Moriizumi, President and CEO of J-COM Broadband, which is 45.2 per cent held by Liberty Media.

Singapore's StarHub CableVision has announced that it had attracted 362,000 cable subscribers as of the end of April along with 110,000 cable modem subscribers. StarHub says it should hit the 400,000 subscriber mark by the end of 2003.

In Malaysia, local DTH platform operator Astro, which is controlled by Measat Broadcast Network Systems (MBNS), announced that it now has one million subscribers to its package of 40 television channels.

On the channel performance front the Indian focussed STAR Plus channel contribution to the quarterly results of parent company News Corp. STAR Group Advertising revenues increased by 12 per cent.
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Sci-Atlanta, new HD set-top over the counter

Scientific-Atlanta has revealed a new Explorer set-top, which will be available to consumers through retail outlets in the US. The Explorer 3270HD(tm), will provide High Definition Television (HDTV) viewers with simple installation, more audio options, as well as new stretch and zoom capabilities for HDTVs, to enhance their television viewing experience.

Beth Denning, Director of sales and distribution, Cox Communications said: "Making our High Definition TV service, which includes Scientific-Atlanta's Explorer 3270HD, available in retail stores will provide consumers with another choice for where and how they purchase HDTV service and products."

With the Explorer 3270HD, HDTV viewers will be able to use either the on-screen menu or a button on the set-top's remote control to stretch and zoom video for full-screen viewing. The set-top's interactive program guide will intelligently scale the video for the program in progress to allow the viewer to continue watching the current program in a small window on the screen while reviewing additional program choices.
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'3' to sue KPN

Hutchison Whampoa is suing Dutch telco KPN over its' refusal to stump up E217m in additional loans to fund its '3' network launch. The cash call to shareholders in '3' earlier this year, was to cover shortfalls caused by delays in launching the service in the UK. It provided its own E870m share, while Japanese telco NTT delivered its E289m. But KPN and Hutchison Whampoa had to bridge the gap.
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TiVo and Gemstar settle patent suit

Gemstar-TV Guide International Inc, maker of an interactive television program guide, and digital video recorder producer TiVo Inc have reportedly settled their patent dispute, and TiVo will offer Gemstar content on its system. As part of the agreement, TiVo will take a patent license from Gemstar-TV Guide, while Gemstar will provide TV Guide-branded content to the TiVo system. The content will appear on the front page of TiVo's showcase section.
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Telewest customers can 'red-button' on QVC

Shopping channel QVC has upgraded its interactive TV service on Telewest bringing its digital cable offering in line with that on Sky digital satellite.

Telewest customers watching QVC can now place orders using the red button. QVC Active on Telewest should now benefit in the same way that the service did on Sky when 'buy button' capabilities were introduced on the digital satellite platform in September 2001. Red button purchases now account for around a third of all QVC purchases made through Sky.
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Dish adds Spanish 'GOL TV' to English package

Dish Network, EchoStar's satellite TV arm, added Spanish-language channel GOL TV to its America's Top 150 programming package. Customers won't have to pay any additional charges.

GOL TV is currently available in Dish Network's Spanish-language Dish Latino programming packages in Spanish, and it will now be available in English in America's Top 150 package. GOL TV will also be available in Secondary Audio Programming (SAP) in Spanish. GOL TV is a 24-hour, Spanish-language channel dedicated strictly to soccer.
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Wednesday 11th June 2003
Telewest to postpone restructure
Parsons, Karmazin: security demand
100k a month for Freeview
ITV merger report could be delayed
CableLabs supports integrated DTVs
Canal Satellite tests Plurimedia for the summer
Pace unveils low-cost digital cable adapter plans
New intelligent video gateway for Cable
Two Way TV launches new games formats
BTBS into Asia Pacific region

Telewest to postpone restructure

UK cableco Telewest is to delay its E5 billion rescue plan by several weeks. The company hoped to put its restructuring proposal before the company's annual meeting on Thursday but the group said that bondholders were demanding last-minute changes to the terms of the planned debt-for-equity swap which would have left shareholders with just three per cent of the business.

The Company has been notified by the Bondholder Committee that, in order to obtain the support of certain of the Company's bondholders, the Committee is requesting changes to the Preliminary Restructuring Agreement. It is thought that US investor and bondholder Bill Huff headed the objection to the terms of the deal.

