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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 January 31st to Friday February 4th 2005

Scroll down page or click below for news - latest first

Tuesday


Friday 4th February 2005

US govt: VoIP not secure
News Corp profits from movies

Murdoch backs Sky Italia
Alcatel misses forecasts

Comcast: One Million HD STBs
India raises foreign investment limit in telecoms
Bell ExpressVu grows

2bn mobiles by end 05

Pace for premiere

Viasat includes TV4 channels in pay

Orca Interactive to work closely with IBM

ICTV appoints Hale


US govt: VoIP not secure

The US government has issued a strong warning about the security risks of VoIP.

A report by the National Institute of Standards and Technology (NIST), which develops technology guidelines for US government agencies, warns: "VoIP systems can be expected to be more vulnerable than conventional telephone systems, in part because they are tied in to the data network, resulting in additional security weaknesses and avenues of attack."

According to Gartner, the market research group, spending by US companies and public-sector organisations on VoIP systems will grow to $903m this year, up from $686m in 2004. Investment in hybrid systems, which handle VoIP and traditional calls, will grow from $1.5bn to $2bn. By 2007 Gartner expects 97 per cent of new phone systems installed in North America to be VoIP or hybrids. The Telecommunication Industry Association predicts that 26m users will have VoIP by 2008.

NIST says a main source of confusion "is the (natural) assumption that, because digitised voice travels in packets just like other data, existing network architectures and tools can be used without change". It warns: "VoIP adds a number of complications to existing network technology and these problems are magnified by security considerations."

Firewalls and intrusion detection systems used to protect data networks often interfere with voice calls by delaying information as it travels across the network. This leads to calls breaking up or being dropped. In addition, firewalls are no defence against internal hackers.

Unless calls are encrypted, anyone with physical access to an organisation's local area network can attach monitoring equipment and tap into calls. NIST's report, signed by Donald Evans, commerce secretary, warns agencies that essential telephone services, "unless carefully planned, deployed and maintained, will be at greater risk if based on VoIP."
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News Corp profits from movies

Rupert Murdoch's News Corp has reported an 80% jump in quarterly profit, boosted by demand for films on DVD and advertising on its TV channels.

Net income in the three months ending 31 December totalled $386m up from $215m a year earlier. It also predicted that profits would rise in 2005. Revenue during the quarter rose 18% to $6.6bn. Fox Entertainment Group was the best-performing unit.

Cable television, which includes Fox News also performed well, with operating profit at the division rising by 46%. Analysts highlighted the poor performance at Sky Italia, which posted an operating loss of $105m, against $104m a year earlier (see separate story).
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Murdoch backs Sky Italia

RUPERT MURDOCH, backed News Corps' Italian satellite television investment amid worries about mounting competition. Sky Italia, is now being challenged by Silvio Berlusconi's Mediaset, which has begun selling DTT pay-per-view services in direct competition.

Adding to concerns was Sky Italia's losses of $105 million in the second quarter, against $104 million a year ago. In News Corps' results conference Murdoch compared the business with its British namesake, which after years of investment is highly profitable. "When we started Sky, everybody in Britain was against us. The whole of the media was against us. The BBC establishment was against us, and remains hysterically against us. But we built a business that is not only growing fast but is worth many billions of dollars, and we're confident that we can repeat this experience in Italy."

Sky Italia added 270,000 new subscribers in the period.
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Alcatel misses forecasts

Shares of Alcatel, the world's largest maker of broadband Internet equipment, fell10 percent, after the company's fourth-quarter profit missed analysts' estimates.

Net income was E40 million, compared with a loss of E524m a year earlier. Alcatel's profit had been expected to be E154 million. Alcatel sacrificed profit to gain market share in the fourth quarter, said Chief Financial Officer Jean-Pascal Beaufret. Alcatel recovered from a three-year slump in 2004 as clients including France Telecom SA resumed spending on networks.

The company reported its first annual profit in four years after Chief Executive Serge Tchuruk cut more than 40,000 jobs to stem three years of losses. Alcatel reduced its workforce by 8 percent to about 56,000 at the end of 2004, Beaufret said.

Sales in the fourth quarter rose to E3.81 billion from a restated E3.44 billion a year earlier. Expectations had been for a 9.9 percent increase to E3.78 billion.

Full-year net income was E281 million, after three years in which Alcatel accumulated E11.7 billion euros in losses. Tchuruk, 67, reorganized the company in 2003 to focus on three markets -- fixed networks, mobile-phone technology and corporate and satellite clients.
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Comcast: One Million HD STBs

Comcast Corporation has announced it has now deployed more than one million
HD-capable Digital Cable set-top boxes, adding more than 800,000 of them in 2004 alone. Comcast has experienced a 143% increase in the number of customers connecting HDTV sets during January 2005 versus January 2004.

