Broadband Week Direct - Daily News 9/12/00

Today's report from Web Editor Susan Rush

• FCC Entertains Cable Open Access
• MbTV Looks To The Starz
• Competitors Join Forces For DSL
• AT&T Trials Netergy
• Broadband Briefs

FCC Entertains Cable Open Access

Is it time for cable open access? Advocates say yes, but the Federal Communications Commission is proceeding with caution before it imposes federal regulations. On Thursday, U.S. regulators will initiate discussions on mandating access to cable systems for Internet services, but will not propose firm rules.

The FCC announced plans to open formal discussions on this subject in June following AT&T's win over the City of Portland, barring local governments from regulating cable Internet services. The meeting is the first step in the process. Since the gathering is just a notice of inquiry, regulators are only requesting public comment. The Commission has not made any firm decisions whether or not a policy should be instituted, leaning initially to a market-oriented solution. Not coincidentally, AT&T Broadband and Time Warner since the Portland decision have announced plans for open access trials with multiple ISPs. Chairman William Kennard agrees with the municipalities in the goal of an open cable platform. "The question is, how do we get there, through government intervention or market forces," he says. Kennard prefers market forces, but said the FCC would step in if that does not work. The inquiry will address cable access as well as the broader question of high-speed access across all technology platforms.

MbTV Looks To The Starz

Personal TV is gaining momentum in the cable industry and the Starz Encore network does not want to be left in the dust. The movie network is teaming with personal television technology provider Metabyte Networks to offer subscription video-on-demand services in both one-way and two-way digital broadband markets. Metabyte's MbTV client software, which is embedded into a set-top or hard disk-based video recorder, requires no direct consumer input since it automatically builds a viewer profile based on a consumer's TV watching tastes. The software enables Starz to offer viewers personal channels, targeted advertising, personalized PPV and targeted coupons based on previous viewing habits.

Viewers will pay a monthly fee for access to Starz's subscription service, movies will not be offered a la carte, as is the case with traditional VOD services.

Competitors Join Forces For DSL

In the midst of antitrust lawsuits and interconnection issues, two enemies have forged a truce in answer to the call of a higher power...DSL. SBC Communications signs a six-year deal with rival Covad Communications to jointly deliver DSL services both in and out of the Baby Bell's 13-state region.

Covad is guaranteed $600 million in revenues over the next six years, and pending regulatory approval, SBC will invest $150 million to acquire a 6 percent minority ownership position in Covad. Under the terms of the agreement, all pending legal disputes have been settled, including Covad's antitrust suit against SBC and Pacific Bell and arbitrations against SBC affiliates Southwestern Bell and Pacific Bell. The two also came to terms on interconnection issues in Texas and Kansas and line-sharing disputes in Texas, Kansas, Illinois, Michigan, Ohio, Wisconsin, Indiana, Connecticut and California. The pair also has agreed on a pricing scheme for line sharing, a key element to launching commercial line sharing availability.

"We have cleared up a lot of questions regarding interconnection issues between us and Covad, which should make it easier for other competitors to join forces in the future," says Selim Bingol, an SBC spokesman.

AT&T Trials Netergy

AT&T Labs is set to trial a broadband wireless home networking service with Netergy Networks' Voice over IP technology. The company will work with Netergy to prototype a wireless-multimedia phone using Netergy's Network Appliances Technology Audacity T2 Processor that will seamlessly interface with a local cable network.

"Netergy complements our research to integrate broadband packet-based networks, by providing an advanced end-to-end solution for delivering new and enhanced multimedia communications features," says AT&T Labs' Dr. Robert Calderbank.

Broadband Briefs:

Concessions offered to the European Commission during closed-door hearings by America Online and Time Warner reportedly fell short of the EU's expectations. The companies will continue to defend their union until October 24 when the Commission is set to rule on the merger.
Cisco Systems teams with BroadJump and Quintessent Communications to enhance its Cisco Order-to-Service DSL provisioning solution. Software from both companies will be integrated into the system.
Texas Instruments will expand its wireless research and development staffs over the next two years, partly to support the rollout of its high-speed wireless data services in 2001.
Intel, Siemens Mobile, Toshiba and other telecom companies band together to form the Mobile Data Initiative Next-Generation alliance. The group will focus on wireless access and third-generation wireless technology.
Pac-West Telecom gains access to Qwest Communications' OC-48 optical transport ring in a $24 million deal. The deal enables Pac-West to offer up to 2.4 Gbps capacity on selected routes between central and southern California.
Edge Connections' DSL services are now available in Washington, D.C., northern Virginia and suburban Maryland. Edge will offer Internet access, voice, data and e-commerce capabilities to small and medium-sized businesses.
BellSouth makes self-install option of its FastAccess DSL service available to residential customers in its 31 high-speed markets. The kit comes with either an internal DSL modem or an external USB DSL modem.