MD Charles Burdick said: "While we are disappointed with this development, we are in the final stages of these discussions and therefore the restructuring process."

Huff's rebel group, who are thought to speak for between 10 per cent and 20 per cent of the group's bonds, believe shareholders should not receive three per cent. Telewest has invited all the company's bondholders, including Huff's group, to agree on a proportion, which is unlikely to be higher than one per cent.

Huff is also the biggest single investor in Telewest's rival NTL. His fund, WR Huff asset management, holds about 11 per cent of NTL, and he and two colleagues sit on the company's board.
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Parsons, Karmazin: security demand

Two of the US's most powerful media execs joined together at the NCTA yesterday to call for more security for digital content.

Dick Parsons, CEO of AOLTW warned that failure to develop standards for protection was preventing media groups from investing online or making more of their content available. And Mel Karmazin, COO of Viacom, went so far as to call for government to implement standards.

It was another sign of the growing cooperation between rivals in this area and follows on from the end of the 'browser wars' standards dispute between AOLTW and Microsoft.
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100k a month for Freeview

More than 100,000 people a month are signing up to Freeview, says the BBC, making it the fastest growing new consumer technology.

The BBC claimed 1.6m homes now have Freeview, split equally between those with legacy ITV Digital boxes and those who have bought new STBs since the service launched last October. Around 74 per cent of Freeview viewers are over 35, while 40 per cent are over 55. Most have no interest in pay-TV and were attracted by the simplicity of the technical set-up and the low cost according to the BBC's report.
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ITV merger report could be delayed

The UK Competition Commission, which was due to give the government its opinion and recommended remedy about the proposed merger between ITV companies Carlton and Granada by June 25, might seek to delay its report, according to the FT.

The main concern of the Commission is the impact the merger will have on the UK's TV advertising market if the deal goes ahead - given that the two companies combined would account for more than half of it. Last week Carlton and Granada offered alternative, more transparent mechanism for setting TV advertising rates.

The Commission said there would be a delay if it decided to consult opponents of the merger, such as advertisers and rival TV channels, over the new proposals: "We have received a number of proposals for remedies which we are currently considering. If we find it necessary to consult on these further remedies, we would clearly need more time."

The body is only allowed to apply to the government for one extension during the course of an investigation. This can be for a maximum of three months.
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CableLabs supports integrated DTVs

CableLabs, has signalled its support for the roll out of integrated DTVs in line with the consumer electronics industry's autumn 2003 target. The US cable standards body, has given Scientific Atlanta qualified status for its Point of Deployment (POD) module.

These new DTVs will be able to receive and decrypt digital cable programming using a POD instead of a stand-alone set-top.

The new Scientific-Atlanta product will be a small plug-in card that looks much like PC cards used to add modems or memory to laptops. When consumers purchase a TV with a POD slot, they will be able to sign up for cable service and receive the POD to authorise their DTV to receive digital video services.

CableLabs also announced that Microsoft has signed an agreement under which it has agreed to contribute pertinent intellectual property rights to the OpenCable's project, including the OpenCable Application Platform (OCAP) software project.

OCAP is a middleware specification that enables the developers of interactive television services and applications to design products to run successfully on any cable television system in North America, independent of set-top or television receiver hardware or operating system software choices.

In addition, Microsoft and CableLabs have agreed to work together to explore the potential of adding .NET common language infrastructure (CLI) to a future version of OCAP.
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Canal Satellite tests Plurimedia for the summer
From Sotires Eleftherious in Paris

French digital satellite platform Canal Satellite will carry Live 1, a new temporary channel from Plurimedia, a subsidiary of Lagardere Active Broadband. Canal Satellite will air the channel from June 12 until the end of August.

The main concept of Live 1 is interacting with viewers, whether via the Internet, mobile phone text messages, or voicemail. Viewers will be able to chat with each other and with the presenters on screen, with interactive talk shows and personal pages.

The channel was devised in record time - just eight weeks. The aim is to test, in partnership with Canal Satellite, the idea of a text-message based TV station. This is a low-cost channel. It will derive its revenue from the premium rate texts and phone lines, as well as advertising.
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Pace unveils low-cost digital cable adapter plans

Set-top-box vendor, Pace Micro Technology Americas revealed at the NCTA its plans for a low-cost Digital Cable Adapter (DCA) for cable operators throughout North America. This DCA converts digital video signals for viewing on analogue television sets.

