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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 June 28th to Friday July 2nd 2004

Scroll down page or click below for news - latest first

Tuesday

Friday July 2nd 2004
Berlusconi snags DTT soccer rights
Channel 4 raids BBC for new CEO
TW bids for MGM
CanWest sells stake in Ulster TV
ZipTv launch delayed
Orange plans early 3G move?
Virgin Mobile readies for float
BBC to create new TV region
Telenor Interactive is born

Berlusconi snags DTT soccer rights

Silvio Berlusconi's Mediaset has announced a surprise deal scooping the DTT rights for the home games of Juventus, Inter and his own side, AC Milan, for the next three seasons. This is a potential blow to Sky Italia, which relies heavily on soccer for subscriber growth, particularly as the deal is said to include an option over satellite rights from the 2007 season.

Mediaset is said to have paid E86m for the deal and will recoup the investment via an innovative pre-paid card system modelled on pre-paid mobile phones. Fans will be able to buy cards one match at a time from as little as E2 each. In a deal announced in April, News Corp's Italian satellite subsidiary was paid the three clubs almost E500m for the 2005-07 rights. Serie A football is nevertheless at the core of Sky Italia and it has signed up all the big name teams.

In the six months to the end of March, the company added 300,000 subscriptions and is on course to reach thee million by the end of the year. In the News Corp accounts for Q4 2003 it was reported as losing $106m. Mediaset's deal again raised questions about Mr Berlusconi's dual roles as prime minister and TV mogul. As part of an attempt to popularise digital television, his government is investing more than ç100m in subsidising the cost of decoders. So far, only 500,000 have been sold, but the total is planned to reach 2m by the end of 2005.
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Channel 4 raids BBC for new CEO
From Colin Mann in London

Having lost its former CEO Mark Thompson to the BBC, UK commercial broadcaster Channel 4 has raided the corporation by appointing BBC marketing chief Andy Duncan to fill Thompson's role.

Duncan - the corporation's Director of marketing and communications - is acknowledged as one of the key architects of the successful Freeview digital TV service. His appointment represents the first time Channel 4 has chosen a CEO without a solid broadcasting background. Prior to joining the BBC three years ago, Duncan worked for consumer conglomerate Unilever.

Channel 4 Chairman Luke Johnson described Duncan as "the brightest media executive of the Channel 4 generation," and suggested that he would be "a great champion of Channel 4's public service mission and its unique brand of creativity."

BBC DG Thompson, Duncan's immediate predecessor, was the BBC's Director of television before joining Channel 4, while current BBC Chairman, Michael Grade, was CEO from 1988 to 1997, followed by former BBC2 chief Michael Jackson, who headed Channel 4 between 1997 and 2001.
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TW bids for MGM

Time Warner has reportedly emerged with a $4.7 billion offer for Metro-Goldwyn-Mayer. The bid, lower than Sony's, is the latest twist in the long-running auction of the Hollywood studio. In April, a consortium led by the Sony made a $5 billion bid for MGM and agreed to an exclusive negotiating period, but no deal has been completed so far.

MGM's CEO, Alex Yemenidjian, said this week meeting that there were "more strategic alternatives to evaluate." A third potential bidder, the NBC unit of the General Electric Company, could also emerge with an offer, according to reports. In recent weeks, NBC signed a nondisclosure agreement with MGM, allowing it access to MGM's confidential documents and records.
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CanWest sells stake in Ulster TV

Ulster Television, which earlier this year was in £400 million (E600 million) takeover talks with SMG, could itself be a target after Canadian media group CanWest Global Communications sold its 30 per cent stake in the ITV franchise for £59 million.

The identity of the buyer of the 30 per cent stake has not been revealed, sparking speculation that a takeover bid could be in the offing. CanWest, Canada's largest publisher of daily newspapers, acquired its interest in UTV in late 1997 as part a strategy to build an Irish media business. It also includes a 45 per cent stake in the Republic's TV3.

The TV3 stake will not be sold because, unlike with Ulster, Canwest has direct management input at the Irish station. Leonard Asper, President and CEO, said: "The sale of CanWest's shares in UTV is consistent with the previously stated intention of the company to divest non-core, non-strategic assets."
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ZipTv launch delayed

The long-awaited launch of the Zip Television interactive advertising channel - originally scheduled for the start of July - has been threatened by last-minute contractual issues.

The dispute has broken out between car-maker Honda € the first company to run an interactive ad from a consortium that also includes the COI, Procter & Gamble and Unilever € and ITV, BSkyB and Flextech.

So far Channel 4 is the only media sales house to have signed a Zip contract and enable its digital viewers to access its interactive ads.

ITV Sales, Sky Media and IDS, the interactive media sales house for Flextech and UKTV, look unlikely to do so by the time the Honda campaign goes live, while Honda is now refusing to run interactive ads via any other channel in a move that could potentially deprive the unsigned sales houses of millions in revenue.
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Orange plans early 3G move?

Orange is expected to bring forward plans for launch of its high-speed 3G video phones when it announces its 3G strategy and details of its 3G network and handset vendors next week.

