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Tuesday, October 17, 2000


Today's report from Web Editor Susan Rush

Introducing Audrey
Motorola Interacts With Gemstar
Enron Fuels Income 
Broadband Shopping
Broadband Briefs

Introducing Audrey

It's just like a woman to be fashionably late, but here she is, Miss Audrey - 3Com Corp.'s Web-surfing appliance. The countertop unit, which provides one-touch access to e-mail, Internet channels, a household calendar, and Palm HotSync technology, was originally scheduled to make her debut last month. Audrey is designed to connect to the Net using a broadband or dial-up connection.

"Our focus is to remove the complexity associated with accessing information on the Internet. Just like flipping a light switch, simply turn Audrey's dial and the information is there," explains Don Fotsch, vice president and general manager of 3Com's Internet Appliance Division.

Audrey is just the first member of an "Ergo" Internet appliance "family" 3Com is developing. Other lifestyle-centered family members are set to debut sometime in the future.

Related Stories:
3Com Delays Launch, BroadbandWeek Direct, 9/19/00
Plugging Cable Into Web-Ready Toasters, Multichannel News, 2/14/00

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Motorola Interacts With Gemstar

Motorola and Gemstar-TV Guide International Inc. have come to terms in their patent-infringement lawsuit, after Motorola signs a long-term interactive-programming-guide licensing deal. As a result of the agreement, the companies agreed to drop all pending charges, and jointly pursue interactive TV business opportunities. 

Under the terms of the settlement, Motorola agreed to pay Gemstar monies relating to settled litigations and future licensing fees. "Gemstar expects to get about $200 million from Motorola, [with] most of that probably coming from future licensing fees," said Henry Yuen, Gemstar chairman, during a conference call.

Earlier this year, Gemstar purchased TV Guide, Inc. in an effort to strengthen its stronghold on the interactive-guide market. 

Related Stories:
Gemstar: We're Open on Platforms, Multichannel News, 9/25/00
Gemstar Closes TV Guide Deal, Multichannel News, 7/12/00

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Enron Fuels Income

Enron Corp. is flying high after announcing a 31 percent increase in net income to $292 million for the third quarter. The energy-trading company reported a 26 percent increase in earnings to 34 cents per diluted share, compared to 27 cents of recurring earnings during the same period a year ago. Enron recently stepped beyond the energy market and entered the broadband arena, but took a $20 million hit for the quarter. The broadband unit generated $135 million in revenue, and the company remains committed to its investment in the broadband sector. 

In July, Blockbuster Inc. cut a 20-year exclusive agreement with Enron to deliver video-on-demand programming via high-speed digital subscriber lines. Under the terms of the deal, Enron will stream the content and store it on servers, while Blockbuster will provide content and serve as the headend for the service. Initial rollouts are underway in select areas of four U.S. markets.

Related Stories:
Blockbuster, Enron Tap nCUBE for VOD, Multichannel News, 9/11/00
Blockbuster Eyes VOD on DSL, Multichannel News, 7/24/00

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Broadband Shopping

While shopping online, do you ever wish you could see a product in action before you buy it? Well, ROXY.com has teamed with SeeItWork.com to bring wireless products to life. ROXY's broadband shopping initiative will enable visitors to its Everything Wireless site to see and hear a phone's features displayed and demonstrated in full-motion streaming video. 

The company also plans to use video streaming as a direct retail sales tool. Promotional e-mails, including full-motion video, will be sent out to ROXY's DSL-connected customers. The company hopes the e-mails will draw more people to its Web site and, in turn, boost its look-to-buy ratio.

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Broadband Briefs: 

  • Excite@Home releases self-install software to simplify the installation of its high-speed @HomeSM service. The QuickStart Kit, which includes CD-ROM software for both PCs and Macintoshes, is aimed at the consumer market.
  • Nortel Networks and Sprint PCS team to build and test a next-generation wireless network using IP technology for both voice and data. The e-mobility Multimedia Core IP network is expected to be commercially available by year's end. 
  • VideoTele.com and S2 Entertainment  team to provide telcos with an end-to-end solution to provision home entertainment video services over VDSL.
  • Broadband Internet access and eCommerce solutions provider CapuNet turns to Daleen Technologies to provide a Web-enabled, customer management and billing solution for its customers.
  • Edgix secures $50 million in funding. The content distribution start-up will compete with Akamai Technologies and Digital Island, but is focusing on Internet service providers as its customer base.
  • WINfirst invests $1 billion in the fiber-to-home residential network market. The company snags a five-year contract valued at $800 million with Lucent Technologies for equipment, software and service to build the network. The remaining $200 million will go to Avaya for data switching equipment.

    During its first 100 days in operation, DSL- service provider Edge Connections, Inc. has already deployed services to more than 100 customers. 

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