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Wednesday, September 25, 2002 |
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• Thomson buys control of Canal+ Technologies • Shaw selects Liberate's platform • RCN gives cable modem subs a dial-up option • Sonera turns to Cisco for broadband access • Must Fly TV: NBC programming jet sets live • Sports network embraces HDTV • Justice may stop satellite TV merger
Thomson buys control of Canal+ Technologies Thomson Multimedia went shopping for some technology to add to its portfolio and has come home with Canal+ Technologies. As part of the all-cash deal, Thomson will acquire Canal+ Group's 89 percent stake in the middleware and conditional access provider for $186 million in cash. Prior to the deal, Thomson owned a 3.19 percent stake in the company. Other minority stake holders include Sony Corp.(3.2 percent), Sogecable SA (3.2 percent) and Sun Microsystems (1.4 percent). Thomson says it pursued the controlling interest in Canal+ Technologies for its experience in the conditional access and interactive software markets. Canal+ Technologies' portfolio consists of MediaGuard and MediaHighway. MediaGuard, a conditional access system, is designed to enable digital television operators to deliver encrypted TV channels on a fully secured platform. The MediaHighway middleware enables the deployment of advanced interactive TV applications such as electronic program guides, pay-per-view and home banking. Canal+ software solutions are deployed in more than 14 million set-top boxes worldwide. Canal+ Group is a subsidiary of Vivendi Universal, which had been expected to start selling off some non-core assets to pay down its $33 billion debt load in hopes of returning to profitability. Canal+ Technologies sees the acquisition as a positive step. "Thomson's backing strengthens Canal+ Technologies' position in the iTV marketplace. Through this transaction we intend to play an active role in industry consolidation, thus boosting the deployment of iTV worldwide," Canal+ Technologies said in a prepared statement. The deal, which has been approved by both companies' boards, is subject to certain regulatory and other customary closing conditions. Once the transaction closes, Canal+ Technologies' operating units will be managed within the Thomson New Media Services division. Canal+ Technologies has 644 employees worldwide: 562 in Paris, 48 in the U.S., 27 in the U.K. and 7 in China. The news of the acquisition gave Thomson's stock a shot in the arm. Shares were up 50 cents to $16.16 as of 10:57 a.m. EDT. Related story:
Shaw selects Liberate's platform Canadian communications company Shaw Communications has been working to put the finishing touches on its video-on-demand service set to launch in Calgary. The latest: Shaw will use Liberate Technologies' set-top software to power the VOD deployment. Shaw selected the Liberate TV Platform Compact software because it enables the company deploy its VOD service over its existing Motorola DCT-2000 set-tops. At the NCTA convention in May, Liberate announced it was working to develop new solutions specifically for the Motorola DCT-2000 boxes, which make up a large portion of the installed set-top base in the field today. The Compact platform enables users to control their programming through their remote control giving them full VCR functionality, including such features as pause, rewind and fast-forward. Insight Communications already uses Liberate's Compact platform for VOD deployments in about 10 markets. nCUBE Corp. will supply the VOD server/system for the Shaw VOD launch. Earlier this month, Shaw inked a content aggregation deal with Alliance Atlantis Motion Picture Distribution Group to help fill up its VOD library. Although financial terms of the deal were not disclosed, Alliance Atlantis will supply older titles from its catalog of films, as well as current releases. Movies slated to debut this fall on Shaw's VOD service include John Q, Amelie, Lord of the Rings: The Fellowship of the Ring, Blade II and 40 Days and 40 Nights. Shaw also has a content deal with Hallmark Interactive to provide more than 300 titles. The company says it is continuing to work to secure more content deals from movie studios. The VOD service will offer subscribers a selected title for up to 48 hours. Related stories:
RCN gives cable modem subs a dial-up option RCN Corp. is tapping into the notion of portability by offering a dial-up companion service to its high-speed Internet access customers. For an additional $9.95 a month, RCN and Starpower cable modem customers will have local access to the Net in 42 states when they are away from home. The dial-up service offers more than 750 access numbers nationwide and remote access to RCN e-mail via RCN Webmail. Subscribers also receive two more e-mail accounts and 10 MB of additional Web server space. RCN views the dial-up option as a way to provide more value to its customers. In May, the overbuilder launched a bundled service offering, dubbed "Essentials," to attract more subscribers. The Essentials package consists of RCN's basic video package and one set-top, one phone-line with unlimited local calling and high-speed data service with the cable modem included. Last month, the company added an international flare to its bundled service package. Related stories:
Sonera turns to Cisco for broadband access Finnish telecom service provider Sonera plans to power its Ethernet-based broadband service in Helsinki with Cisco Systems' equipment. With Cisco's help, Sonera will deliver high-speed Internet access via 10/100 Ethernet ports, enabling each user to have a reserved capacity of 256 kbps. For Cisco's part, the gear maker will supply its Catalyst 2950 switches and metropolitan optical fiber. Initially, Sonera will offer the service to 15,000 of its existing residential customers in the apartments of the Helsinki Area Student Villages. The Cisco equipment will enable the delivery of the Ethernet access through an optical fiber network running to the basement of the apartment building. The service will be accessed through an Ethernet socket in the apartment and a network card, eliminating the need for a modem, Sonera said. "The combination of Ethernet, optical fiber and IP provides Sonera with a solid foundation for future offering of services such as voice over IP and video-on-demand down the line," Sonera's Director Jari Hakalin said in a statement.
