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Today's report from Web Editor
Susan Rush
• Charter expands VOD
reach
• Alcatel reaches DSL milestone
• Revenue up, Comcast gets
back in the black
• Time Warner picks up
Pace for Indy VOD launch
• DragonWave breathes fire
into bridge network
• Cable nets try free VOD
with iN Demand
• Broadband briefs
Charter expands VOD reach
Charter
Communications is moving full speed ahead with its video-on-demand
launch. The MSO is rolling out the service in nine new markets
with the help of VOD equipment vendors nCUBE
Corp. and Concurrent
Computer Corp.
Charter is introducing VOD to its customers in Allendale,
Mich.; Fond du Lac, Janesville and Madison, Wis.; Jackson, Kingsport
and Manchester, Tenn.; Kennewick, Wash.; and St. Peters, Mo. The
addition of these markets extends Charter's VOD reach to 21 markets.
In five of the new markets, Charter will deploy Concurrent's
MediaHawk Broadband VOD system. Concurrent's equipment will serve
Allendale, St. Peters, Fond du Lac, Janesville and Madison. Charter
has deployed Concurrent equipment in 11 markets thus far. Concurrent
first signed on as a Charter VOD partner in April. The deal marked
the end of Charter's exclusive partnership with the now bankrupt
Diva Systems Inc.
nCUBE's n4x enhanced video server will be used in
the four remaining markets, which will bring the total number
of markets Charter has deployed the vendor's equipment to 10.
This latest deployment covers the cities of Kennewick, Kingsport,
Jackson and Manchester.
nCUBE inked its partnership with Charter in June.
Charter Digital Cable subscribers have access to
the VOD service via their existing set-tops. VOD programming prices
range between 99 cents for children's programs to $3.99 for a
recently released movie for a 24 hour rental period.
Related stories:
Charter's
quarterly profits are lower than expected, 10/25/02
Charter
signs on another VOD partner, 6/4/02

Alcatel reaches DSL milestone
Alcatel
continues to push forward in the DSL equipment market as the telco
gear maker announced that it has shipped 20 million digital subscriber
lines.
The lines, which encompass both asymmetric DSL and
symmetric DSL, are supported by the company's 7300 Advanced Services
Access Manager (ASAM) broadband access platform.
Australian carrier Telstra has become the latest
carrier to deploy Alcatel's broadband access platform.
To keep the momentum going, Alcatel has made some
enhancements to the 7300 ASAM platform, including standards-compliant
customer premises equipment auto configuration, which enable operators
to reduce manual field operations tasks by dynamically configuring
the CP and CPE, according to Alcatel. "The most critical
element in ensuring DSL network success for carriers is reducing
customer acquisition costs and activation time to the absolute
minimum," said Michel Rahier, president of Alcatel's broadband
networking activities.
Other upgrades to the platform include the addition
of the multiservice IP Services Module and IP-based services,
including VOD and music downloads.
Simultaneously, Alcatel said it is rolling out a
low-profile remote DSL Access Multiplexer. The DSLAM is designed
to reduce power consumption and increase component density, Alcatel
said.
Related stories:
SBC
adds Alcatel deep fiber solution for San Fran project, 7/15/02
Alcatel
ships more gear, 5/16/02

Revenue up, Comcast gets back
in the black
Comcast
Corp. posted a more than 12 percent jump in third-quarter sales
as the MSO signed up more high-speed Internet and digital cable
customers.
During the quarter, Comcast added 169,800 high-speed
Internet customers and 205,000 digital cable boxes. At the close
of the quarter, Comcast had 1.3 million high-speed Internet customers
-- a 68.9 percent boost compared to a year ago -- and had 2.9
million digital cable boxes in service.
The company posted net income of $75.6 million, or
8 cents a share, compared to a net loss of $106.8 million, or
11 cents a share, a year ago. Comcast's net loss a year ago surrounded
the fall of Excite@Home.
Comcast posted revenue of $2.71 billion, up from
$2.4 billion a year ago. Revenue for its cable division increased
12.3 percent to $1.5 billion, compared to the $1.4 billion recorded
in Q3 2001. The division has rolled out video-on-demand service
to more than 6 million homes.
In conjunction with its earnings announcement, Comcast
laid out its free VOD lineup for its upcoming launch in the Philadelphia
market. Content will be supplied from A&E Network, Comedy
Central, C-SPAN, The Golf Channel and Outdoor Life.
Comcast is gearing up to close its pending merger
with AT&T Broadband. The companies expect to get the green
light to close the deal in the fourth quarter, which will integrate
AT&T Broadband's 13.1 million cable subscribers.
Related stories:
AT&T
Broadband adds advanced service subs in Q3, but sheds more basics,
10/22/02
Comcast
debuts HDTV in Washington metro area, 10/14/02

Time Warner picks up Pace for
Indy VOD launch
Jeff Baumgartner, CED
Time
Warner Cable maintained its aggressive stance on video-on-demand
by launching the service to digital customers in Indianapolis
last week.
Pace
Micro Technology added that the MSO is rapidly
deploying the vendors 500-model digital boxes in the market
to advanced analog customers who opt for the digital tier but
arent taking other set-top-enabled digital applications
such as high-definition television and digital video recording.
Scientific-Atlanta, whose base digital set-tops also populate
Time Warners Indianapolis digital network, is filling that
need with models such as its Explorer 3100 HD and DVR-capable
Explorer 8000.
Time Warner Cable also buys digital set-tops from Pioneer Electronics.
Pace, the latest vendor to benefit from Time Warner
Cables multiple set-top vendor strategy, has been shipping
boxes to the MSO since November 2001. Since then, Time Warner
Cable has deployed Pace set-tops in several markets, including
Binghampton, N.Y., Memphis, Tenn.; Milwaukee, Wis.; San Antonio,
Texas; and Rochester, NY, among others.