In February, Orange announced 3G trials of the its networks in the UK and France, and its aim to provide commercial services in the second half of this year. Orange, along with many operators, had delayed the launch of 3G services because of a lack of good quality handsets.
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Virgin Mobile readies for float

Virgin Mobile said it plans to make a long-awaited market debut in July. Industry sources familiar with the situation said Britain's fifth-ranked mobile group, which was aiming for an equity valuation of £980 million (E1,470 million) to £1 billion, excluding about £300 million of debt.

"It is intended that the global offer will be completed before the end of July and that shares will be sold to institutional investors in the UK and internationally," the company said in a statement.

Virgin Mobile is expected to remain majority-owned by the Virgin Group after the sale.
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BBC to create new TV region

The BBC has announced plans to create a new television region in Central England for Bedfordshire, Buckinghamshire, Hertfordshire, Northamptonshire and Cambridgeshire.

The new BBC centre will be based in Milton Keynes and incorporate BBC Three Counties Radio, which will eventually transfer to the city from Luton. The announcement was made as part of the biggest shift of investment out of London and into the Nations and Regions in the BBC's history by the BBC's Chairman Michael Grade and DG Mark Thompson.

Thompson commented: "The BBC is still far too London-based and this is simply not acceptable for a modern public service broadcaster that draws its income from all parts of the UK." He added: "Over the period of the next Charter, there will be a significant shift of money, commissioning power, production and people out of London and into the rest of the UK."
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Telenor Interactive is born

Telenor Mobile Interactive USA, a leading applications and messaging service company in the United States, has been acquired by Telenor Venture, the venture capital company within the Telenor Group. The company will now be called Telenor Interactive.

The company said that it plans to continue expanding its operations within the United States premium messaging and mobile content market, working with companies on the distribution of mobile content and messaging services.

In July 2003, the company was the first in North America to launch cross-carrier premium messaging services, together with Disney's ABC Television group. Since then, Telenor Interactive has facilitated numerous text-to-screen, text- to-radio, text alert and text-based games services with a variety of North American media production companies, TV networks, and mobile content providers including: Walt Disney Interactive; 20th Century TV; Univision; Telemundo; FremantleMedia; ABC Radio, TV and News.

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Thursday July 1st 2004
BT cuts broadband prices 25%
ESPN, Sky: Classic launch?
News Corp gets OK for US stock relocation
KKR to sell PanAmSat stake
MGM evaluates strategic alternatives
AEPOC re-elects Jean Grenier President
DoCoMo seeks UK partner for 3G
Three terrestrial channels granted interim licence in Taiwan
Comcast adds financial feed to its broadband service
E-net bags Irish broadband deal

BT cuts broadband prices 25%

BT Group has slashed the price of high-speed Internet services for consumers by up to 25 per cent. After regulatory pressure to lower the costs of broadband, BT said it was cutting the price of its mid and higher-priced Internet access services - BT Broadband and BT Yahoo! Broadband - to £24.99 (E37.5) from £27 and £26.99 from £29.99 per month respectively from July. Both services offer Internet access at 512 kilobits per second.

The telco is also cutting the price of its higher-speed, 1MB BT Yahoo! Broadband service to £29.99 from £40.99. However, Broadband Basic customers will still pay £19.99 a month. The company said it would introduce a system of fair usage charges that would allow it to offer discounts to lighter users.

The UK telecoms company also said it would connect another one million households to broadband exchanges by August 2005 and it is forecasting it will win five million broadband customers by the end of 2006. At the same time, BT said it would lay 5,500 km of new cable as part of its plan to extend its broadband service. In a little over a year's time, BT's coverage will extend to 99.6 per cent of UK households.

Meanwhile, leading consumer ISPs have made a U-turn over entry-level wholesale broadband and are set to leave BT in the lurch when it launches its 256Kbps trial next week (July 5th). AOL and Wanadoo, which are among BT Wholesale's largest IPStream customers, have decided against participating in the forthcoming market trial. For months, the ISPs have lobbied for greater flexibility and variance at a wholesale level, but now they claim BT is too late with its rollout of a 'light' wholesale product.

Wanadoo has also changed its position on entry-level broadband since its recent rebranding, and claims to have no further interest in speeds lower than 512Kbps.
'We believe in full speed broadband, and we're not taking part in the trial,' said a spokeswoman at Wanadoo. 'We've already made a song and dance about our 512Kbps product being just as cheap as lighter broadband services on the market.'
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ESPN, Sky: Classic launch?

Disney's sports group ESPN is in discussions with BSkyB about introducing a 24-hour sports channel in the UK, according to The Times. A version of ESPN Sports Classics is already distributed to European cable systems.

The companies are negotiating a British launch of ESPN Classic Sport, which replays famous footage from past sporting events, such as the football match between England and Germany in 2000 at Wembley Stadium. The financial terms of a potential deal are unknown.

George Bodenheimer, co-chairman of Disney's Media Networks division, said earlier this year that ESPN hoped to have a British channel operating within 12 to 18 months. ESPN has since held discussions with NTL and Telewest, the cable operators, but its talks with BSkyB have progressed the furthest. ESPN already sells content to the satellite broadcaster, including the Indy Racing League and its annual Indy 500 motor race.

