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Friday 20th January 2006


C4 drops iTV
Murdoch: mobile TV model uncertain
Digital Plus aims for 2.5 million subs in 2008
TDC: national multimedia network
Sky Guide Personalised Listings
Disney sells 1.5m downloads
Blinkx signs UKTV
Magicweb licenses server




C4 drops iTV


Channel 4 has abandoned interactive TV programming. C4's U-turn is a major blow to the iTV industry, which is working hard to convince broadcasters to invest more in using red button services.

The channel has pulled all interactive applications across its portfolio of TV channels after deciding that the technology is too poor to play a role in its long-term future. Speaking to NMA, chief executive Andy Duncan called interactive TV programming, "very slow and very basic. Frankly, red-button technology is starting to look increasingly clunky. It's not particularly important for Channel 4. We don't find it a particularly great way to deliver our remit or to make money."

The decision to pull out of iTV programming means doubts over Channel 4's red-button advertising business, which has been forced to raise its prices by a further 10% in an attempt to boost revenue. "We'll continue to provide an advertising service while there's still a market for it," said Duncan. "In terms of our own initiatives, we're categorically saying that interactive TV is not a priority and we're going to focus on other areas."

Among those areas appears to be digital radio. Duncan is expected to announce a big push into digital radio. Duncan is understood to be keen to make a joint bid for the national digital radio multiplex which is to be put up for auction by Ofcom.
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Murdoch: mobile TV model uncertain

The business model for television over mobile phones is still unclear, according to James Murdoch, who said “we don’t know yet” which technology, business model or content would work best.

The BSkyB chief executive’s told the FT that BSkyB, had been “encouraged” by the early response to its mobile services on Vodafone where more than 5m streams of live television had been accessed since it launched in November. He said: “Let’s not expect any one device... to be the Swiss Army knife of mobile content. They all do different things, and they are all changing fast.”
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Digital Plus aims for 2.5 million subs in 2008
From David Del Valle in Madrid

The Sogecable-owned digital DTH platform, Digital Plus, plans to reach 2.5 million subscribers in 2008 with an ARPU of E 47 to E50. Currently, the company has 1.8 million clients with an ARPU of E 46.9.

To that end, the platform has launched a full frontal assault on the pay-TV market to capture subscribers and reduce the churn rate by introducing new TV packages, cutting prices and implementing new subscription models.

Sogecable also plans to take advantage of the synergies between Digital Plus and its free to air channel Cuatro to raise its EBITDA over 30 per cent in the next two years. The group has announced that the commercial channel Cuatro will reach break even in 2007. For 2006, the channel plans to reach an average audience share of 7 to 8 per cent in comparison with its current share of 5 per cent.
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TDC: national multimedia network

Denmark’s TDC is launching a wide-ranging expansion programme to transform the telecom network into one large national multimedia network in the course of a few years. "We aim to create Europe's most modern access network to maintain and expand our position as the most significant provider of broadband services in the Danish market. In the longer term, it is our ambition to become the leading provider in the Nordic market," says Kim Frimer, President of TDC Solutions.

TDC's multimedia network connects existing technologies such as copper, fibre, coax, and mobile networks as well as wireless networks in one total network, which will be able to provide more than four out of every five households with HDTV, Internet access, telephony, etc. Broadband speeds will be as high as 50 Mbps, irrespective of whether the households access is based on a copper or fibre cable.
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Sky Guide Personalised Listings

Sky launches today improvements to its electronic programme guide, Sky Guide. The upgrade, the most significant since the launch of Sky digital in 1998, is intended to make it even easier for viewers to navigate the 500 plus channels now available on digital satellite.

Now Sky digital customers will be able to create their own personalised grid of their favourite 50 channels for the first time. When a viewer presses the blue key on the Sky remote from within the “TV Guide” section of Sky Guide they will be able to see full seven-day TV listings for all of their chosen channels at a glance.