HDTV service is now is available to more than 93% of Comcast customers. In its 62 markets with HD service, Comcast offers customers an average of 8 to 15 channels of high-definition programming.
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India raises foreign investment limit in telecoms

Communications Minister Dayanidhi Maran said that there is a need to fund the fast-growing mobile market. The government hopes to increase the number of mobile users from 95 million to between 200 and 250 million by 2007. "We need at least $20bn (£10.6bn) in investment and part of this has to come as foreign direct investment," said Maran.

The decision to raise the limit for foreign investors faced considerable opposition from the communist parties, which give crucial support to the coalition headed by Prime Minister Manmohan Singh. Potential foreign investors will however need government approval before they increase their stake beyond 49%, up to a new limit of 74%.
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Bell ExpressVu grows

Bell ExpressVu, Canada's leading satellite TV service, ended 2004 with more than 1.5 million subscribers, reflecting growth of 8.4 percent when compared to 2003 numbers.

During the year, Bell ExpressVu had 116,000 net activations, an increase of 40 percent when compared to 2003. The service, a unit of Canadian communications giant BCE, said net activation growth was stimulated by the continued success of the Bell Bundle, as well as initiatives focused on churn containment, which resulted in the lowest churn level since 2001. Canada's other satellite TV service, Shaw-backed Star Choice, said it had 824,835 customers as of Nov. 30.
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2bn mobiles by end 05

The number of global mobile phone subscribers will reach nearly two billion by the end of 2005, although most voice calls will still be made by landline, according to a new telecom trends forecast issued by Deloitte's Technology, Media and Telecommunications (TMT) Group.Deloitte predicts that mobile subscriber growth will continue to rise this year with demand being fuelled by developing countries in Asia and Latin America. The research also suggests that mobile penetration will surpass 100 percent in some developed markets as customers take out second subscriptions for data or for personal use.

Voice will continue to be the primary source of revenues and profits for mobile operators throughout the year, accounting for more than 80 per cent of total revenue on average. Deloitte forecasts that voice volumes will continue to grow during 2005 due to ease of use and falling prices.
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Pace for premiere

As part of its plan to bring HD television to German viewers, Premiere has selected Pace Micro Technology to supply an MPEG-4 set-top box that will enable the country's largest digital TV operator to be among the first in Europe to drive this revolutionary viewing experience.

The new service will incorporate Pace's DS810 set-top box that it says uses new advanced codec technologies to deliver superb quality pictures and make most efficient use of available broadcasting bandwidth. Premiere, which commands over half the six million digital TV households in Germany and Austria, will deliver all the features of its current satellite service as well as the operator's new, dedicated highdefinition channels for sport, film and documentaries. The new Premiere service is expected to begin broadcasting towards the end of 2005.
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Viasat includes TV4 channels in pay

Modern Times Group says that Viasat Broadcasting has signed a three year agreement with Sweden's TV4 for the inclusion of the TV4, TV4 Plus and TV4 Film channels in Viasat's digital pay-TV packages in Sweden. The channels will be included in Viasat_s packages from 21 April 2005.

The agreement enables Viasat to distribute TV4s three channels to its digital subscribers in Sweden on the Viasat DTH satellite pay-TV platform.

"This agreement makes us available on all distribution platforms, which positions us very well for the coming shut-down of the analogue terrestrial network. The new agreement also adds new and important revenue streams. The competition between TV4 and MTG's channels remains, however, this feels like a beginning of a new erawhich is characterized by cooperation rather than confrontation", said JanScherman, CEO of TV4.
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Orca Interactive to work closely with IBM

Orca Interactive announced a global co-marketing agreement with IBM that will help Orca to promote its products in telco tenders worldwide.

Orca will enable its RiGHTv software to be delivered on the IBM eServer xSeries platform and WebSphere middleware offering. The sales forces of both companies will then market this joint IPTV solution on a global scale. IBM will be the prime contractor in all joint opportunities.
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ICTV appoints Hale

ICTV announced the appointment of Jaci Hale as Director of International Marketing and Relationship Management. Hale, who brings more than a dozen years of cable and communications marketing experience to her new position, will be responsible for expanding a wide range of marketing and business development activities for ICTV across the international arena, including: Marketing Communications; Customer Relationship Management; and Content Sourcing. She will be based in ICTV's International offices in Surrey, England.
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Thursday February 3rd 2005



Sky reports bumper quarter
Ofcom: 162 digital channel licenses in 04
Bids in for Adelphi
CinemaNow, NBC broadband tie
Video Networks increases on-demand offering
ITV into DVD rental
Freeview channel bids in
Al-Jazeera sale
GlobeCast’s Authentic DTH deal

Sky reports bumper quarter

BskyB has reaped the benefit of its major marketing campaign adding 192,000 subscribers in the second quarter, ahead of the 150,000 expected by analysts. This compares with 193,000 subs in the same period a year ago. Total subscribers are now 7.6m keeping the company just about on track for its target of reaching 8m subscribers by the end of 2005. Churn was 9.5% down marginally on the previous quarter.