A UK carriage agreement would potentially add seven million DTH subscribers to the 14 million homes in France and Italy, where the service was launched two years ago.
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News Corp gets OK for US stock relocation

The Australian government will raise no objections to News Corp's proposal to relocate its place of incorporation to the United States, Treasurer Peter Costello confirmed.

"Under the Foreign Acquisitions and Takeovers Act 1975, I have decided to raise no objections under the government's foreign investment policy," Costello said in a statement.

The proposal is subject to approval by the company's shareholders and is expected to be formally considered at a meeting in October.
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KKR to sell PanAmSat stake

Kohlberg Kravis Roberts has struck a deal to offload a large chunk of PanAmSat, the US satellite operator it agreed to buy for $3.55 billion in April, to two rival buy-out groups, the FT reported.

According to a filing submitted to the US Securities and Exchange Commission, The Carlyle Group and Providence Equity Partners have agreed to buy equity stakes in PanAmSat from KKR shortly after the deal closes.

KKR will retain only a 44 per cent interest in PanAmSat, with Carlyle and Providence each holding 27 per cent of the company, according to people familiar with the agreement, which was sealed on May 17. The satellite operator's management will hold the remaining 2 per cent.
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MGM evaluates strategic alternatives

Metro Goldwyn Mayer, which is in possible sale talks with Sony Corp and two buyout firms, has "more strategic alternatives available,'' CEO Alex Yemenidjian told investors.

Sony is in talks to buy MGM, Howard Stringer, CEO of Sony's US unit, confirmed in May. People familiar with the matter have said that Sony, with partners Texas Pacific Group and Providence Equity Partners, would pay about $5 billion for the studio. Yemenidjian, speaking at MGM's annual shareholder meeting in Beverly Hills, declined to be specific about any possible transaction.

"We have more strategic alternatives available to us than we realised and we need more time,'' Yemenidjian told shareholders.

Daily Variety has started rumours that Time Warner may make an offer to buy MGM. Time Warner spokeswoman Mia Carbonell declined to comment on the report.
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AEPOC re-elects Jean Grenier President

AEPOC, the European Association for the Protection of Encrypted Works and Services, has unanimously re-elected Jean Grenier as President of the association, for a regular term of 3 years.

Grenier has served AEPOC as President since 1998. Under his leadership, the association grew to 31 member companies, representing all sectors of the audio-visual services industry. Today AEPOC is a recognised advisor of the EU Commission and national authorities for all questions regarding electronic piracy.
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DoCoMo seeks UK partner for 3G

After selling its stake in Hutchison 3G UK, Japanese mobile phone giant NTT DoCoMo is looking for another UK partner. According to a report in Bloomberg, DoCoMo President Masao Nakamura is seeking an alliance with a UK company, that doesn't require an equity investment, to promote its i-mode wireless Internet technology.

"An equity alliance with any mobile carrier will cost a huge amount and we have learned that equity interest doesn't give us much in return,'' Nakamura said in an interview at DoCoMo headquarters in Tokyo. The sale of its interest in Hutchison 3G UK "leaves a hole in our coverage, and probably, we will seek a technical alliance there,'' he said.

Nakamura took over as head of the world's second biggest mobile-phone operator this month, inheriting a company that had written down more than 1 trillion yen ($9.3 billion) in overseas investments, such as Hutchison 3G UK, that were acquired to encourage global acceptance of i-mode. Hutchison 3G UK never deployed the technology.
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Three terrestrial channels granted interim licence in Taiwan
From Shveta Malik in New Delhi

In an effort to facilitate the depoliticising of media channels and to possibly prepare to transfer channels to public ownership, the Government Information Office (GIO) has decided that terrestrial television channels Taiwan Television (TTV), China Television System (CTS) and China Television (CTV) will begin operating under a three-month interim licence from the next month.

The three oldest terrestrial TV channels will not be given a full renewal of their licences until they come up with plans regarding digitisation and depoliticisation, the GIO has decided. The government is the major shareholder of TTV and CTS, and the opposition Kuomintang owns CTV.

"We are doing this to make sure that there is equal treatment for all three stations, since they all had to renew their licenses before the end of June. The interim licenses and changes to the channels will increase healthy competition and help develop Taiwan's media climate," said GIO Secretary General Lin Chia-lung. The depoliticisation is stipulated by the revisions to broadcast law, and the digitisation is made in line with public interest, according to GIO.
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Comcast adds financial feed to its broadband service

Comcast has added financial video content from CNBC/Dow Jones Business Video to 'The Fan', the broadband multimedia player on the Comcast.net portal.

The agreement between the Comcast and CNBC news - providing real-time financial market coverage and business information - will bring market updates, home finance tips and personal technology information to Comcast's 5.7 million High-Speed Internet customers.
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E-net bags Irish broadband deal

Ireland-based technology company E-net has been awarded the contract to manage the broadband network by the country's Department of Communications. This will involve setting up Metropolitan Area Networks (MANs), comprised of duct and fibre around 19 cities and towns.

The move is expected to create new investments opportunities in the country.

