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NEWS
Monday 23rd to Friday
27th February
2004
Scroll down page or click below for news - latest first
| Tuesday | |||||
BBC
Technology chief fired
Japanese
trustbusters raid Microsoft
Kabel
D sets up consolidation finance
News
Corp number two in new deal
Voda
bid for Vivendi to win SFR?
KTF
and Skylife enter into an alliance for digital TV service
Telstra
faces pricing fines
ITV
axes 350+ at Central TV
Tandberg:
Exclusive Agreement with GlobeCast for 2004 Olympics
Discovery
Kids: Free i.games
Arun Sarin, CEO
of Vodafone, hinted that he would consider a hostile bid for Vivendi Universal
if it refuses to relinquish control of SFR, France's second largest mobile
phone operator.
The remarks, made at the 3GSM World Congress in Cannes, represent a significant
change within Europe's biggest mobile company. Previously Vodafone has
said that it would never launch a bid for Vivendi in order to gain control
of SFR.
"Once Vivendi has worked out what kind of company it wants to be, in
the next 12, 24 or 36 months, we will find a way of reaching an agreement
that SFR will become a full member of the Vodafone group," Sarin said.
Asked whether he would rule out "buying Vivendi shares" as part
of a takeover bid, the Vodafone boss would only say: "We will work with
Vivendi's management to find the right outcome at the right time."
Vivendi, which is divesting assets, owns 56 per cent of SFR. Vodafone holds
the rest and has made no secret of its desire to take control of the business,
which could cost it E13 billion. France is the only major country in Europe
in which Vodafone does not control a key mobile operator.
Back to top
Broadband internet
customers could be in for big discounts after Telstra was threatened with
heavy fines if it did not give its competitors a better pricing deal.
The Australian Competition and Consumer Commission chairman, Graeme Samuel,
said Telstra had been told to drop the price it charges companies who resell
its broadband service to allow them to compete.
Telstra prompted a barrage of complaints last week from its internet service
provider customers which buy broadband access. The company introduced a new
A$29.95 monthly deal for its retail customers, but failed to cut wholesale
rates.
Depending on Telstra's response to the advisory notice, the ACCC will decide
whether to issue a competition notice. In this case, Telstra must comply or
face a fine of A$10 million and a further A$1 million for each day that a
breach of the Trade Practices Act continues.
Back to top
TF1
profits up
Le
Lay says HDTV will boost DTT
Broadband World TV launches
CASBAA
applauds progress in Thailand
SES GLOBAL INVESTS IN ORBCOMM
FOXTEL Digital launch
Vodafone CEO slams handsets
Symbian holders don't want Nokia
control
GlobeCast: world's first dedicated Wrestling Channel
Viaccess:
two new contracts in Asia
Shanghai
chooses NDS
IDT and Connect Spot launch Simplifi
TF1 Group has posted a 2003 net profit of E 191.5 million, an increase of 23.4 percent. The net margin increased by 1.1 points to 6.9 per cent. Total consolidated revenues were up 4.3 percent to E2.77 billion.
TF1 net advertising revenues were up 2.4 percent, while 'diversification' revenue grew by 6.7percent thanks to good performances at TF1 Video, TPS, Teleshopping and TF6. Programming costs were down 3.4 percent to E852m. In 2004, TF1 expects core advertising revenue to grow by 3 percent to 5 percent thanks to better economic trends and to the partial access to TV advertising for previously banned sectors.
Since the beginning of 2004, TF1 has increased its stake in Glem Group to almost 100 percent and in theme channel TV Breizh to 58 percent; Sportitalia (49 percent owned by Eurosport) was launched throughout Italy as a free to air channel on February 6.
Speaking about TPS (owned 66 percent by TF1), the DTH satellite platform, Group President Patrick Le Lay said that it is continuing its growth, with a 36 percent market share. At the end of 2003 TPS had 1.527 million subscribers, of which 1.239 million via satellite and 288,000 take TPS premium content by cable. 20,500 subscribers have the Platinim PVR. Churn is 10.6 percent. ARPU is E 447.6, an increase of 15 percent over the past five years. The target is for 120,000 new subscribers during 2004 and expects to break even this year. In 2003 it had its first year of operating profit, of E3 million, compared with a loss of E27 million in 2002.
Le Lay was particularly
optimistic about TPS-L, the ADSL platform it launched with France Telecom
on 18 December in Lyons. He pointed out that it was not a particularly large
investment for TF1 (E60 million spread over four years). TPS-L is to launch
in the Paris region in early April. Replying to a question, he said that the
service currently has about 800 subscribers, one of the problems being the
lack of decoders. He expects the number of subscribers to exceed 50,000 by
the end of 2004. The aim is for 300,000 to 500,000 subscribers within five
years.