The second quarter delivered financial results in line with expectations. Sales rose almost 10 per cent to £1.05bn (E1.52bn) compared with £916m in the same period last year and annualised ARPU rose £17 from a year ago to £386. Pre-tax profit for the second quarter came in at £103m compared with £77m in the same quarter last year, and was £154m after stripping out goodwill amortisation and charges. For the first half of the year, revenues were up 10% to £1.945bn and pre-tax profits lifted 22 per cent to £250m.

Sky+ households increased by 168,000 to 642,000. Sky multi-room households increase by 116,000 to 473,000. Advertisers who fear Sky+ will reduce their impact will not have missed the irony of Sky’s subscriber acquisition recovery being the result of a heavyweight TV campaign.
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Ofcom: 162 digital channel licenses in 04

Competition remains fierce in the digital channels sector. Ofcom issued 162 new licences to broadcast TV services in 2004, while 21 were revoked. There are now over 310 channels (including time-shifted channels but excluding regional variations and PPV channels) broadcasting in the UK.

Latest figures also show that Freeview is gaining subscribers faster than Sky, - adding 430,000 in Q3 - although many may be in Sky households.

Other relevant conclusions from the Ofcom survey include: 56% of households had digital TV as at the end of September 2004, digital channels accounted for 28% of all viewing, Sky viewers watch more than 12 hours per week of digital channels on average.

The UK broadband market continues to grow apace. It seems likely that the total number of broadband connections will have passed the 6 million mark sometime in December 04. This means that broadband now accounts for 38% of all Internet connections and has surpassed the number of un-metered dial-up connections.
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Bids in for Adelphi

The deadline for bids for Adelphia Communications passed with at least two bidders making offers for the entire Denver-based MSO and four others opting for separate pieces.

According to US press Time Warner Inc. and Comcast Corp. made a joint offer of about $17 billion. Private-equity giants Providence Equity Partners and Kohlberg Kravis Roberts -- have made a proposal for all of Adelphia at $15 billion-$16 billion.According to reports key to the success of each bidder is the mix of cash and stock that is included in the offer. It is expected that Adelphia’s creditors will favor a bid that leans heavy on the cash side.

Reports said several smaller cable companies have bid for pieces of Adelphia, including Patriot Media & Communications (backed by Spectrum Equity Investors, Bain Capital LLC and Silver Lake Partners), Atlantic Broadband Finance LLC (backed by ABRY Partners LLC), Jerry Kent_s Cequel III LLC (backed by GS Capital Partners, the private equity arm of The Goldman Sachs Group Inc.), Bresnan Communications (backed by Providence Equity) and Advance/Newhouse Communications Bright House Networks.
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CinemaNow, NBC broadband tie

CinemaNow, a provider of video-on-demand for broadband, has made an agreement with NBC Universal to deliver first-run pay-per-view and library titles, including movies and television event programming, on a streaming basis via the CinemaNow web site. As part of the agreement, and along with previously released movies and pay-per-view television programming from NBC Universal's expansive video library, CinemaNow will offer NBC Universal's new release films on the same day they become available in their traditional pay-per-view window.
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Video Networks increases on-demand offering
From Colin Mann in London

Broadband entertainment and communications provider Video Networks Limited (VNL) is enhancing its on-demand replay service, which allows HomeChoice customers to access popular programming from the BBC, Channel 4 and Chelsea TV, for up to seven days after it has been broadcast. A total of four new BBC channels will be added to the line-up and the number of hours available will increase.

Roger Lynch, Chairman and CEO of VNL said the enhancements allowed the development of the HomeChoice service, and demonstrated how Video Networks offered “the most advanced mass market on-demand service in the UK today."

The company’s service is currently available to 1.4 million homes across London and the Borough of Stevenage, with 2.4 million homes scheduled to have access by June 2005
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ITV into DVD rental

ITV is following Channel 4 into online DVD rental through its website. The ITV MovieClub service will offer customers five DVDs a month for £9.99, (E14) from a library of more than 28,000 titles provided by Video Island, one of the UK's largest online film rental businesses.

