Ted Hearn (2.21.07)
1992 Law, Extended in 2002, Set to Expire Oct. 5
Key features of federal program-access rules are scheduled to expire Oct. 5 unless extended by the FCC. The rules were extended for five years in 2002 in a ruling narrowly supported by FCC chairman Kevin Martin, who was a regular FCC member at the time. In recent weeks, Martin has indicated his support for a second extension.
Under a 1992 law, the FCC has required cable companies to sell satellite-delivered programming in which they have an ownership interest to competing multichannel-video-programming distributors. Thus, Time Warner has been forced to sell CNN and HBO to such competitors as DirecTV, EchoStar Communications’ Dish Network and Verizon Communications’ FiOS TV service.
Thursday, February 22, 2007
Future of Net phone firm Vonage hangs in balance
Leslie Cauley (2.20.07)
http://www.usatoday.com/printedition/money/20070220/vonage.art.htm
Verizon is taking Vonage to court for patent infringement on 48 counts.
Vonage claims Verizon's patents are too broad for any company to work around and still remain in business. Brooke Schulz, a Vonage spokeswoman, said Monday that Verizon's claims are baseless. "This is about Verizon trying to stifle competition," she said. "We have not infringed on their patents, period."
By the end of 2006, there were 8.6 million VoIP users in the USA, estimates JupiterResearch. By 2010, the number is expected to reach 22.5 million. Many of those customers are coming from traditional local phone providers such as Verizon and AT&T.
http://www.usatoday.com/printedition/money/20070220/vonage.art.htm
Verizon is taking Vonage to court for patent infringement on 48 counts.
This could stifle growing VoIP companies and have an impact on service and innovation in the future.
Vonage claims Verizon's patents are too broad for any company to work around and still remain in business. Brooke Schulz, a Vonage spokeswoman, said Monday that Verizon's claims are baseless. "This is about Verizon trying to stifle competition," she said. "We have not infringed on their patents, period."
By the end of 2006, there were 8.6 million VoIP users in the USA, estimates JupiterResearch. By 2010, the number is expected to reach 22.5 million. Many of those customers are coming from traditional local phone providers such as Verizon and AT&T.
William Bosch, a Vonage lawyer offered a prediction: "We think there is an extremely good likelihood this jury is going to find that (the Verizon patents) are invalid, that they never should have been granted in the first place."
Jeffrey Citron, Vonage's chairman and chief strategist, has been subpoenaed to appear as a witness — for Verizon. That has put him, potentially, in the awkward position of testifying against his own company. Vonage is fighting the subpoena, Schulz said.
Don’t Panic. Yet.
Broadcasters, Cable Operators Think They Can Prevent 'Tsunami of Public Outrage’ If Millions of Televisions Don’t Work Two Years From Now
By Ted Hern (2.19.07)
http://www.multichannel.com/article/CA6417227.html
On February 17, 2009, analog signals to TVs will be no more leaving many millions of TVs dark and millions more customers angry.
With this impending deadline, the way people receive TV might go through some radical overhauls depending on government subsidies, and innovations in IPTV, for example.
By forcing TV stations from their analog channels by a specific deadline, the DTV (digital TV) law cleared the way for the FCC to auction off what would become surplus analog spectrum for at least $10 billion, paid by companies, perhaps even cable companies, that want to grab the channels for wireless broadband services. The other channels are to go for free to fire, police and emergency organizations hungry for new frequencies.
One and a half billion dollars will be set aside to subsidize analogue to digital converters, but legislators and broadcasters believe this will not be enough, and many are speaking out against the hard deadline, saying it is too soon.
The other concern is making people aware of the switch date. On Jan. 31, the Association of Public Television stations released a survey showing that 61% of Americans polled “had no idea the transition was taking place.” The cost of this campaign to reach large channel stations to small local radio stations is estimated at 100 million dollars, and manufacturers have been ramping up production of converter-boxes to meet the deadline that is now just under 2 years away.
Wednesday, February 21, 2007
IPTV Market to Surge in Coming Years
Telecommunications Industry News (2.18.07)
http://www.teleclick.ca/2007/02/iptv-market-to-surge-in-coming-years/
The number of households using IPTV worldwide will grow to more than 80 million in 2011, from just 6 million at the end of 2006, according to a Strategy Analytics report, entitled “Global IPTV Forecast: Homes Users, and Subscribers.”
http://www.teleclick.ca/2007/02/iptv-market-to-surge-in-coming-years/
Interesting facts on the predicted use and distribution of IPTV, and further shows the impending bandwith crunch.
