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Wednesday, June 19, 2002 |
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• Liberate targets TV over DSL • Ciena dips to new 52-week low • Thirdspace, NDS ink broadband IP network deal • BroadJump dives into automated Internet filtering biz • EC leaves door ajar for 3G licenses Liberate Technologies and Samsung Electronics Co., Ltd. have joined forces to deliver interactive television programming over DSL networks via a new digital set-top box. The SMT-F240, which is based on Liberate's TV Navigator 4.0 software, supports MPEG over IP-based delivery of interactive video programs. The set-top supports MPEG 2, but can be upgraded to support MPEG 4. The box incorporates National Semiconductor's x86-based Geode CPU running at 266 megahertz and uses the Linux operating system. The Liberate/Samsung box offers video-on-demand, interactive games, bilingual news tickers and a music eTV application, which combines a video jukebox with virtual television channels that deliver on-demand music content. Samsung will begin offering the SMT-F240 to network operator customers later this year. Separately, Liberate has teamed with ESPN to offer an interactive sports programming package to cable operators. Initially, the companies will produce "ESPN Today Plus VOD," "ESPN Extra," and synchronous programming. "ESPN Today Plus VOD" is designed to enable sports fans to participate in the game with data feeds from ESPN and links to commerce and advertising options. It will be integrated with the Liberate VOD Hub product. "ESPN Extra" is a 24/7 sports channel that delivers real-time sports information updates, including scores, headlines, news stories and stats. The synchronous programming option will give views stats related to the ESPN programming on the screen. Related stories:
MSOs are always on the lookout for ways to make subscriber provisioning faster and easier. Comcast Cable Communications Inc. has teamed with Sigma Systems to do just that. The third-largest MSO in the United States is deploying various components of Sigma's Service Management Portfolio to deploy reliable, scalable and modular service management solutions, said Comcast's Senior Vice President Ray Celona. The Sigma product line supports high-speed Internet access as well as video and voice services. Earlier this year, Comcast turned to Sigma to help it transition nearly 1 million subscribers from Excite@Home's network to Comcast's own high-speed Internet network. Excite@Home filed for bankruptcy and soon after announced plans to shut down its network. Comcast, and many other MSOs, had to scramble to get their networks up and running to avoid service outages. Sigma recently introduced its Self-Service Manager, which allows an operator to offer its subscribers the ability to self-activate services, including the ability to select a service plan, its attributes and review the terms of the service agreement. Related story:
Ciena Corp.'s shareholders may have approved its merger with ONI Systems Corp., but the news that accompanied it didn't give the Street much to smile about. The fiber-optic manufacturer has warned that the combined company's third-quarter sales will fall below Ciena's second-quarter results. Ciena said third-quarter revenue could be "down meaningfully" from the $87.1 million posted in the second quarter. The severity of the dip will depend on the timing of customer purchases and the acceptance of previously placed equipment orders. Analysts on average were predicting the combined company would produce $100 million in sales in Q3, according to Thomson Financial/First Call. In an attempt to lessen the blow, the companies plan to eliminate 335 positions over the next three months -- 225 employees will be released tomorrow. The affected employees will receive severance based on position and length of service, as well as outplacement services. Ciena is slated to report fiscal third-quarter results on Aug. 22. As of 11:04 a.m. EDT, Ciena shares had lost nearly 9 percent of their value, trading at a new 52-week low of $4.01. Related stories:
Thirdspace, NDS ink broadband IP network deal Thirdspace Living Ltd. has signed a deal to integrate NDS Group plc's secure broadband architecture with its broadband TV applications, video server software and client technology. The agreement is designed to deliver a single system for a broadband IP network using Thirdspace's open video server software and set-top box client software. By combining their efforts, the companies can offer a solution that delivers content to "millions" of subscribers while protecting the rights of content owners, the companies claim. The components in the integrated system include Thirdspace Open Video applications -- VOD, nVOD, Web access and T-mail -- and Open Video Server with the Open Video Client. And from NDS, the system has VideoGuard content protection, XTV Encryptor and XTV Server, which combines VOD and video server technology with content protection. Terms of the partnership were not disclosed. Thirdspace is a VOD/iTV venture backed by Concurrent Computer Corp., Alcatel and Oracle. Related stories:
BroadJump dives into automated Internet filtering biz Children and teens have been reported as the fastest growing group of Internet users, but there is plenty of stuff on the 'Net that is not meant for eyes of babes. BroadJump has partnered with FamilyCLICK to provide service providers using BroadJump software with an automated Internet filtering system service option. BroadJump is pre-intergrating FamilyCLICK's filtering
technology with its ControlWorks software infrastructure system
to enable parental controls to be instituted from the onset of service.