The Sky Guide upgrade will be rolled out automatically to more than eight million Sky customers from today and will take up to the end of February to complete.
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Disney sells 1.5m downloads

The Walt Disney Co. has sold 1.5 million digital downloads of such TV titles as "Lost," and "Desperate Housewives" through Apple's iTunes store, and is seeking iTunes competitors to further such distribution. "Other companies with on-demand products will feature some of our content in the near future," chief financial officer Tom Staggs said. While the iTunes initiative "has not been a giant mover in terms of the bottom line," Staggs said, it is "an important catalyst for where the business is going." He said that Disney will remain "platform agnostic."
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Blinkx signs UKTV

Search engine Blinkx, has announced a partnership deal with UKTV. The agreement will make online clips from UKTV Style, UKTV Style Gardens and UKTV Food available and searchable at www.blinkx.tv. Suranga Chandratillake, CTO and Founder of blinkx, said: “Partnering with UKTV adds hundreds of hours of sought after and useful entertainment to blinkx.tv.”
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Magicweb licenses server

Magicweb Inc. announced it has licensed Venture Net Capital Group of California to sell, distribute and service their EnterVision Internet Broadcast server and software package. This is the first of many such agreements Magicweb expects to sign with distributors in 2006.
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Thursday 19th January 2006



Comcast: ads on VOD
Spain: Telefonica breaks into the DTT market
New comms chief for ECCA
DSG profits down
Yahoo down on Wall St expectations
ITV to buy TV3?
Sony Ericsson up on Walkman phone
Canada ready for satellite radio
Siemens joins MoCA



Comcast: ads on VOD


Comcast is getting together with a trainer brand and a fitness guru to launch Exercise TV, a VOD channel with embedded ads. New Balance, the footwear maker, will insert its products and logo in and around the programmes, initially a selection of 90 fitness episodes.

The other partner is Jake Steinfeld, a leading producer of fitness programming, who says the network will also be made available to Time Warner Cable.

Matt Strauss, vice president for programming and content development at Comcast, said: "Everyone's trying to find the economics of on-demand when 95 percent of it is given away for free. What we're seeing is this new technology opening the door to develop new forms of content and brands."

New Balance declined to disclose what it was investing in the channel other than saying it was a "multimillion dollar, multiyear deal." Comcast will own a controlling stake.
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Spain: Telefonica breaks into the DTT market
From David Del Valle in Madrid

Telefonica's subsidiary, Telefonica Servicios Audiovisuales (TSA), has reached an agreement with broadcasting agency Axion to carry and transport DTT signals on a national, regional and local scale.

This puts Telefonica in direct competition with Abertis Telecom (Retevision), which currently has a dominant position in the carriage of TV signals in the Spanish broadcasting market. For TSA, the agreement is the result of "our strategy to improve and complete our product porftolio to become a key provider in the TV market".
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New comms chief for ECCA

The European Cable Communications Association (ECCA) announced that Toon Diegenant has been appointed as Head of Communications.

Diegenant has held various management positions within Liberty Global. He started his career in the cable industry in 1997 with UPC Belgium where he developed the company’s broadband Internet services. Over the last 5 years, Toon Diegenant has been Manager Corporate Communication and spokesperson for Liberty Global in Europe.

Bernard Cottin, President of ECCA said: “We are extremely happy that Toon decided to join ECCA. He is very experienced in communications and brings with him a strong knowledge of the European cable industry.”
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DSG profits down

Dixon Stores Group, which through Dixons, Currys and PC World dominates media device sales in the UK, saw half-year profits sink to £106m (E153m) from £133m a year ago.

This was despite a busy Christmas with sales up 2% for the period and the group said it remained "cautious" about the outlook for the coming months.
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Yahoo down on Wall St expectations

Yahoo results failed to meet market expectations with a post-exceptionals net profit of $247m for its fourth quarter. Revenues were up 39% to $1.5bn but aided by the one-off gain of taking a 40% stake in Chinese firm Alibaba.com.
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ITV to buy TV3?

UK’s ITV is being tipped to take a controlling stake in the Republic of Ireland's only commercial terrestrial TV broadcaster, TV3, after CanWest, put its stake up for sale.
Both firms own 45% of TV3, which launched in 1998 and features many ITV shows. ITV is understood to have first refusal on CanWest's TV3 stake under an existing shareholder agreement.

