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Tuesday, September 24, 2002


Today's report from Web Editor Susan Rush

Cox names Thomson as a direct supplier

iN Demand eyes 5 million subscribers 

Charter invites Iserv on its network

Intertainer sues entertainment heavyweights

Speakeasy: Hey gamers want a free PS2 or Xbox?

More engaging online content urged

USURF America snaps up ISP

Broadband briefs


 

Cox names Thomson as a direct supplier

Cox Communications Inc. has named Thomson Multimedia as an "inventoried" vendor of DOCSIS 1.1 certified cable modems.

Specifically, Thomson will directly supply its RCA DCM245 high-speed digital cable modems to Cox's networks. The companies have been working together for some time, but this announcement solidifies their partnership.

"The Thomson/Cox alliance is mutually beneficial -- it expands Thomson's broadband strategy, supports CableLabs standards and it provides Cox with the latest RCA digital cable modems," Thomson's General Manager of broadband, data and VoIP Peter Polit said in a statement.

RCA cable modems have USB and 10/100 BaseT Ethernet connections, built-in advanced diagnostics, support up to 32 PCs, and quick installation with start-up LED sequencing. Thomson has shipped more than 2 million digital cable modems worldwide.

Last month, Cox named Toshiba America Information Systems and Motorola Broadband as preferred vendors of cable modems based on the advanced DOCSIS 1.1 specification.

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

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iN Demand eyes 5 million subscribers

Video-on-demand provider iN Demand is delivering its content to more than 2.5 million VOD subscribers, and the company expects that number to balloon to 5 million by the end of the year.

Video-on-demand is poised to become a significant source of revenue for the cable industry and the movie studios, according to iN Demand's President and CEO Steve Brenner.

iN Demand is working to make sure it continues to have a large slice of the VOD pie. The company has content deals with Artisan Entertainment, DreamWorks SKG, Columbia TriStar, MGM, New Line Cinema, 20th Century Fox and Universal Studios. The company also is delivering content from Warner Bros. These agreements give iN Demand access to roughly 75 percent of the new films being released by the major studios, according to iN Demand.

In addition to contracts with movie studios, iN Demand also has content deals with BBC America, Comedy Central, Court TV, ESPN, Fox News, Hallmark Entertainment, Sesame Workshop and Turner Entertainment.

About 3 million cable customers have access to movies on demand, and the market for VOD is on the rise. Digital cable customers are expected to reach 35.4 million in the United States by the end of 2003, and 8.8 million of those will be VOD-enabled customers, according to Kagan World Media.

"The aggressive growth in the number of active VOD subscribers, plus the continuing aggregation of quality content, will lead to a fundamental change in the way America watches movies on television," said Brenner.

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

 

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Charter invites Iserv on its network

Charter Communications Inc. is giving some Michigan residents some choice for broadband: Charter Pipeline or Iserv Co.'s service.

Beginning in the fourth quarter, Iserv will offer its high-speed cable modem Internet access service over Charter's network to Michigan residents in the cities of Grand Haven and Spring Lake. Although financial terms were not disclosed, Charter will maintain the network from the headend to the customer's home, while Iserv will provide its own billing, customer support, e-mail and access the Iserv Web site. Iserv is now a Charter Reseller Partner.

Iserv will deliver the services through its group of companies, including Iserv and EagleNet. Charter will continue to offer its high-speed modem service and video services in these two markets. "This agreement reflects Charter's commitment to providing our customers with choice," said Gary Mizga, Charter's vice president of operations for the Michigan region.

Iserv and Charter are in discussions to add communities to the agreement in the future, although no further details were revealed.

Related story:
Charter plans to make upgrades, not acquisitions, 7/24/02

 

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Intertainer sues entertainment heavyweights

It could be a case of David taking on Goliath, but Intertainer has filed a suit against Sony, AOL Time Warner Inc. and Vivendi Universal alleging that the entertainment powerhouses have conspired to jack up licensing fees for on-demand content.

The suit, filed in the U.S. District Court for the Central District of California, claims the defendants have tried to control the on-demand market by marking up fees rivals have to pay to access their content. The companies named in the suit are gearing up to launch Movielink, an on-demand content site that will directly compete with Intertainer. The suit goes on to claim that these three companies are not only hindering Intertainer's ability to gain access to premium content but they are "delaying the emergence of the broadband content industry."

Specifically Intertainer is accusing AOL Time Warner of influencing its subsidiaries Warner Bros. and New Line to terminate their agreements with Intertainer to impede the delivery of a VOD service through rival MSN. The company also claims that Sony improperly used its position as an Intertainer investor to acquire information that would enable it to build a business plan based on Intertainer's intellectual property.

Intertainer has content deals with Universal Pictures, Warner Bros., DreamWorks SKG, MGM, A&E Networks, NBC, PBS, Discovery, ESPN, Warner Music and EMI Music.

Movielink is backed by five major motion picture studios including Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. The service has yet to launch.

The antitrust division of the U.S. Department of Justice is investigating major movie studio deals to form jointly owned movies-on-demand ventures.

The defendants in the case have declined to comment on the suit.

 

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Speakeasy: Hey gamers want a free PS2 or Xbox?

What's sounds sweeter to a gamer's ears than a free game console? Speakeasy is hoping the answer is a resounding "nothing." The national broadband service provider is attempting to lure video game enthusiasts to its "Gamer Package" by dangling a free PlayStation 2 or Xbox in front of them.

