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Today's report from Web Editor
Susan Rush
• Cable Services Hit The Auction Block
• EchoStar Strikes Back
• Lucent Names Spin Off
• Comcast Invests In SeaChange
• Broadband Briefs
Cable Services Hit The Auction Block AT&T
Broadband is reportedly shopping 1.2 million cable-TV subscriber
accounts in Iowa and Montana. If the unit is able to unload the systems, the
payoff could be worth $3 billion, according to some industry estimates. The
move follows AT&T Corp.'s announcement
last month to sell off some of its nonstrategic assets, in effort to reduce
mounting debt. AT&T declined to comment.
It is not the first time these systems have been up on the
auction block. Dan Somers, AT&T broadband president and chief executive,
planned to sell the accounts earlier this year, but scrapped the idea
after AT&T board member and Liberty Media head honcho John Malone
objected to the deal. The door to sell obviously reopened after AT&T
announced plans to spin off the Liberty Media unit.
In October, AT&T announced plans to split into four new
companies: AT&T Broadband, AT&T Wireless, AT&T Business and
AT&T Consumer. Each spin-off will become a publicly held company,
trading as a common stock or a trading stock. The units will continue to
bundle each other's services through inter-company agreements, according to
AT&T.
AT&T shares were up 69 cents this morning to $21.06 as of
11:41 a.m. EST. The company's stock price has dropped more than 60 percent
this year.
Related Stories:
AT&T
Plans Asset Sale, BroadbandWeek Direct, 11/8/00
EchoStar Strikes Back
Turn about is fair play -- the defendant
becomes the plaintiff. EchoStar
Communications Corp. turns the tables on Gemstar-TV Guide International
Inc. by filing an antitrust lawsuit, as well as a counterclaim in a suit
filed by Gemstar in late October.
EchoStar claims the interactive programming
guide software developer's licensing practices, specifically with respect to
its interactive programming guide technology, violate various federal and
state antitrust laws governing unfair competition. EchoStar is seeking
unspecified monetary damages and injunctive relief. Gemstar did not return BroadbandWeek
Direct's calls for comment before deadline.
The counterclaim contests the validity of
Gemstar's patent infringement lawsuit filed in the U.S. District Court for
the Western District of North California in late November. In the suit,
Gemstar claimed the satellite provider is using guides without its
permission. EchoStar is also challenging the "validity and
enforceability" of the Gemstar patent.
In October, Pioneer
Digital Technologies filed suit against Gemstar for allegedly competing
unfairly in the state of California. The suit is still pending.
Related Stories:
Pioneer
Sues Gemstar-TV Guide, BroadbandWeek Direct, 11/21/00
Gemstar
Claims Infringement, BroadbandWeek Direct, 10/24/00
Lucent Names Spin Off
What's in a name? If naming a company is
anything like naming a baby, the answer could be everything. Lucent
Technologies Inc. spent months mulling over names for the
microelectronics unit it plans to spin off early next year, and finally
decided on Agere. The word has its roots in the Latin verb 'ago' that means
to lead, to drive, to act.
An initial public offering is on tap for the
first quarter of next year. Lucent plans to offer 20 percent of Agere at the
IPO. The remaining shares will be distributed to Lucent shareholders during
the summer. The new semiconductor company will be comprised of two divisions
-- integrated circuits and optoelectronic components.
The strong-willed name may also represent
Lucent's overall business efforts. Over the last several months, Lucent has
been working feverishly to restructure itself and pump some life into its
flagging stock price. Lucent's stock was trading at $15.69 during early
morning trading, a far cry from its 52-week high of $84.18.
Related Stories:
Lucent
Restructures, Searches For COO, Broadband Week Direct, 8/8/00
Lucent
Falls Below Expectations, BroadbandWeek Direct, 10/11/00
Comcast Invests In SeaChange
In a move to support its video-on-demand
strategy, Comcast Corp. invests $10
million in SeaChange International
Inc. As part of the deal, the company signed a long-term master
purchase agreement for SeaChange's ITV Systems and services.
Comcast plans to launch VOD services next
year, beginning with the deployment of the ITV System in two
undisclosed markets. The SeaChange system is a standards-based platform designed
to integrate with most digital set-tops boxes around the world.
Related Stories:
Comcast
Posts Q3 Net Profit, Broadband Week Direct, 11/7/00
VOD: Hot
And Ready To Serve, CED, 7/00
Broadband Briefs:
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Everest Broadband
Networks inks a 20-year agreement to lease local-loop and in-building
fiber-optic infrastructure from Metromedia Fiber
Network Inc.
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Advent Networks Inc.
receives $22.6 million in second-round financing to continue the development of
its Ultraband platform, which enables cable operators to provide next-generation
interactive services to their customers. UltiliCorp United led the financing
charge.
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"We're in the home stretch." America
Online Inc.'s chief executive Steve Case remains optimistic that AOL's
purchase of Time Warner Inc. will close
by the end of December or "by the first days of the new year."
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Customized local weather updates are now available to Winfire
DSL subscribers, thanks to a newly signed deal between Winfire
Inc. and weather.com.
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Digital Island Inc.
teams with J-Stream Inc. to extend the
reach of its live and on-demand streaming services. J-Stream currently operates
the largest streaming network in Japan.
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Calient Networks and Tellabs
successfully complete all-optical network interoperability tests between
Calient's DiamondWave photonic switch and Tellabs' TITAN 6100 optical transport
system.
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3M enters the IP gateway
market with the launch of an Ethernet IP gateway for residential and enterprise
applications.
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Charter Communications
Ventures and Vulcan Ventures Inc.
completes $75 million joint investment in broadband service provider High
Speed Access Corp.
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Cisco Systems Inc. installs
next-generation, Dense Wave Division Multiplexing infrastructure for Telecom New
Zealand to support its fiber optic backbone network.
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In other Cisco news, former AT&T executive Hossein
Eslambolchi joins the company as senior vice president of service provider
solutions.
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