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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 July 5th to Friday July 9th 2004

Scroll down page or click below for news - latest first

Tuesday

Friday July 9th 2004

Siemens scoops BBC Technology deal
Spain's CMT encourages cable merge
Date for UK switch-off of analogue radio to be announced
Elstein bids for Hallmark Channel
Korea picks US DTV standard
DITG and Teletext launch Teletext Games
Virgin Mobile sets IPO range
TeliaSonera eyes Danish unit of Orange
Home networks to surpass 100m

Dyke gets £450,000 pay-off



Siemens scoops BBC Technology deal
From Colin Mann in London

Siemens Business Services, part of the Siemens Information & Communications group, has emerged as the Single Preferred Bidder for a new Technology Framework Contract (TFC) for the BBC, and as the new owner of BBC Technology.

The initiative to procure a new technology contract followed an internal strategic review of the BBC's technology requirements, which identified potential annual savings in the order of £20 million (E30 million) to £30million if its technology services were outsourced. An EU Procurement Process then followed.

The sale is subject to the approval of the BBC Governors, the Secretary of State for Culture, Media and Sport and clearance by the European Commission under the terms of the EC Merger Regulation. Subject to the necessary approvals – expected by autumn 2004 - the contract is for 10 years and is worth up to £2 billion.

BBC Technology – which reported a turnover of £230 million - provides products and services for the BBC, other broadcasters, platform owners, content owners and government organisations. Its internal and external clients include BBC News, BSkyB, DirecTV, ESPN, Hutchison 3G, SABC and Scottish Enterprise.
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Spain's CMT encourages cable merge
From David del Valle in Madrid

The Spanish Telecommunications Market Commission (CMT) has encouraged two of the country's largest cable operators, Spaincom-controlled ONO and Auna, to merge to create a giant group capable of competing with the dominant operator Telefonica.

The President of CMT, Carlos Bustelo, said that "this (merger) operation would not be difficult" as each company currently operates in a different region throughout Spain. "The stronger these alternative operators are, the better, in order to compete with the incumbent", he pointed out.

On several occasions, both companies have engaged in merger conversations that so far have not borne fruit. Many point to 2005 as the year of their possible merger.

Both cable companies have already made some consolidation moves by acquiring local cable networks. Recently, ONO bought Retecal, while AUNA acquired Tenaria. Combined, they have more than 1.4 million clients.
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Date for UK switch-off of analogue radio to be announced

The UK government is to announce a switch-off date for analogue radio this year, meaning that eventually 100 million radios will become obsolete.

Culture secretary Tessa Jowell said she was going to review digital radio take-up in a foreword to a report published by the Digital Radio Development Bureau. Jowell said that she would be "considering how long it would be appropriate for sound digital broadcasting services to be provided in analogue form".

DAB digital radios came second only to the MP3 players in the consumer electronics market last year, with a 444 per cent annual sales growth rate. So far in 2004, 600,000 digital radios were sold.

However, only about half, or 385, of the total number of radio stations broadcasting in the UK are currently available on a digital signal.
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Elstein bids for Hallmark Channel

Five's former CEO David Elstein, has reportedly confirmed his interest to buy the Hallmark Channel in a bid believed to worth £500 million (E750 million).

If the bid is successful, it will give Elstein control of the UK Hallmark Channel and its operations in more than 120 countries. The deal will also include a library of films owned by the channel, worth millions of pounds.

The Hallmark Channel, owned by Hallmark Entertainment but run by Crown Media, has reportedly received bids from Sony and interest from media giants News Corporation, Disney, Turner, Time Warner, Saban, MGM and Liberty Media.

Initial bidding is set to finish at the end of the month, but the final deal will not be closed until autumn.
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Korea picks US DTV standard
From Shveta Malik in New Delhi

After a prolonged deliberation and years of protracted disputes, the Korean government has adopted the US transmission system of digital television broadcasting in the country.

The Ministry of Information and Communication (MIC) announced that the government and the broadcasting industry have finally agreed to adopt the US format instead of the alternative European one. Under the agreement, terrestrial broadcasters of KBS and MBC will expand their high-definition services to five provincial cities this month.

"Provincial residents will be able to enjoy the upcoming Athens Olympics via digital TV. Furthermore, we plan to expand digital TV coverage across the nation by the end of next year," said an official from MIC. It was also stated that the traditional analogue broadcasting will be suspended in 2010, when it is expected that 95 percent of households will own digital TV sets.

The pro-European-standard groups argued that the US standard does not support mobile transmission of digital broadcasts.
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DITG and Teletext launch Teletext Games

UK interactive television company, the Digital Interactive Television Group, has entered into a partnership with TV information provider, Teletext. DITG's Gaming division will run Teletext Games‚ a new service launched this week on Teletext on 4. Viewers on the Sky platform can access the service via the text button when watching Channel 4.

The Teletext on 4 service includes: programme information, news, finance, sport, weather and travel, racing, lottery results, plus a dating service for viewers to post and reply to personal ads.