The number of households using IPTV worldwide will grow to more than 80 million in 2011, from just 6 million at the end of 2006, according to a Strategy Analytics report, entitled “Global IPTV Forecast: Homes Users, and Subscribers.”
IPTV revenue, however, will see considerably less growth over the same five year period, as many customers are given the service as a free perk with their broadband internet access. The number of paying IPTV customers in 2011 will only be around 40.9 million, the research firm predicts.
“The jury is still out on how much consumers are willing to pay telcos for IPTV,” commented Strategy Analytics vice president and principal analyst, David Mercer. “Most telcos will likely offer customers a mix of free, subscription and pay-as-you-go programming models.”
Strong Brand is Key to Future
Laureen Ong (2.8.07)
http://www.multichannel.com/blog/230000223/post/640006864.html
Laureen Ong argues that brands are becoming increasingly important as they codify attributes, personality, and attributes.
http://www.multichannel.com/blog/230000223/post/640006864.html
Laureen Ong argues that brands are becoming increasingly important as they codify attributes, personality, and attributes.
Shows interesting statistics about viewer habits based on number of channels available.
Recent studies have consistently shown that as the number of choices increase, the number of regularly viewed networks only increases at a fractional rate. It’s somewhat counterintuitive. More competing options actually results in a concentration of consumer choice. According to Nielsen, homes that receive about 75 channels watch less than 16 of them on average, just over 20% of the networks available. What happens when we double the available options to more than 150 channels? The consumer adds only four additional networks to their average viewing, for a total of about 20, or 13% of the networks available to them. These are indeed sobering statistics.
Wednesday, February 14, 2007
Spending Wave Buoys Makers of Network Gear
Bobby White (2.14.07)
http://online.wsj.com/article/SB117142538050108158.html?mod=technology_main_whats_news
New Web Services Spur Phone Firms to Invest In Increasing Capacity
Companies from Australia's Telstra Corp. to AT&T Inc. are buying up new gear to upgrade the "plumbing" that carries voice and data traffic around the globe.
In recent weeks, Cisco Systems Inc. and Juniper Networks Inc. have posted annual sales growth of nearly 50%, among their strongest performances in years.
http://online.wsj.com/article/SB117142538050108158.html?mod=technology_main_whats_news
New Web Services Spur Phone Firms to Invest In Increasing Capacity
Shows increased investment in not only increasing bandwidth capacity, but in alternative solutions to fix the seemingly never-ending demand for broadband. This article also supplies numbers about large telco investment in these technologies.
Companies from Australia's Telstra Corp. to AT&T Inc. are buying up new gear to upgrade the "plumbing" that carries voice and data traffic around the globe.
In recent weeks, Cisco Systems Inc. and Juniper Networks Inc. have posted annual sales growth of nearly 50%, among their strongest performances in years.
The good times look likely to continue for at least a while. Overall, North American telecom companies are projected to spend $70 billion on new infrastructure this year. While that's down from the $110 billion they shelled out during the boom year of 2000, it's up 67% from their 2003 total, according to industry tracker Infonetics Research.
World-wide, spending on new telecom infrastructure is expected to rise to $240 billion in 2008, up 19% from 2005. Moreover, a greater proportion of that spending is expected to be plowed into accommodating capacity-hogging Internet traffic like videoThe new spending telecom providers have earmarked for boosting capacity accounts for a relatively small slice of their capital budgets. But it has provided a crucial boost to Silicon Valley networking companies like Redback. In 2003, Redback, San Jose, Calif., filed for bankruptcy protection. Then, in 2004, Redback introduced a new product called the Smartedge router, a device that helps deliver phone, Internet video and other services through a single "pipe."
