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Thursday, October 3, 2002 |
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• Mag Rack debuts on Insight Digital • Verizon monitors IP networks • Microtune stumbles on warning • Motorola finds work in Spain, wins Emmy • Cablevision ranks low in liquidity • BBC set to launch iTV service
Mag Rack debuts on Insight Digital MSO Insight Communications has rolled out Rainbow Media Holdings Inc.'s Mag Rack VOD service in 10 of its cable systems. Insight will initially offer 40 hours of programming from the video magazine rack, including Classic Cars, Traveler's Guide, Cook with the Pros, Yoga Retreat and Mag Rack Kids Club. Special interest magazines on newstands inspired the creation of Mag Rack. The addition of Mag Rack content will begin Insight's "VOD re-launch efforts, which also will be further enhanced by upcoming SVOD offerings and a significant expansion of available titles," said Insight President Kim Kelly in a prepared statement. The Mag Rack content will complement Insight Digital Gateway services, according to Kelly. Wednesday's launch makes the VOD service available to 214,000 of Insight's VOD-enabled homes in Louisville, Lexington and Covington, Ky.; Bloomington, Lafayette/Kokomo, Andersen and Evansville, Ind.; Champaign and Rockford, Ill.; and Columbus, Ohio. The company has plans to broaden the scope of the service to its entire customer base in the future. Mag Rack also has a multi-year distribution agreement with Charter Communications Inc. Related stories:
The fat lady may be about to sing at Teledesic LLC. The satellite communications services company has put the brakes on its global, broadband Internet-in-the-Sky satellite communications network. Over the past 10 years, Teledesic has invested hundreds of millions of dollars on design and development of the network. In February it looked like the dream was about to become a reality when the company hired Italian satellite manufacturer Alenia Spazio SpA to construct its first two satellites. In all, Teledesic had envisioned a constellation of 30 satellites beaming broadband services to Earth by 2005, but that vision has come crashing down. Teledesic Chairman and Co-CEO Craig McCaw blames the weak telecom market and overall economic environment. Along with the suspension of construction, Teledesic says it plans to "significantly reduce" its staff. McCaw says the company is still "financially solvent," and he hopes to find a way to start up construction again. For now, the company is evaluating alternative approaches to the business. The service was being designed to provide broadband
access for governments, businesses, nonprofit organizations and
individuals on a global basis. Related stories:
Verizon is trying to take the worry and hassle of network monitoring and management away from its large enterprise customers with a new service, dubbed IPT Watch. IPT Watch is a remote management service designed to monitor all IP telephony hardware and software as well as voice traffic traveling over a customer's network. Verizon is using Cisco Systems' Architecture for Voice, Video and Integrated Data (AVVID) to help power the service. Verizon offers three levels of service packages, including device management, fault monitoring and performance monitoring. Device management is the basic IPT Watch service designed to manage the Cisco CallManager and Cisco Utility voice mail software. The CallManager extends enterprise telephony features to packet telephony network devices. The second level of service, fault monitoring, incorporates the services of the basic service plus adds the monitoring of quality of service standards established for voice traffic flowing over a converged network. The highest and most comprehensive of service packages -- the performance monitoring package -- includes reporting on the performance of the IP network. The package also incorporates the services of the lower-tiered services. Customers will pay a monthly fee for the service. Pricing is customized for each large enterprise customer, which based on a number of factors, including other services purchased, according to a Verizon spokeswoman. Verizon believes IPT Watch alleviates the need for its customers to hire their own IP telephony technicians. Concordia University is one of Verizon's first IPT Watch customers. The service gives someone else the responsibility of worrying about the technology Concordia uses, enabling the University to concentrate on its educational duties, says Brian Heinemann, dean of IT at Concordia Verizon and Cisco have developed a Web-based seminar to give customers the skinny on IPT Watch. The free seminar can be accessed at www.cisco/go/semreg/verizon/107585_125. Related stories:
Microtune Inc. shares slipped to a new 52-week low at one point in early trading, following news that the radio frequency product maker's third-quarter results will come in below the Street's expectations. The company will report $24 million in revenue for the third quarter, which falls short of analysts' range estimates of between $25.5 million and $28 million. It also falls short of Microtune's earlier guidance calling for revenue to increase 20 percent over the second quarter. In actuality, Microtune posted a 4 percent quarter-over-quarter increase. Microtune also warned that it will post a wider-than-expected pro forma net loss from operations. Analysts on average were calling for a loss of 9 cents a share, according to Thomson First Call. To cut costs, the company says it is implementing a worldwide restructuring plan. Details of how it plans to lower its cost structure were not outlined. Final results of the quarter ended Sept. 30 will be outlined during an earnings conference call on Oct. 28. At this time, the company also intends to provide guidance for the fourth quarter. As of 11:07 a.m. EDT, Microtune shares were shedding more than 11 percent of their value, trading at $1.66, which is well off their 52-week high of $29.45. Related stories:
Motorola finds work in Spain, wins Emmy Two of Spain's broadband companies have named Motorola Inc. Broadband Communications Sector as a key technology provider. ONO has inked a deal to purchase customer premise equipment and conditional access technology from Motorola. The service provider plans to deploy Motorola's DVi3000 and DVi3500 digital set-tops early next year. In addition, ONO will deploy Motorola's MediaCipher conditional access technology, which will enable the company to launch subscription-based services. ONO's system passes 1.5 million households in Spain. Telecable has tapped Motorola to build an advanced voice and data network based on Euro-DOCSIS 1.1 and PacketCable specifications. Motorola will supply its Motorola Broadband Services Router integrated cable termination system/routers; SURFboard cable and telephony modems; the Motorola Advanced Provisioning System and DOCSIS manager; and Motorola IP network professional services. Telecable plans to roll out data and telephony services over the network. The network operator's service area covers roughly 250,000 homes and delivers broadband services to 70,000 residential and commercial subscribers in the Asturias Region of Spain's north coast. Separately, the National Academy of Television Arts and Sciences has honored Motorola Broadband. The company won an Emmy for outstanding achievement in the development of consumer digital set-top boxes The company has received six other Emmy awards for statistical multiplexing technology; security technology; motion vector calculation technology; VideoCipher technology; DigiCipher technology; and its contribution to the HDTV Grand Alliance standard.