Republic of Ireland-based sports pay-TV outfit Setanta and UTV, the ITV franchisee for Ulster, have also been tipped as possible bidders for CanWest's TV3 stake.
CanWest said it was selling its TV3 stake, thought to be worth around £70m (E100m), in a move to reduce its debts.
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Sony Ericsson up on Walkman phone

Sony Ericsson, the world's fifth-biggest mobile phone maker, said it had a record fourth quarter and reported profits ahead of forecasts on the back of demand for handsets with cameras and music players. The firm expected global handset sales to rise 10 percent in 2006 from an estimated 780 million phones in 2005 and to be able to maintain profit margins.

Business was buoyed throughout the second half of 2005 by sales of a high-resolution 2-megapixel camera phone and the Walkman phone, based on Sony's brand of portable music players. Fourth-quarter pretax profit rose to E206 million up from E140 million a year ago. The profit for the year was E514 million up from E486 million
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Canada ready for satellite radio

A study by Decima Research found that satellite radio has become widely known to Canadian consumers. The survey found that more than three-quarters of respondents say they are aware of satellite radio. Decima said 6 percent of Canadians surveyed say they would be likely to subscribe within the next year at a price of $13 per month. As for services, Sirius Canada appears to hold an early advantage in terms of current and potential market share over XM Canada.
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Siemens joins MoCA

Siemens Home and Office Communication Devices, a market leader in DSL customer premises equipment has joined the Multimedia over Coax Alliance (MoCA). Participation of Communications Devices is expected to help drive adoption of coax as the delivery medium for networking of home digital entertainment.
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Wednesday 18thJanuary 2006

Pace disappoints
Motorola acquires Kreatel
Mobile TV trial reveals strong consumer interest
Google buys radio ad firm
ITV continues with Narrowstep
Scopus Completes Massive Russian Deployment



Pace disappoints

The UK set-top box maker blamed delays on two important US contracts for losses in its first half – and warned the delays could continue. The operating loss to December 05 was £8.9m (E12.8m) against a £4.7m profit last year, on sales that slid to £78.9m from £150.5m period on period. The company also absorbed £970,000 of restructuring costs.

Pace has issued three profit warnings since early September, with the latest statement in December warning its 2006 earnings before tax and exceptional items were unlikely to exceed breakeven point. The difficulties centre on US contracts with Comcast and DirecTV, won in May and June respectively. Delivery on the contracts has been delayed by changing specifications and industry-wide component shortages. The company warned: "A number of risks in completing the engineering development for the US shipments still remain and the group is committed to substantial orders of components to fulfil its delivery schedules and to provide a level of protection against possible component shortages."

The company said revenues were expected to improve "significantly" in the second half due to shipments growth in the US, Germany, the Netherlands, Australia and New Zealand. However Pace cautioned this would be "offset somewhat as in the UK we expect units to continue to decline in the short term". Worldwide sales and marketing director Neil Gaydon pointed out that the company had changed its strategy from being a UK-focused company with a limited product range to one with both a broader product spread and geographic coverage. "We’re working with the major pay-TV players: Liberty Communications, News Corp and US cable," he added.
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Motorola acquires Kreatel

Motorola is to acquire Sweden’s Kreatel Communications a developer of IPTV based digital set-tops. Terms of the deal were not disclosed.

Kreatel’s Linux-based solution extends into the application and middleware layers, allowing it to be used with a broad set of middleware solutions. Kreatel’s customer base includes such major service providers as Telefónica, TeliaSonera and KPN.

Motorola sees a flexible set-top platform as a natural complement to its’ end-to-end digital video solution, and addresses the growing need for IPTV based digital set-tops. "Combining Motorola and Kreatel’s strengths is immensely attractive to green field video networks around the world and provides a critical solution as service providers evolve their video networks in the future," said Dan Moloney, president, Motorola Connected Home Solutions. "Motorola will have a flexible IPTV portfolio that addresses the real challenges faced by service providers worldwide as they build and evolve their networks."

"Current Kreatel customers – and others looking for a strong, flexible solution – will now achieve the benefits of working with a global leader in digital video," said Lars Bengtsson, CEO, Kreatel. Kreatel’s management team and employees will remain based in Linköping, Sweden, and be integrated into the Motorola Connected Home Solutions business.
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Mobile TV trial reveals strong consumer interest
From Colin Mann in London

Interim results from the trial of multi-channel broadcast TV to mobile handsets in the UK city of Oxford have revealed a high level of consumer interest in a commercial Mobile Broadcasting service.