Back to top
While presenting TF1's results, Patrick Le Lay, president of the group, said that HDTV would be the driving force for DTT. Le Lay pointed out that in the USA 5 million homes already have HDTV, with fabulous picture quality. TF1 should be distributed in the best possible way, i.e. HDTV, and DTT is the only way to achieve this very rapidly.
He added that the group was in discussion with the CSA and the government about this and was hopeful of a favourable outcome. The DTT roll-out plan is for tests during 2004, commercial launch in Q3 and Q4 of 2005, with a boost from transmission of the World Cup in 2006. Some observers believe the enthusiasm for HDTV may be a ploy by TF1 to try and put back the launch of DTT, which it has publicly opposed.
TF1 has invested
E12.7 million in DTT in Italy, where it has 49 percent of Prima TV, which
has a license for a national DTT mutliplex, to launch a range of free channels.
It expects to have a positive operating result from the first year, 2004.
Back to top
NTL Home, the
provider of broadband internet services, is set to launch a new TV channel
on digital satellite, dedicated to the fast moving world of broadband internet.
Broadband World TV will help existing broadband surfers make the most of their
high-speed connection and support anyone considering signing up to a broadband
connection by offering information and special offers.
The new free-to-view channel, which launches today (Thursday 26 February),
will provide 24/7 programming. It will be found in the specialist shopping
section on SkyGuide channel number 698. It will air a mixture of programming,
all aimed at showing viewers what they can do with their broadband internet
connections, or, if they haven't got one, how they can order it right away.
NTL Home will offer call centre ordering or online ordering through www.broadbandworld.tv.
Programming segments include: á Broadband & Gaming
- Broadband & Entertainment
-Broadband & Home
-Broadband For You
-Broadband & Education
-Broadband Road Test
-Broadband World TV Commenting on the launch of Broadband World TV, Bill Goodland,
Director of Internet Products at NTL Home, said: 'Big, innovative ideas like
the launch of this dedicated TV channel are exactly what are needed to spread
the word about broadband. There is nothing to touch the difference that broadband
makes to surfing and we hope that the new TV channel will play a significant
role in exciting people about its benefits.'
Back to top
Subscribers who
choose the top FOXTEL Digital package will pay $94.95 per
month and receive 99 channels presenting all premium movie channels and sports
channels, plus the inclusion of two FOXTEL Box Office pay-per-view movies
(valued at $5.95 each).
Back to top
Vodafone chief
executive Arun Sarin slammed mobile phone makers over the lack of good 3G
handsets. Speaking at the 3GSM World Congress, Sarin blamed the lack of "superior"
handset for delays in rolling out 3G services. He said: "We can't
turn the future on until we have handsets that are at least as good as the
2G and 2.5G ones we have. (3G phones) are bulky, they get hot, they don't
have battery life. The experience today is unacceptable to our customers."
Back to top
According to press reports minority shareholders in Symbian, the mobile technology company, will take up their pro rata rights to shares being sold by Psion, the company's founder.
Psion had agreed
to sell its 31 per cent holding to Nokia, which would have given them control but
with the others, including Siemens and Ericssion, taking up their rights,
Nokia will be limited to 46 per cent.
Back to top
GlobeCast has
signed a long term agreement with Dolphin TV to deliver its new Wrestling
Channel direct-to-home via Sky Digital from March 2004.
As the first channel in the world entirely dedicated to wrestling, the Wrestling
Channel will offer its audience a vast selection of pro-wrestling action including
weekly shows from Japan, South America, the UK and the US independent series,
as well as classic and memorable wrestling from the 70's, 80's & 90's.
The channel's daytime programming is expected to attract a wide range of viewers,
while the evening programming will focus on the 16-24 year old demographic.
Dolphin TV's Dublin based production partner, Maxtron Media Group, will
be editing all the wrestling content specifically for the UK audience.
The Wrestling
Channel is London-based Dolphin TV's first media ownership venture and
GlobeCast's role will be to provide an end-to-end, managed satellite
distribution service, which includes encryption, uplink and space capacity.
GlobeCast will receive The Wrestling Channel via terrestrial fibre and deliver
the feed to GlobeCast's UK-based Brookmans Park teleport for uplink to
Eurobird 28.5°E. The Wrestling Channel will then be broadcast DTH to over
7 million Sky Digital viewers across the UK.
Back to top
Hyundai Information Technology was established in 1993 with the integration of Hyundai affiliated computer department. HIT was founded in the efforts to establish the information infrastructure, which is the foundation of Korea's competitiveness, by providing information services based on System Integration of public corporations, financial companies, and enterprises.
