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Today's report from Web Editor Susan
Rush
enScaler snatches up Lariat
iN Demand is in at AT&T
as Diva phases out of VOD
Sprint evaluates broadband
wireless technologies
TI, Motorola team for cable
modems
Time Warner Telecom gains
despite mixed results
NCTA 2002 in brief
Cable MSOs see possibilities
for tiered Internet access
Broadband Briefs
enScaler snatches up Lariat
Although some may say it is a case of a minnow swallowing
the whale, enScaler Inc. sees its acquisition of Lariat Software
Inc. as a marriage of complementary technologies. The combined
company will offer the streaming media market the whole enchilada:
front-end, back-office and measuring capabilities.
"The acquisition gives us momentum to be a player
in the streaming media space," enScaler's CEO Deepak Srinivasan
tells CED Broadband Direct. Lariat, a developer of streaming media
business reporting and broadcast solutions, offers products priced
from $5,000 to $500,000, while enScaler's, a middleware platform
provider, products range from $500,000 to $5 million.
The combined company will offer its customers more
choice, says Srinivasan. Lariat's front-end and back-office products
will complement enScaler's middleware platforms, including mediaScaler,
mediaEnterprise and mediaSubscriber. The company will target service
providers, enterprises and content owners.
Despite the economic environment, the streaming media
market has steadily increased over the last 18 months. Companies
have invested heavily in their infrastructures, and now are looking
for ways to measure the costs and the returns. "The ability
to measure is key," says Srinivasan. "There is almost
no integration risk between the two companies' products - they
are a fairly neat fit," he says.
"Companies are incorporating a lot more streaming
media into their daily activities, because it provides more 'bang
for the buck' over their installed Ethernet LANs," says Gerry
Kaufhold, a principal analyst with In-Stat/MDR, which is owned
by the same parent as CED Broadband Direct. "enScaler's acquisition
of Lariat (creates) a true end-to-end capability for companies
to create, store, search, manage and account for all their media
assets," he says.
Although financial terms of the deal were not released,
Srinivasan says enScaler reported millions in revenue last year,
and with Lariat acquisition, the company expects to exceed that
amount this year. Lariat will continue to operate as a separate
entity.
Looking at the streaming media industry as a whole,
Srinivasan says although consolidation of companies is a possibility,
well-defined business partnerships between companies in the space
is more likely right now.
iN Demand is in at AT&T as
Diva phases out of VOD
It's only Tuesday, but it has been a good week for
iN Demand. First a video-on-demand deal with 20th Century Fox
studio and now AT&T Broadband.
iN Demand will supply AT&T Broadband with first-run
major motion pictures, select library titles and cable network
premier programming, AT&T Broadband said in a statement. IN
Demand's portfolio consists of content from Universal, Sony, DreamWorks,
Fox, Artisan and Hallmark.
The pay-per-view and VOD content provider will replace
Diva Systems Corp. at AT&T Broadband's side in the content
side of the VOD market. Diva announced earlier this year it was
getting out of the VOD content licensing to focus on its core
software technology. In June, iN Demand will begin offering content
to AT&T Broadband in Atlanta and Los Angeles.
Last week, AT&T entered the subscription VOD
market, launching a trial in the Los Angeles metropolitan area
featuring content from Starz! and Showtime.
AT&T Broadband also announced it is consolidating
its Headend in the Sky unit into its AT&T Digital Media Centers
division. The move is designed to strengthen the digital media
division's ability to integrate its service offerings and streamline
customer interaction. Garry Traver, AT&T Digital Media Centers'
senior vice president for video services, will oversee the operations
of the combined unit.
Sprint evaluates broadband wireless
technologies
Let the competition begin. Sprint is testing the
waters in the broadband wireless technology market through two
field trials, one in Navini Networks, and one with IP Wireless.
May the best technology win.
The trials are designed to test the "viability
of next-generation technologies," says Cameron Rejali, Sprint's
vice president of broadband wireless products and operations.
Sprint expects the trials to determine which company has the superior
technology. Sprint's goal is to find a technology that will be
a solid moneymaker once the company deploys its broadband wireless
service.
Sprint last year shelved new deployments of its MMDS-based
Sprint Broadband Direct service, ostensibly to await market-ready,
non-line-of-sight equipment that would enable customers to install
their own gear.
The Navini Networks' trial is now under way in Houston.
Navini's technology, which uses adaptive phased-array smart antenna
technology, delivers zero-install, nomadic and multi-megabit broadband
data rates within cellular ranges.
Last month in Montreal, Sprint began testing IPWireless'
technology, which uses advanced signal processing techniques to
maximize receiver sensitivity and minimize interference.