Must Fly TV: NBC programming jet sets live Travelers getting ready to jet-set off on vacation on a JetBlue Airways flight no longer have to worry about setting their VCRs to tape their favorite NBC shows. NBC's "Must See TV" line up will be available to travelers in real-time. JetBlue, NBC and DirecTV Inc. have extended their existing partnership to include programming from WNBC and Telemundo, the Spanish-language network, in the DirecTV Airborne channel line up. The DirecTV Airborne real-time, in-flight programming service is delivered via the LiveTV in-flight entertainment system. The deal builds on a previous agreement to deliver programming from CNBC and MSNBC. The LiveTV in-flight entertainment system was launched in 2000, and offers commercial airline passengers up to 24 channels of real-time DirecTV sports, news, children's and general programming. WNBC is the first broadcast network to launch on DirecTV Airborne. JetBlue is the only airline that offers the service free-of-charge at every seat. JetBlue recently moved to acquire LiveTV LLC. The deal is expected to close in the fourth quarter.
ESPN is throwing its arms around high-definition television with ESPN HD, a new service slated to launch in April 2003. "ESPN is making a significant commitment to spur the growth of high-definition television," said George Bodenheimer, ESPN's president, in a press release. "Sports will be a key driver of HDTV, and it is only fitting that ESPN plays a leadership role in...advancing the adoption of digital technology," he said. The network plans to produce 100 live telecasts in high-definition television during its first year. In 2003 and 2004, it plans to produce select games in HD from Major League Baseball, the NBA, the NFL and the NHL. ESPN HD also will offer a variety of ESPN original programming such as the X Games, Great Outdoor Games and the ESPY Awards. In 2004, the network will add most of its studio shows, including SportsCenter, to the line up, which will add 3,700 more hours of programming produced in the HDTV format. ESPN HD will be delivered to cable and satellite systems in 720p high-definition format. ESPN has tapped vice president Bryan Burns to manage ESPN HD. Related stories:
Justice may stop satellite TV merger
Justice Department staff is recommending the agency block a proposed merger of the USA's two main satellite TV providers, EchoStar Communications Corp. and DirecTV, people familiar with the matter say. The merger would reduce the number of pay TV companies to two from three in most markets served by cable and satellite. In rural markets with no cable, consumers' choices would be narrowed more dramatically, to one satellite company from two. Prosecutors plan to argue that the merger also would harm the 30 percent of consumers who can't get digital cable. Those who want digital TV would have one choice: the satellite monopoly. The staff recommendation has not been officially delivered to Justice antitrust chief Charles James, people close to the matter say. But James has been closely monitoring the review and has signaled his apparent agreement. Asked about the merger at a Senate hearing last week, James said, "At best, it is a 3-to-2 merger," adding, "in some instances a 2-to-1 merger." The Federal Communications Commission is in the early stages of its review of the merger. Justice and at least a half-dozen states are expected to announce in several weeks that they are prepared to go to court to block the deal. That announcement has been delayed as officials review Cablevision's assertion that it could be a new rival to the combined company. Cablevision officials have asked Justice and the FCC to force EchoStar, as a merger condition, to give them some of its orbital transponders for a new satellite service they plan to roll out next year. The idea is getting little traction at the agencies, where officials doubt the upstart could replace the lost competition, say people familiar with the matter. Cablevision would be "a potential competitor that's 20 million subscribers behind the (satellite) leader," says George Reed-Dellinger of Washington Analysis. Another issue: The transponders Cablevision would get could not serve the western USA, analysts say. EchoStar and DirecTV argue the merger would enhance competition by forging a bigger satellite company that could challenge cable. The new company, for instance, would have more satellite capacity to offer local broadcast channels, which now can be offered in few markets. EchoStar also has proposed offering a nationwide price, so rural customers could benefit from the low pricing cable competition brings to urban areas. But former Federal Trade Commission official Marc Schildkraut says regulators prefer that market forces dictate prices. Related stories:
• Level 3 expands its network Level 3 Communications Inc. has completed the expansion of its network in seven European markets. The expansion focused on the markets of Geneva, Zurich, Madrid, Milan, Stockholm, Karlsruhe and Koln. The company's two-ring European network spans 3,600 miles and connects multi-conduit metropolitan networks in London, Amsterdam, Brussels, Paris, Frankfurt, Dusseldorf, Hamburg, Munich and Berlin. With its expanded network, Level 3 has the ability to offer transport and IP services in 16 top European markets, according to the company. • Nortel, Mobilkom make 3G video call With the help of Nortel Networks, the first phase of Mobilkom Austria's Universal Mobile Telecommunications Systems (UMTS) 3G network is operational. The companies have completed 3G video calls on the live network, although Mobilkom does not plan to commercially deploy services over the network until next year. Mobilkom awarded Nortel the UMTS contract in March 2001, which included packet and circuit core technology and radio coverage in four Austrian cities. • Verizon pumps $19 million into Philadelphia market Verizon has invested $19 million to upgrade and expand its telecom network in the Philadelphia area. The renovation will enable Verizon's network to carry larger volumes of voice and data at higher speeds.
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