Ho Chi Minh City
Television will use Viaccess conditional access technology for broadcasting
about 10 channels delivered on MMDS via the Pama Spol s.r.o. platform to a
potential of 10 000 subscribers.
Back to top
Shanghai Cable
Network has chosen NDS Videoguard CA for the expansion of its digital services.
Shanghai has 3.5 million cable homes and has started a pilot digital service
using a simulcrypt system developed by NDS Beijing.
Back to top
IDT Europe and Connect Spot today announced the launch of simplifi the world_s first prepaid rechargeable voice and data service on a single account with a single PIN. Initially the service will be provided via the simplifi website at www.idt-simplifi.com with cards available from leading European outlets soon. IDT Europe is a major global provider of prepaid phone cards. Connect Spot is a Wireless Internet Service Provider and systems integrator.
Each simplifi
account provides low cost voice access to almost anywhere in the world and
remote data access from over 10,000 global public Wi-Fi hotspots. Simplifi
customers can connect to the internet through dial-up, fixed broadband or
high-speed wireless from one account.
Back to top
France
Telecom to buy out Wanadoo
Sir
Peter Burt named chairman of ITV Plc
exTV: immediate price cuts?
3UK launch Pay As You Go
TRAI: defer CAS in India
Tory
group recommends BBC break-up
17
million homes to get digital TV
Orange confirms 3G trials
Ex-Carlton
boss bid for UCI cinema chain?
3HK connects video communication
to Vfone
BBC
rows back on boat race
Fox,
NFL could form sports channel
Eisner
woos investors ahead of vote
Tandberg
integration enables exTV Launch
First
games portal with a red-button link
France Telecom has announced a E3.9 billion offer to buyout the 29 per cent minority shareholders in its internet arm Wanadoo, shares leapt almost 15 per cent in response to the offer.
France Telecom is offering Wanadoo shareholders cash or shares or a mixture of the two - although the amount of France Telecom paper on offer is limited in order to maintain the French government's stake in the telecoms group above the 50 per cent level. Wanadoo shareholders include British retailer Dixons, which has just under three per cent.
France Telecom will recoup part of the proceeds of the offer for Wanadoo by floating between 30 per cent and 49 per cent of its phone directories business later this year. The directories operation is estimated to be worth approaching E4 billion - including a E200 million cash pile. Back to top
Former Bank of
Scotland chief executive Sir Peter Burt was this afternoon named non-executive
chairman of ITV Plc. Sir Peter, 59, said: "ITV is an exciting and vibrant
business. It is having its best on-screen year-on-year performance for ten
years and there is a clear strategy in place which is beginning to show results."
ITV said leading shareholder Fidelity "welcomed the appointment".
Sir Peter will take up his position on March 15.
Back to top
Hong Kong's newest pay TV provider, Galaxy Satellite Broadcasting, has hinted that it is prepared to drop the price of its exTV service to sign up customers, the week after it went on air.
Galaxy, a joint venture between dominant Hong Kong broadcaster Television Broadcasts (TVB) and Intelsat, currently charges $22 a month for 23 channels. This compares to market leader i-Cable that offers 38 channels for $38 a month and niche service provider Hong Kong Broadband Network which offers 17 channels for $11 a month.
Galaxy chief executive Jackey Chan said it was "Too early" say if the price of his service would be adjusted, however, the company would closely monitor how many customers it was signing up and re-assess its pricing after three months. He added that exTV could be seen by 250,000 of Hong Kong's 1.8 million households and that coverage would expand to 400,000 homes mid-way through the year of whom up to 40,000 would sign up as customers.
Chan added that
Galaxy was in talks with the government's Housing Authority and several private
developers about installing receiving equipment for the satellite-delivered
platform in homes in order to kickstart customer sign ups.
Back to top
3UK, is set to shake-up the pre-paid market in the UK with the launch of ThreePay - its first Pay-As-You-Go offer to customers. Uniquely, 3UK will offer Pay-As-You-Go customers the same price plans it already offers its contract customers.
The launch of Pay-As-You-Go is in line with 3's strategy of broadening its offer and introducing the maximum number of consumers to video-calling. With ThreePay, 3 is now addressing 65 per cent of the UK mobile market instead of the 35 per cent it had been reaching previously with just its contract proposition. ThreePay will initially be available on the Motorola A835.
3 today published
a study reviewing the UK's Pay-As-You-Go market; the study found that many
Pay-As-You-Go customers are paying far more than they would on a contract.
Furthermore, due to the complicated tariffs and various charges, 43 per cent of Pay-As-You-Go
customers don't know how much they are really paying for their calls.
