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.”
Wednesday, February 14, 2007
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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