"Cable operator technologists are discussing the benefits of having an all-digital network, and the FCC is champing at the bit to regain the analogue spectrum for other uses," said Neil Gaydon, President of Pace Micro Technology Americas.
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New intelligent video gateway for Cable

Scopus Network Technologies, a supplier of digital TV platforms to the cable and satellite industries, introduced the Intelligent Video Gateway (IVG) for Cable TV applications, the IVG-7300 series. The IVG-7300 is the first element for the implementation of Scopus' IVN (Intelligent Video Network) concept to enhance video routing, processing and management over broadband networks.

Aimed at the high-end cable TV market, Scopus developed the Intelligent Video Gateway to enable cable operators to offer "Triple Play" video, data and voice - applications to their customers. A scalable head-end in a box residing at the master head-end, the IVG is housed in a 1RU chassis and encompasses state-of-the-art technologies to provide 'Everything on Demand' solutions.

The IVG's capabilities include video routing and processing, advanced video processing for MPEG protocol conversion, Dynamic Session Allocation, seamless Digital Program Insertion (DPI) and bit-rate reduction and Joint Rate Allocation (JRA) for optimal bandwidth allocation using rate reduced digital turn around services that simultaneously control local encoders in the same statistical multiplexing group.
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Two Way TV launches new games formats

Two Way TV has created games formats especially for the new Microsoft TV Foundation digital TV software platform. The initial games - "Spaceballs" and "Buzzwords" - are "based on brand new game concepts developed by Two Way TV's creative team," the company said.

Andrew Adamyk, Content Business Development Manager at Microsoft TV said: "Microsoft TV Foundation Edition is designed to let cable operators get more from digital TV today. That means enabling cable operators to deliver compelling content such as Two Way TV's games on thin-client set-top boxes. Two Way TV has produced a set of games formats that show off the capabilities of our new platform. We believe this type of compelling content is another way cable operators can prove the value of digital TV to their subscribers."

Guy Templer, Head of Business Development at Two Way TV, said: "Games have universal appeal and have always been one of the most popular forms of interactive TV content. This has been a great opportunity for us to work hand in hand with the Microsoft engineering team as they roll out their new platform. Our creative team have been in their element starting from a clean sheet and coming up with game concepts from scratch that really drive the platform."
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BTBS into Asia Pacific region
From Shveta Malik in New Delhi

BT Broadcast Services (BTBS), a supplier of global broadcast solutions, has entered the Asia Pacific region through a new base in Singapore.

BTBS Asia Pacific, which provides terrestrial and satellite based multimedia transmission solutions as well as systems integration, content and customer management services, has already completed its first project with Celcom, Malaysian telecommunications service provider, to carry content for the recent Formula One 2003 in Malaysia.

BTBS managing director Mark Smith said: "The Asia Pacific region covers 29 countries, stretching from Australia to Korea and Taiwan to Pakistan, and is becoming an increasingly important area for broadcasters. The demand for European programming, such as sporting events and soap operas, is growing, whilst there is a greater need than ever before for Asian content to be transported globally. The Celcom Formula One deal is a significant client win, and a great step towards our aim of developing the region into a broadcast hotspot and further strengthening our presence worldwide.

BTBS enabled footage to be taken directly from the Formula One circuit itself and beamed via satellite to the BT ISDN port in the UK.
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Tuesday 10th June 2003
Saban now stalking ITV?
1m broadband for BT
Burdick next victim at Telewest?
Microsoft makes cable play, again
China: national network stumbles
Samsung new ‘Freeview’ STB
Bank drops mobile and TV
NTT: super fast downloads

Saban now stalking ITV?

Within hours of admitting defeat in the long-running bid for ProSieben Sat1, it emerges Haim Saban has turned his attention to ITV.

According to clearly orchestrated leaks in the weekend press, Saban has linked up with private equity firm Apax and, possibly, David Elstein the former Sky and Channel 5 executive. Elstein was previously linked with another proposed bid involving German investment bank West LB.

The plan - as before - is essentially to take Carlton and Granada private and wring profits from cost savings and shape-shifting as far as possible to a broadcaster as publisher model.