The promotion, which runs through Sept. 30, offers new subscribers that sign up for one of Speakeasy's broadband gaming packages a free gaming console from either Sony or Microsoft.  After the subscriber's DSL service is installed and the first month's payment for the online gaming service is paid in full, the gaming console will be shipped to the customer.

The Gamer Packages start at $59.99 a month, and offer the gaming audience a variety of features, including the ability to run a personal gaming server and online gaming tournaments.  Speakeays has gaming servers at multiple POP sites and recently added regional network access points to give gamers improved Internet performance and more responsive connectivity, according to Speakeasy.

"Speakeasy is completely focused on meeting the demanding needs of power users and online gamers," said Erik Johnson, project manager at game developer Valve. "Now during the advent of broadband console gaming, Speakeasy is extending that commitment to a new audience and taking an aggressive approach to delivering new gaming experiences to its customers," he said.

Yesterday, Yahoo! launched an online gaming service, dubbed Games on Demand, to broadband subscribers. Games on Demand library consists of more than 40 titles, including Civilization III, Star Trek Armada II, Grand Theft Auto 2 and Tomb Raider Chronicles. The gaming service has four price points. Gamers can access one game for three days for $4.95, three games for 30 days for $9.95, five games for 30 days for $12.95 and 10 games for 30 days for $14.95.

Related stories:
Yahoo! looks to attract gamers, 9/23/02
Speakeasy launches music-on-demand service, 1/16/02

 

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More engaging online content urged

A White House panel studying ways to boost demand for high-speed Internet access is expected next week to encourage Hollywood and others to offer more online content. The report also will recommend that more workers use high-speed lines to telecommute from home.

After intense lobbying by industry groups, the President's Council of Advisors on Science and Technology sidestepped calls for an overhaul of the nation's telecommunications networks, such as backing the regional Bell phone companies' bid to scale back laws that regulate their ability to compete in the market for high-speed Internet access, or broadband.

Instead, the blue-ribbon panel of industry executives and academics hopes to encourage the development of more online entertainment, as well as online government and educational services, as a way to lure more of the 70 million Americans now online to upgrade to broadband, which is four to 30 times faster than a standard dial-up modem.

"We think this report will be a very significant move forward," said Claudia Jones, a spokeswoman for AT&T Corp., which has been following the issue closely.

A spokeswoman for the White House Office of Science and Technology Policy declined to comment on the report.

The Bush administration has been under pressure from Silicon Valley to implement tax incentives and change the rules governing the phone and cable TV industries to help boost the number of high-speed Internet connections amid an industry-wide financial meltdown.

Only about 10 million homes have high-speed Internet access, which is more complex to install and twice as costly as traditional dial-up Internet access.

Many consumers see no compelling reason to pay extra for broadband, according to a study released Monday by the Commerce Department. The average $40 to $50 monthly fee for broadband is cited by many consumers as the main reason they aren't upgrading to faster access, the Commerce Department said.

Three industry sources who have seen draft copies of the president's council report said the group generally recommends a laissez-faire and low-key approach to broadband.

Besides supporting the development of more content, the report is expected to call for more research and development of high-speed technologies, including wireless data networks. The report also will recommend the government use its clout as a big purchaser of technology to promote online services that could benefit from a fast Internet connection, such as distance learning and telemedicine.

In calling for more engaging content, the report could put the White House at odds with Hollywood and other powerful forces seeking greater government protection for creative works online.

Although government has little broadband content to offer, a report to be released today by a unit of the Progressive Policy Institute suggests one novel approach: encourage the nation's public broadcasting stations to put their television shows online.

 

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USURF America snaps up ISP

Fixed wireless broadband product developer USURF America Inc. has signed a letter of intent to acquire High Plains Internet.

Earlier this month, USURF signed HPI up as its channel partner, but decided to acquire the Colorado Springs-based ISP after realizing that the company's infrastructure complemented its plans to roll out its Quick-Cell Wi-Fi based operations. The deal also will bring more direct revenue to USURF.

"By acquiring HPI, we have taken our channel partner strategy to its logical conclusion -- we will receive all Quick-Cell related revenue rather than sharing revenue with a partner as we currently do with our traditional channel partners," says Ken Upcraft, USURF vice president of sales and marketing.

HPI provides Web hosting and dial-up and wireless Internet access to its customers in the Colorado Springs market. The merger with USURF will enable the combined company to also delivery high-speed Internet access services.

Financial terms of the all-stock transaction were not revealed.

Related story:
USURF forms alliance with T2, 6/20/02


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Broadband briefs:

Brown joins Verizon

Kathryn Brown has joined Verizon Communications as senior vice president of Public Policy Development and International Government Relations. Brown served as the Federal Communications Commission's chief of staff from 1998 to 2000.

Brown will be in charge of federal, state and international public policy development and international government relations. She will develop public policy positions and will be responsible for project management on emerging domestic and international issues.

Grand Jury indicts former Adelphia execs

A federal grand jury has indicted former Adelphia Communications Corp. executives on fraud charges today in Manhattan.

John Rigas, Timothy Rigas, Michael Rigas have been indicted on charges of conspiring to defraud Adelphia investors.

Adelphia filed for bankruptcy protection from its creditors in June.

 

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