Subscribers logging onto ITV MovieClub via the itv.com/movies website will be able to view video previews of the latest DVD releases and interviews with Hollywood stars, provided by MercuryMedia/APTN. They can also access film reviews and features.

FilmFour DVD is operated by Lovefilm, another big player in the online DVD rental market. Blockbuster has also launched an online service as a defensive measure, and Video Island also operates DVD rental websites for Tesco and MSN. Other players in this fast-growing home entertainment sector include Dixons, WH Smith and Amazon. By the end of 2005, it is estimated the number of DVDs rented through the post will overtake the total number of DVDs and videos chosen from the shelves of Blockbuster's 740 high street stores.
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Freeview channel bids in

Several bidders, understood to include Walt Disney, ITV and Channel 4, submitted offers for a new slot on Freeview yesterday which is likely to value it at £4m-£5m (E7.2m) a year.

Other broadcasters said to be among the bidders include US groups Turner Broadcasting and Universal Studios Networks as well as terrestrial broadcaster Five.
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Al-Jazeera sale

AL-JAZEERA, the Arabic satellite news channel, is to be privatised by its owner, the state of Qatar. Sheikh Hamad bin Khalifa al-Thani, the Emir of Qatar, is keen to find a way to sell some or all of the broadcaster, although the structure of the final deal is yet to be decided reports the FT.

A spokesman for al-Jazeera, which has anywhere between 30 million and 50 million viewers, said that the privatisation plan had been discussed for the past 15 months and work on the flotation was continuing.

“The form of privatisation is to be decided over the coming months, on the basis of the final results of a study being carried out by a US firm which specialises in privatisations,” the spokesman said. He added that there would be “restrictions” on the sale and it was not clear if the shares would be available to Western investors.
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GlobeCast’s Authentic DTH deal

Satellite services company GlobeCast is to distribute home shopping channel Authentic TV on BSkyB’s digital satellite platform, uplinked via Eurobird 28.5°E from GlobeCast’s Brookman’s Park teleport in the UK.

The distribution service includes an online content storage and broadcast system which will enable Authentic TV to create and manage its own programming schedules remotely via the Internet. The channel records some of its content in the USA but all content, regardless of its source location, can be sent direct to GlobeCast’s secure server via FTP, removing the need for traditional satellite backhaul. Once content is received and stored, Authentic TV’s 24/7 programming schedule is automatically broadcast and uplinked to the Sky Digital platform.
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Euronews on Turksat

Subscribers to Digiturk in Turkey and the Turkish speaking countries in Central Asia and Caucasus, as well as Turkish communities in Europe, are now able to receive EuroNews in four language versions. EuroNews is carried in Digiturk’s most basic programming package reaching all residential customers, as well as forming part of the operator’s hotel offer in Turkey. The channel is positioned in the Digiturk EPG on number 49 in the news section and is available simultaneously in English, French, German and Spanish to approximately 880,000 subscribers.
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Wednesday 2nd February 2005

More woe for TiVo?
Gates: 'we will dominate in living room too'

Spain: Antena 3 returns to profitability

TV Asia launches broadband CTBUZZ in India

NDS Q2 results

Sky Media reports record iTV advertising month
DAB take off?

Disney up 5%

Adult TV VOD via net

A2i will run Espial


More woe for TiVo?

TiVo Inc. has revealed President Marty Yudkovitz has resigned, only weeks after Chief Executive Michael Ramsay said he would step down. Yudkovitz, who joined the company in 2003, will stay with TiVo for a time in a consulting capacity. The news followed the announcement of the availability of an early access software development kit that will allow third parties to create entertainment and information applications that extend the TiVo service.

The move supports TiVo's new service strategy Tahiti. The kit gives broadcasters and developers a flexible way to deploy media rich broadband applications to TiVo subscribers, helping to create an open platform for those TV viewers, TiVo said. Analysts saw it as further reaction to increased competition from cable and DTH players who are increasingly using their own brand DVRs.This week EchoStar will start running new print and outdoor billboard advertising that takes aim at TiVo's DVR service while at the same time promoting its digital recorder technology. The ads target perceptions that TiVo's products are expensive. Tag lines from the EchoStar print advertising effort include "Sure, TiVo is hot. TiVo is also expensive" and "For people who think the idea behind TiVo is cool, but the price isn't."
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Gates: 'we will dominate in living room too'

Microsoft Chairman Bill Gates has told Business Week he is betting that Microsoft will land enough TV deals that it will play as significant a role in the living room as it does in the office.