"This allows service providers to reduce the time and complexities
associated with marketing and fulfilling this new service for subscribers,"
says a BroadJump spokeswoman. In April, BroadJump said its software was responsible for activating 69 percent of all new high-speed Internet connections. To date, BroadJump has enabled activation of close to 5 million residential broadband subscribers. Related stories:
EC leaves door ajar for 3G licenses Copyright 2002 VNU By Ian Lynch The European Commission (EC) has left the door ajar for operators to renegotiate their expensively-acquired 3G licenses, but doing it will be tolerated only in exceptional circumstances. With some $106 billion (GBP 71bn) spent on acquiring the licenses, operators have been looking for signs that the license could be renegotiated. However, Erkki Liikanen, Enterprise and Innovation commissioner, said he believed "3G has developed sufficient momentum to overcome the present difficulties". In a statement, the EC acknowledged that "the financial environment constitutes a heavy burden for the communications sector overall, which affects 3G rollout plans, as operators focus on improving their financial standing". The operators are worried that in order to recoup the cost of acquiring license they risk making 3G services too expensive. But the EC believes that beyond encouraging economic recovery "the sector is best served by letting the market drive the process ahead". The EC does not believe that 3G licensing conditions should be changed, but is prepared to be flexible. It said: "In order to ensure a predictable environment and legal certainty favorable to long-term investments, flexibility is recommended in case of unpredictable changes of circumstances requiring adaptations. These should remain proportional and transparent. "For that purpose, the Commission is ready to examine solutions for a harmonized approach with the member states - which are responsible for the license, as it did for conditions applying to network infrastructure sharing." "The EC said authorities should help facilitate network rollout by harmonizing the applicable rules for the approving base stations and speeding up the procedures for the acquisition of sites. Longer term, the EC added that a more flexible framework for handling rights to use radio spectrum needed to be discussed, including for wireless applications. Liikanen said, "The roll-out of 3G is a continuous process which deserves continued attention by public authorities when accompanying the efforts of market players themselves. "There are no simple answers to the challenges
ahead."
Copyright 2002 The Deal L.L.C. By Jonathan Berke Bankrupt XO Communications Inc. got Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York to approve all its first-day motions Tuesday, June 18, in what was probably the broadband provider's quietest day in months. "Everything went as expected," an XO spokesman said. Reston, Va.-based XO was not seeking debtor-in-possession financing, which may have helped move Tuesday's hearings move along. The company said in a statement Monday that it had about $555 million in cash and marketable securities for operating expenses during its bankruptcy stay. Applications for DIP financing can often turn rancorous, since creditors often file specific objections to the fees or collateral issues involving the loan. XO's standard first-day motions included authorizing use of its existing bank accounts. The next hearing for XO has been tentatively scheduled for July 9, in which Gonzalez will hear the company's motion to extend the time it will have to assume or reject leases on its existing office space. In addition, the bankruptcy court has scheduled a disclosure statement hearing for July 19 with respect to XO's dual plan of reorganization. XO filed a dual plan of reorganization in which it will first try to pursue an $800 million deal it signed with Fortsmann Little & Co. and Telefonos de Mexico SA de CV (Telmex) in January. If XO fails to close that deal, it will work on a stand-alone plan in which its senior bank group, holding $1 billion of debt, would get control of the company. Houlihan Lokey Howard & Zukin is advising XO on its restructuring, and Willkie Farr & Gallagher is its counsel. Related stories:
• Government delays 700 The 700 MHz band are used by television broadcasters operating channels 52-69. These broadcasters are under mandate to give up the spectrum as they move to digital signals, but the wireless industry has argued that is was not clear when the broadcasters would actually give up the airwaves. • Siemens signs Tut distribution agreement Specifically, the company will distribute Tut's Expresso and Intellipop 5000 line of products to its customers in Spain. Siemens S.A. Spain is a subsidiary of Siemens AG. Financial terms of the deal were not disclosed. • Nortel DWDM platform deployed in the Philippines
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