"There is evidence that many international companies are opting for the greater Dublin area rather than a provincial location because of the absence of top quality infrastructure," E-net founder Michael Tiernan said and added: "A state-of-the-art low-cost broadband infrastructure will undoubtedly make regional towns and cities much more attractive for inward investment, in addition to sustaining existing jobs in the region."

E-net will operate as a wholesaler making broadband infrastructure available to authorised telecoms operators and opening up new possibilities for the deployment of extensive broadband services in the regions, under the terms of its contract with the Government.

The Government has so far invested E70 million in the regional broadband infrastructure initially serving 19 regional centres while a further E79 million is expected to be invested in expanding the network on a demand-driven basis.

A E12 million funding package has been put in place by venture capital company, ACT, Anglo Irish Bank and Bank of Ireland, E-net revealed.
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Wednesday June 30th 2004
BBC: we are all for (some) change
Hutchison confident on early break-even for 3G
Spain's RTVE expands into Europe
Disney's Cable channels sales merged
T-Mobile urges common standard
Ofcom could slash ITV's licence fees
Comcast partners with Intel in broadband

Telmex to buy stake in Brazil's cable TV
Joint call to lower 3G conditions
New Skies expands presence in Greece
AOL to buy Advertising.com
Japan's J-com merges local cable operations

BBC: we are all for (some) change

The BBC has published its response to the Government's consultation on the corporation's future. BBC chairman Michael Grade and director-general Mark Thompson forecast a world where "maintaining the status quo was not an option". But they do want to maintain a universal, enforceable license fee that will not be shared with any other Public Service Broadcasting providers.

While wary of expounding yet further expansion – a key criticism of today's BBC, they talked about broadband as the key to turning the BBC's production into a public resource, "a breakthrough that could be as great as TV and radio itself. It is a public service medium". And, the say, the BBC is essential to ensuring a digital democracy where "everyone in the UK has equal access to digital services - on demand, portable and personalised".

The paper talks about a 'new test of Public Value' to be applied to all BBC outputs and implies these tests should "lead to rejection of the derivative, a commitment everywhere to the original and the worthwhile… and that the benefits of any existing or proposed new service should outweigh any disbenefits there may be, including potential negative market impact."

The BBC said that because the test "will delineate the scope and objectives of BBC services more explicitly than in the past, the system will also make the BBC's current and future services more predictable from the perspective of other players in the media market." On the BBC's outright commercial activities, it said "The BBC has a duty to extract the maximum value from the licence fee –as a result, successive Governments have asked the BBC to develop its commercial activities and revenues. However, the BBC is now committed to clarifying the scope of its commercial activities. The Director-General will launch a comprehensive review of the BBC's commercial activities which will report by the end of 2004."

Specifically on digital, the BBC committed itself to the full roll-out of digital terrestrial television (DTT) with a target digital switchover date of 2012; to work with government and industry to find ways of funding and co-ordinating the DTT build-out for all the public service broadcasters; lead and part-fund the large-scale marketing and public information effort which will be required to achieve switchover; increase support for the roll-out and take-up of digital radio; launch a Creative Archive, a treasure-house of BBC content, available free to all – for learning, for creativity, for pleasure; make BBC content available to audiences when and where they want it – the BBC on demand.
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Hutchison confident on early break-even for 3G

In an interview with Monday's edition of the Italian daily Corriere della Sera, Fok said: "I have always said that the breakeven at the EBITDA level will be reached in 2005, and break-even at the operating level in 2006."

Considering how the business is performing now, he expects break-even to be even quicker. Fok did not specify a time frame but he expects the 3G services to contribute between 35-40 per cent of group sales once it is fully operational.

Hutchison has launched 3G services in six other countries including Sweden, Denmark, Austria, Hong Kong, Australia and the UK, but has yet to launch in Israel, Ireland and Norway where it also has 3G licences.
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Spain's RTVE expands into Europe
From David del Valle in Madrid

State-owned RTVE has announced its latest deals to distribute its thematic channels in some of the major European TV markets.

The group has just signed two new distribution agreements this time with German cable operator Primacom and French ADSL company Free TV to distribute its so-called 'Paquete Digital' (digital package) composed of the docummentary channel Grandes Documentales, Canal Nostalgia and News TV channel Canal 24 Horas. Some of these channels are also being distributed to Romania, Finland, Sweden, Switzerland.

Also distributed in Latin America and through some cable networks in the States, 'Paquete Digital' is presently available to 400,000 people in Europe, according to the group.
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Disney's Cable channels sales merged

Walt Disney has merged the sales groups for its cable channels, putting ESPN sports channels and a collection of other ABC assets together.

Sean Bratches was named President of Disney and ESPN Networks Affiliate Sales and marketing, the latest move by Disney which recently reorganised its cable properties under the joint leadership of Anne Sweeney and George Bodenheimer, co-chairs of Media Networks.