Back to top
Splitting the BBC into separate units is one of a series of far-reaching changes recommended by a group of broadcasting experts commissioned to consider the future of the BBC by the opposition Conservative party. The authors of the report - entitled Beyond the Charter - suggest that such change is needed to enable the BBC to achieve its full potential.
As well as splitting the BBC, the package of proposals put forward by the Broadcasting Policy Group (BPG) includes abolishing the Board of Governors; introducing subscription charging for BBC television services; setting up a new Public Broadcasting Authority to distribute public funds to all public service broadcasters and abolishing the television licence fee
Chaired by former television executive David Elstein, the group was asked to say what should happen when the BBC's current Royal Charter expires in 2006. The Conservative party is not committed to implementing the group's recommendations, although it is likely to influence the debate at a time when the broadcaster's role is under intense scrutiny following the criticisms of the Hutton Report into the death of government adviser Dr David Kelly.
"The Government rightly insists that the charter review process must make the BBC both strong and independent," commented Elstein. "We came to the conclusion that this objective could be achieved only through radical change. Arrangements devised in 1926 are not going to be capable of sustaining the world's most important broadcaster in the challenging times ahead." The BPG was also influenced by the UK government's plans to cease analogue television transmission by 2010 and rely wholly on digital transmission thereafter.
The group suggested
that the ceiling imposed on the licence fee by political acceptability would
gradually cause the Corporation to fall behind rivals and recommended that
from 2007, some digitally transmitted BBC television services should progressively
be funded from subscription. The licence fee could be correspondingly reduced.
According to the report, this process should both encourage, and help to fund,
the take-up of digital receiving equipment. Accordingly, once analogue transmission
was to cease, and it became technically feasible for all viewers to be charged,
the licence fee should be abolished. In structural terms the BPG recommended
that some of the BBC's current activities should be divested, with distribution
and television programme production being hived off after 2007. Once analogue
transmissions ceased, television broadcasting should also be separated from
the rest of the BBC and freed to operate primarily as a pay-TV business, the
report proposed.
Back to top
Nearly 17 million homes will have digital TV by 2005, according to Continental Research's Spring 2004 Digital TV Report.
2003 saw a very significant burst in the growth of homes receiving multi-channel TV - from 43 per cent in 2003 to 52 per cent currently - a jump mainly propelled by Freeview, but with significant growth for the Sky digital and cable digital subscriber base.
By 2005 Sky will make its eight million forecast homes, Freeview 4.9 million and digital cable 3.9 million. Jon Beaumont, Associate Director at Continental Research, said: "Multi-channel television has come on leaps and bounds over the past 12 months and that looks set to continue.
"Freeview will continue to flourish but Sky digital seems likely to remain the clear market leader, although the total market still has some way to go to reach the 95 per cent target set as a necessary condition for analogue switch off."
Market Forecasts – number of homes (millions)
Freeview Skydigital
Digital cable Total digital homes *
Current market 2.5m 7.2m 2.6m 12.1m
2005 Forecast 4.9m 8.3m 3.9m 16.9m
* Note: some homes will have more than one digital TV platform and the figures
in the total column have been de-duplicated to provide a total homes estimate
of 16.9 million by 2005.
Back to top
At the 3GSM World Congress in Cannes yesterday France Telecom's mobile phone operation Orange announced it is launching commercial trials of its high-speed, 3G service in Britain and France this month. Management refused to be drawn on when consumers will see a full launch, merely reiterating their commitment to bring a full service to market in the second half of the year.
Orange is hoping to have 3G technology installed in at least 20 French cities and available to 60 per cent of the UK population by the end of this year. By 2009 Orange believes its 3G service will be available to 90 per cent of the population of both countries.
Alongside the
video calling and video messaging services, Orange hopes to offer video chat
services and also store customers' video diaries when it launches a full service
later this year.
Back to top
Michael Green,
former chairman of Carlton, is reported to be bidding for the UCI cinema chain
that is currently up for sale. Other bidders are expected to include Terra
Firma, the buyout firm, HgCapital, the private equity firm, Robert Tchenguiz,
the Iranian property tycoon and Vue Entertainment, owner of the rival Warner
Village chain. The cinema chain is currently a joint venture between Vivendi
Universal and Viacom.
Back to top
3 Hong Kong, CK Communications and Hutchison Global Communications ("HGC") joined forces to connect video communications between 3 and Vfone in Hong Kong, marking a major technological breakthrough.
This is a key
milestone in video communications and is the first time in the world that
a video phone has been successfully connected to a 3G video mobile phone.
No IDD charges will be involved for 3 users to make video calls with overseas
Vfone users. Plans are in place to extend this pioneering connection between
3 and Vfone to other countries, further establishing a global network and
community extensively using video-based communications. To promote the benefits
brought by this novel video connection, attractive special offers have been
launched exclusively for 3 and Vfone customers.