These two trials will enable Sprint to evaluate multicell
architectures and test the capacity, portability, indoor penetration
and customer experience from a pocket-sized portable device, says
Sprint. Sprint also is considering point-to-multipoint non-line-of-sight
technologies.
Separately, Sprint signed a multiyear deal to beef
up Coast Dental Services Inc.'s network. Although financial terms
were not disclosed, Sprint will deliver voice over IP, managed
network services, high-speed data and wireless services through
the implementation of a new frame relay network, IP services,
Sprint PCS and customer premise equipment. Sprint will leverage
its existing relationship with Cisco Systems Inc. for the hardware.
Cisco's 1700 Series Access routers will be used for remote frame
relay services, its 3600 Series router for the frame relay host
site and other related equipment for the deployment of a IP virtual
private network.
TI, Motorola team for cable modems
Texas Instruments Inc. and Motorola Broadband Communications
Sector are joining forces to speed the delivery of DOCSIS 1.0,
1.1 and 2.0 certified cable modems to the broadband cable market.
The deal calls for Motorola to incorporate TI's complete
DOCSIS system into its SURFboard SB4220 cable modem. TI's complete
DOCSIS system integrates DOCSIS physical (PHY) and media access
control (MAC) layers of the open system interconnect (OSI) reference
model, with a high performance communications processor and peripherals
for networking and communication applications.
The SURFboard SB4220 also will incorporate TI's A-TDMA
advanced physical layer capability specified in the CableLabs
DOCSIS 2.0 standard.
Motorola has been in the cable modem business for
eight years, and has shipped roughly 8 million cable modems into
the market.
Time Warner Telecom gains despite
mixed results
In the first quarter 2002, Time Warner Telecom results
offered a mixed bag - revenue dipped slightly, but the quarterly
pre-tax loss narrowed.
Revenue fell slightly from $173.1 million in Q1 2001
to $168.7 million. The company blames non-recurring, acquisition-related
revenue of $4.6 billion in the first quarter 2001 for the dip
in revenue this year. When broken down to unit levels, revenue
generated from data and Internet services increased 34 percent
to $20.4 million.
The company posted a pre-tax loss of $43 million,
down from the $46.9 million loss reported in Q1 2001.
As of 10:38 a.m. EDT, Time Warner Telecom shares
were up 19 cents, or nearly 7 percent, to $2.94. The company's
stock has traded as high as $50.43 a share in the last 52 weeks.
NCTA 2002 in brief
Day 2: A wave of companies will be showcasing
their products and technologies this week at NCTA 2002 in New
Orleans. The CED Magazine staff will bring you the latest news
and product information each day live from the show. Below is
a glimpse of what's happening at the show, but for complete show
coverage visit www.cedmagazine.com/cable2002/index.htm.
S-A shipping high def set-tops, home entertainment
servers
Scientific-Atlanta says that in its first full quarter of volume
shipments, more than 38,000 of its Explorer 3100HD digital interactive
set-tops were delivered to six North American cable operators
in an attempt to meet the expected consumer demand for HDTV. The
Explorer 3100HD digital interactive set-top is designed to deliver
both high definition and interactive TV services such as VOD and
SVOD through a single device.
S-A has also announced its inaugural shipment of
its new Explorer 8000 home entertainment servers for customer
trials.
The server gives consumers the ability to pause live
TV, record one channel while watching another, record two channels
and play back another simultaneously, and watch picture-in-picture
on any consumer television set.
The PVR aboard the Explorer 8000 home entertainment server will
be powered by an 80-gigabyte hard drive and will be capable of
recording up to 50 hours of programming without the need for a
phone line.
SeaChange extends VOD platform with PVR capabilities
SeaChange International Inc. has introduced personal video recording
(PVR) capabilities as an extension of its video-on-demand system.
PVR capability will allow operators to cost-effectively deploy
customized and free tiers of on-demand programming supported by
targeted advertising, according to the company.
Adelphia Communications will power its sports-on-demand
service with SeaChange's PVR capabilities. Having successfully
completed tests of PVR earlier this month with Buffalo Sabres
games on-demand, Adelphia is preparing to add sports-on-demand
to its digital service roster.
Comprised of software and video encoders, SeaChange's
PVR application records live events onto the video-on-demand system,
providing subscribers with immediate access via existing digital
set-top applications with fast-forward, pause and rewind. For
complete control of the viewing experience, subscribers can exit
a recorded program stream to re-join its live broadcast.
CableLabs moves on OCAP 2.0
CableLabs has published the 2.0 version of the OpenCable Application
Platform, a middleware for retail-ready digital set-tops based
on the OpenCable specification.