On another front, Disney announced the appointment of Rajat Jain as Vice President and Managing Director of The Walt Disney Company (India). Former Executive Vice-President and Business Head for SET MAX at Sony Entertainment Television India, Jain, will join Disney effective August 1, 2004. He will also assume the role of Vice-President and Managing Director, Walt Disney Television International (India), overseeing Disney television activities in India.
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T-Mobile urges common standard

T-Mobile, has urged rival mobile operators, handset manufacturers and record companies to adopt a standard platform for the fledgling mobile music market.

"We need one standard platform and we need to have that standard reconciled with the music industry," said Nikesh Arora, T-Mobile's chief marketing officer. "As you introduce propriety standards you need to create rival systems and rival systems stunt the growth of the industry."

T-Mobile made the appeal as it launched a new handset. Called Ear Phone, it allows customers to browse, download and store CD- quality digital music in their mobiles - sometimes up to a fortnight before songs are released through other platforms. However, the phones can hold just three songs at once. Each song is limited to a 90-120 seconds clip and will cost: £1.50 or €1.50.

Unlike Apple's successful iTunes service, Ear Phones users will not need to connect their mobiles to a PC in order to download music, a process that will take 30 seconds.

Customers will be able to choose from a list of 500 titles from Mobile Jukebox, though T-Mobile has promised to grow that to 250,000 by Christmas, with content from two of the big five recording companies: Sony and Universal. T-Mobile is said to be hoping to sign deals with Warner and BMG in due course.
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Ofcom could slash ITV's licence fees

Ofcom, the British regulator, is starting a consultation into a new valuation methodology for ITV's broadcast licenses.

The reviews will enable Ofcom to reflect changes to the public service obligations of licence-holders arising from its own public service broadcasting review, due later this year, as well as valuation changes related to digital switchover.

The watchdog will invite responses by August 6, and publish its decision in September. Ofcom said it will propose a broadly similar valuation model, based on discounted cashflow valuation, but take note of the regulatory reform that has led to a less intrusive regime for broadcasting licensees.
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Comcast partners with Intel in broadband

US broadband-cable provider Comcast Online, a division of Comcast Corporation, has struck an agreement with Intel Corporation to market and sell Comcast High-Speed Internet through Intel's independent dealers nationwide. The agreement enables Intel's dealers to feature Comcast High- Speed Internet in their outlets located within Comcast's footprint.

In conjunction with a computer purchase customers will be able to order Comcast's broadband access check and choose between a self-install kit or a professional install, and order Comcast High-Speed Internet Service.
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Telmex to buy stake in Brazil's cable TV

Mexican telecommunications giant Telmex plans to buy a stake in Net Servicos, Brazil's largest cable television service in a deal worth between $250 million to $370 million, the companies said.

The deal was announced just weeks before Telefonos de Mexico is expected to complete its $400 million purchase of Embratel, Brazil's biggest long-distance phone carrier.

Analysts have speculated for months that Telmex, controlled by billionaire Carlos Slim, wanted to buy Net Servicos, the cable unit owned by Organizacoes Globo, Brazil's giant communications company and Latin America's biggest media firm.

Under Brazilian law, Telmex can't acquire a controlling stake in Net Servicos. But if the law changes, Telmex said it has the right to buy a controlling stake in Net Servicos' new holding company from Globo.

The final purchase price is dependent on the outcome of Net Servicos's anticipated restructuring of $318.3 million in defaulted debt.
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Joint call to lower 3G conditions

Sweden's TeliaSonera, Tele2, 3, and Vodafone have submitted a joint application to PTS, the National Post and Telecom Agency for altered licence terms for 3G construction. "It is now a matter of creating realistic expectations for future construction," state the operators in their application.

According to a report in Cellular News, the operators intend to meet the requirement to cover 8,860,000 people in Sweden, but want two changes in the licence conditions from PTS:

Lower signal strength. Testing and experience shows that the strength of the so-called pilot signal can be reduced without restricting 3G use. A reduction would mean fewer 3G masts and this benefits such things as the environment and the cultural landscape.

An amended timetable. The terms regarding speed of construction should be a coverage of at least 7,000,000 people by 31 December 2004, 8,000,000 people by 31 December 2005, 8,500,000 people by the 31 December 2006 and 8,860,000 people by the 31 December 2007. Thus, the pace of construction is still very high.
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New Skies expands presence in Greece

Netherlands-based New Skies Satellites announced a new agreement with Greek IP service provider and teleport operator Com-ToNet for a full transponder on the NSS-6 satellite.

Com-ToNet, in collaboration with KB Impuls Hellas, will use the Ku-band capacity to offer broadband connections to the European Internet backbone for corporations, government agencies, telecommunications companies and Internet service providers operating throughout the Middle East.
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AOL to buy Advertising.com

AOL has agreed to buy online advertising services company Advertising.com for $435 million in cash.

The sale will put an end to Advertising.com's plans to list its shares in an initial public offering. AOL said in a press release its advertising inventory combined with Advertising.com's network would enable advertisers to reach more than 140 million Internet users and allow AOL to offer advertisers customised products.

Advertising.com had income from operations of $12.1 million and revenue of $132 million in 2003.