Gates sees a time when set-top boxes snap into a network of digital products – centred on the PC - that distribute video, music, and photos around the house. He declines to predict specific revenues but says Microsoft will recoup the $500 million+ it spent on TV software over the past decade. "It will absolutely pay back those early years," he says. Gates has already committed to another $1bn of spending on entertainment products. He is confident that consumers will want IPTV. "People care about the TV viewing experience. If you can really make it better, it has a really profound impact," he says.
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Spain: Antena 3 returns to profitability
From David del Valle in Madrid

2004 was a good year for Spanish TV Antena 3 as it returned toprofitability. The Group - that includes Antena 3 TV, radio stations Onda Cero and Europa FM, Movirecord and Atres Advertising- declared a profit of E105.3 million, against a loss of E206.9 million the previous year. The EBITDA amounted to E 223.4 million, a rise of 101.7 per cent.

The TV network, Antena 3, declared a record EBITDA of E 210 million, 86.2 per cent up in comparison with the previous year. The channel also managed to increase its audience ratings up to an average of 20.8 per cent, 1.3 per cent more than in 2003.

The company has attributed the good results to higher advertising revenues, and its costs-cut policy. Antena 3 is now considering diversification and hopes to break into local DTT market.
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TV Asia launches broadband CTBUZZ in India
From Shveta Malik in New Delhi

US-based TV Asia has launched India's first broadband television channel CTBUZZ, to be delivered over IP under the banner of Kallz Entertainment Pvt. Ltd.

With test signals already available on multi-system operators such as Hinduja, Hathway and Seven Star, the channel is soon going to be available on all networks across Mumbai. CTBUZZ is also looking to launch similar services in Delhi and Bangalore in the next two months.

The channel is mainly going to target the youth and socio-economic class A and B. It relies on content syndication with partners such as Popular Car Bazaar, Raj Travels, Bharat Matrimony, Excel Video among others.
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NDS Q2 results

NDS Group plc announced its preliminary results for the second quarter ended 31 December 2004. Revenues were up 85% to $142 million with operating income up 134% to $22 million.

Commenting on NDS's performance, Dr Abe Peled, President and Chief Executive
Officer, said: "This quarter was a landmark quarter for NDS as we activated our 50 millionth digital-TV smart card further strengthening our lead in the sector. We have continued to see advances in the Far East region by securing a significant contract in Shenzhen, China. I recently attended the Consumer Electronics Show in the US and was delighted to see the results of our work over the last year highlighted on the DIRECTV stand, as well as to be able
to announce twelve new members to our SVP initiative." NDS is to supply middleware PVR and interactive technologies to DirecTV, its' fellow News Corp company.
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Sky Media reports record iTV advertising month

January 2005 has seen a greater number of interactive television (iTV)
advertising campaigns on Sky than any other month. A total of 45 iTV campaigns have run on Sky channels this month, an increase of 40% on the previous high in January 2004, says the channel.

New brands using iTV for the first time included Virgin EMI, which launched a ground-breaking promotional campaign for the new album by The Chemical Brothers. Other first-time iTV advertisers included Hyundai, Grolsch, First Choice, Suzuki Jimny, American Tourism, Optical Express, Freedom Finance, Ebookers and Skoda.

The growing trend towards greater creativity in iTV advertising is illustrated by an increase of more than 100% in the number of advertisers using Sky's most sophisticated interactive solution, the Dedicated Advertiser Location (DAL). 31% of iTV ratings on Sky channels in January 2005 directed viewers to DALs, compared with 14% in January 2004
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DAB take off?

Sales of DAB digital radios in Europe are showing encouraging signs as the UK tops 1.2 million units in homes at the end of 2004.

The World DAB forum says sales in the UK showed an increase of 178% in 2003/2004. Comparatively, Denmark has shown an increase of 350% in 2003/2004, and Belgium 500% in the same period.

Interest in other countries is also growing, with Norway reporting sales of just over 4,000 units in December. With 70% coverage (growing to 80% within two years) and plans to switch some popular FM services over to DAB only reception, the DAB market is expected to boom in 2005.
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Disney up 5%

Walt Disney has delivered a 5% rise in quarterly profits thanks to improved TV ratings and a strong showing from its theme parks. It saw pre-tax pre-exceptional profits reach $723m in the three months to December, against $688m a year ago. Its revenues increased from $8.5bn a year ago to $8.7bn. Operating profit from broadcast businesses including ABC and ESPN rose 36% to $467m while income from theme parks including Disney World grew 11% to $258m. Disney's movie business - including Touchstone Pictures and Miramax Films - fared less well, profits falling 27% to $333m.
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Adult TV VOD via net

Private Media Group Inc a producer of premium-quality adult entertainment, announced that it will launch a secure, high-quality TV Channel and Video-On-Demand (VOD) service on a new, state-of-the-art broadband site.