Back to top
ITV has snatched the rights to the Oxford and Cambridge boat race, an event the BBC has covered since 1926.
The BBC said it had "given up" the rights because the race had become "too commercial", but ITV sport executives claimed it was a lame excuse to cover up their audacious raid. Sources at ITV said the broadcaster had been in negotiations with event organisers for more than five months.
Christopher Rodrigues, chairman designate of P to M Limited, the rights holders, said ITV "clearly understood the event and needs of the university boat clubs" and had put forward a "high quality partnership agreement".
The race attracted
7.2 million viewers on BBC1 last year.
Back to top
The Fox Entertainment Group is in preliminary talks with the National Football League and some cable operators about creating a national sports television service, said Rupert Murdoch, chairman and CEO of News Corp., owner of Fox.
Fox already has a major presence in sports through a series of regional networks, but it does not have a single national sports outlet that competes directly with ESPN, part of The Walt Disney Co.
A key element in launching such a cable sports venture would be the participation of major cable operators such as Comcast, which has had its own preliminary discussions with the NFL about acquiring the rights to Sunday Ticket. Comcast is already negotiating to acquire Cablevision Systems' stake in many of the Fox Regional Sports Networks, which would also provide a foundation for a new service.
An ironic twist
to these discussions is Comcast's recent hostile bid for The Walt Disney Co.,
which relies on ESPN for nearly a third of its overall earnings and 75 percent
of its cable networks unit earnings. Theoretically, Comcast could find itself
with a stake in competing national sports services with its dominant 22 million
cable subscribers.
Back to top
Michael Eisner is stepping up his charm offensive on Walt Disney shareholders as he battles to win a crucial vote at the media group's annual meeting on March 3.
But he appears to be facing a tough sell in persuading shareholders that Disney's fortunes are turning after several years of underperformance. The vote is also seen as a test of investor support as he attempts to rebuff a hostile bid from Comcast, the cable group.
Meanwhile, Merrill Lynch, the New York brokerage house, has issued a research report suggesting multiple scenarios in which the Walt Disney could be acquired by Comcast Corp., or enter a three-way deal involving Liberty Media and Interactive Corp. -- or do some acquiring of its own, in an effort to become less attractive to unwanted suitors.
Merrill Lynch
suggests that if Comcast continues to stand firm on its bid price, another
bid for Disney will be forthcoming. Merrill casts doubt that media giants
Time Warner or Viacom would be interested, but says one possible deal could
involve Liberty Media, John Malone's high-powered cable concern turned holding
company, and Barry Diller's Interactive Corp.
Back to top
Tandberg Television was one of the major integrators for Asia's newest subscription television platform, exTV. Tandberg provided a multi-channel television delivery solution with built-in expandability based on its evolution 5000 compression engine including award-winning MPEG-2 compression, modulation, multiplexing and decoding. The company was also the prime integrator for the build and deployment, integrating conditional access, subscriber management and middleware from a host of market leading vendors.
"We are
delighted by the experience we have had working with Tandberg Television and
its highly experienced people. The system design and build, as well as the
trail of our network have gone very smoothly, thanks in no small part to Tandberg
Television's local Asian presence," says Jim Blomfield, CEO of Galaxy
Satellite Broadcasting Limited.
Back to top
YooMedia plc today launches the Cartoon Network interactive games portal on NTL Home. This is the first games portal on NTL Home to be accessible from the broadcast stream by pressing the red button. The portal debuts on NTL Home with pay-per-play games based on the well-known children's cartoon characters including The Powerpuff Girls.
According to Casey Harwood, commercial director at Cartoon Network: "Cartoon Network is the home of some of the world's favourite cartoon characters which kids love to access in an interactive environment. This has been amply demonstrated by the success of the channel to date. We're delighted to take the branded interactive games to NTL Home customers."
The games are
accessible to NTL Home users directly from the Cartoon Network channel, using
the red button on the remote control. Cartoon Network will be producing a
number of on screen promotions plus banners and data-gems in the NTL Home
walled garden to direct viewers to the games.
Back to top
Germany's top commercial broadcaster ProSiebenSat.1 Media said its core earnings rose 22 per cent in the fourth quarter 2003 and predicted that they would rise further in 2004 as cost-cutting offset the weak advertising market, which ended a three-year slide only in the last two quarters of 2003. The company claims to have cut over E200 million from costs.
However the group,
which US investor Haim Saban took over with other investors last year, warned
it was still too early to speak about a turnaround in German advertising spending.
The company also said it was looking at a possible drive into pay-TV to reduce
its dependency on the advertising market, which has fallen more than 20 per
cent since 2000. Any foray into pay-TV is bound to be linked to acquring the
rights to German soccer.
