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Monday, August 26, 2002


Today's report from Web Editor Susan Rush

Charter, Harmonic team on GigE-based VOD

Microsoft's IPG gets the green light to run 
on more Motorola set-tops

TVN taps into children's market 

BigBand lands Cox HD deployments

Hotel broadband sector poised for growth

MSO selects Terayon as a preferred vendor

CableLabs issues OCAP RFP

Broadband briefs


Charter, Harmonic team on GigE-based VOD

Charter Communications said it is deploying Harmonic Inc.’s Gigabit Ethernet-based video-on-demand gear in 12 markets with “additional markets planned for later this year.” 

The move marks the latest in Charter’s VOD migration following the demise of Diva Systems Corp., a company that filed bankruptcy in late May and sold most of its assets to Gemstar-TV Guide International for about $40 million. Charter also is in the process of replacing Diva’s video servers and underlying VOD systems with those from rival vendors Concurrent Computer Corp. and nCUBE Corp. 

In the case of Harmonic, Charter is using the vendor’s Narrowcast Services Gateway for its ongoing rollouts, in combination with Harmonic’s GIGALight DWDM transport systems in some markets, the company said. 

Financial terms were not disclosed, but that didn’t stop investors from snapping up Harmonic shares, which rose 34 cents, or 11.6 percent, to $3.26 per share in early trading Monday. 

GigE, which is growing in popularity among cable operators that are deploying VOD in new markets, touts lower costs and higher capacities compared to legacy transport schemes such as ASI (asynchronous serial interface) and direct QAM (quadrature amplitude modulation). 

The deal with Harmonic “provides an efficient standards-based infrastructure for delivering VOD, which is very important for our future growth, and seamless integration with existing equipment in our diverse network environments,” said John Pietri, Charter’s senior vice president of engineering, in a press release. “This solution gives us the added benefit of a pay-as-you-grow deployment model, allowing us to add capacity only when and where it is needed.”

Charter said it is deploying in GigE equipment in 12 markets, where the MSO is using a mix of servers and systems from Concurrent and nCUBE. Those systems are: Asheville, N.C. (Concurrent); Birmingham, Ala. (nCUBE); Duluth, Ga. (Concurrent); Ft. Worth, Texas (nCUBE); Greenville/Spartanburg, S.C. (Concurrent); Hickory, N.C. (Concurrent); Long Beach, Calif. (nCUBE); Newtown, Conn. (nCUBE); Pasadena, Calif. (nCUBE); St. Louis, Mo. (Concurrent); Slidell, La. (Concurrent).

Charter is moving ahead with GigE in nCUBE markets today, and expects to do the same in Concurrent properties once the vendor’s cable-based GigE products are ready to roll, company Vice President of Engineering and Technology Don Loheide said in an earlier interview for a feature story that will appear in the September issue of CED magazine, Broadband Week's sister publication. Charter, in the meantime, is leveraging legacy transport equipment made by Synchronous Inc., a company that Motorola Inc. acquired in January, in the MSO’s Concurrent-based VOD markets. Concurrent officials have maintained that the company’s GigE-based servers for cable networks should be out of the lab phase and ready for prime time “in a matter of months.”

Related stories:
Concurrent, Internet Photonics team on GigE VOD transport, 8/22/02
Diva completes death spiral while Gemstar picks over the scraps, 5/30/02
Jedai rolls out new GigE access, 4/29/02

 

return to headlines

 

Microsoft's IPG gets the green light to run on more Motorola set-tops

Microsoft Corp. believes its Microsoft TV IPG can help reduce churn for operators, and the company has been working with Motorola Inc.'s Motorola Broadband Communications Sector to expand its use. The latest: The IPG has received ACADIA validation for use in Motorola's DCT-1000 and DCT-1200 set-top boxes.

Microsoft considers the Microsoft TV IPG, which was introduced in May, as an alternative to TV Guide Interactive because Gemstar will receive a portion of Microsoft's IPG licensing revenue, Microsoft told CED Broadband Direct in May. The IPG has already been validated to run on Microsoft's DCT-2000 set-tops, Motorola's most widely deployed box.

ACADIA validation is designed to act as a benchmark for operators choosing software, content and applications. The Application Integration Center is a Motorola subsidiary and is the facility for the Horizon Developer Program. The center is intended to supply the expertise and resources to take a prototype to deployment.