The new Teletext Games‚ service offers viewers multi-screen video-based and console-style games, and includes fruit-machine type games and virtual horse-racing, all provided by DITG. Participants will be encouraged to register and play via cross-promotion from Teletext's other platforms including analogue TV, DTT and Internet.
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Virgin Mobile sets IPO range

Richard Branson's Virgin Mobile has set a range of 235 to 285 pence per share for its market debut, valuing Britain's fifth-largest mobile phone firm at £588 million to £713 million (E882 million to E1,070 million).

The company, the first virtual mobile network operator to go public, set its enterprise value at between £900 million and £1.025 billion, including £311 million in debt.
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TeliaSonera eyes Danish unit of Orange

TeliaSonera, the Nordic region's largest telecom group, said it would buy the Danish operations of Orange, the mobile operator owned by France Telecom, for E600 million, according to a report on the FT.

The Swedish-Finnish group has struggled for many years to reach profitability in the highly fragmented Danish mobile market where it has been unable to grow its subscriber base quickly enough. Following the acquisition, TeliaSonera will have around 1.1 million customers and be Denmark's third biggest operator after TDC and Sonofon.

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Home networks to surpass 100m

IMS Research expects there to be over 100 million home networks worldwide by the end of 2009, according to a recent study. The growth of this market is primarily driven by consumer desire to share broadband Internet access and digital TV content within the home.

In 2003, it was estimated that 90 per cent of home networks were just used for data networking. As the technology to provide true A/V networking becomes more available, reliable and affordable the majority of consumers with a home network are likely to want to connect their CE equipment to it. IMS Research forecasts that by 2009, 56 per cent of home networks will combine both data and A/V elements.
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Dyke gets £450,000 pay-off

Greg Dyke, former DG of the BBC, received a severance package worth more than £450,000 (E680,000) after resigning this year in the wake of the damning Hutton report.

The pay-off, due to be revealed next week in the corporation's annual report and accounts, means that Dyke received total remuneration of £809,000 for the financial year ending March 31.
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Thursday July 8th 2004

Suez concludes Noos sale
DishTV to expand abroad
Towercast shows mobile DVB-T radio
Zip TV will finally launch

PrimaCom offers broadband pay by hour
SES takes Rigolle from Belgacom
T-Systems wants to WiFi half of the world's public hotsopts
BBC massive Olympic cover
Vodafone blocks access to porn



Suez concludes Noos sale

Industrial conglomerate Suez has finally exited the communications sector after selling its stake in Noos, France's largest cable operator, to Mediareseaux, the UGC holding company in France – now renamed UPC Broadband France.

The transaction valued Noos at approximately E615 million, or 7.25 times 2004 estimated EBITDA. The final purchase price is subject to a 90-day audit of Noos' financial information. Consideration to Suez consisted of approximately E530 million of cash.

As a result of the transaction, UPC Broadband France claims it now serves approximately 2.3 million RGUs (revenue generating units). The combined French businesses generated revenue of approximately E400 million based on the 2003 results of Noos and UPC France.

In addition to the disposal of Noos, Suez has also sold its equity stake (50 per cent) in Worldcom in Belgium to MCI. The company had previously held shares on Coditel, Belgium's largest cable operator; Codenet, the Belgian national fibre optic network; M6, and Paris Premiere.
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DishTV to expand abroad
From Shveta Malik in New Delhi

After touching 100-channel mark for its bouquet offering and signing 150,000 subscribers, India's first DTH platform DishTV is eyeing the overseas market for the expansion of its service.

ASC Enterprises, which operates DishTV, is setting up an international broadcast teleport at Noida, near New Delhi, for targeting foreign markets with its bouquet of channels. First in the pipeline are European and North American DTH and cable services. The services will also be extended in phases to include Africa and the Far East in the future. The company has signed a deal with BT Broadcast Services for space segment and teleports services.

"We are also planning a domestic marketing blitz, which will start next week, to promote the DTH service in metros and mini metros (in India). The campaign includes television commercials and outdoor publicity," said the the company.

The state-run Prasar Bharti's channels will also be available on the DishTV platform from mid-August. Though STAR India is yet to join the bouquet, it was recently announced that SET Discovery Private, a joint venture distribution company of Sony Entertainment Television India (SET India) and Discovery Networks India (DNI), has been negotiation with Dish TV for the same.

The total number of channels is expected to touch 150-mark by next month.
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Towercast shows mobile DVB-T radio
From Sotires Eleftheriou in Paris

French broadcast transmission company Towercast demonstrated mobile DVB-T radio in Paristhis week. It used a DTT multiplex that the CSA has authorised it to use for test purposes, to broadcast 50 radio channels.

The test is continuing until the end of the month. Towercast used QPSK modulation, because this is more robust, along with standard models of UK Freeview receivers installed in a car, and drove journalists around the streets in Paris. QPSK modulation is better adapted for the moving vehicles; it also enables a larger coverage than the 16 QAM and 64 QAM used by TV services.

Christophe Cornillet, Towercast's technical manager, explained that the purpose of the demo was to prove feasibility. It comes just three weeks after DAB (which the BBC has been trying to push for several years in the UK) has been finally wound up in France.

Some industry observers have said that there were still more transmitters than receivers in use. "In the UK, 4 million homes can get radio via DTT," said Cornillet, "less than a tenth that figure have DAB, even though DAB has been going on for much longer".