ProSieben has tripled last year's net earnings to E45 million. The company
posted its second straight rise in quarterly sales to E566 million, up one
per cent from the previous year. EBITDA came in at E118 million, as the company
trimmed costs by 11 percent in 2003. Net profit was E53 million in the quarter
to December, up 10 per cent.
Back to top
Israel's Matav-Cable Systems Media said it is holding preliminary negotiations with Tevel Israel International Communications that could lead to a merger of the country's three cable TV companies.
The talks involve Matav acquiring Tevel's cable assets, including its holdings in Golden Channels and subsidiaries that have cable broadcasting and access to fast Internet licenses. Matav, Tevel and Golden Channels are Israel's three providers of cable television services.
Should a deal
be reached, Matav would hold about 60 per cent of the cable TV and cable Internet
market and about 35 per cent of Golden Channels.
Matav said it is evaluating a few alternatives for the deal, including the
possibility of Matav buying Tevel's communication assets. In return, Matav
would issue its shares to Tevel and assume part of Tevel's bank debt.
The companies
said the talks are in an early stage and no decision has been reached on the
size of the stake Tevel would receive or the amount of debt Matav would take
on.
Back to top
The BBC's funding through a mandatory TV licence fee is going to be under the microscope. Barry Cox, the Government's digital television adviser, is arguing that the public broadcaster's privileged access to state funding is becoming 'more and more absurd' as the nation switches to digital, allowing households to choose between many more channels.
Meanwhile, a Conservative Party commission chaired by David Elstein, a former CEO of Channel Five, is also expected to recommend abolishing the licence fee and allowing other broadcasters to compete for funds to make public service programming. The Broadcasting Policy Group's report will make 19 recommendations for reforming the funding, accountability, content production and public service obligations of the BBC.
The report coincides
with a government consultation on the future of the BBC, which will influence
the forthcoming review of its public service charter, due to expire at the
end of 2006.
Back to top
German public broadcasters ARD and ZDF have cancelled digital carriage contracts with the major cable operator Kabel Deutschland GmbH, KDG, reaching over 10 million German homes.
This is the climax to the ongoing feud on how the cable operator packages its digital bouquets scheduled to have their soft launch early in April and the full commercial launch in September. Both public broadcasters and the commercial networks fear losing their privileged status. ARD and ZDF especially complain about a basic encryption KDG intents to introduce also to public channels. They also object KDG refusal to licence MHP capable set-top-boxes making it impossible to access the public interactive features such as the EPG in which users can bookmark program genres of their interest.
Both ARD and
ZDF say that KDG, "the cable monopolist to be", will probably try
to use its strength to dictate the conditions of the market in its favour.
KDG is trying to get control over the other smaller cable operators formerly
owned by Deutsche Telekom to recreate the former systems' size: over
18 million connected homes.
The public broadcasters
potential boycott is likely to create another slow down in the German migration
to digital TV. When the German cable operator Primacom some years ago tried
to move its east German clients to all digital subscription the project failed
because public broadcasters and commercial free to air networks didn't
allow the use of its digital feed. As a result, clients had to subscribe to
analogue basic and then could pick additional digital packages.
Back to top
State-run telco Bharat Sanchar Nigam Ltd (BSNL) has signed with Korean KT Corporation for broadband Internet services. BSNL has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections.
Previously, BSNL had announced that its broadband services would be launched under brand name DataOne Broadband in BSNL network. As part of the agreement, BSNL and KT Corporation will share resources and expertise to explore the potential of broadband Internet business in India. KT Corporation would provide "know-how and equipment," BSNL would use its wire-line customer base of more than 35 million to jointly offer broadband services in the country.
"The partnership between BSNL and KT Corporation will carry telecom revolution to new heights in India over the next few years," said N. K. Mangla, director (commercial and marketing), BSNL.
BSNL offers internet
service at line speed of 256 Kbps, two live broadcast channels delivered over
3Mbps of last mile connectivity speed simultaneously with the voice service
and select games on demand, select e-learning services and audio conferencing.
Back to top
Candidates - including Peter Burt, former CEO of Bank of Scotland, and John Gardiner, Chairman of Tesco – are to be discussed at a board meeting within days. Charles Allen, ITV chief executive, has met both Burt and Gardiner in recent weeks to discuss the position and has told boardroom colleagues he could work with either of them. ITV has vowed to consult leading shareholders before naming its chairman.
Meanwhile, reports
hint that Green might be plotting a return to the media limelight. According
to Times media editor Ray Snoddy, Green has set up an office in Mayfair with
former Carlton Finance Chief Paul Murray. Snoddy says that Green, who has
personal wealth of more than £100 million, is planning new ventures,
but he added that it is 'extremely unlikely' that Green would consider
trying to orchestrate a takeover of ITV, which has seen its shares rise since
it started trading as a merged company.