DragonWave breathes fire into
bridge network
Wireless broadband network supplier DragonWave
Inc. has inked a deal to link communications between three bridges
that link New York and Ontario.
Although financial terms were not disclosed, DragonWave
will work with integrated network services provider Transwave
Communications Systems Inc. to support voice and data communications
between the three bridges the Niagara Falls Bridge Commission
operates.
The DragonWave wireless system supports toll transactions,
lane-closure alerts and standard business applications. In 2003,
the network will support video-over-IP security traffic.
"The network is our heartbeat, so reliability
and performance are of utmost importance," said Michael O'Reily,
head of MIS-IT for the Niagara Falls Bridge Commission, in a prepared
statement. "The DragonWave solution has given us given us
a giant, dependable pipe that can be cost-effectively expanded
as our capacity needs grow." The broadband communications
network will support the bridges, which carry an estimated 9 million
vehicle passengers a year.
Related story:
DragonWave
secures $8.3 million, 10/17/02

Cable nets try free VOD with In
Demand
Copyright 2002 Reed Elsevier
Inc.
Daily Variety...10/28/2002
From LexisNexis
John Dempsey
Comedy Central and BBC America have agreed to offer
some of their programming for free in the VOD platform to cable
subscribers hooked up to digital boxes.
The two networks engineered the precedent-setting
deal with inDemand
--- the dominant distributor of pay-per-view programming in the
U.S. --- as a way to lure subscribers into sampling the benefits
of VOD, enticing them to pay extra fees for the VOD bellwethers:
recent-vintage hit theatrical movies, at $3.95 a pop.
"Free content will allow consumers to test-drive
video on demand and get comfortable with it," said Dan York,
senior VP of programming for in Demand.
York is convinced that movies on demand could put a real financial
dent in the video stores. Not only would the rental fee be slightly
cheaper than that of many videostores, but VOD would allow the
viewer to pause, rewind or fast-forward a movie or TV show in
real time, just like a pre-recorded cassette or DVD.
And there'd be no hauling of cassettes back to Blockbuster and
no ponying up of extra fees for missing the rental deadline.
InDemand has VOD contracts with other providers of
cable programming such as Court TV, ESPN, Fox News, Hallmark Entertainment,
Sesame Workshop and Turner Entertainment. But subscribers have
to pay between $1 and $2 every time they call up one of the programs
offered by these providers.
What Comedy Central and BBC America get out of furnishing freebies
is extra attention to their regularly scheduled programming, which
could get improved ratings from the VOD cross-promotion.
Among the shows BBC will shoehorn into free VOD are the sitcoms
"Absolutely Fabulous" and "Keeping Up Appearances"
and the style programs "Changing Rooms" (the model for
TLC's "Trading Spaces") and "Ground Force."
Comedy Central will be a little stingier with free VOD, holding
back complete episodes of its successful series "South Park,"
"Primetime Glick" and "Crank Yankers" and
instead presenting only snippets, the equivalent of trailers for
theatrical movies.
Free VOD fare from Comedy Central will include such lower-rated
series as "Let's Bowl," "Beat the Geeks" and
"Strangers with Candy."
Right now, only about 3 million cable subscribers have access
to VOD, but In Demand, citing Kagan World Media figures, projects
that figure to reach 8.8 million by December 2003.
Related stories:
in
Demand, MGM make VOD pact, 8/20/02
in
Demand is in at AT&T as Diva phases out of VOD, 5/7/02

Broadband briefs:
• Twin Valley taps Minerva, AFC
Kansas-based Twin
Valley Telephone has selected Minerva
Networks Inc. to deliver advanced video entertainment services
over DSL to its customers.
To ensure that its network supports additional bandwidth
requirements, Twin Valley Telephone has deployed Advanced
Fibre Communications Inc.'s edge switching technology, including
the newly released Telliant 5000 multiservice switch.
• Level 3 expands Cox relationship
Cox
Communications Inc. has tapped Level
3 Communications Inc. to supply IP broadband service. Specifically,
Cox is purchasing Level 3's Packet MPLS Private Network service
to securely and reliably exchange traffic with service providers
over Level 3's IP network.
The Packet MPLS Private Networks is an MPLS-based
data transport service that offers Ethernet, ATM and Frame Relay
access into managed wide area network.
Level 3 already supplies Cox with Internet access,
colocation, private line and metropolitan dark fiber services.
• Kagan to keynote SCTE conference
Media analyst Paul Kagan has been named to keynote
the SCTE's
2003 Conference on Emerging Technologies. The conference will
be held Jan. 14-16 at the Fountainbleau Hilton Resort in Miami.

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