Apax’s head of media, Stephen Grabiner, and Neil Blackley, previously a leading analyst at Merrill Lynch, are said to have been planning a bid for the two ITV broadcasters for months. Grabiner was CEO of On Digital the predecessor to the disastrous ITV Digital.

It is likely a bid will only materialize if the E4bn merger of the two ITV companies is blocked by the Competition Commission. The Commission is due to report to the minister on June 25th.
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1m broadband for BT

BT has ‘signed’ 1m broadband customers. Chief executive Ben Verwaayen says: "In February last year I set the challenging target of 1m DSL broadband connections by summer 2003. Well, we are there by early summer and it is a great achievement." In fact many of these customers will be subscribers to other ISPs that have bought BT’s wholesale broadband product.
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Burdick next victim at Telewest?

Some UK Sunday papers reported that Charles Burdick, CEO of Telewest since the ousting of Adam Singer, will himself be axed once the E5bn financial restructuring is complete. Apparently while the former Finance Director was seen as the right man to deal with negotiations with the banks, the bondholders want a fresh face to prepare the company for its long expected merger with NTL.
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Microsoft makes cable play, again

Bill Gates, was expected to use last nights personal appearance at the NCTA to introduce a new cable TV software package. Called Microsoft TV Foundation, it is designed to make it easier for cable customers to access videos and other services on demand. "We're hoping this is an announcement that gets the industry excited," said the company.

This is not the first time Microsoft has tried to make an impact in cable TV but its policy of buying into cable groups at the top of the market in the hope that would guarantee sales of its expansive operating system, backfired with Gates himself calling it an unmitigated disaster. Microsoft made no sales and lost billions of dollars as the value of its network investments cratered.

Microsoft said its new software tools were designed to run on lower-priced cable boxes. They could also eventually run on set-top boxes manufactured by different companies, which is not possible today.

Meanwhile, in the computer sector Microsoft does dominate, The European Commission has delayed the decision in its four year probe of the company as it seeks to strengthen its case.
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China: national network stumbles
From Owen Hughes

Chinese plans to roll out a national cable TV network are being hampered by a series of barriers including protests by western channel providers against Beijing’s insistence that they remove their logos from programmes in order to gain carriage.

The national cable network is owned by the State Administration for Radio, Film and Television (Sarft) and it plans to reach 30 million subscribers by 2005 using a network separate to the hundreds of provincial and urban systems.

Sarft wants to use high-class programming to draw subscribers, but at the same time it does not want to allow foreigners to gain too much presence in the market. That’s why it has told prospective content suppliers that they will have to remove logos if they want carriage.

The content providers have baulked at the demand, saying that it will handicap their opportunity to build a brand in the largest market in the world. A further problem for Sarft is that it does not control the last mile to homes and the smaller cable operators are only required to carry the state-run TV’s flagship channel CCTV-1.

With China’s cable TV sector experiencing an advertising boom, the provincial and urban systems have refused to sell stakes in their networks to Sarft because they feel it will not pay enough money to recoup their investments in upgrades over the last five years.
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Samsung new ‘Freeview’ STB

Samsung has launched a new digital terrestrial receiver for the UK market. The SIR-U200I is the first in a range of digital terrestrial TV products for the UK market which Samsung will be launching during 2003.

Samsung’s optimised software design makes full use of SIR-U200I’s embedded IBM PowerPC processor to deliver all the benefits of multi channel digital TV in a package that is fun to use for the consumer.

Rob Shaw, product manager for the SIR-U200I at Samsung, comments: "The UK is leading the world in the deployment of digital TV and the recent success of FreeView is only accelerating the momentum. Samsung is fully committed to supporting and developing this emerging market with an exciting new range of digital media products The SIR-U200I is the first step towards this in the UK."
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Bank drops mobile and TV

Major UK bank Abbey National has dropped its WAP mobile banking channel and its digitial TV channel due to insufficient demand, reports The Register. The bank has sent letters to customers announcing its decision, saying that as of the end of this month, they will no longer provide e-banking through the digital TV (via Sky, Telewest and NTL) and WAP channels (Orange and O2), and will instead focus on improvements to its more popular internet e-banking channel.
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NTT: super fast downloads

Japan's Nippon Telegraph and Telephone says it has developed technology that drastically increases fibre optic communication speeds for homes and offices.