Back to top
Dutch mobile operator KPN's takeover talks with mobile phone group mmO2 fell through last week. According to reports the operator will not rule out a hostile bid for O2. "All options are always open," A KPN spokesman said.
MmO2, the sixth-largest European cell phone company with assets in Britain, Germany and Ireland, is valued at around E15.2 billion and is one of the hottest takeover targets in the industry - mainly because analysts believe it is too small to survive on its own. KPN and O2 have had several intense takeover negotiations in recent years.
KPN, valued at
E17 billion, is expected to report fourth-quarter net income of E172 million
on sales of E3.11 billion, and income for the year of E620 million-E650 million
on revenue of E12.2 billion.
Back to top
Nokia says that it has been confirmed as the sole supplier of T-Mobile's 3G WCDMA radio access network in the Netherlands. The deal is part of an international frame agreement under which T-Mobile International has chosen Nokia as a major infrastructure supplier for its 3G WCDMA networks in Europe.
Deliveries have
already begun and the network is expected to be operational during second
half 2004, potentially serving more than two million subscribers. Under the
agreement Nokia is supplying 3G radio-access equipment, and Nokia NetActä
network and service management system as well as an extensive range of services
including Installation, Commissioning, Integration, Project Management and
Care Services.
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Asia Satellite Telecommunications Company Limited (AsiaSat) and the People's Republic of Bangladesh's national broadcaster Bangladesh Television (BTV) announced the signing of a lease agreement for the use of C-band capacity on AsiaSat 3S to broadcast BTV World, a television channel for overseas service across the Asia Pacific region.
This Bangla-language
satellite channel will commence broadcasting on AsiaSat 3S from early March,
providing daily broadcasts of news and current affairs, drama, entertainment,
cultural and educational programs from Bangladesh that serve overseas audiences
in the region.
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Telewest
parts company with Burdick
BT broadband hits two million
Discovery
delivers on the net
ESPN
and US cablecos announce agreement
Ex-Disney
directors campaign against Eisner re-election
Five's
Milligan to join Sky?
VSNL
offers Internet over co-axial cable network
NTL
struggles with broadband capacity
Univision reports profits up
in Q4
3 UK selects Alcatel's optical
multi-service solution
Charles Burdick has stepped down as managing director of debt-ridden UK cable operator Telewest. The move follows pressure from bondholders prior to the completion of a debt-for-equity restructuring, which will see £3.5 billion of debt swapped for 97.5 per cent of the company's shares. The bondholders are thought to want a new management team after the restructuring.
Burdick, a former Telewest finance director, was associated with the previous management's strategy of borrowing large amounts of cash to pay for rapid expansion in the UK cable market. He leaves Telewest with a pay-off of £500,000, equivalent to a year's salary, though his significant shareholding is virtually worthless because of the debt-for-equity restructuring. In a statement Burdick said he was leaving "to pursue other opportunities."
Burdick will
be replaced by Barry Elson, 62, who will take the title of acting chief executive.
He was recruited at the end of 2003 to head Telewest Global, the name for
the restructured company, which will be quoted on NASDAQ in the US. In turn,
Elson will be replaced by long-standing Telewest director, Cob Stenham, fuelling
speculation that Telewest Global is now more likely to merge with its UK cable
counterpart, NTL, in the coming months.
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BT Group claims to have reached two million wholesale broadband Internet connections in the UK, ten months ahead of schedule. Of these two million, around half are accounted for by other Internet Service Providers which buy capacity from the former monopoly.
"Over the
next few years we will have to continue to work hard to maintain this momentum,
but I have no doubt that this is absolutely achievable," said BT Chief
Executive Ben Verwaayen in a statement on Friday.
The firm said more than 85 percent of UK homes and businesses are now connected
to broadband-enabled exchanges with that figure expected to reach 90 percent
by summer. Currently customers connected to 2,345 exchanges can get broadband
with more than 800 in the process of being upgraded.Earlier this month, BT,
which controls over two-thirds of Britain's home telephone market, reported
falling revenues caused by a decline in its core
fixed-line business. However, it posted strong growth in "new wave"
businesses including broadband Internet.
Falling charges for broadband connections have helped high-speed Internet
take off. The UK is now the most competitive broadband market in the world,
with more than 150 access providers.
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Discovery has started selling its documentary material to broadband customers via www.discoverybroadband.co.uk. For between 99p and £1.99, customers can buy programmes for 24 hours using BT's Click and Buy service.