Through an agreement with Alfa Audiovisuales S.L., the new service, which is powered by proprietary technology, enables broadband subscribers to watch the TV Channel and stream or quickly and easily download full-motion, full-screen, DVD-quality Private titles. Both TV and VOD can be watched on the consumer's TV screen through a simple cable connection.
The TV Channel will at first be offered in Spanish, with English soon to follow. Additional language options will be implemented, starting with German and eventually including all languages in which Private currently provides content. TV programming will be in six hour blocks including: Adult Industry News, Interviews, Behind the Scenes, News Coverage of Special Events and Financial News Coverage of Private and the Adult Entertainment Industry.
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A2i will run Espial

Espial and A2i announced that A2i will deploy the LX-200 IP set-top box to customers in Korea and Japan. This STB is designed to meet the needs of the hotel and hospital market, but will also drive IPTV revenue for retail stores and IP-based VOD systems in Korea.

A2i says it chose the Espial Escape browser framework because of its single code base architecture that allows easy customization for both the applications running in the browser and localization of the overall look and feel of the design.
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Tuesday 1st February 2005

SBC buys AT&T
US cable: Don't let SBC escape franchising

BSkyB subs set to grow?

Rivals for Adelphia?

Digital music: a brand phenomenon

NTT StarHub link

DISH hits 11m

Verizon chooses MSTV

RadioScape expanding

Amino Communications expands distribution
RTD new DTT channels with DigiSoft



SBC buys AT&T

Confirming last week's speculation, SBC Communications has agreed to buy its former parent AT&T for about $16bn.

SBC and AT&T said that cost savings were a main driver for the merger. AT&T is a long-distance telecoms firm, while SBC is mainly focused on the local market in the western US. The companies said they expect annual cost savings of at least $2bn from 2008. AT&T investors will receive 0.78 SBC shares for each of their AT&T shares. They will also get a special dividend payment of $1.30 per share. SBC's offer is barely 2% more than AT&T's market value of $15.7bn.

The deal is subject to approval by AT&T's shareholders and regulators. The companies said they expected to complete the agreement during the first half of 2006.

Seven "Baby Bells", were split off from AT&T in 1984. Following mergers and consolidation, only three remain.
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US cable: Don't let SBC escape franchising

Cable operators must fight efforts by SBC Communications to circumvent local franchising requirements and engagein discriminatory practices. That's the warning from outgoing National Cable &Telecommunications Association (NCTA) President and CEO Robert Sachs who claim SBC is attempting to gain an unfair edge over cable companiesAt issue is SBC's efforts to expand its broadband network to include the roll-out of Internet Protocol video services to some 18 million people by the end of 2007. SBC expects to invest at least $4 billion to expand its fibre network to include the new video services.

But critics claim SBC is looking to gain an unfair advantage, seeking to implement a video roll-out plan that is discriminatory and anti-competitive. SBC officials strongly deny those charges. They say the company is to provide improved and expanded broadband technology to a greater number of people. NCTA contends that SBC is pursuing a video expansion strategy that would sidestep the local franchising process that companies like Time Warner Cable are forced to abide by. "Cable operators must be vigilant about plans by phone companies to circumvent the local franchising process to gain an unfair competitive advantage," Sachs warns.
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BSkyB subs set to grow?

BSkyB is set to reveal a big increase in subscribers sau some newspapers. The Sunday Telegraph, said the satellite broadcaster will report on Wednesday it has added more than 170,000 new subscribers in the last three months of 2004, beating consensus forecasts of 150,000 additions.

BSkyB is chasing a target of 8m subscribers by the end of 2005, up from 7.4m at the end of the previous quarter, and 10m by 2010. Citigroup predicts a rise of 108,000 subscribers taking the Sky Plus personal video recorder service, taking the total close to 600,000.
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Rivals for Adelphia?

US papers say Kohlberg Kravis Roberts and Providence Equity Partners, the US private equity groups, are planning to make a joint bid for all of Adelphia, the bankrupt cable company.

Adelphia, whose creditors say should be sold for at least $17.5bn, set a deadline of this week for offers, either for the whole company or for each of seven clusters of assets. Time Warner and Comcast are also expected to put forward a joint bid for the whole company .. The two companies worked together last year to become part owners of PanAmSat, the satellite operator that is already considering an initial public offering.
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Digital music: a brand phenomenon

iPod has beaten Google as the world's most influential brand in a Brandchannel poll of industry professionals. The survey measures the impact of companies on people's lives.