The new technology will increase speeds tenfold to one gigabyte per second and NTT hopes to have the new technology ready for mass production within two years.

The technology will make the downloading of movies and games from the Internet easier, two hours of video footage will be able to be downloaded in around 30 seconds, compared to seven minutes using existing technology. Increasing capacity is at the heart of NTT'sbattle to win back customers to fibre optic fixed-line. Revenues have been under pressure as users switch to mobiles and cut-price Internet protocol phones, but the telecom giant has said it aims to win five million new fixed line users by 2005/6.
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Monday 9th June 2003
3 slashes prices again
Spain's Sogecable wins UEFA pay TV rights
Viacom plays down interest in Vivendi
AOL T W cancels book auction

3 slashes prices again

The UK 3G mobile phone operator '3' has slashed the prices for its third generation mobile phone service in a desperate bid to kick-start sales.

The company, controlled by Hong Kong's Hutchison Whampoa, is launching two new pricing plans on today which, it says, will undercut rivals by 50 per cent.

Two new packages, VideoTalk 500 and VideoTalk 750, give customers 500 and 750 voice minutes to any network at any time for E36 and E50 a month respectively. The move is designed to try and ignite interest in '3' - the UK's first commercial 3G service.

"For customers on plans with comparable amounts of voice calls on other networks, 3 is offering savings of as much as 50 per cent on the monthly charge," said the company.

With the first package, customers also get a E14 a month allowance for making video calls, sending video messages and downloading video clips for the first three months. The allowance is E30 a month on the second package.

Bob Fuller, recently recruited as CEO from '3's better-performing Italian operation, said: "By any measure VideoTalk 500 and VideoTalk 750 offer unbelievable value to mobile customers in the UK. With these two packages our customers can make up to 50 per cent savings on comparable bundles from other networks."

Having attracted just 25,000 users in the UK so far, it seems very unlikely the '3' will get close to its target of having 1 million customers in the UK by the end of the year.

Last week, '3' announced the appointment of chief operating officer Gareth Jones who will look after sales and marketing in the UK. He said: "We are offering incredible services, at incredible value for money and we now have something to appeal to every customer."
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Spain's Sogecable wins UEFA pay TV rights
From David Del Valle in Madrid

The leading pay-TV group Sogecable has won the
contract to exclusively broadcast UEFA Champions League matches for the coming three seasons on pay-TV.

Sogecable will exclusively transmit the first pick of
Tuesday live games and second pick of Wednesday live
games. The agreement also includes the second pick of
Tuesday live matches and highlights on both Tuesday
and Wednesday.

The first pick package of live UEFA Champions League
games on Wednesdays is reserved exclusively for a free
TV broadcaster.
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Viacom plays down interest in Vivendi

Viacom, has played down its interest in the auction of Vivendi Universal's US entertainment assets. Mel Karmazin, Viacom president and chief operating officer, said the group was interested only in the cable TV networks operated by Vivendi Universal: "If the assets are being sold together we are very much at the back of the line."

Preliminary bids, due this month, are expected from two rival financial consortia, including one led by Edgar Bronfman Jr, former Seagram chief executive and a Vivendi board member. Other groups such as Viacom, General Electric and MGM, the studios business, have expressed interest in some of the individual entertainment assets.

Meanwhile Karmazin's boss Sumner Redstone, said there will be no dynasty at Viacom, currently the world's largest media company by capitaliazation. The veteran media mogul said his daughter Shari - currently head of the company's cinema chain - would not take over the top spot if he left.
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AOL T W cancels book auction

AOL TW has cancelled the auction of its book publishing division because it could not attract a high enough price.

AOL Time Warner initially tried to sell the division, which includes Warner Books and Little Brown, to reduce its debt. A few months ago the company pledged to lower its debt to $24 billion from $28 billion by the end of this year and to $20 billion by the end of next year.

Since then, AOL Time Warner has sold its 50 percent stake in the Comedy Central cable channel for about $1.2 billion and its investment in the satellite television company Hughes Electronics for about $800 million. It has also raised $750 million from the settlement of a lawsuit against Microsoft. Still pending are sales of its CD and DVD manufacturing business, which is expected to raise more than $1 billion, and the sale of its three sports teams in Atlanta, which is expected to raise more than $700 million.
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