Broadband Week Direct

Today's report from Web Editor Susan Rush

• Microsoft, PacketVideo climb into bed

• UltraLink debuts in three new cities

• Conexant integrates Wi-Fi

• WorldGate launches Go!TV Games Network

• EarthLink expands deal with computer retailer

• iN Demand inks news, kid deals

• Stake on Liberty plate

• Broadband briefs

Microsoft, PacketVideo climb into bed

Rivals Microsoft Corp. and PacketVideo are calling a truce to further the deployment of rich audio and video content to next-generation wireless phones and devices.

Although financial terms of the companies' new deal were not disclosed, PacketVideo will use Microsoft's digital media delivery format, dubbed Windows Media 9 Series, in its PacketVideo pv3 Mobilemedia System. The pv3 will enable the delivery of Microsoft's software to various wireless handset platforms, including Symbian, Nucleus, Windows Powered smart devices and others. The deal will enable these platforms to support encoding and decoding of Windows Media Audio and Video 9 Series and the downloading and uploading of Windows Media content. It also gives Microsoft an "in" in the advanced video delivery service sector.

PacketVideo believes Windows Media 9 Series technology will complement its 3G Partnership Project (3GPP) standard-based products. "This agreement represents a new era of cooperation that will drive the wireless industry forward toward the successful deployment of innovative multimedia services that enhance communications, information and entertainment...," says James Brailean, CEO of PacketVideo.

PacketVideo has a partnership with NTT DoCoMo, the first wireless carrier to launch 3G services in Japan last October. DoCoMo teamed with PacketVideo to deliver real-time video streaming services over DoCoMo's 3G mobile network without the need to install streaming media software in the terminals.

Related stories:
PacketVideo, NMS team for two-way wireless video, 7/9/02
DoCoMo gets ready to stream over 3G, 4/26/02
3G hits Japan, 10/1/01

UltraLink debuts in three new cities

Thanks to AT&T Broadband's UltraLink service, residential broadband subscribers in Pittsburgh, Cleveland and Richmond, Va. will now have the option to access the Net at a faster rate.

The tiered broadband service ups the speed ante, offering users the ability to download at speeds up to 3 megabits per second, and upload at speeds up to 384 kilobits per second. By comparison, the company's flagship cable modem service offers maximum speeds of 1.5 megabits per second downstream and 256 kilobits per second upstream.

In August, AT&T Broadband launched the faster service in Dallas, Denver, Salt Lake City, San Francisco Bay Area, Seattle, St. Paul, and in various communities in its Michigan and Rocky Mountain markets. The MSO intends to roll out the service in Chicago, Central California and the Northeast markets later this year.

UltraLink retails for $79.99 a month. For an additional $3 a month, subscribers can lease a cable modem.

Tiered service is not only for the speedsters. The company plans to trial a slower speed cable modem service later this year, although speed and location details have not yet been revealed by the company. The company hopes the slower rate will entice dial-up users to make the switch to broadband.

Conexant integrates Wi-Fi

Wi-Fi silicon maker Intersil announced a deal with Conexant Systems Inc. to incorporate Intersil's PRISM Wi-Fi (802.11b) wireless local area network technology in Conexant's next-generation DSL, cable and home networking chip sets.

The integration, which will negate the need to purchase and install a Wi-Fi network interface card, will enable file sharing, voice over IP, video and digital media delivery in home, gaming and wireless Web browsing applications, Conexant said. The companies believe their partnership will reduce the complexity and cost of WLAN systems, which in turn should accelerate the deployment of wireless networks in the home and small offices.

The WLAN equipment market is expected to generate $3.4 billion by 2005, according to analyst firm Gartner Dataquest, and Conexant wants to make sure its gets a piece of the WLAN pie.

Conexant has its hands in many cookie jars. Last month, the company announced plans to acquire Globespan Virata's MPEG video and audio compression and decompression product business. The addition of digital media compression technologies to its MPEG product portfolio will enable Conexant to develop next-generation MPEG products for PCs and set-top boxes.

Related stories:
Conexant buys MPEG biz, 6/25/02
TI and Intersil team for voice over broadband, 5/30/02
New products aimed at better, cheaper IP, 5/20/02

WorldGate launches Go!TV Games Network

WorldGate is jumping into the interactive gaming sector with the introduction of its Go!TV Games Network.

The interactive network enables gamers in the same house or different households to go head-to-head using WorldGate's ultra-thin client architecture. Players also can participate in online chats.

