Broadband Week Direct

Today's report from Web Editor Susan Rush

• N2 manages Time Warner's NYC VOD service

• Sony unveils European online gaming plan

• Euro-DOCSIS board certifies modem, two CMTSs

• NCTI intros new high-speed data training courses

• FCC speaks in support of more airwave flexibility

• Satellite merger could be dead

• Broadband briefs

N2 manages Time Warner's NYC VOD service

Time Warner Cable is using N2 Broadband's network to manage its video-on-demand service in New York City.

Although financial terms of the deal were not disclosed, N2 Broadband's N2 Network will provide TWC's NYC division with a complete delivery management, back-office and usage reporting system. Specifically, the network will enable the secure distribution of media assets from content providers to multiple headend locations; streamline and automate the process of receiving, prioritizing and propagating on-demand content; and enable the ability to remotely manage all media assets in the system.

The N2 Network is designed as an open standards-based solution to enable cable operators to work a variety of VOD partners to deliver on-demand content to their subscribers, according to N2 Broadband executives.

TWC announced plans earlier this month to deliver VOD services in the Big Apple. At the time of the NYC deployment announcement, TWC said it would use nCUBE's n4x server to power the systems. Interested customers do not have to purchase new equipment because content will be delivered via the installed base of Pioneer Voyager and Scientific-Atlanta Explorer set-top boxes.

TWC of New York City serves 1.4 million customers in four New York City boroughs as well as Mt. Vernon and Bergen and Hudson counties in New Jersey. Roughly 500,000 subscribers will be VOD-enabled over the next two weeks, with the balance gaining access to the service by the end of the year.

The various divisions of Time Warner Cable have been busy in the VOD space. Yesterday, the San Diego arm announced plans to roll out various VOD offerings to its 200,000 area customers. The company also has inked deals with various companies, including, but not limited to, Concurrent Computer Corp., nCUBE, iN Demand and Scripps Network.

Related stories:
VOD takes a bite out of the Big Apple, 10/16/02
TWC, Scripps make VOD pact, 10/15/02

Sony unveils European online gaming plan

Not to be outdone by its rival Microsoft Corp., Sony Corp. plans to launch a broadband network gaming service for its PlayStation2 gaming console next spring in Europe.

The online network will appear first in the United Kingdom, with expansion plans slated for Germany, France, Australia throughout 2003.

Sony Computer Entertainment Europe plans to roll out a Broadband Gaming Pack that includes a PlayStation2 Ethernet network adapter, an online game and a start-up disc that features demos of upcoming online games. The pack is expected to retail for roughly $70.

The service will be available through both ADSL and cable modem connections. Ahead of the commercial launch, Sony expects to begin consumer trials with various network partners by the end of the year.

Sony launched its online gaming service in the North America and Japan earlier this year, ahead of Microsoft.

Microsoft plans to launch its online gaming service in the United Kingdom in March, with other European countries to follow. Yesterday, the software giant announced that 13 U.S. and Canadian broadband service providers are supporting its Xbox Compatible program, an initiative designed to make it easy for gamers to experience the forthcoming multiplayer Xbox Live service. Xbox Live is slated to be up and running in the United States next month.

Related story:
Broadband providers prep for multiplayer Xbox service, 10/30/02

Euro-DOCSIS board certifies modem, two CMTSs

Philips Semiconductors' CME2010 has become the second cable modem to be awarded Euro-DOCSIS 1.1 certification by the Euro-DOCSIS Certification Board.

The board also granted Euro-DOCSIS qualification status to Juniper's G10 cable modem termination systems (CMTS) and Scientific Atlanta's Prisma CMTS.

The Euro-DOCSIS board certified its first 1.1 cable modem in July. Euro-DOCSIS 1.1 certification to Toshiba's PCX2500 cable modem and Euro-DOCSIS 1.1 qualification status were awarded to the Arris Cadant C4 CMTS.