The first phase results from the Oxford Mobile TV trial, a partnership between transmission specialist Arqiva and cellco O2, which offers 24 hour, live access to 16 TV channels, show that 83 per cent of trialists are satisfied with the end-to-end service provided. In addition, 76 per cent of trialists indicate that they would take up the service within 12 months. Results also indicate that trialists are choosing to access TV on their mobiles for an average of 23 minutes per session, with one to two sessions per day.

Demand is high in the morning and in the early evening, with viewers using the service mainly in the home, at work and on the daily commute. For 31 per cent of trialists, the trial has given them their first access to multi-channel TV not currently available to them on their normal TV – which Arqiva and O2 suggest represents the heralding of mobile broadcast's role in bringing digital TV services to the mass market in the UK.

Trialists also indicated that they are looking for some made for mobile programming, and even some long-form content (e.g. movies) is proving suitable for watching on mobile handsets. Demand for additional multi-media services is high including digital radio, interactive services and 'live' links to channel web-sites. Seven out of 10 trialists would like to have digital radio channels included in a commercial service.

Hyacinth Nwana, Arqiva’s managing director, Mobile Media Solutions, said the trial had proved there was a market for mobile broadcasting and that the partners were looking to make it happen "with the collaboration of the whole industry."

Mike Short, VP, R&D at O2, said that it was clear that you have to engineer correctly to ensure an acceptable TV experience. "It’s about more than just the size of the screen," he noted, adding that ‘Personal TV’ was a more apt description of the way the service would develop.

Arqiva and O2 expect to announce final results in the spring of 2006.
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Google buys radio ad firm

Google is buying dMarc Broadcasting Inc., a radio advertising firm, for $102 million in cash and additional payments that could be worth up to $1.14 billion if performance targets are met over the next three years, reports the WSJ.

dMarc's technology connects advertisers directly to radio stations. Its software helps advertisers purchase and track radio ads and lets broadcasters automatically schedule ad spots. Google said it plans to integrate dMarc's technology into its AdWords advertising programme. "Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media," said Tim Armstrong, Google vice president of advertising sales.
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ITV continues with Narrowstep

ITV announced that it would continue using Narrowstep’s technology to broadcast its new local broadband TV services following the extension of the three month trial to April 2006. ITV Meridian has decided to expand ITV Local to cover the whole of the South and South-East and for the first time, all three editions of Meridian Tonight and local weather forecasts will be free to view for anybody with a home PC or Mac computer and a broadband connection by logging onto www.itvlocal.tv.
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Scopus Completes Massive Russian Deployment

The project, worth multi-million dollars to Scopus, puts Scopus' Platforms at the heart of RTRS' National Direct-to-Home Digitisation Project

Scopus Video Networks has successfully supplied and installed various IRD receiver-decoders for the fourth stage of Russia's RTRS (Radio Television Republic Network) digitisation project. Scopus, through its distribution network in Russia, has completed the first three phases of the project and installed platforms across thousands of sites traversing the entirety of Russia.

RTRS was established by the Russian government in 2001 to improve the Television and Radio broadcast networks in Russia, and to create a joint production-and-technological unit based on the State Television and Radio Broadcasting networks. The digitisation process of RTRS is expected to reach completion over the next few years.
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Tuesday 17th January 2006

Springer out, Premiere in?
Bertelsmann to join Quaero
Digital Plus cuts PPV football fees
Cisco going consumer
Virgin confirms NTL bid
Record year for video games
BT signs more TV content
Beijing Netcom new IPTV test
Teleste wins Brutélé order

Springer out, Premiere in?

The ProSiebenSat.1 on-off sale saga continues. Reports now suggest Springer will reverse its offer to sell one of the main TV stations and back out of the deal after all. Meanwhile, Georg Kofler, CEO of Premiere, told London’s Business newspaper that he would be interested in bidding if Springer dropped out.

Springer said that it withdrew the station sale proposal because it couldn't meet the Federal Cartel Office's demand that it sell the ProSieben channel before completing the purchase of the group. Springer said it now expects the cartel office to block the deal and will consider legal and other options.