Included with the network is the Go!TV Gameroom, a customized 24-hour video programming channel. The channel will be hosted by "game jockeys" that will promote the interactive network. The hosts also will provide game tips, upcoming game announcements and video vignettes on monthly leader-board winners.

WorldGate recently rolled out its Go!TV Links service, which is designed to make every program across all channels instantly interactive. Operators can deploy the service, which also is based on WorldGate's Channel HyperLinking technology, to today's digital set-top box converters using their current WorldGate iTV headend equipment. The Go!TV Games Network also can be deployed to current digital STBs.

Related story:
WorldGate rolls out Go!TV Links, 8/15/02

EarthLink expands deal with computer retailer

EarthLink has inked a deal to peddle its high-speed cable modem service in Micro Center stores in select Time Warner Cable markets.

Micro Center has agreed to sell EarthLink's cable modem service offered over Time Warner Cable systems in Cincinnati, Cleveland, Columbus, Ohio; Detroit; Tustin, Calif.; Houston; Long Island, N.Y.; and Overland Park, Kan.

Earlier this year, the computer retailer named EarthLink as its premier ISP partner is all of its 19 retail outlets across the country. As part of that deal, Micro Center offers EarthLink dial-up and DSL services to its customers.

EarthLink has several retail partners, including Gateway, Circuit City and OfficeMax.

Related story:
EarthLink, Gateway make broadband pact, 6/5/02

iN Demand inks news, kid deals

John Dempsey

NEW YORK --- iN Demand, the dominant distributor of pay-per-view movies and events in the U.S., continues to build up its inventory of video-on-demand programs, signing a deal for VOD rights with Fox News and Sesame Workshop.

Until now, iN Demand has stressed its contracts with the major studios for VOD rights to their theatrical movies in the PPV window.

The new deals with Fox News and Sesame Workshop rep an effort by iN Demand to add some seasoning to its menu of movies from all of the studios except for three holdouts: Walt Disney, Paramount and New Line.

From Fox News, iN Demand said it will offer "historical, political and topical news specials," with titles such as "Silent Warriors," "Terrorism Hits America" and "War Stories: Bomber Boys."

The Sesame Workshop deal, engineered by In Demand exec VP Rob Jacobson, features specials like "Big Bird Visits the Firehouse," "Sesame: Play Along Games & Songs," "Cookie Monster's Best Bites," "Do the Alphabet" and "Best of Kermit on Sesame Street."

Owned by four major cable operators --- AT&T Broadband, Time Warner-Advance/Newhouse , Comcast and Cox --- In Demand serves 1,900 cable systems reaching about 29 million households.

Related stories:
iN Demand, MGM make content pact, 8/20/02
iN Demand is in at AT&T as Diva phases out of VOD, 5/7/02

Stake on Liberty plate

Ed Meza

BERLIN --- U.S. cable group Liberty Media Corp. is reportedly offering rival Callahan Assn. e1.5 billion ($1.47 billion) for its majority stake in bankrupt Callahan NRW, the regional cable company in the German state of North Rhine-Westphalia.

Liberty has also joined a consortium bidding for six other cable franchises from Deutsche Telekom.

Liberty's $5.4 billion bid for them earlier this year was blocked by Germany's antitrust authorities, bringing ambitious plans to upgrade Germany's aging cable systems to a screeching halt.

This left Callahan high and dry --- it was partially dependent on a nationwide cooperative effort to broaden cable bandwidths --- and it filed for insolvency in July.

Talking to News Corp.?

The company has reportedly also been in talks with News Corp. about the sale of its assets in North Rhine-Westphalia. Callahan NRW has so far refused to comment on the reports.

Callahan NRW's core subsidiary, Ish, is being restructured and it is expected to release a new business plan by the end of the month.

Callahan is also facing difficulties with its other regional cable franchise in Baden-Wurttemberg.

Deutsche Telekom hopes to finalize the sale of its six remaining cable companies by the end of the year.

Broadband briefs:

• OpenTV wins new network operator customer

Jiangxi Cable Network has tapped OpenTV as its local partner in China. OpenTV partner Beida Jadebird Huaguang will build a network designed to offer digital and interactive television services. Jiangxi Cable Network serves three million subscribers in China.

• Terayon names Woodrow to board

Former Cox Communications and Qwest Communications International Inc. executive David Woodrow has been name to Terayon Communication Systems Inc.'s board of directors.

Woodrow was chosen for the board because of the senior management positions he has held and his knowledge of running a cable company.