Redback's Smartedge router was among the first of the new-style gear. It consolidated functions that control video services and customer management into one box. Juniper, among others, is set to roll out a similar device in coming months. BellSouth network officials who now work for AT&T say they haven't used the Smartedge router to prioritize data traffic, but instead for other capacity-increasing functions.Charter Boasts of Big VOIP Gains
Alan Breznick (2.9.07)
http://www.lightreading.com/document.asp?doc_id=116905&site=cdn&WT.svl=news1_5
Charter Communications Inc. racked up its strongest growth yet in VOIP subscribers during the fourth quarter, even though its IP phone focus has increased its operating and capital expenses.
Like Comcast, Charter expects to run up even higher capital expenditures this year as it continues its nationwide VOIP rollout.
Charter said today it signed up 106,200 VOIP subscribers in the last three months, as opposed to 31,300 customers in the year-earlier period. With the increase, the MSO closed out 2006 with nearly 446,000 IP phone customers.
However, unlike Comcast and others Charter is not seeing consistently stronger subscriber gains for its other cable TV products. The good news there, according to Charter, is that about 75 percent of its annual capital costs were "success-based," meaning the costs were directly associated with adding new customers.
http://www.lightreading.com/document.asp?doc_id=116905&site=cdn&WT.svl=news1_5
Charter Communications Inc. racked up its strongest growth yet in VOIP subscribers during the fourth quarter, even though its IP phone focus has increased its operating and capital expenses.
Demand for VoIP is on the rise.
Like Comcast, Charter expects to run up even higher capital expenditures this year as it continues its nationwide VOIP rollout.
Charter said today it signed up 106,200 VOIP subscribers in the last three months, as opposed to 31,300 customers in the year-earlier period. With the increase, the MSO closed out 2006 with nearly 446,000 IP phone customers.
However, unlike Comcast and others Charter is not seeing consistently stronger subscriber gains for its other cable TV products. The good news there, according to Charter, is that about 75 percent of its annual capital costs were "success-based," meaning the costs were directly associated with adding new customers.
Charter said it expects capex to go up again this year, rising about $100 million to $1.2 billion.
Charter did not disclose specific earnings information, but it will do so on Feb. 28.
Google and cable firms warn of risks from Web TV
By Lucas van Grinsven (2.7.07)
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2
Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.
Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.
Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.
Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2
Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.
This article claims that cable incumbents need not fear telcoms taking over the TV market via internet TV anytime soon. Although cable operators will have to increase investment to match telcom's broadband packages.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.
Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.
Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.
Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.
Eat Your Fiber, San Francisco; Plus, Privacy
By Glenn Flieshamn (2.8.09)
http://wifinetnews.com/archives/007380.html
There is a call among some San Francisco groups to replace the incoming muni Wi-Fi with fiber.
Public Net San Francisco wants the Earthlink deal to be canceled in favor of a publicly owned fiber network that would reach every home. SFLan’s Ralf Muehlen said, “300 kilobits per second is so 1997; it’ll be utterly ridiculous in 2023, which is how long Earthlink’s monopoly will last.” The ACLU also has issues with the privacy aspects of the Earthlink deal. The organization wants more limits and less ambiguity about what information is collected.
http://wifinetnews.com/archives/007380.html
There is a call among some San Francisco groups to replace the incoming muni Wi-Fi with fiber.
More evidence that people recognize Wi-Fi is a supporting element rather than reliable infrastrucutre.
Public Net San Francisco wants the Earthlink deal to be canceled in favor of a publicly owned fiber network that would reach every home. SFLan’s Ralf Muehlen said, “300 kilobits per second is so 1997; it’ll be utterly ridiculous in 2023, which is how long Earthlink’s monopoly will last.” The ACLU also has issues with the privacy aspects of the Earthlink deal. The organization wants more limits and less ambiguity about what information is collected.
Internet Technology
Carol Wilson (2.8.07)
http://telephonyonline.com/broadband/finance/qwest_earnings_iptv_020807/
Another take on Qwest's financial standing and IPTV investment.
The year 2006 was a milestone for Qwest Communications, as the company was able to post its first full year of earnings per share and net income in each of the four quarters, based largely on strong sales of data and Internet services.
Although they aren't agressively seeking out a video network, they are investing in their network. Qwest Chairman and CEO Richard Notebaert told financial analysts that “our facilities, our cable does not require a complete change-out in the last mile. ... We will follow a path where we will continue to upgrade the speeds and you have seen the investment we have made. Currently over 25% of our customers can get 7 Meg. We will continue to run fiber to the node, to the RT [remote terminal]. We are investing in increasing speeds and bandwidth. We aren’t following anybody when it comes to fiber-to-the-node. The RFPs, which were somehow made public, are part of the continuing effort to find if we can get a lower cost on the purchase of that fiber which we are and have been laying.”