The Towercast demo showed that using DTT technology is a very cost effective way of bringing digital radio to a wide public, including those in cars.

The French DTT plan is to launch next year, beginning in March with free to air channels. No radio channels are currently planned although one multiplex still remains to be attributed.
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Zip TV will finally launch

After postponing its premier date, Zip TV Channel said it will launch this week with a new campaign for Honda. The campaign, linked to TV spots on Channel 4, is an eight-minute video especially shot for the interactive advert.

The video has been divided into chapters to allow viewers to enter the video loop at multiple entry points. The overall iTV creative is designed to communicate the personal and human brand associations of Honda, said Zip.

One of the core services that Zip TV provides will allow the data collected from campaigns to be analysed. Donna Barradale , Managing Partner at Zip TV, explains: "What makes this so exciting is that we will be able to collate information from viewers that press the red button. The subsequent data is collated in one place and pooled: allowing us to benchmark, analyse in detail, and provide qualitative and quantitative feedback that advertisers have never before received. For the first time, TV advertising will be truly accountable".
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PrimaCom offers broadband pay by hour

Germany's PrimaCom has launched 'primatime,' time based broadband cable internet tariffs.

Primatime comes in three different flavours: 'start' (E14,50 for 10 hours) 'easy' (E22,50 for 30 hours) and 'pro' (E29,90 for 50 hours). They all provide independence from the local telephone provider, full security, and download speeds between 128 Kbps and 1024 Kbps, the company said. Additional online time costs E0.99 per minute.

A special marketing promotion is planned in over 100,000 homes to promote the new tariffs which will provide users who have been using standard analogue or ISDN modems, to get broadband connections at a low cost.
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SES takes Rigolle from Belgacom

Satellite operator SES Global has named Mark Rigolle, a senior executive of Belgacom, as its new Chief Financial Officer.

Rigolle, who led the recent E8.6 billion IPO of the Belgian telecoms company, will replace Jürgen Schulte, Finance Director of SES for the past 13 years, who is retiring.
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T-Systems wants to WiFi half of the world's public hotsopts

Deutsche Telekom's T-Systems, is linking together 10,000 locations for wireless computer access and aims to connect half of the world's public hotspots to a seamless network.

The company, who says it has 10,000 hotspots signed or under negotiation, began to connect wireless LAN (WLAN) hotspots from different providers across all continents in February. Its roaming service has been set up for business travellers who want fast wireless access to the Internet on their laptop computers, but who do not want to sign up and pay separately every time they log on.

Hotspots connected by T-Systems allow subscribers of one service to log onto any of the other 120 participating services and pay one bill at the end of the month, similar to the international roaming agreements between cellular operators.

The number of public hotspots worldwide is expected to grow to 135,000 by late 2006 from some 35,000 at end-2003, according to estimates by Datamonitor.
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BBC massive Olympic cover
From Colin Mann in London

The BBC is planning is most extensive Olympic coverage ever, scheduling 250 hours of coverage of the Athens Games, plus over 1,000 hours via the first ever interactive Summer Olympics TV service offering a complementary schedule. Viewers with digital satellite TV can access four additional streams to see extended coverage of the 37 events. Freeview users will be able to access two additional events.

Announcing the corporation's initiatives, newly-appointed Director General Mark Thompson described sport as "the lifeblood of the BBC," adding that televising such events was "the BBC at its purest."

In addition, at bbc.co.uk/olympics, for the first time ever, UK broadband users can access high-quality live coverage of the Olympics direct to their desktop. The service includes live simulcast coverage from BBC TV's five streams, as well as comprehensive daily round-ups. For people on the move, bbc.co.uk will provide an Olympics update service to WAP-enabled mobile telephones, plus a highlights service for mobiles that can receive it.

Andrew Thompson, Head of Development, New Media and Sports News, BBC Sport, "This is the first ever interactive Summer Olympics. Our broadband service
complements our interactive TV offering – allowing us to offer a variety of platforms for licence-fee payers to access the world's greatest sporting event. Broadband take-up is growing rapidly in the UK and I am delighted we are able to offer such a comprehensive service."
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Vodafone blocks access to porn

Vodafone is barring its customers from logging onto adult websites through their handsets. Vodafone users will need to prove they are over 18 before firewalls are lifted on pornographic websites or chat rooms dealing with adult themes. To remove the electronic filter, Vodafone customers will have to provide their credit card details either online, over the phone or by visiting a high street outlet.

It claims to be the first mobile phone operator in the world to launch a system to control internet access.
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Wednesday July 7th 2004

Telewest targets Sky price hike
Star TV to launch ad firm in China
Mobile video coming to mass-market handsets
DishTV touches 100-channel mark
President and CEO of Gilat Resigns
Sky CFO to join in August
New Vo IP from Cable & Wireless claims 25% savings
London TV – a channel for London
ITV scores £25m with Euro 2004
Silvermead Re-Launches Satellite Broadband Service with ASTRA

Telewest targets Sky price hike

Ahead of a price rise for Sky customers this September, Telewest Broadband is set to re-vamp its digital TV packages in July, in a bid to win over disillusioned satellite viewers.