For £5.99
you get one month's access to Discovery Select, which covers science, history
and nature programmes or Discovery Home and Leisure with lifestyle programming.
The site works on Windows and Mac computers running a range of different browsers.
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Cox Communications and Charter Communications have signed a long-term deal with sports channel ESPN in a move that signals a ceasefire between the sports network and the US cable industry over the rising costs of television sport.
Atlanta-based Cox, the fourth-largest US cable operator and a vocal critic of sports programming costs, said it struck its deal when ESPN, owned by Walt Disney, relented on its demands for steep rate increases.
The channel was forced to give up its initial demand for a 20 per cent annual increase. Under the new nine year agreement, ESPN's rates will rise by an average of seven per cent a year. Cox will also offer ESPN's Spanish language service in areas where the operator provides a special package to Hispanic subscribers.
The terms of
the deal with Charter, the US' third-largest cable TV provider, were not disclosed.
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Gold and Disney, two former Disney company directors who resigned last year, have been campaigning for weeks, although the move has recently been overshadowed by Comcast's $61 billion hostile bid for Disney.
Disney's board rejected the bid and expressed its backing for Eisner. However Gold and Disney are said to believe that a significant minority vote against the CEO would prompt the board to reconsider its support for him.
Meanwhile Rupert
Murdoch is reportedly trying to lock in his No. 2, Peter Chernin, amid rumours
that Chernin could be heading to Disney to replace Eisner. Murdoch's News
Corp is in talks to renew Chernin's $17 million a year contract.
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Five's Deputy
CEO Nick Milligan is reported to be leaving the UK terrestrial channel to
join Sky as head of sales. According to reports, Milligan, who has run the
sales operation at Five for seven years, will take up a new top sales post
at the rival broadcaster.
Rumours of his departure have been circulating ever since Dawn Airey left
Five to head up Sky Networks in September 2002. Milligan declined to comment
on the report.
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Indian telecommunications company Videsh Sanchar Nigam Limited (VSNL) is gearing up to launch Internet services through local cable operators (LCO) over a co-axial cable network in March. The service will first launch in Mumbai, followed by other Indian cities.
VSNL, a former state-run telecom company and now part of the conglomerate Tata Group, had recently given indications of entering the DTH and broadband sector. The company has already set up infrastructure and equipment for the service, including set top boxes (STB) which will help accessing net connections over personal computers or television sets. The pricing details haven't been disclosed.
A spokesperson from VSNL said: "Offering Internet services through LCOs will help to expand the number of subscribers, and help existing users migrate from dial-up connections to higher-connectivity modes."
VSNL is also
in talks with Multiple System Operators (MSO) to offer connectivity over co-axial
cables. The development is being considered as a move to gain a head-start
in the broadband sector, which is also being eyed by the likes of Reliance
Infocomm, Bharat Sanchar Nigam Limited and MTNL. Bharti Teleservices is the
only telecom operator that provides DSL services extensively.
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NTL has reportedly sent letters to some customers warning them not to over-use their broadband services. The UK cableco is blaming a "small number of broadband customers who are continually uploading and downloading extremely large files", causing a "detrimental effect on [the] network".
It went on: "Please, for the sake of all our broadband customers, reduce the downstream bandwidth utilised through your cable modem to no more than 1GB per day. We would hate to have to impose restrictions on you but we are determined to offer all our broadband customers the best possible service."
NTL caused an
outcry when it introduced the 1GB a day rule before. At the time, execs explained:
"Our objective is only to limit very frequent or persistent heavy network
use that can impact other customers."
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US Spanish-language broadcaster Univision Communications posted higher quarterly earnings, citing growth in its audience, increased advertising and television revenue.
The Los Angeles-based
company, which last year closed the $3.2 billion purchase of Hispanic Broadcasting,
said fourth-quarter profit rose to $58.9 million, from $36.4 million in the
previous year.
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Alcatel has announced it has successfully rolled out an advanced optical multi-service system for 3, the UK's first third generation mobile phone provider. The Alcatel optical multi-service solution enables 3 to enhance its Universal Terrestrial Radio Access Network (UTRAN) by remotely managing the equivalent of more than 3.5 million simultaneous mobile calls on a single platform.
Alcatel's optical multi-service solution will enable 3 to adapt its network capacity and flexibility as well as smoothly evolve its existing mobile infrastructure by aggregating Ethernet, ATM and TDM traffic.
In addition,
Alcatel said that the UMTS radio and core network it has been deploying for
tele.ring - an innovative GSM/GPRS and UMTS mobile operator in Austria - has
allowed tele.ring to launch its UMTS commercial service in nine Austrian cities
including Vienna, Innsbruck and Graz, corresponding to approximately 30 per
cent of the population.
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