“On IPTV, we are watching, we are learning, we are letting other people work the issue and we will benefit from their investment in future technology,” he said. “We believe that with time shift, that you can do on video and with the fact you can get content on demand – if you watch ’24,’, you can pull it down the next day, that’s all part of this.”
http://telephonyonline.com/broadband/finance/qwest_earnings_iptv_020807/
Another take on Qwest's financial standing and IPTV investment.
The year 2006 was a milestone for Qwest Communications, as the company was able to post its first full year of earnings per share and net income in each of the four quarters, based largely on strong sales of data and Internet services.
Although they aren't agressively seeking out a video network, they are investing in their network. Qwest Chairman and CEO Richard Notebaert told financial analysts that “our facilities, our cable does not require a complete change-out in the last mile. ... We will follow a path where we will continue to upgrade the speeds and you have seen the investment we have made. Currently over 25% of our customers can get 7 Meg. We will continue to run fiber to the node, to the RT [remote terminal]. We are investing in increasing speeds and bandwidth. We aren’t following anybody when it comes to fiber-to-the-node. The RFPs, which were somehow made public, are part of the continuing effort to find if we can get a lower cost on the purchase of that fiber which we are and have been laying.”
“On IPTV, we are watching, we are learning, we are letting other people work the issue and we will benefit from their investment in future technology,” he said. “We believe that with time shift, that you can do on video and with the fact you can get content on demand – if you watch ’24,’, you can pull it down the next day, that’s all part of this.”
Qwest Treads Slowly in Fiber Rollout
Roger Cheng (2.8.07)
http://online.wsj.com/article/SB117090418422001834.html
Qwest is cautious to enter fiber market, allowing AT&T and Verizon to set the course. Many believe Qwest doesn't have the financial stability to make the upgrades necessary to be competitive against U-Verse and Fios.
AT&T and Verizon have poured billions of dollars into upgrading their systems to fiber. Verizon is spending $18 billion to connect many of its homes to the fiber-optic network. The company hopes to make FiOS TV service available to 18 million homes out of the 33 million homes in its landline operating area by the end of 2010.
AT&T is spending $4.6 billion to upgrade parts of its network with fiber-optic lines while using software to increase the speed of its network, enabling an Internet TV service called U-Verse. It hopes to make U-Verse available in at least 19 million homes by the end of next year.
Dan Yost, who runs product development and marketing for Qwest, said the company is working to replace copper lines with fiber ones in some markets, though he acknowledged the deployment was "not that extensive" in Qwest's 14-state operating territory.
Qwest has recently sold off assets giving them more financial flexibility to potentially put more dollars toward fiber investment; however for the time being they will still depend on DirecTV for television services and Sprint Nextel for wireless phone services. Most would agree that the push for more bandwidth will force Qwest to invest in upgrades regardless of their financial standing sooner than later.
http://online.wsj.com/article/SB117090418422001834.html
Qwest is cautious to enter fiber market, allowing AT&T and Verizon to set the course. Many believe Qwest doesn't have the financial stability to make the upgrades necessary to be competitive against U-Verse and Fios.
Depending on development area, Qwest's slower adoption of fiber will effect choices of service providers for developers. This also shows the increased spending on fiber for faster and greater content to meet and exceed future demand.
AT&T and Verizon have poured billions of dollars into upgrading their systems to fiber. Verizon is spending $18 billion to connect many of its homes to the fiber-optic network. The company hopes to make FiOS TV service available to 18 million homes out of the 33 million homes in its landline operating area by the end of 2010.
AT&T is spending $4.6 billion to upgrade parts of its network with fiber-optic lines while using software to increase the speed of its network, enabling an Internet TV service called U-Verse. It hopes to make U-Verse available in at least 19 million homes by the end of next year.
Dan Yost, who runs product development and marketing for Qwest, said the company is working to replace copper lines with fiber ones in some markets, though he acknowledged the deployment was "not that extensive" in Qwest's 14-state operating territory.