Related story:
Microsoft TV unveils 'thin-client' IPG, 5/6/02

 

return to headlines

 

TVN taps into children's market

Whoever believes children should be seen and not heard obviously isn't tapping into the multi-billion dollar market. TVN Entertainment sees the revenue potential of this market in the video-on-demand space and has put together a programming package for its VOD affiliates.

The company has put together a package that includes 18 hours of Sesame Street programming from Sesame Workshop, 13 episodes of Backyard Safari from RCN Entertainment and various programs, including Mattel's Barbie in the Nutcracker and The Great Bear Scare from Artisan's Family Home Entertainment label. The package also will include MGM content, including Pink Panther cartoons and Hello Kitty. The MGM deal is a trial agreement.

Blue Ridge, Charter Communications Inc., Insight Communications, Mediacom Communications Corp., RCN Corp., Spark Interactive and Seren Innovations Inc. are among the affiliates that have signed up for the children's VOD package, TVN said.

In July, Intertainer inked a licensing deal giving it the right to distribute 21 half-hour Sesame Street episodes, including The Best of Kermit on Sesame Street, Cookie Monster's Best Bites and Getting Ready for School.

Related story:
Intertainer enters Elmo's world, 7/30/02

return to headlines

 

BigBand lands Cox HD deployments, 
hits digital milestone

Cox Communications Inc. said it has tapped BigBand Networks Inc. to support the MSO’s rollout of high definition television in several markets later this year. 

Initially, Cox will use BigBand’s Broadband Multimedia Service Router (BMR) in Las Vegas, Nev. and Phoenix, Ariz. Cox said the gear will help the operator reduce costs and better allocate and manage its available bandwidth without expensive system rebuilds or upgrades. 

“As more content becomes available, HDTV’s massive bandwidth requirement is a formidable challenge, with each HDTV feed requiring approximately up to six times the capacity of standard digital television,” said Cox Manager of Digital Technology Steve Watkins, in a press release. 

The deployments will mark the first for BigBand’s “RateShaping” equipment, BigBand COO Jamie Howard told CED Broadband Direct. BigBand’s RateShaping technology is designed to maintain video quality while enhancing channel capacity by up to 50 percent when carrying live HD programs, or, more specifically, insert up to three HD channels in one QAM. 

Howard said Cox plans to use BigBand’s equipment in other HD markets, with some of those markets coming online later this year.

BigBand also has deployments with Time Warner Cable, Blue Ridge Communications and Canada’s Rogers Cable Inc. BigBand also is in discussions with AT&T Broadband, Adelphia Communications and a number of international cable operators. 

“We are continuing our field trials and lab evaluations with all of the top tier cable operators,” Howard said. “We are in HD trials and evaluations with all of the top five (North American) MSOs.” 

In addition to HD and standard definition television, BigBand’s has also developed or is in the process of developing product to support digital ad insertion, switched video and video-on-demand.

Separately, BigBand said more than 1.5 million digital subscribers are served by the company’s BMR equipment, which includes the compact BMR100 and high capacity BMR1200. The company surpassed the 500,000 mark less than four months ago. 



Related story:
BigBand reaches digital milestone, 4/11/02

return to headlines

 

Hotel broadband sector poised for growth

The hospitality market was hit hard after the September 11 terrorist attacks on New York City and Washington, D.C. But now almost a year later, the market is beginning to rebound, which is good news for the broadband industry, one analysis says.

Lower occupancy following Sept. 11 and a unsustainable business model nearly devastated in hotel broadband market in its infancy, says a new report, dubbed "Pay-Per-View or Free Shampoo: Where is Hotel Broadband Headed," from InStat/MDR, which is owned by the same parent as Broadband Week. The wounds, however, are beginning to heal, and hotels are embracing broadband with renewed enthusiasm, according to Amy Cravens, an InStat/MDR analyst. 

The market is positioned for strong growth in the second half of this year. After 2003, roughly 250,000 ports will be shipped per year, and by 2006 more than 1 million ports will have shipped, according to the report. InStat/MDR also found that the trend of using ADSL networks to deploy services is fading, and is being replaced by the deployment of higher bandwidth VDSL networks. The hotel broadband market will largely be driven by new builds, which will most likely be wired with CAT 5, shifting the market toward Ethernet.