Advertising.com will remain as a separate company headquartered in Baltimore and will report to Michael Kelly, President of AOL Media Networks. AOL said it expects to complete deal, which is subject to customary regulatory approvals, in late summer.
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Japan's J-com merges local cable operations

Jupiter Telecommunications, the largest broadband and cable service provider in Japan, announced the merger of two of its local operations - J-COM Kansai, one of J-COM's premier cable system companies serving over 305,000 local customers -, and Izumiotsu CATV, a recently acquired local cable operator developing multichannel television and Internet access services in Izumiotsu shi, Osaka prefecture. The two operations will be merged into a single unit on August 1, 2004, with J-COM Kansai being the surviving entity.
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Tuesday June 29th 2004
National Grid bids for Crown Castle
Sky ups subscription, again
RTL Group and Canal+ finalise sale of Sportsfive
Premiere sells its digital play out centre to Astra
UPC gets new MD
C4 eyes Fincham for CEO post
NTL Broadcast takes Eurobird capacity


National Grid bids for Crown Castle

National Grid Transco, formed out of parts of the privatized UK gas and electricity utilities, has confirmed it is in talks to the purchase the £1.1 billion (E1.65 billion) portfolio of mobile phone masts and television and radio broadcasting towers from Crown Castle International, the Times reported.

The purchase would add about 3,500 transmission facilities to a network of 1,400 NGT has already developed in a drive to diversify from its core electricity and gas operations to less regulated markets. The deal would also place NGT at the forefront of Government efforts to promote digital television, with the Crown Castle portfolio including BBC television and radio towers, bought in 1997.

Crown Castle, which is based in the US, is believed to be pursuing a sale of UK assets to focus on domestic operations. The company is also a partner with BSkyB and the BBC in Freeview, the fast-growing UK digital television service.

News of the talks, on which NGT said it would issue updates 'when appropriate', comes a day after the close of bids for local gas pipeline assets. The sale of up to five of NGT's eight regional gas networks, which were inherited through the £14 billion merger with Lattice two years ago, could raise up to £5 billion, analysts believe.
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Sky ups subscription, again

BSkyB is hiking subscription prices again this year despite having introduced an inflation-busting rise in January.

Analysts said Sky had to raise prices so it could hit its ARPU target of £400 (E600) by the end of 2005. The latest hike will raise an estimated extra £50 million a year. Sky wrote to customers warning them of the new charges, which will come in on 1 September. People using its top-tier package - over half of its total 7.3 million subscribers - will have to pay £41 per month, an extra £1, representing a 2.5 per cent rise. In January, prices rose 5 per cent from £38 to £40.

The Sky spokesman said that some customers on cheaper packages would pay only an extra 50p per month. Those on its most basic package would pay no more at all. He added that the broadcaster would not increase prices again in January, but did not rule out further increases later next year.
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RTL Group and Canal+finalise sale of Sportsfive

RTL Group and Canal+ Group, a Vivendi Universal subsidiary, announced the completion of the sale of their interests in Sportfive. Each of RTL Group and Canal+ has received E 274 million in cash for their respective 48.85 per cent shareholding.

Under the terms of the transaction, Advent International, a global private equity fund, and RTL have formed a new company that purchased all of the shares in Sportfive held by RTL and Canal+ Group. RTL holds 25 per cent of the new company; the remainder is split between Advent International, Goldman Sachs and the management, with Advent holding a majority stake.

Jean-Claude Darmon, Chairman and CEO of Sportfive, has decided to leave the company. Philip Cordes, currently Chief Operating Officer, has been appointed as Group Chief Executive Officer and Alain Krzentowski as General Manager of Sportfive S.A.. The other members of the Executive management are: Erika Tertilt, Robert Müller von Vultejus and Thomas Röttgermann.
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Premiere sells its digital play out centre to Astra
From Dieter Brockmeyer in Frankfurt

German digital pay TV platform provider Premiere has sold 75.2 per cent of its subsidiary DPC Digital Play Out Centre to the Luxembourg based satellite operator SES Astra for E42.2 million.

DPC provides satellite uplinks to over 100 analogue and digital TV services including the Premiere channels. Ferd Keyser, Head of SES Astra Europe, says that this move will pave the way for an independent service provider for digital Pay TV.

Premiere CEO Georg Kofler commented that the deal completes his company's exit from the technical side of the business. In the future, the platform will focus its activities on the programming and marketing side. "SES Astra can react much quicker to technical innovations and speed up developments in the digital field", Kofler says.
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UPC gets new MD

Diederik Karsten has been appointed as Managing Director of UPC Netherlands, the Dutch broadband operation of UnitedGlobalCom (UGC) as of July 1, 2004.

The company said that Gene Musselman, who combined this function with his work as President and Chief Operating Officer (COO) of UPC Broadband, UGC's broadband division throughout Europe, will again fully concentrate on his pan-European responsibilities.
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C4 eyes Fincham for CEO post

Channel 4 has reportedly approached Peter Fincham, about becoming the broadcater's CEO. According to the FT, Fincham, head of the UK arm of FremantleMedia, Europe's largest television production company, has had informal discussions with Channel 4 about replacing Mark Thompson – who resigned to become the BBC's DG.

Dawn Airey, the MD of Sky Networks, who was a leading contender for the CEO's position at Channel 4, has ruled herself out of the race.