Qwest has recently sold off assets giving them more financial flexibility to potentially put more dollars toward fiber investment; however for the time being they will still depend on DirecTV for television services and Sprint Nextel for wireless phone services. Most would agree that the push for more bandwidth will force Qwest to invest in upgrades regardless of their financial standing sooner than later.
Thursday, February 8, 2007
Big MSOs Embrace the Evolving Set-Top
By Alan Breznick (2.7.07)
http://www.lightreading.com/document.asp?doc_id=116644
Three of the nation's largest MSOs are introducing set-top boxes which will open the way for more IP-enabled services in the home.
Docsis Set-to Gateway (DSG) set-tops can act as residential gateways, VOIP terminals, and other IP-enabled devices, supporting such new convergence services as video email and caller ID on the TV screen. They also can be used for unicasting, or delivering a unique video stream to each home and even set-top.
Richard Rioboli, VP of product platform engineering for Comcast, said the MSO's embrace of DSG technology is part of the company's drive to standardize different configurations. Without such standardization it would be tough for the company to introduce new cable services and applications quickly on a national basis.
Time Warner, Comcast, and Cox are beginning to introduce OpenCable Application Platform (OCAP)-equipped set-top boxes and TV sets in select markets. The OCAP middleware stack enables cable operators to offer the same interactive and on-demand services throughout the country. Plus, interactive application developers can create a single piece of software to run their applications on many different cable systems.
http://www.lightreading.com/document.asp?doc_id=116644
Three of the nation's largest MSOs are introducing set-top boxes which will open the way for more IP-enabled services in the home.
Docsis Set-to Gateway (DSG) set-tops can act as residential gateways, VOIP terminals, and other IP-enabled devices, supporting such new convergence services as video email and caller ID on the TV screen. They also can be used for unicasting, or delivering a unique video stream to each home and even set-top.
Richard Rioboli, VP of product platform engineering for Comcast, said the MSO's embrace of DSG technology is part of the company's drive to standardize different configurations. Without such standardization it would be tough for the company to introduce new cable services and applications quickly on a national basis.
Time Warner, Comcast, and Cox are beginning to introduce OpenCable Application Platform (OCAP)-equipped set-top boxes and TV sets in select markets. The OCAP middleware stack enables cable operators to offer the same interactive and on-demand services throughout the country. Plus, interactive application developers can create a single piece of software to run their applications on many different cable systems.
Comcast executives plan lab trials to start this winter as well as live OCAP deployments in several undisclosed markets before the end of the year. Meanwhile, Cox has begun testing several interactive TV services in Gainesville. Plans call for expanding the OCAP trial to other Cox cable systems later this year. In those new markets, Samsung intends to try out OCAP-based HD set-top boxes as well.
Rep. Markey Laments State
By Andrew Noyes (2.7.07)
http://njtelecomupdate.com/lenya/telco/live/tb-ZCQL1170792302989.html
In the next few years, House Energy and Commerce Telecommunications and the Internet Subcommittee Chairman Edward Markey wants his subcommittee to "fashion together a policy blueprint" that includes broadband that is affordable and fast, with an open architecture that supports Internet freedom.
The FCC counts as broadband any speed of more than 200 kilobits per second, or one-fifth of one megabit per second, he said. Japanese homes can receive up to 100 megabits per second. In a number of other benchmarks, the United States also trails the United Kingdom, Sweden, Denmark, the Netherlands, Finland, Australia and Canada.
The agenda of Markey's panel in the 110th Congress "will be the unfinished business" that got stuck in previous legislative sessions, he said. The subcommittee will look at strengthening the e-rate program, which subsidizes Internet access in schools and libraries, and will discuss ways that all Americans can get broadband access.
http://njtelecomupdate.com/lenya/telco/live/tb-ZCQL1170792302989.html
In the next few years, House Energy and Commerce Telecommunications and the Internet Subcommittee Chairman Edward Markey wants his subcommittee to "fashion together a policy blueprint" that includes broadband that is affordable and fast, with an open architecture that supports Internet freedom.
The FCC counts as broadband any speed of more than 200 kilobits per second, or one-fifth of one megabit per second, he said. Japanese homes can receive up to 100 megabits per second. In a number of other benchmarks, the United States also trails the United Kingdom, Sweden, Denmark, the Netherlands, Finland, Australia and Canada.