Springer first bid E4.15 billion for ProSiebenSat.1 in August.
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Bertelsmann to join Quaero

Bertelsmann is close to taking the role of German leader on the project to create a multimedia search engine to challenge US dominance. Quaero – taken from the Latin for "I search" – has been trumpeted as a Franco-German response to "the global challenge posed by Google and Yahoo".

It is part of an attempt to close the research and development gap between Europe and the US and Japan. Funding on the French side of up to E150m will come from the new Agency for Industrial Innovation. The German contribution was stalled by the elections but the Federal Ministry of Economics and Technology is assembling potential members at a meeting in Berlin. Heinrich von Pierer, the chairman of Siemens is playing the same co-ordinating role. The main proposal seeks to create a search engine for the general public that can sort through audio, images and video as well as text. Quaero would incorporate techniques to transcribe audio automatically as well as image and video recognition.
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Digital Plus cuts PPV football fees
From David Del Valle in Madrid

Sogecable-owned digital DTH platform, Digital Plus, has cut by half its pay-per-view football fees in an attempt to capture more subscribers in the stagnant pay-TV market. So, the Abono Futbol + package will deliver the soccer channels Canal + Total and Digital + Total with four football matches of the Spanish League at E24 per month. Currently, each match costs E11.29.

The platform has reshuffled its programming line-up, with the launch of new packages (Canal +Digital, Canal + Estrenos, Canal + Futbol, Canal + Infantil, Canal + Documentales, and Canal + Joven), aimed at fostering subscriptions and competing with other pay-TV offers through ADSL, such as Imagenio.
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Cisco going consumer

Cisco Systems plans to expand its share of the consumer electronics market by selling phones, radios and home theater equipment. It believes it can take a slice of a new market for devices that link to the Internet, the FT said.

"Consumer electronics companies have been able to compete on a stand-alone device, but the dynamics of the market are changing," Cisco's Chief Development Officer, Charles Giancarlo, said in an interview. "The Internet and new networking requirements are enough of a disruptor for us to enter a new market."
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Virgin confirms NTL bid

Virgin Mobile confirmed it was in "preliminary discussions" with NTL following a revised £961m (E1.39bn) bid. Virgin said, "following a revised approach from NTL, Virgin Mobile is in preliminary discussions…which may or may not lead to a formal offer ". In December Virgin Mobile NTL's initial 323p-a-share approach, which valued the firm at £817m.
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Record year for video games

Video games publishers enjoyed a record-breaking year in 2005 in the US according to NPD, the leading provider of statistics for the industry.

Strong growth in the portable games market, offset the declines in the console market. For the second consecutive year, sales of portable titles exceeded $1bn, reaching $1.4bn in the US. The portable hardware, software and accessory categories recorded dollar increases of 96 per cent, 42 per cent and 88 per cent respectively over the previous year. Overall, sales of console and portable hardware, software and accessories reached $10.5bn, 6 per cent higher than the $9.9bn generated in 2004 and beating the record of $10.3bn achieved in 2002.
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BT signs more TV content

BT has signed a further three content deals securing partnerships with National Geographic Channel, as well as children's TV specialists Hit Entertainment and Nelvana. This latest round of deals comes after BT announced a range of long-term content partnerships with BBC Worldwide, Paramount and Warner Music Group.

"Any service of this kind is only as good as the content it offers, which is why we've signed these significant entertainment deals," said Dan Marks, chief executive of TV services for BT Retail. BT is planning to launch its TV-over-broadband service later this year. The service will combine access to digital TV channels through the aerial with broadband-enabled video on demand.
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Beijing Netcom new IPTV test

Following an IPTV test in Harbin, Beijing Netcom has begun to issue RFPs to IPTV equipment maker inviting them to participate in its IPTV test in Beijing area. It plans to build an IPTV trial network that can hold 50,000 users and support 10,000 online users' use of IPTV applications.