Channel 4 Chairman Luke Johnson, has vowed to find a CEO familiar with the broadcaster's output, audience profile and strategic challenges. Fincham was a candidate for the Channel 4 CEO's role before Thompson got the job two years ago.

However, RTL, the European broadcaster, which is majority owner of Five and parent group of FremantleMedia, might fight to retain Fincham.

FremantleMedia, made a profit of E85 million last year on sales of E819 million. Channel 4, by comparison, reported pre-tax profits of £45.3 million (E67.9 million) on sales of £779.3 million in 2003. The company has seen its audience share dip below 10 per cent, but has maintained heavy investment in programming - £457 million last year.
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NTL Broadcast takes Eurobird capacity

UK cableco NTL's Broadcast division has taken a transponder on the Eurobird 1 satellite located at the 28.5ÕE slot, enabling it to offer end-to-end services to new channel entrants on the Sky Digital platform.

Recent NTL research shows that the growth in new digital TV channels is set to continue during a period of shortage in satellite capacity on both Astra and Eurobird. Simon Thrush, head of satellite & playout at NTL explains: "The imminent shortage of direct-to-home satellite capacity is going to change the market for channels aspiring to launch on Sky Digital in the short to medium term. New channels may find it more difficult to get satellite capacity and it'll be increasingly attractive to take bundled services which include playout, uplinking and space segment. At NTL we can now offer a truly end-to-end satellite service from studio to home. Using Eurobird we can tailor a solution to support a channel's exact requirements."

NTL already operates shared multiplexes on Transponders 13, 18, 22 and 37 on Astra 2A, and Transponder 17 on Astra 2B.
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MondayJune 28th 2004
SBS buys out TVNorge
HART to heart
MTV to consider more music deals
TW Cable eyes wireless service offering
Direcway buyer's list narrows

Australian sports bodies want iTV betting ban dropped
SMG/ Alcatel integrate content for 3G network
Telia provide live Olympic broadcast on 3G handsets
ADB has released a new DVB-MHP DTT STB

SBS buys out TVNorge

SBS Broadcasting has agreed to acquire the 49.3 per cent it didn't already owned of TVNorge, for E31.2 million in cash from TV2, its Norwegian partner. As a result of the transaction, SBS's ownership stake in TVNorge will increase to 100 per cent. The deal, which is subject to Norwegian regulatory approval, is expected to close before the end of July 2004.

Commenting on the announcement, Markus Tellenbach, CEO of SBS, said: "The purchase of this remaining stake is an important strategic step as we take 100 per cent ownership over TVNorge, our only Scandinavian television station that we do not fully own. Over the last several years, TVNorge has improved its programming and financial performance significantly to become one of Norway's leading commercial broadcasters and is well positioned for further growth. This transaction will enable SBS to increase the level of co-productions and other co-operation with our other television stations, in particular with our stations serving Denmark and Sweden. The pan-Scandinavian co-productions are part of our efforts to cost efficiently increase the quality of our locally produced programming and expand our operating margins. This transaction also marks an important step towards our goal of integrating our multi media assets across our pan-European footprint to drive financial returns."

SBS has also unveiled the launch of its second channel in Flemish Belgium. The channel, yet to be named, is expected to launch on October 1, 2004, with an approximate reach of 97 per cent of Flemish homes through over the air broadcast and cable on a must-carry basis.

The new channel will be targeted to young females 20-49 and its schedule will be programmed to complement VT4, SBS's existing station in Belgium.
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HART to heart
From Sotires Eleftheriou in Paris

A new company, Horn of Africa Radio and TV, HART, has been set up in Djibouti at the end of May to provide pay TV services via satellite. The programming will be in the Somali language, aiming at the Somali speaking people in the Middle East and Europe. The channel will broadcast from Djibouti. It will be free to air to begin with for promotional purposes, and will be encrypted later on. People that live in the Horn of Africa will be offered a subscription at a reduced price. HART could broadcast in additional regional languages later on.

HART was set up by Saad Ahmed Cheik, who is the company's CEO. He has joined forces for this venture with the Saudi consortium which owns Arab Radio TV. Cheik is a former judge in Djibouti who has now become a wealthy businessman with a range of activities including port handling, freight transit services, housing, information technology and cold storage.
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MTV to consider more music deals

Following the acquisition of Viva Media, Viacom's MTV Networks International said it was looking for further selective buys to expand its European presence.

According to a report on the FT, Bill Roedy, President of MTV Networks International, said MTV was keen to expand the profit and revenue contributions from the international arm of the network, which currently accounts for 80 per cent of its global audience but only about 20 per cent of the total revenues.

Roedy warned that future deals were unlikely to be of a similar size to Viva, which will increase MTV's presence in Germany from two to four channels. In terms of distribution, Germany will become MTV's second-largest channel outside the US, behind China.
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TW Cable eyes wireless service offering

Time Warner Cable is considering adding wireless phone services, in partnership with one or two wireless companies, to complement the traditional telephone service it is offering with its cable television and Internet packages, a senior executive said.