The agenda of Markey's panel in the 110th Congress "will be the unfinished business" that got stuck in previous legislative sessions, he said. The subcommittee will look at strengthening the e-rate program, which subsidizes Internet access in schools and libraries, and will discuss ways that all Americans can get broadband access.
Tuesday, February 6, 2007
Cisco to Phase Out Scientific Atlanta Name
Todd Spangler (2.5.07)
http://www.multichannel.com/article/CA6412207.html?display=Breaking+News
Cisco Systems plans to rebrand all the products under its Scientific Atlanta subsidiary with the Cisco name within the next year.
Initially, Cisco is putting the parent company’s name on Internet-protocol-TV set-tops, but it will eventually rebrand all of SA’s lines as Cisco products -- a process likely to happen in the next 9-12 months, said Wilson Craig, manager of public relations for Cisco’s service-provider segment.
Cisco hasn’t determined yet whether SA will continue to operate as a subsidiary after the rebranding process is completed or whether it will be merged into Cisco’s service-provider unit, SA director of PR Sara Stutzenstein said.
http://www.multichannel.com/article/CA6412207.html?display=Breaking+News
Cisco Systems plans to rebrand all the products under its Scientific Atlanta subsidiary with the Cisco name within the next year.
Initially, Cisco is putting the parent company’s name on Internet-protocol-TV set-tops, but it will eventually rebrand all of SA’s lines as Cisco products -- a process likely to happen in the next 9-12 months, said Wilson Craig, manager of public relations for Cisco’s service-provider segment.
Cisco hasn’t determined yet whether SA will continue to operate as a subsidiary after the rebranding process is completed or whether it will be merged into Cisco’s service-provider unit, SA director of PR Sara Stutzenstein said.
Cisco completed its $6.9 billion acquisition of SA -- which has been one of the cable industry’s top equipment suppliers for three decades -- in February 2006. SA posted $584 million in sales for the quarter ended Oct. 28, 2006.
Cisco inks key rural IPTV deal
Ed Gubbins (2.5.07)
http://telephonyonline.com/independent/news/telecom_cisco_inks_key/
Cisco Systems is vying to become a one-stop shop for rural telcos planning to offer IPTV.
The vendor announced a partnership this week with SES Americom, the satellite video provider that will supply rural telcos with prepackaged video content through a unique deal with the National Rural Telephone Cooperative. Cisco will act as a chief infrastructure supplier and integrator for customers of that offering.
In recent months, Cisco has also voiced an interest in becoming a more intimate strategic partner to carriers, convincing them to standardize their networks on Cisco architecture.
Cisco says it's willing to use other vendors' gear in some cases if individual customers want it. And it will offer two choices of middleware providers: NDS and Siemens. Although VOD is not yet a part of the IP-Prime offering, Cisco expressed an interest in adding its own VOD offerings to the mix in time.Lightspeed's Slow Start
Business Week Online
http://www.businessweek.com/magazine/content/07_07/b4021067.htm?chan=technology_
technology+index+page_more+of+today%27s+top+stories
Despite AT&T proclaiming that it will pump $4.6 billion into building enough fiber-optic cable and supporting technology to reach 19 million homes by the end of 2008, many to believe that AT&T will have a hard time cornering the internet/TV market as soon as they claim.
Technology glitches hobbled the rollout of Lightspeed last year. And though the TV service is up and running in fewer than a dozen markets with prices that undercut cable bills, a growing chorus of rivals, analysts, and engineers are skeptical that the network will offer enough bandwidth a few years from now to handle phone service, high-speed Internet, and multiple streams of high-definition TV.
Other operators have taken advantage of this slow start. Verizon is placing the most ambitious and risky bet. It plans to spend $18 billion—three times as much as AT&T—to lay fiber to every one of the 18 million homes it hopes to cover by 2010. AT&T is laying fiber into neighborhoods but is using existing copper phone lines to carry video the last few thousand feet. As a result, it will cost Verizon $1,750 to connect each home, vs. $450 for AT&T. Despite the higher price tag, ubs Investment Research expects Verizon to produce a return on its investment by 2011. The reason? It believes the Verizon network's higher bandwidth will lure more phone, Internet, and video customers—at higher prices—and thus generate about four times as much revenue as Lightspeed. On Jan. 29, Verizon backed up the theory when it announced that it ended its first full year of operations with 207,000 TV customers, representing 9% of the 2.4 million homes capable of receiving its video service in 2006. Just a few months ago, the company was hoping to finish 2006 with 175,000 video customers.