The cable company is also revealing a new marketing campaign, which, for the first time, will specifically target Sky premium channel subscribers.
The campaign will highlight the fact that consumers who sign-up to Telewest Broadband's Essential TV pack with either Sky Sports or Movies, together with one of its unlimited phone services, can save 25 per cent compared to the equivalent services from Sky.

Telewest Broadband's other digital TV packages will also get a makeover. Its entry-level Starter pack will expand to incorporate the five most popular digital TV channels in the UK and its mid-tier Essential pack will now include the top fifteen.

Philip Snalune, director of TV at Telewest Broadband, said: "This is the first time we have directly targeted Sky subscribers, who are getting uneasy about the money they have to stump up each month."
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Star TV to launch ad firm in China

Star TV, the Hong Kong-based News Corp broadcaster, has won approval to launch China's first wholly foreign-owned advertising company.

The move to establish a new venture to handle advertising for its Chinese channels reflects strong interest in the country's fast-growing television market among international media groups. Approval for the new venture was granted by China as part of its Closer Economic Partnership Arrangement (Cepa) with former British colony Hong Kong, said Jamie Davies, Star's China president.

The new advertising company, which will be headed by Davies and based in Shanghai. Davies said Star would hire new staff for the venture, which would sell advertising for the channels it broadcasts in China, mainly to approved residential compounds and hotels of three stars and above.
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Mobile video coming to mass-market handsets

The mobile video developer, Oplayo has launched its latest mobile video product, the Oplayo Vidlet 2.2, that for the first time moves away from Nokia exclusivity to include Siemens, SonyEricsson, Samsung, Motorola, Sharp, LG, Sanyo and NEC and more.

Philip Bourchier Ferrall, UK Managing Director at Oplayo commented; Oplayo Vidlet 2.2 is the only technology that allows anyone with a colour screen phone to quickly and easily access video services for receiving, viewing and sending mobile video content, without the need for 3G.

By using a single Java MIDlet over-the-air download both the player and the content, including several types such as video, background audio and splash-screen images, is delivered to the user in one package. Every single click through or view is logged in Oplayo's Digital Rights Management (DRM) server offering a powerful statistical analysis for marketers and can provide a restriction on the number of times a user can view content for operators to better control ARPU.
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DishTV touches 100-channel mark
From Shveta Malik in New Delhi

DishTV, India‚s only direct-to-home (DTH) service from the Essel Group, has announced that its bouquet now boasts of more than 100 digital channels. The development was confirmed by Jawahar Goel, additional vice-chairman, Essel Group.

The company has tie-ups with 32 different broadcasters including Turner International India, ESPN, Star Sports, news broadcasters NDTV, TV Today and India TV among others. The company is yet to announce the inclusion of channels from Sony and STAR in its bouquet.

DishTV has been working on its expansion of its bouquet through tie-ups with not only existing channels in India but for those, which are yet to enter Indian market. For instance, it had signed deals with international channels: Eurosport news, English music channel Trace by MCM, nature sports channel Malibu TV and lifestyle Platinum TV Network earlier this year.


DishTV provides value added services that include Radio channels, Teletext, dual audio for channels, parental control and electronic program guide (EPG) with no additional fee.


Meanwhile, Sony Pictures Entertainment (SPE) Networks has launched its 24-hour anime channel Animax in India. Animax has been positioned as a youth entertainment channel.

The channel, Animax South Asia, will be the first and only 24-hour-a-day network in India dedicated to popular animation from Japan. The India-launch also makes the channel available in Pakistan, Bangladesh, Nepal and Sri Lanka.
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President and CEO of Gilat Resigns

Oren Most, President and CEO of Gilat Satellite Networks Ltd., announced that he will be stepping down from his position effective July 15, 2004. Shlomo Rodav, who has served as active Chairman of Gilat's Board of Directors for the past fifteen months, will become the Company's CEO, in addition to his position as Chairman.

Most said, "When I joined Gilat at the beginning of 2003, in a most difficult time and in a deteriorated business situation of the Company, it was absolutely clear to me that the turnaround of the Company and a merger or acquisition were the ultimate goals for Gilat." Most continued, "A turnaround plan was implemented and has begun to bear fruits. It is now clear to me that a merger or acquisition is not a present challenge which Gilat faces and as such, I have made the decision to move on to pursue a new opportunity."
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Sky CFO to join in August

British Sky Broadcasting Group plc confirmed that Jeremy
Darroch will take up the position of Chief Financial Officer on 16 August
2004. He will join the BSkyB Board upon taking up the post.
Darroch, who is currently Group Finance Director of Dixons Group plc, was
named as BSkyB's new Chief Financial Officer on 23 June 2004. He will
replace Martin Stewart, who will continue in his post until 4th August 2004.
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New Vo IP from Cable & Wireless claims 25% savings

Cable & Wireless, unveiled its fully managed business Voice over Internet Protocol (VoIP) service, Cable & Wireless IP Voice, which, it says, could cut up to 25 per cent from the costs associated with traditional business telephony.

UK companies currently spend £3.25 billion (E4.9 billion) per annum on fixed line business telephony. By adopting Cable & Wireless IP Voice, they could collectively save over £800 million each year on the total cost of business telephony.

