Broadband Week Direct - Daily News 9/7/00

Today's report from Web Editor Susan Rush

• Qwest Spins Off Digital Media Unit
• I Want My MTVi
• AT&T Broadband Crosses 300,000 Mark
• Games, Next-Gen Wireless' Pot Of Gold?
• Broadband Briefs

Qwest Spins Off Digital Media Unit

Telecommunications provider Qwest Communications launches Qwest Digital Media, a subsidiary providing high-speed digital multimedia services via broadband Internet distribution. The unit will focus its efforts on high-speed storage and delivery and management of digital content including webcasting and video on demand. Former Cox Communications executive David Woodrow will spearhead Qwest Digital Media.

In a much-anticipated conference call with analysts, Qwest CEO Joe Nacchio also said the company was staying the course for now on offering video over very high speed DSL (VDSL) in existing markets. Speculation that Qwest would deep-six the VDSL strategy initially launched by merger partner U S West in Phoenix had roiled shares of its key VDSL vendor, Next Level Communications. Next Level bounced higher this morning after Nacchio said Qwest would maintain its current commitments and might expand VDSL deployment if it could significantly reduce its cost structure.

Qwest also told analysts now that some of the dust has settled from the U S West merger and additional cash is expected from the completed sale of 570,000 access lines, Qwest raised its 2000 revenue projections from $18.5 billion to a range of $18.8 to $19.1 billion. Revenue targets for 2001 were slightly increased, from $21.0 billion to a range of $21.3 to $21.7 billion. To free up some additional cash, the company plans to eliminate 11,000 "non-essential" jobs, 4,500 by December 31 and 6,500 more by the end of 2001.

I Want My MTVi

When the 2000 MTV Music Awards airs tonight, online viewers will be in for a treat. MTVi, the online arm of the MTV Networks, has teamed with Akamai Technologies to stream the live awards gala over the Internet. Akamai's FreeFlow Streaming service will enable MTV to give online viewers access to the red carpet entryway and interior cameras throughout Radio City Music Hall. Podium coverage, press tent access, behind-the-scenes interviews and concerts by select artists are among the other nuggets to be streamed online. Akamai will provide its content delivery services as well as reporting capabilities, encoding and signal distribution, live from the event.

AT&T Broadband Crosses 300,000 Mark

Although AT&T Broadband has not crossed the finish line by signing up its 300,000th telephony subscriber, the company says it is one step closer to its brass ring of 500,000 to 650,000 subscribers by year-end.

According to AT&T Broadband President Dan Somers, 40,000 new subscribers were added in August - more than entire fourth quarter of 1999 - at a rate of 1,800 new subscribers a day. If the company can maintain this pace, it should reach its goal and end 2000 with 507,000 receiving telephone service over digital broadband cable systems.

Games, Next-Gen Wireless' Pot Of Gold?

If wireless content providers still think games are just for kids, they could stand to lose a truckload of cash. A new report from research firm Datamonitor reveals that wireless gaming is on pace to become a $6 billion industry in the United States and Europe by 2005 - that translates to four out of five mobile users playing games on their wireless devices. With its mass-market appeal, wireless gaming will be the single most important driving force behind next-generation mobile devices, according to report findings.

Even though the United States leads the gaming industry right now, Datamonitor predicts Europe will benefit from mobile games and outpace America, with a 60/40 share of the market - this split does not factor in the Japanese mobile market. The United Kingdom and Germany will lead the wireless gaming market in Europe. The United States will initially fall behind in the race because of inflexible pricing structures and conflicting standards. If theses issues are resolved, wireless gaming revenues in this country should reach $2.4 billion by 2005.

Broadband Briefs:

The United Kingdom expects to raise about $2.8 billion when it auctions off three fixed wireless licenses. The auction is scheduled to begin on October 6 and will run for three weeks.
Proxim and National Semiconductor team to develop wireless home networking products based on the HomeRF protocol. Last week's FCC ruling to increase wireless home networking bandwidth to 10 megabits per second, makes the development effort possible.
Microsoft WebTV Networks will bring interactive television to CBS Television's 2000-2001 season. WebTV Plus or Ultimate TV subscribers will have access to enhanced content, including live polling, cast bios, program updates, e-commerce and chat capabilities during a variety of CBS dramas, comedies, movies and sports programming.
New Edge Networks brings its residential and commercial DSL service to Arkansas. The company adds ten communities to its service roster, including Little Rock, Fort Smith, Fayetteville and Rogers.
Web music service provider Myplay is set to demonstrate its myplay-to-go, a digital entertainment platform designed for broadband and wireless devices, this week at the DEMOmobile 2000 conference in California.
PacketPort.com tabs Natural MicroSystems' Convergence Generation series to develop its next-generation, high-density VoIP and VoDSL gateway and services platform.
StreamingAsia.com will provide streaming media coverage of Metro Broadcast's live coverage of Hong Kong's 2000 Congressional elections.