The digital music market accessories market is expected to grow to $750m this year, from $250m last year, with iPod accessories including cases, adaptors and speakers thought to account for around 85% of that figure, according to leading accessory maker Belkin. Apple is encouraging firms to develop iPod accessories to help sustain demand for the popular gadgets.
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NTT StarHub link

NTT DoCoMo and StarHub Ltd., Singapore's integrated info-communications provider, jointly announced a strategic partnership under which StarHub will launch i-mode services exclusively in Singapore by the fourth quarter of this year. Under the DoCoMo-StarHub agreement, StarHub will offer i-mode services over
both its 2.5G and 3G networks.

Commenting on the alliance for mobile communications in Singapore, Terry Clontz, President and CEO, StarHub, said: "We are extremely delighted to become the exclusive provider of i-mode services in Singapore, enabling us to further expand our extensive suite of mobile content and applications. With the deployment of i-mode, mobile users can look forward to enjoying yet another world-class, premium service offering by StarHub."
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DISH hits 11m

EchoStar announced that its DISH Network satellite TV service has passed the 11 million customer milestone. In the last five years, DISH Network has added more than 7.6 million net new customers.

"We are pleased that one out of every 10 U.S. households now subscribes to DISH Network, an achievement that took just over eight years," said Charles Ergen, chairman and chief executive officer of EchoStar.
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Verizon chooses MSTV

Verizon announced that Verizon will use the Microsoft TV platform for the commercial rollout of Verizon's FiOS TV service, planned for later this year.

The Microsoft TV platform will support high-definition television, digital video recording and on-demand programming offered by Verizon on the FiOS platform. In addition, it will provide FiOS TV customers with an interactive programming guide that is attractive, intuitive and easy to use. Verizon and its third-party partners will use the Microsoft software to add advanced applications for future FiOS TV services, differentiating Verizon in the marketplace and bringing consumers the benefits of voice, video and data convergence.

"With FiOS TV, Verizon will be able to offer its customers more channels, more choices and great value," said Bob Ingalls, president of Verizon's Retail Markets group. "The Microsoft TV platform not only provides us with advanced digital TV capabilities that are designed to serve the millions of Verizon subscribers we ultimately expect will choose FiOS TV, but it gives us virtually unlimited potential to evolve our interactive services into the most seamlessly integrated offering in the industry."

The Microsoft TV platform will work in parallel with Verizon's iobiSM service delivery platform, which allows information to be shared across many different networks, applications and devices.
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RadioScape expanding

RadioScape has announced that it is expanding its business to include the direct supply of its award winning DAB modules. Until now, the company licensed the designs for these modules to third party manufacturers who built and supplied the modules to the radio OEMs.

Orders will now be placed directly with RadioScape who will control the supply chain right through to delivery to the customer. It says this will enable significant savings to be made on the costs of the modules that can be passed on to customers. New modules can also be brought to market far faster. The manufacturing will be done by a subcontractor in China, Nam Tai Electronics Inc.

Meanwhile Texas Instruments is working with RadioScape to develop the necessary hardware and software to support for Digital Radio Mondiale (DRM). TI will supply the necessary digital signal processor (DSP) along with RadioScape's software radio technology.
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Amino Communications expands distribution

Amino is partnering with a leading South African distributor, NuLAN Multimedia. The company will supply IPTV set-top boxes from Amino's AmiNET range and will offer rapid product delivery and local support.

"IPTV is a global phenomenon which has sparked a great deal of interest in emerging telecommunications markets around the world," noted Bob Giddy, CEO, Amino. "Our distribution partnerships at the heart of these markets will allow us to better serve the growing current and future demand for digital TV services and allow us to provide high levels of technical support to customers and end-users."
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RTD new DTT channels with DigiSoft

Reti Televisive Digitali (RTD) has launched two new Digital Terrestrial TV (DTT) channels and new MHP interactive TV (iTV) applications and services based on the DigiHost platform from Irish iTV software company DigiSoft.TV.

RTD already provides 24-hour coverage to an area of Italy from Lombardy to Milan, Como, Varese and Pavia, with a population in excess of five million people. The MHP applications RTD have developed in conjunction with DigiSoft, and will be launching using Digisoft's DigiHost iTV management platform.
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Monday 31st January to February 4th 2005


FCC drops ownership appeal
Ofcom eyes net regulation?
Homechoice reaches 15,000
Microsoft strong Q4
Mixed fortunes for MNOs
Tandberg first MPEG-4 HD deal
EuroNews, European Comment show

FCC drops ownership appeal

The US Federal Communications Commission has decided against appealing to the Supreme Court over a ruling that put on hold regulations that would have allowed media conglomerates to control larger market shares.