Looking at the equipment side of the market is expected to generate $286 million in revenue by 2006, with the majority of the revenue coming from business in the United States, says the report.

Specifically, the hotel broadband report takes a look at the trends driving the hotel broadband market and the projected revenues in various sectors, including equipment and services. It also projects take rates and penetration.  

return to headlines

 

MSO selects Terayon as a  preferred vendor

Terayon Communications Systems Inc. joins Motorola Broadband and Toshiba America Information Systems as a preferred next-generation cable modem vendor for Cox Communications.

Cox has approved Terayon's TJ 715 DOCSIS 2.0-based cable modem for use in its networks. The modem is DOCSIS 1.1 certified. CableLabs has not yet begun testing for DOCSIS 2.0 certification.

The MSO plans to deploy the modem in its Phoenix system shortly. Phoenix, viewed as a highly competitive market for residential broadband service, is Cox's largest facility.

The news of the deal with Cox gave investors something to smile about, and gave Terayon's stock a much-need shot in the arm. At one point in morning trading, Terayon shares were up 52 cents, or 24 percent, to $2.68.

Earlier this month, Comcast Corp. certified Terayon's TJ 615 cable modem for deployment in its high-speed network. The cabler plans to deploy the DOCSIS 2.0-based modem in select service areas.

Related stories:
Comcast certifies next-gen Terayon modem, 8/21/02
Toshiba supplying Cox with DOCSIS 1.1 modems, 8/2/02
Cox tabs Motorola for next-gen cable modems, 7/31/02

 

return to headlines

 

CableLabs issues OCAP RFP

CableLabs has released a request for proposal (RFP) for implementations of OCAP (OpenCable Application Platform), a middleware specification for digital set-tops, televisions and other consumer devices based on the cable industry’s OpenCable platform. 

CableLabs said the RFP aims to solicit industry implementations of OCAP for OpenCable devices and “to hasten the ability of cable operators to launch new services made possible by OCAP.” 

OCAP currently comes in two flavors: 1.0 and 2.0. OCAP 1.0 is largely based on Europe’s Multimedia Home Platform (MHP) and includes an execution engine based on Java. OCAP 2.0, a heavier version, will add a presentation engine to the mix. 

CableLabs, which is distributing the RFP on behalf of the cable industry, said it will serve as the repository and evaluator of technical information submitted in response to the RFP.

Several MSOs, including AT&T Broadband, Comcast Cable and Time Warner Cable, voiced support of OCAP in Monday’s announcement. Charter Communications and Cox Communications are also participating in the RFP process, CableLabs said. 

Still, “individual cable operators will make independent and subjective judgments about which, if any, [OCAP] vendors to negotiate with,” said Time Warner Senior Vice President of Advanced Engineering and Subscriber Technology Mike Hayashi, in a press release. 

OCAP vendors typically refer to existing middleware suppliers such as Liberate Technologies, Canal Plus, Microsoft Corp., OpenTV Corp. and PowerTV Inc., a division of Scientific-Atlanta Inc. 

All interested parties must advise CableLabs by Aug. 26 their intention to answer the RFP. Final responses to CableLabs and cable operators are due on Sept. 12.

Related stories:
CableLabs concludes second OCAP interop, 8/2/02
CableLabs: At long last, OCAP, 1/4/02

return to headlines

 

Broadband briefs:

Sweden to get VOD network

Infraconcepts plans to roll out a video-on-demand network, dubbed SmarTV, in Sweden, with the help of SGI and Thirdspace.

SGI and Thirdspace are supplying their turnkey VOD system, which is based on SGI's Origin 300 survey platform and Thirdspace's OVS video server software and OVA, which handles the business logic in the system. 

Infraconcepts initially will offer SmarTV to 1,500 households outside Stockholm, in Sollentuna.

Indictments delayed in Adelphia case

Five former Adelphia Communications Corp. executives will have to wait a bit longer for their case to go to court. A federal court postponed the hearing for 30 days.  The U.S. Attorney's Office has said it needs more time to review information it has received from the defendants.

Last month, John Rigas, his two sons Timothy and Michael, and two other former Adelphia executives James Brown and Michael Mulcahey were arrested and charged with securities fraud. 

On Friday, a U.S. Bankruptcy Court for the Southern District of New York approved Adelphia for its $1.5 billion debtor in possession credit facility.

return to headlines

 

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