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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

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

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

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.

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

More engaging online content urged
Copyright 2002 / Los Angeles
Times
Los Angeles Times...09/24/2002
From LexisNexis
Jube Shiver, Jr.
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.

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

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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