The FCC had tried to ease media ownership restrictions. But the US Court of Appeals said the agency failed to sufficiently justify the limits it set. Newspapers planned to challenge whether the rules were constitutional, the FCC official said, and thus the agency did not want to join in that effort and potentially undermine all of its regulations limiting media ownership.
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Ofcom eyes net regulation?

Lord Currie, chairman of Ofcom, said at a debate organised by the Internet Service Providers' Association (ISPA), he did not rule out the possibility of regulation. "The challenge will arise when boundaries between TV and the internet truly blur and then there is a balance to be struck between protecting consumers and allowing them to assess the risks themselves.”

Head of BT entertainment division Andrew Burke, spoke about the possibility of creating content for all platforms. He said “if content is on-demand, consumers have pulled it up rather than had it pushed to them, then it is the consumers' choice to watch it. There is no watershed on the net".

In fact, Internet service providers have long claimed no responsibility for the content they carry on their servers since the Law Commission dubbed them "mere conduits" back in 2002. This defence does not apply if they have actual knowledge of illegal content and have failed to remove it.

Richard Ayers, portal director at Tiscali, said there was little point trying to regulate the internet because it would be impossible. Huge changes are afoot in 2005, he predicted, as companies such as the BBC offer TV content over the net.
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Homechoice reaches 15,000

Video Networks has signed up 15,000 customers to its Home Choice on-demand television and high-speed internet service and says it will double the number of households in London that can receive its services by June.

Home Choice is available to 1.2m homes in London, all in areas where the company has added equipment and dedicated fibre lines to BT's infrastructure to deliver television, telephone and high-speed internet services via a subscriber's telephone connection into their TV set.

By June, 2.4m homes are expected to be able to subscribe. The company claims Home Choice is already taking a 20% share of new subscribers in London against AOL Broadband, Wanadoo and BT Yahoo!
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Microsoft strong Q4

Microsoft has reported better-than-expected final-quarter figures on the back of strong global PC and server computer sales, with recoveries in the software giant's video games and internet sectors.

Total revenues were $10.82bn, an increase of almost 7% from the equivalent 2003 quarter, with net income up to $3.46bn. Microsoft's home and entertainment division reported its first profit, of $84m, compared to a loss of $397m the previous year. The mobile and embedded devices division reduced its losses to $4m, (2003: $110m), with revenues up 44%.
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Mixed fortunes for MNOs

T-Mobile added 1.9m net new customers worldwide in Q4 led by growth in the US, but saw a slowdown in growth at home in Germany. The Deutsche Telekom company signed up 113,000 new customers in its domestic market, equating to growth of 2.8%, losing ground on rivals. Vodafone, mmO2 and E-Plus which have all reported bigger gains.

US MNO Verizon reported strong demand for its mobile services as it booked Q4 net profits of $3.04bn, against a $1.46bn loss a year ago, with sales growing 6% to $18.3bn. Verizon Wireless added 1.7m net new customers in the period.

Japanese MNO KDDI reported demand up for 3G services as its group profit doubled year-on-year to $739m in the third quarter, on sales up 0.7%. KDDI lowered its full-year forecast in part because of a forthcoming law in Japan banning mobile phone use while driving.
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Tandberg first MPEG-4 HD deal

TANDBERG Television announced that it has received an order, valued in excess of $9M, from a leading North American satellite broadcaster.

The contract is the world’s first for an MPEG-4 AVC HDTV video headend and will see TANDBERG Television deploy its EN5990 encoder within fully redundant systems complete with its Reflex statistical multiplexing software. TANDBERG Television has developed the EN5990 to enable broadcasters to respond to the increased consumer demand for more HDTV programming. By using the flexibility and bandwidth efficiency of MPEG-4 AVC the bandwidth required for the real-time delivery of High Definition images can be halved compared to traditional MPEG-2 solutions.
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EuroNews, European Comment show

Launching this month "Comment" is a new programme that will use a combination of TV, print and on-line channels, along with face-to-face events, to encourage interactive dialogue about issues at the heart of the news. Broadcast 6 times per day, in EuroNews' seven broadcast
languages, Comment will bring viewers a topical news story for debate at a dedicated web forum.

The most popular "Comment" of each week will feature in European Voice where a quarter page Comment section will feature the lead topic and encourage readers to visit the web forum and have their say on key issues.
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