The potential cost savings of up to 25 per cent have been independently validated by Tariffcom, the UK's leading specialist independent telecoms pricing consultancy. The savings are derived from a combination of a reduction in external call charges, plus a further saving on network infrastructure and management costs.

By enabling businesses to integrate VoIP with their existing telecoms legacy infrastructure, Cable & Wireless IP Voice says it will offer additional savings on the costs of reconfiguring handsets every time an employee joins, leaves or moves within a company. For example, at present, it costs on average £100 per user each time an engineer is called out to reconfigure a handset.
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London TV – a channel for London

London TV, a 24 hour TV channel dedicated to showcasing what to do and where to go in the city, launches on 12 July 2004.

London TV is produced and managed by enteraction tv and will provide bite-sized entertainment to inspire Londoners to explore their own city and help visitors to make the most of their stay. The channel is the first of its type anywhere in the world.

Broadcast round the clock from a studio overlooking the River Thames, London TV will feature the latest on the capital's culture, shopping, eating and trips out, with news on the hottest events and special offers, saving viewers both time and money.

Mark Cullen, CEO of enteraction tv said: "Television can inspire like no other medium and we believe London TV has the potential to become the number one information and entertainment source about the capital. As the digital TV universe grows so will the demand for great, watchable channels and we expect there will be more branded channel launches like this one."
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ITV scores £25m with Euro 2004

Euro 2004 enabled ITV to increase its advertising revenue by 17 per cent with an extra £25 million (E38 million) ploughed into the market during June. ITV managed to outdo the total advertising spend on Channel 4 and Five combined by capturing 60 per cent of the male audience for the matches it covered and picking up lucrative male-led advertising deals.
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Silvermead Re-Launches Satellite Broadband Service with ASTRA

Silvermead, an Internet and satellite broadband specialist, is using the ASTRA platform to upgrade its leading one-way consumer broadband-via-satellite service this month.

Silvermead's Satellite Broadband service offers unlimited internet access UK-wide through a range of high-speed packages starting at £19.99 (including VAT) for the 256k option, £29.99 (E45) for 512k, £39.99 for 1Mb and £59.99 for 2Mb. There is a one-off activation fee of £15 and the minimum contract is just three months.

The DIY package is aimed at homes that already have a satellite minidish and comes in two PC versions - an internal PCI kit at £129.99 and a £199.99 external USB option - both include a satellite receiver, quad LNB upgrade, software and their printed get-started guide.

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Tuesday July 6th 2004
New HD forum in France
Mexico: DTV for all by 2021
BBC must define online agenda
MTG sells SDI Media for $60m cash
STAR requests for relaxation in FDI norms for DTH
BBC News goes interactive
NTL Chairman bags more than $12m
SysMedia and Fraunhofer partner on MHP
Bertelsmann tries to compete with online music services
Music Choice reaches new audiences
Cogeco profit up 41.2% at $3.8M

New HD forum in France
From Sotires Eleftherious in Paris

The French industry minister, Patrick Devedjian, announced on Friday the creation of a High Definition Forum. This will comprise public and private sector players in the industry, with the purpose of promoting high definition TV via all platforms: cable, satellite, DTT and ADSL.

Its official launch will be held in Paris on Thursday 8 July, in the presence of heads of companies involved as well as production organisations. The first initiatives in favour of HDTV as well as a preliminary calendar for its deployment, should be announced.

According to Satellifax, the members of the forum should include representatives from France Televisions, TF1, M6, TPS, Noos, Panasonic, Sagem, Sharp, ST Micro, Eutelsat, TDF, Darty and Fnac.

Last week, the French Prime Minister, Jean-Pierre Raffarin, announced that he had handed the task of looking at ways of introducing HDTV to Daniel Boudet de Montplaisir, who chairs the DTT commission.
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Mexico: DTV for all by 2021

Mexico has released a plan to make the new technology available to the entire population by 2021.

Communications and Transport Ministry said Mexico was officially adopting the DTV technological standard and detailed steps to bring better television service to the country's population of more than 100 million. Mexico City, Guadalajara and Monterrey along with six border cities will be the first locations where there should be at least two commercial digital channels by 2006.
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BBC must define online agenda

UK Culture secretary Tessa Jowell has given the BBC just under four months to redefine its online remit. The order coincides with the long-awaited publication of independent reviewer Phil Graf's report into the BBC's online spending.

Graf recommends the strategic objectives guiding BBC Online should be clearly defined around public purposes, and that a "precautionary" approach be adopted to online investment. The report calls for the appointment of two new BBC governors, one with new media experience and the other with competition law expertise. Graf also calls for the introduction of an independent quota for online content, excluding news. By the end of 2006 he wants 25 per cent of online content to be supplied by external or independent producers.
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MTG sells SDI Media for $60m cash

Modern Times Group announced the sale of SDI Media to private equity group Warburg Pincus for $60 million in cash. The disposal is in line with MTG's focus on its core broadcasting and directly related assets in Scandinavia and Central and Eastern Europe.