"We think that wireless is another element of the bundle that we need to incorporate," said Don Logan, chairman of TW's media and communications group, which oversees TW Cable. "I expect that over the course of this year that we are going to be looking hard at that."

Logan said TW Cable would likely work with one or two wireless companies, he told reporters after a presentation at the SuperComm trade show, but he added that the company was not in any formal discussions.

He added that TW Cable could eventually look at wireless Internet technologies like Wi-Fi, but that would be a few years away.
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Direcway buyer's list narrows

The field of potential bidders for DirecTV Group Inc.'s "vsat" satellite division is narrowing, with several buyout firms and at least one corporate buyer vying for it, people familiar with the process said.

The "Direcway" division, which provides satellite-based high-speed Internet and communication services, could sell for more than $400 million, analysts have said. Buyout firms including Spectrum Equity Investors and Texas Pacific Group are among the "second round" bidders for Direcway, as is ViaSat, one of several Direcway rivals.

But another Direcway competitor, Israel's Gilat Satellite Networks, and buyout firm Cerberus Capital Management, have reportedly dropped out.
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Australian sports bodies want iTV betting ban dropped

Leading Australian sports bodies said they plan to lobby the federal government to drop a punting ban on sport screened on digital TV, according to the www.theage.com.au website.

Wanting to follow on BSkyB's footsteps, Australian Soccer Association CEO John O'Neill said his organisation and those representing cricket and AFL believed interactive TV betting should be extended beyond the racing industry. "The sports bodies, I think, should unite to lobby the governments to bring in legislation that enables them to get a slice of the action," he said.

Rupert Murdoch's BSkyB offers its UK digital subscribers an as-you-watch betting service accessed by remote control. However Australians could not bet on digital television events from home unless the Australian government introduced supporting legislation.
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SMG/ Alcatel integrate content for 3G network
From Shveta Malik in New Delhi

In an unprecedented tie-up between a media group and an end-to-end 3G solutions provider in China, media company Shanghai Media Group and Alcatel Shanghai Bell, have signed an agreement to integrate SMG's TV and video content with Alcatel' 3G networking solutions.

The tie-up will allow 3G mobile users to access TV and other video-based content in China, and also internationally via Alcatel's international network of 3G Reality Centres. Alcatel Shanghai Bell officially opened a 3G Reality Centre, which supports development of 3G technology and applications, in Shanghai in 2002. In addition, the two companies agreed to integrate TV programs into Alcatel's DSL solution so as to drive broadband video streaming applications in China. This content deal also complements Alcatel's Open Media Suite portfolio, the middleware solution for delivery of rich media in a triple play service mix (voice, data, video).

SMG will provide Alcatel with access to 11 channels of television programming including news, entertainment, and finance. Alcatel will integrate these programs into its 3G networking solutions and enable users to access high definition live TV, video streaming, and video-on-demand programmes at up to 384 kbps.

Gerard Dega, President of Alcatel Shanghai Bell, said, "Enabling multimedia services delivery is the key to success in 3G. Leveraging SMG's attractive news and entertainment TV and video content, our agreement with SMG is totally in line with Alcatel's strategy to develop more user-centric applications at home, on the pause and on the move, and to further strengthen Alcatel's leadership in mobile broadband, in particular in 3G."
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Telia provide live Olympic broadcast on 3G handsets

Telia's mobile customers will be the only ones in Sweden to be able to receive - on their mobile phones - the live broadcasts of SVT, the Swedish public service television company, from the Summer Olympics in Athens. Telia will also offer subscribers a news archive with information in text, image and video clip form, and a subscription service to the latest Olympic game news via SMS or MMS. Telia will provide all these Olympic services free of charge to its mobile customers.

Through the Telia Go service, subscribers with a 3G handset will be able to see the same live broadcasts from SVT that are shown on television. Telia's approximately four million mobile customers will also have the opportunity to subscribe to Olympic news via SMS or MMS twice a day. A special Olympic icon will be launched on the Telia Go service for these services, which will feature an electronic Olympic flyer with the latest news from the games and a news archive with text, images and video clips.

"The Olympics are one of the biggest events in the world and we know that millions of Swedes will be following the progress of the Athens games in different ways," says Marie Ehrling, head of TeliaSonera Sweden. "That's why we think it is extra fun to offer our customers the chance to follow events on a day-to-day basis. We want as many subscribers as possible to have the opportunity to test and experience what the mobile Internet can offer today."
ADB unveils new STB.
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ADB has released a new DVB-MHP DTT STB

ADB said it has specifically designed this set-top box to meet the growing demand for a low-cost receiver that effectively manages the interactive services that can be offered in digital TV networks. The i-CAN 2000T is destined for various countries in Europe, which have adopted the DVB-MHP interactive standard. It will first be available in retail outlets in Italy starting in July via various distribution channels and consumer brands. It will be introduced in other countries in the autumn.

Designed in Europe at ADB's R & D facilities in Poland, the i-CAN 2000T set-top box integrates the DVB-MHP 1.0.x open standard implementation from Osmosys for supporting interactive applications, and it is powered by a state-of-the-art MPEG2 processor from STMicroelectronics.
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