Doubts about AT&T's video project are fueling speculation it will have to buy one of the two U.S. satellite operators, DirecTV Group Inc. (DTV ) or EchoStar Communications Corp.(DISH ), to accelerate delivery of TV service.
AT&T remain confident in their decision to bet on a system that's more technically complex than Verizon's, arguing it will result in a TV service superior to anything else on the market.
http://www.businessweek.com/magazine/content/07_07/b4021067.htm?chan=technology_
technology+index+page_more+of+today%27s+top+stories
Despite AT&T proclaiming that it will pump $4.6 billion into building enough fiber-optic cable and supporting technology to reach 19 million homes by the end of 2008, many to believe that AT&T will have a hard time cornering the internet/TV market as soon as they claim.
Technology glitches hobbled the rollout of Lightspeed last year. And though the TV service is up and running in fewer than a dozen markets with prices that undercut cable bills, a growing chorus of rivals, analysts, and engineers are skeptical that the network will offer enough bandwidth a few years from now to handle phone service, high-speed Internet, and multiple streams of high-definition TV.
Other operators have taken advantage of this slow start. Verizon is placing the most ambitious and risky bet. It plans to spend $18 billion—three times as much as AT&T—to lay fiber to every one of the 18 million homes it hopes to cover by 2010. AT&T is laying fiber into neighborhoods but is using existing copper phone lines to carry video the last few thousand feet. As a result, it will cost Verizon $1,750 to connect each home, vs. $450 for AT&T. Despite the higher price tag, ubs Investment Research expects Verizon to produce a return on its investment by 2011. The reason? It believes the Verizon network's higher bandwidth will lure more phone, Internet, and video customers—at higher prices—and thus generate about four times as much revenue as Lightspeed. On Jan. 29, Verizon backed up the theory when it announced that it ended its first full year of operations with 207,000 TV customers, representing 9% of the 2.4 million homes capable of receiving its video service in 2006. Just a few months ago, the company was hoping to finish 2006 with 175,000 video customers.
Doubts about AT&T's video project are fueling speculation it will have to buy one of the two U.S. satellite operators, DirecTV Group Inc. (DTV ) or EchoStar Communications Corp.(DISH ), to accelerate delivery of TV service.
AT&T remain confident in their decision to bet on a system that's more technically complex than Verizon's, arguing it will result in a TV service superior to anything else on the market.
Democrats Press F.C.C. Chief on Enforcement
By Stepehn Labaton 2.1.07
http://www.nytimes.com/2007/02/01/business/media/01cnd-fcc.html?_r=
2&hp&ex=1170392400&en=1c489a102dd0e2da&ei=5094&partner=homepage&oref=slogin&oref=slogin
FCC Chairman Martin has recently undergone tough questioning and harsh criticism by the newly appointed Democratic Senate.
http://www.nytimes.com/2007/02/01/business/media/01cnd-fcc.html?_r=
2&hp&ex=1170392400&en=1c489a102dd0e2da&ei=5094&partner=homepage&oref=slogin&oref=slogin
FCC Chairman Martin has recently undergone tough questioning and harsh criticism by the newly appointed Democratic Senate.
In their first appearance before a Senate Commerce Committee under Democratic leadership, Kevin J. Martin, the commission’s chairman, and the other commissioners faced sharp criticism from some of the committee’s senior Democrats on their handling of the recent acquisition of BellSouth by AT&T.
The lawmakers also questioned the agency’s recent practice of not thoroughly reviewing applications by radio and television stations to renew their broadcast licenses.
And the lawmakers’ questions indicated that there is no broad political consensus on a range of recent legislative proposals.
But the aggressive questioning by the panel’s senior Democrats suggested that the lawmakers would be exerting significant pressure on the commission’s policymaking apparatus.That could, at the very least, temper any deregulatory action that Mr. Martin and his fellow Republican commissioners have been contemplating, particularly as they prepare to consider measures that would make it easier for media conglomerates to own newspapers and television stations in the same cities.