SDI, which provides dubbing and translation services to broadcasters and TV channels, will continue to provide its services to MTG's Viasat Broadcasting channels in Scandinavia and Central and Eastern Europe. SDI has a 60 per cent share of the global market for the subtitling of Hollywood studio DVD feature releases.
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STAR requests for relaxation in FDI norms for DTH
From Shveta Malik in New Delhi

News Corp's STAR Group, which is planning to launch the direct-to-home (DTH) service Space TV in India through a joint venture with conglomerate Tata Group, has sought relaxation on foreign direct investment rules that currently restrict it to 20 per cent in such ventures.

This was revealed following a meeting between STAR Group CEO Michelle Guthrie, Peter Mukherjea, CEO of STAR India, and the information and broadcasting minister S. Jaipal Reddy. Peter Mukherjea is. The Tata-STAR JV is scheduled for roll out later this year. While both the STAR executives refused to talk about the meeting, it is reported that executives have requested for a speedy clearance for Space TV and pointed out that the 20 per cent cap on foreign direct investment (FDI) would not be feasible in the long run in a high capital investment sector like DTH.

The norms issued by the government for DTH operations allow up to 49 per cent foreign equity participation but foreign direct investment has been limited to 20 per cent. The guidelines further state that foreign broadcasting companies can hold only 20 per cent of the equity in the JV.

The company is expecting about one million subscribers in the first year of operation.
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BBC News goes interactive

BBC is marking the 50th anniversary of the BBC television news bulletin by unveiling new interactive services on digital TV.

BBCi has commissioned Two Way TV to build an interactive platform across all digital cable satellite and terrestrial services for the BBC Ten O'Clock News. Starting this autumn it will offer viewers longer interviews, extra footage and background on the day's stories by pressing the red button on their remote controls.

Richard Sambrook, Director of BBC News, said: "The BBC News audience consistently tell us that they want even more information on the day's events. 'Ten O'Clock News Extra' will provide that platform for added depth and context to the bulletin and will help drive a new audience towards our interactive services."

BBC News also announced it will set up a corrections website and a weekly feedback programme on which editors will be forced to justify their decisions.
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NTL Chairman bags more than $12m

NTL Chairman James Mooney has in recent months sold more than 85 per cent of his vested stock options in the cable operator, as well as a separate block of restricted shares, creating a personal fortune of more than $12 million since he joined the company 16 months ago, according to a report on the FT.

Mooney's windfall illustrates NTL's striking recovery since it emerged from bankruptcy at the beginning of last year. Shares in the cable operator, which trade on Nasdaq, have risen from $17 in January 2003 to a peak of more than $70 this year, though they have since fallen back to stand at $56.89 on Friday.

Mooney, an International Business Machines veteran who was chief operating officer of Nextel, the US telecommunications group, before joining NTL, was granted 400,000 share options last year on top of 200,000 restricted shares and a salary and bonus of $1.5 million.
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SysMedia and Fraunhofer partner on MHP


UK-based SysMedia and the Germany's Fraunhofer Institute for Media and Communications, have announced a cooperation and licensing agreement for their products in the Multimedia Home Platform, digital interactive TV and teletext markets.

The agreement enables SysMedia to provide a complete end-to-end MHP digital teletext solution using their Plasma Magenta content management and production system and Fraunhofer IMK's 'JAME' MHP application framework.

Colin Prior, Business Development Director at SysMedia commented: "Many broadcasters have successful analogue teletext services and business models. This integrated solution provides an off-the-shelf package that will enable them to launch MHP digital teletext services that will be familiar to their viewers and will help them in the transition and uptake of digital TV."
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Bertelsmann tries to compete with online music services

Bertelsmann BMG, the world's fifth-largest record label, is to offer different types of CD formatting in a bid to increase sales in an ailing record industry.

From August, the music giant intends to sell three types of CDs - from 'luxury' to 'regular' and 'no frills' formats - to compete with the increasing popularity of internet-based music services sites such as Apple's iTunes.

Customers will have the choice to either buy stripped-down CDs for just over half the current price, or full glossy versions with all the glamour one would currently expect from a normal CD. No-frills versions will merely consist of the CD with the disk title printed directly onto it, with luxury editions carrying additional material such as lyrics and videos.
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Music Choice reaches new audiences

Digital audio broadcaster Music Choice has launched on the Sky platform in Italy using NDS encryption technology. Music Choice, which has been broadcasting in the UK for over three years, is the first interactive music application to be deployed on the Italian platform.

Over one million viewers will be able to listen to a compilation of CDs through the TV, at the press of the green button. The upgraded compilations service developed by NDS using Value@TV technology, and originally introduced to the BSkyB platform in the UK in October 2003, enables viewers to choose from a diverse mix of CD's to suit the tastes of all music lovers.

Meanwhile in the US, Music Choice announced a strategic alliance with Radio Disney to bring Radio Disney programming to digital cable and satellite TV homes and cable-modem subscribers, beginning July 7, 2004. In addition to a 24/7 channel on the Music Choice line-up, the alliance creates a series of exclusive, televised music concerts for DirecTV and cable systems.
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Cogeco profit up 41.2% at $3.8M

Canadian cableco Cogeco reported Friday a profit of CA$3.8 million (E2.3 million) for the third quarter, up more than 40 per cent from a year ago, boosted by improved results at is cable TV subsidiary. That compared with a profit of CA$2.7 million the same quarter in 2003.