Cablevision ranks low in liquidity
Cablevision Systems Corp. ranks among companies most likely to run out of cash in the next 12 months, Moody's Investors Service said yesterday in unveiling a new ranking system. The new ratings of liquidity are separate from Moody's bond ratings, which already gave Cablevision bonds junk status. Moody's gave Cablevision an SGL-4 rating, the lowest of four liquidity ratings on the new list, even though the cable TV company has described a retrenchment plan to close a funding gap of up to $1 billion in next year's budget. Cablevision is among six companies - which include Revlon Consumer Products and RCN Corp. - to get the lowest rating out of the initial 37 companies rated. A Cablevision spokeswoman declined to comment. In rating Cablevision, Moody's cited "the high level of both planned and requisite capital spending during the second half of 2002, a good portion of which represents non-core investment activities." Cablevision's stock price fell yesterday 9 percent, or 84 cents a share, to $8.36, down 82 percent this year. The ratings firm said Cablevision's retrenchment could cut into growth prospects for revenue and cash flow. Also, the restructuring, which includes shutting 26 of 43 stores in The Wiz chain, cutting staff by 7 percent, switching digital set-top box suppliers and putting the Clearview Cinemas chain up for sale, involves certain costs for the company. "Taken collectively," Moody's said, "these items could further strain the company's current and future cash resources." Moody's said Clearview "may be of questionable value and somewhat difficult to sell." It also said cash on hand and future cash flow from the company's Rainbow Media programming unit - which Cablevision said it may draw on -- may not be enough to cover the shortfall. Related story:
On October 30 the United Kingdom will get another choice in digital television thanks to a partnership between the BBC, Crown Castle International and BSkyB. The free-to-view digital service, dubbed Freeview, will offer viewers up to 30 digital television channels, interactivity and digital radio through a rooftop aerial via a digital terrestrial television. Consumers will pay a one-time fee of $155 for an adapter. The channel line-up includes entertainment, music, children's programs, documentaries and 24-hours news. In April the U.K. suffered a setback in its quest to become the first all digital television country when iTV Digital went belly up. iTV Digital failed to attract enough subscribers even though the company gave away set-tops. Its failure to renegotiate a contract with the English Football League proved to be the final nail in iTV Digital's coffin. "Freeview offers something new to viewers who want more quality TV channels but haven't yet been attracted by pay digital television," said Berwyn Roberts, Crown Castle's sales and business development director. The UK Independent Television Commission awarded
BBC and Crown Castle the digital terrestrial television (DTT)
licenses previously held by ITV Digital.
• Former Adelphia execs plead not guilty Adelphia Communications Corp. founder John Rigas, his two sons Timothy and Michael, pleaded not guilty to charges of looting the company out of hundreds of millions of dollars and hid a couple millions in loans. Former vice president of finance James Brown and former director of internal reporting Michael Mulcahey also entered a plea of not guilty. If the defendants are found guilty, each man could face up to 30 years behind bars. • VocalTec lands $1 million order VocalTec Communications Ltd. has snagged a $1 million contract from Data Access, a private operator in India. Data Access has purchased VocalTec's packet tandem switching solution. This is the second order VocalTec has received from Data Access. • Broadcast International joins Helius alliance Broadcast International has joined Helius Inc.'s Strategic Alliance Program. As part of the alliance, the companies will integrate products and services for the satellite communications industry. The alliance enables Helius and BI to share sales leads and combine marketing efforts.
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