Thursday, February 1, 2007
Comcast: Full FCC Set-Top Review
Todd Spangler (1.30.07)
http://www.multichannel.com/article/CA6411747.html?display=Breaking+News
Comcast has pressed forward for a full review of the FCC's Media Bureau denial of their waiver requesting only a partial ban on the set-top box card requirement.
Comcast sent a letter to the Federal Communications Commission Tuesday seeking an “expedited full commission review” of the agency’s denial of the company’s waiver request for certain low-cost set-top boxes.
The FCC’s Media Bureau Jan. 10 turned down Comcast’s waiver request to have three low-end digital set-tops exempt from the ban on set-tops with integrated security features, set to go into effect July 1.
FCC’s Media Bureau issued the denial 266 days after the operator filed its waiver request and pointed out that the Telecommunications Act of 1996 requires the agency to act on such requests within 90 days. “The failure of the bureau to act in a timely fashion on a soundly reasoned request for waiver … is inexplicable,” the company added.
See also:
Comcast Appeals CableCARD Ruling
No Waiver for Comcast
http://www.multichannel.com/article/CA6411747.html?display=Breaking+News
Comcast has pressed forward for a full review of the FCC's Media Bureau denial of their waiver requesting only a partial ban on the set-top box card requirement.
Comcast sent a letter to the Federal Communications Commission Tuesday seeking an “expedited full commission review” of the agency’s denial of the company’s waiver request for certain low-cost set-top boxes.
The FCC’s Media Bureau Jan. 10 turned down Comcast’s waiver request to have three low-end digital set-tops exempt from the ban on set-tops with integrated security features, set to go into effect July 1.
FCC’s Media Bureau issued the denial 266 days after the operator filed its waiver request and pointed out that the Telecommunications Act of 1996 requires the agency to act on such requests within 90 days. “The failure of the bureau to act in a timely fashion on a soundly reasoned request for waiver … is inexplicable,” the company added.
See also:
Comcast Appeals CableCARD Ruling
No Waiver for Comcast
FCC ruling changed phone industry in 1968; it could happen again today
Kevin Maney (1.30.07)
http://www.usatoday.com/money/industries/technology/maney/2007-01-30-carterfone_x.htm
FCC chairman to enforce a provision in the 1996 Telecommunications Act that will force cable carriers to provide descrambling codes to competitors. This may also have effect on similar cellphone-carrier links in the future.
Cable companies will have to unbundle the cable system by sharing the descrambling code with other device makers. The cable industry has gotten deadline extensions ever since 1996, but the current extension runs out on July 1, and Martin says he doesn't want to allow another one.
One certain outcome: A TiVo or Microsoft will be able to sell a box that connects to the cable line and the Internet. It will pull in cable channels, Web-based video and downloadable movies, mix them all together and present them on screen in a single menu. (Cable companies despise that because they lose control of the viewing experience.)
FCC Chairman Kevin Martin believes this deregulation will inspire innovation in the cable industry. It is also known that he has is looking next to the similar monopolies network providers have over cellphones. Though no action has been taken to allow cellphones to work across all networks, both consumers and manufacturers have expressed this desire.
http://www.usatoday.com/money/industries/technology/maney/2007-01-30-carterfone_x.htm
FCC chairman to enforce a provision in the 1996 Telecommunications Act that will force cable carriers to provide descrambling codes to competitors. This may also have effect on similar cellphone-carrier links in the future.
Cable companies will have to unbundle the cable system by sharing the descrambling code with other device makers. The cable industry has gotten deadline extensions ever since 1996, but the current extension runs out on July 1, and Martin says he doesn't want to allow another one.
One certain outcome: A TiVo or Microsoft will be able to sell a box that connects to the cable line and the Internet. It will pull in cable channels, Web-based video and downloadable movies, mix them all together and present them on screen in a single menu. (Cable companies despise that because they lose control of the viewing experience.)
FCC Chairman Kevin Martin believes this deregulation will inspire innovation in the cable industry. It is also known that he has is looking next to the similar monopolies network providers have over cellphones. Though no action has been taken to allow cellphones to work across all networks, both consumers and manufacturers have expressed this desire.
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