Revenue for the period ended May 31 rose 6.8 per cent to CA$168.4 million, the company reported. CEO Louis Audet said he expects operating income to grow by 10 per cent in the cable division and 15 per cent in the media sector in 2005.

"Cogeco is posting higher revenues in television, increased market share in radio and solid growth in cable distribution," Audet said in a statement and added: "Cogeco Cable has experienced continued growth, and our results for the first nine months of the year bode well as we head into 2005."

The cable company expects to generate free cash flow of CA$40 million in the current fiscal year and up to CA$50 million in fiscal 2005.
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Monday July 5th 2004
TF1 acquires Histoire
Spain's TVE bites the dust in TV ratings
Taiwan moves towards digital TV regime
Diller wins tax dispute with Vivendi
AEPOC sets anti-piracy standards
SES Global restructures satellite infrastructure
Orange confirm launch date
Post Office phone services in C&W deal
Private Media launches porn reality show for TV
BT doubles SDSL coverage
Viacom to acquire SportsLine.com
Acquisitions boost Catalyst Media

TF1 acquires Histoire
From Sotires Eleftheriou in Paris

The French TF1 group has concluded the acquisition of 100 per cent of thematic channel Histoire, which had been held by France Televisions (22.5 per cent), Arte France (22.5 per cent), the French audiovisual institute INA (7.5 per cent), Pathé, the Suez Group and Wanadoo.

Histoire, which was created in 1997, is distributed via TPS and cable networks. The acquisition is intended to complete TF1's line-up of documentary channels, alongside Odyssée (documentaries) and the forthcoming Ushaia TV channel (extreme).

Gerard Carreyrou, CEO of Odyssee, will be President of all of the group's documentary channels. Didier Sapaut will be General Manager of Histoire. The President and GM of Histoire, Gerard Worms, and Philippe Chazal, left their functions on the same day.

The owners of Histoire put the channel up for sale earlier this year, following the decision to attribute the free public service DTT channel to Festival. Other candidates for its acquisition have included the AB group and National Geographic. Histoire was in financial equilibrium in 2002, but made a loss of between E600,000 and E700,000 in 2003 and hopes to regain balance in 2005.
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Spain's TVE bites the dust in TV ratings
From David del Valle in Madrid

For the first time in the Spanish TV history, the two private channels, Tele 5 and Antena 3 TV have overtaken state-owned TVE's La Primera in the TV ratings battle.

Tele 5, which is controlled by Italian group Mediaset, has become the most widely watched TV channel with a June average share of 23.1 per cent. Antena 3 TV was second with a share of 21.7 per cent, with La Primera being relegated to a third place with 21.5 per cent.

This upset in the balance of power in terms of ratings has come at a time when Tele 5 has just started trading on the Stock Market and soon after the arrival of RTVE's new MD, Carmen Caffarel.
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Taiwan moves towards digital TV regime
From Shveta Malik in New Delhi

Five free-to-air TV stations in Taiwan, have launched 14 digital TV channels. Mobile phone, computer and personal data assistant (PDA) owners will be able to watch digital TV on their screens or laptops within two years.

"After black-and-white TV in 1962 and colour TV in 1969, today's digital TV is without doubt the third wave of the revolution", said a spokesperson from the broadcasting authoritiy on the launch.

The five free-to-air TV channels are China Television (CTV), Taiwan Television (TTV), China Television System (CTS), Formosa Television (FTV) and the Public Television Service (PTS). The government intends to switch the nation completely to digital TV by 2006 or 2008 at the latest, but is locked in a dispute about fees and regulations with cable operators, who supply TV to more than 80 per cent of households nationwide.
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Diller wins tax dispute with Vivendi

A US court has ruled in favour of InterActiveCorp in a tax-related dispute with Vivendi Universal that IAC has said is worth more than $600 million over the next 18 years.

IAC, the e-commerce company controlled by Barry Diller, sued Vivendi over the terms of their 2001 agreement creating the Vivendi Universal Entertainment movie, television and theme park joint venture. IAC received cash and securities in that deal, including two classes of preferred shares, which accrue dividend-like payments and had an initial face value of $2.5 billion. IAC argued that Vivendi had agreed to pay for the taxes on those distributions, and the judge agreed.

The dispute is separate from another between the companies, which was settled in April and had paved the way for Vivendi to merge Vivendi Universal Entertainment with General Electric's NBC, creating NBC Universal.

Vivendi vowed to appeal against the ruling. But Diller reportedly said: "We have maintained from the outset that we would prevail over Vivendi's empty and cynical attempt to overturn an agreement made in good faith."
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AEPOC sets anti-piracy standards

AEPOC, the European Association for the Protection of Encrypted Works and Services, announced that the AEPOC Code of Ethics and Good Practice has become effective from July 1st 2004. The document defines for the first time common standards of support and co-operation among the AEPOC members in the fight against electronic piracy. The text has been formally adopted by the association and signed by its President Jean Grenier at the AEPOC Ordinary General Assembly in Bratislava June 25th 2004.

The new Code of Ethics and Good Practice is backed by 31 leading players in the audio-visual services industry in Europe and beyond, covering all areas of the sector such as content providers, TV channels, conditional access providers, providers of transmission infrastructures and manufacturers of related hardware.