The latest version includes a Java-based Execution
Engine (EE) and also a Presentation Engine (PE) for Web-based
applications based on platforms such as XHTML and XML.
CableLabs issued OCAP 1.0 in January. Both versions
of the middleware are designed to enable content suppliers to
write applications once, instead of building different versions.
SOHOware checks in with hotel networking gear
SOHOware Inc. unveiled a networking product aimed at giving cable
operators a link via wireless broadband Local Area Networks into
the hotel and resort connectivity business.
The SOHOware hospitality equipment includes a server,
router, wireless Ethernet bridge and access points that can jointly
cover up to 15 rooms. Not only does that eliminate the need to
wire every room for broadband Internet access, but it also allows
business travelers who already use wireless LAN technology to
tap the connection at a hotel without changing computer settings.
In addition, it supports security and virtual private networking
technologies.
Santa Clara, Calif.-based SOHOware has put its hospitality
access system into several field trials, including one with an
unnamed MSO on the East Coast. There, the SOHOware connection
is providing services at a hotel and at marinas covering 200 boat
slips.
Up to now, such wireless services have focused on
airports and public kiosks.
One focus for the hospitality connection scheme is
to lessen the need for the cable operator to service the gear.
SOHOware's system, therefore, includes software that helps the
hotel owners install and monitor the network equipment or hand
it over for remote management by service providers.
Cable MSOs see possibilities for
tiered Internet access
Copyright 2002 Warren Publishing,
Inc.
Communications Daily...05/07/2002
From LexisNexis
By Brigitte Greenberg
NEW ORLEANS -- Cable executives touched the
so-called "third rail" of high-speed Internet access
at the NCTA convention, debating whether to charge customers more
for higher speed or more bandwidth usage and reducing speeds for
those unwilling to pay higher prices. Comcast Exec. Vp-Sales &
Mktg. David Watson said his company was afraid of alienating customers
after just getting them hooked on the service. Besides, he said,
Comcast has yet to figure out the appropriate cost structure for
such a service. Although he said the idea should be looked at
over time, the notion still was premature because demand for the
higher end product was growing and cable was facing robust competition
from DSL. "Before you start going down, you want to make
sure you've exhausted the opportunities going north in terms of
revenue," Watson said.
But Cox Vp-Multimedia Technology John Hildebrand
likened tiered pricing to the introduction of the light bulb and
the concept that customers should be charged for kilowatt-hours
they used, since some homes used more electricity than others.
Cox has a trial in Las Vegas involving tiered pricing for high-speed
Internet usage, and Hildebrand said there was room for that in
marketplace: "It's probably the right way to go." He
said the company already had set up back-office systems to implement
a metered usage system.
Charging more for higher speeds right now is "a
terribly bad idea," Time Warner Cable Ventures CEO Christopher
Bogart said, in part because that still was a new product for
cable. "Consumers, as we all know, are not exactly in love
with us," he said, and broadband was "changing consumers
from people who tolerate us to people who are actually enthusiastic
about us." He said now wasn't the time to start slowing access
down, even though the product would be twice speed of dial-up.
But Bogart didn't rule out the possibility of charging more for
increased bandwidth to someone who, for example, ran a server
out of basement.
Michael Lee, vp-product development for Rogers Cable
in Canada, said his company last month had begun offering lower
tier as a way to reduce 30 percent-40 percent churn it had been
experiencing because some customers concluded that they didn't
spend enough time online to warrant speed and "always- on"
capability. Those subscribers were returning to dial-up connections,
Lee said, and lower tier has been found as a way to stop them
from dropping out altogether. Although data are limited because
the company has been offering lower tier for only a month, Lee
said, many of those who decided to try lower tier ultimately returned
to higher speed access. Cox's Hildebrand agreed: "Are we
leaving money on the table by not offering a lower tier? Our thinking
is, probably so."
Broadband Briefs:
FastComm goes Chapter 11, again
Failing to find some much-needed cash, FastComm Communications
Corp. has filed for Chapter 11 bankruptcy protection from its
creditors. This is not the first time the signaling, voice and
data system solution provider has filed for reorganization; the
company emerged from a filing in 1999.
FastComm intends to continue operating while the
reorganization is worked out.
Akamai names Salerno to its board
Frederic Salerno has joined Akamai Technologies Inc.'s board of
directors. The company believes Verizon Communications' vice chairman
will lend his expertise in financial management to assist Akamai
in reaching its goal of sustaining profitability.
SMC intros 802.11a-compliant broadband
router
SMC Networks has introduced the Barricade 802.11a wireless/DSL/cable
broadband router. The router enables wireless networking at speeds
up to 54 mbps.
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