Meanwhile China's Ministry of Information Industry (MII) has started discussions with the State Administration of Radio, Film and Television (SARFT) on the relevant standards and regulations for IPTV development. It is expected that rules for IPTV will be relaxed in 2006.
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Teleste wins Brutélé order

Teleste has received a E4m order from Belgian cable operator Brutélé. The order covers the material needs for the upgrade of Brutélé's networks in the city of
Brussels and in the province of Walloon. The order consists of Teleste's AC amplifier/node platform and DVO optical products. The upgrade is intended for increasing the upstream and downstream capacity and will include replacement of
the existing equipment together with further optical re-segmentation of the network.
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Monday 16th January 2006

NTL closes on Virgin deal
Apple snatches 'Mobile Me'
Pipex will trial Wimax
Shaw profits soar
Samsung profits rise 40%
LG Philips profits jump
IBM, Sony and Toshiba renew chip pact

NTL closes on Virgin deal

Virgin Mobile has conditionally approved a new offer from NTL priced at 372p, up from the original 323p. The new price values the company at £939m (E1.36bn). Richard Branson, who owns 72% is still set to receive a lower price than the minority holders. He will own about 14% of the enlarged group.

The tie up would allow NTL to offer a mobile telephone service alongside its own cable TV, internet and fixed-line phone offerings -- all under the Virgin brand. NTL already markets and sells Virgin.net Internet services through a licensing agreement with Branson.

NTL's chances of succeeding with its increased offer will depend on the reaction of Virgin Mobile's two biggest institutional shareholders, Morley Fund Management and Fidelity.
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Apple snatches 'Mobile Me'

Apple Computer has filed to trademark the phrase "Mobile Me" for use in a wide range of businesses, furthering speculation it could introduce an iPod phone.

Apple made the filing with the U.S. Patent and Trademark Office on January 5. The areas that the trademark covers include computing devices, mobile devices, and mobile services including digital music, video, games, e-mail, and messaging across Internet, intranets, extranets, television, cellular, and satellite networks, the filing shows.
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Pipex will trial Wimax

Pipex one of the two UK national Wimax licence holders (along with PCCW), is starting consumer trials in the Midlands.

Though other players, including BT, are experimenting with the service, they are forced to do so through unlicensed means, or so-called "light licences", which do not offer the same consistency of service and face potential interference. Although a new batch of WiMax-suitable spectrum is set to be auctioned by Ofcom, the regulator, it is unlikely to take place before next year.
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Shaw profits soar

Shaw Communications Inc., Canada's second-largest cable-television company, said its first- quarter profit rose 69 percent as it signed up more customers. Net income in the period ended rose to C$75.7 million from C$44.7 million, or 19 cents, a year earlier. Service revenue rose 9.8 percent to $589.5 million.

Shaw has been selling more digital products including video- on-demand and telephone services after upgrading its cable systems. Chief Executive Officer Jim Shaw has also been able to attract basic cable and high-speed Internet customers with the additional services.
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Samsung profits rise 40%

Samsung reported a 40 per cent rise in net profits in the fourth quarter, as surging demand for flat screens and memory chips used in mobile phones and MP3 players spurred the first rise in profit for five quarters.

Presenting an upbeat outlook for the year ahead, the South Korean electronics giant said it earned net profits of $2.6bn in the three months to the end of December, up from $1.7bn in the previous quarter. "Despite challenging market conditions, we achieved strong profit growth in the fourth quarter driven by healthy results in our key business units and overseas," said the company.
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LG Philips profits jump

LG.Philips LCD the world's second-largest maker of liquid-crystal displays, reported fourth- quarter profit jumped ninefold, beating analysts' estimates, on demand for flat-panel televisions. Net income in the fourth quarter rose to $337 million.

LG.Philips is benefiting as lower prices for flat-screen TVs and sporting events including the soccer World Cup spur demand in the $42 billion LCD industry. The company also cut production costs, helping it cope with a glut of computer monitor screens.
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IBM, Sony and Toshiba renew chip pact

IBM, Sony and Toshiba, whose "Cell" processor will feature in the next version of the Sony PlayStation, have extended their partnership to develop semiconductors.The three companies said they had begun a new five-year phase of their technology alliance. Cell is designed for a range of appliances from high-end workstations to consumer electronics products.

The companies said the next step would be to work together on fundamental research on advanced process technologies, as transistor widths fell from 90 and 65 nanometres to 32 nanometres and beyond.
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