"The new Code of Ethics and Good Practice has been inspired by the necessity to co-operate closely in order to cope with the international and organised structures of pirate organisations," said Jean Grenier, President of AEPOC.

The new Code aims to lay down general principles in the fight against piracy, to develop "best practice" procedures for collective efforts against piracy, to promote compliance with the applicable national laws and EU regulations, and to increase the awareness of the threats related to electronic piracy.
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SES Global restructures satellite infrastructure

SES Global has announced a restructuring of its assets in the core satellite business as well as of its holdings in different satellite service companies.

In addition to its 100 per cent holding of SES Astra (also owning 75 per cent of Nordic Satellite AB) and of SES Global Americas (controlling 100 per cent of SES Americom), SES Global has set up five Luxembourg-based companies: SES Global Africa, SES Global Asia, SES Global Europe, SES Global Latin America as well as SES Global Participations.

Romain Bausch, President and CEO of SES Global commented: "The new group structure will lay the foundation for a flexible corporate legal entity framework that can be tailored for any present and future geographical and business segmental development. In addition to the strategic alignment, the restructuring will result in an optimisation of the corporate group and financing structure, in increased transparency of the financial numbers by region and by market segment as well as in the release of deferred tax provisions with a favourable impact on consolidated results."

SES Global Africa will hold SES' 43.55 per cent stake in Accelon, the premier pan-African broadband satellite services provider.

SES Global Asia it will hold SES' 49.5 per cent participation in Bowenvale, itself the controlling shareholder of AsiaSat (68.9 per cent).

SES Global Europe will hold the Group's European participations in the satellite services field i.e. ASTRANet (100 per cent), SATLYNX (41.69 per cent), DPC (75.2 per cent) and Netsystem.com (15.02 per cent).

SES Global Latin America will hold SES' 19.99 per cent participation in Brazilian satellite operator Star One as well as the company's 28.75 per cent stake in the Argentinian operator Nahuelsat.

SES Global Participations will hold SES' global or interregional businesses such as ORBCOMM (10.54 per cent).
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Orange confirm launch date

Orange, the mobile arm of the France Telecom Group, will launch a 3G network across the UK on July 19. At launch the company claims, it will have an integrated 2.5/3G network in the UK covering 66 per cent of the population.

The operator, in partnership with FreeMove, will also give UK business customers the ability to access 3G services in Spain, Italy and Germany at launch, as well as the 3G network of Orange in France. Orange and its FreeMove partners have licences in 14 markets across Europe. Orange will be launching its next generation services in France this Autumn (2004) with coverage available in over 20 cities.
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Post Office phone services in C&W deal

Competition could intensify in the UK residential telecommunications markets following an announcement by the Post Office that it will offer residential telephone services from next year through a deal with Cable and Wireless.

According to a report on the FT, the Post Office will use C&W's network infrastructure and sell the service through its 16,000-strong branch network, the largest of all UK retailers. C&W said it would benefit from greater call traffic across its network through the "carrier pre-select" model, which allows customers to chose a different call provider while using the same infrastructure.
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Private Media launches porn reality show for TV

Private Media Group, a provider of adult entertainment content, announced the launch on Bravo in the UK of its first ever reality show for television, 'Private Stars'.

The ten episode TV series, co-produced with UK indie Giant Film & TV, will offer an inside view into the lives of porn stars, and those who think they have what it takes to make it in the porn industry. Chosen from hundreds of eager men, five ordinary guys are given the opportunity to see if they can fulfil their dream of starring in adult films. The five male newcomers are joined by five established female adult film stars in a specially prepared house, under 24 hour surveillance, with cameras capturing every thought, word and deed. In the end the winner is given the opportunity to star in one of Private's blockbuster movies.
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BT doubles SDSL coverage

BT has confirmed plans to double the availability of its wholesale broadband products for businesses by extending the technology to a further 150 exchanges, bring the number of exchanges providing SDSL to 300.

The firm said that the move will bring a wider range of business class broadband services to additional new areas including Cheshire, Cardiff, North East England, Aberdeen and Exeter. The first 34 of theses exchanges will have SDSL service by the end of July, another 34 will have service by the end of November 2004 and SDSL switch on dates for the remaining 82 will be announced by the end of September 2004.
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Viacom to acquire SportsLine.com

Viacom has made a $42.2 million offer to acquire the 38 per cent of SportsLine.com it does not already own. Viacom is parent company of CBS, which SportsLine has partnered for many years through its flagship CBSSportsline site.

Viacom's proposal is subject to completion of its due diligence and negotiation of a mutually acceptable definitive merger agreement. A special committee of SportsLine.com's board of directors has been formed to evaluate 'strategic alternatives' for the company, and will consider and evaluate Viacom's proposal.
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Acquisitions boost Catalyst Media

Acquisitions helped Catalyst Media, the interactive television technology group formerly known as Newsplayer, to increase interim turnover from £114,000 (E171,000) to £1.66 million, the FT reported.

Pre-tax losses for the six months to April 30 were reduced from £2.43 million to £710,000 and Paul Duffen, CEO, said the group was set to "make a profit for the current financial year."
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