The Euro-DOCSIS Certification Board consists of representatives of European cable operators Casema, NetCologne, NTL, Telenet, Telewest and UPC.

The DOCSIS 2.0 specification was finalized in January. Earlier this month, CableLabs began accepting product submissions to be tested for DOCSIS 2.0 certification. DOCSIS 2.0 is an advanced physical layer addition to modem functions. The spec can increase upstream bandwidth for cable modems to 30 megabits per second — three times that of DOCSIS 1.1 units.

NCTI intros new high-speed data training courses

Broadband communications trainer NCTI has introduced two courses aimed at high-speed data customer service and support personnel.

The courses, dubbed High-Speed Data Customer Service and Advanced High-Speed Data Customer Service, are geared toward tier 1, 2 and 3 technical service and customer support representatives and are designed to provide an understanding of cable modem services and troubleshooting the related equipment.

The High-Speed Data Customer Service course is the more basic of the two courses, and covers the baseline concepts of high-speed data services, equipment, operations and troubleshooting.

The Advanced High-Speed Data Customer Service digs a bit deeper. The course covers the boot process, software, the system board, memory management, floppy and hard drives, input/output devices, return path fundamentals and data communications overview. The advanced course also defines and compares the technology related to wide area networks and broadband access, including packet switching, frame relay, SMDS, ISDN, SONET and ATM.

More information about NCTI courses can be access via the company's Web site at www.ncti.com.

FCC Chairman speaks in support of more airwave flexibility for companies

Copyright 2002 Knight Ridder/
Tribune Business News
Copyright 2002 San Jose Mercury News
San Jose Mercury News...10/31/2002
From LexisNexis

Jennifer Files

The nation's top communications regulator said Wednesday that he favors giving companies more flexibility to use the airwaves in providing telephone, Internet, television and other services.

New rules for the management of spectrum would let broadcasters, wireless service providers and other companies react more quickly to consumer demand -- without necessarily getting permission from the Federal Communications Commission, Chairman Michael Powell said in a speech at the University of Colorado in Boulder.

A Spectrum Policy Task Force that Powell created is expected to provide more specific recommendations to the FCC within weeks, and in December the agency will start a rule-making process seeking public comment on changes to spectrum management.

Under current rules, the FCC has auctioned airwaves for pre-set uses, such as wireless phone calls, and companies can't use them for other purposes. "Today's marketplace demands that we provide license holders with greater flexibility to respond to consumer wants, market realities and national needs without first having to ask for the FCC's permission," Powell said.

Among other changes, Powell said he favored easing rules intended to prevent signal interference altogether, and instead supports new policies ensuring interference stays within acceptable levels.

The president of the trade group representing mobile-phone companies praised Powell's efforts but said too much flexibility in how the airwaves are used could create problems. "There is a legitimate role for government in preventing spectrum anarchy where the absence of rules increases interference and degrades the consumer experience," said Tom Wheeler, president of the Cellular Telecommunications & Internet Association.

Satellite merger could be dead; Justice ready to block marriage of EchoStar, DirecTV

David Lieberman

NEW YORK -- The Justice Department will file a lawsuit today to block EchoStar Communications Corp.'s $21 billion merger deal with Hughes Electronics, the parent of DirecTV, according to people familiar with the department's plans.

Antitrust regulators concluded that the merger of the two dominant satellite companies, with 19 million total customers, would reduce consumer choice -- particularly for people in rural areas with no access to cable. They also see risks of higher satellite service prices and monopolistic behavior toward programmers and retailers. They decided those drawbacks outweigh the potential benefit of strengthening the toughest competitor to cable, which has 72 million customers.

They also rejected EchoStar CEO Charlie Ergen's last-minute proposal to create competition, if the deal was approved, by turning over satellite capacity and equipment to a service planned by Cablevision Systems or to other aspiring satellite providers. Justice officials consider that too speculative: Cablevision has yet to launch its first satellite and faces financial problems at its core cable business.

Antitrust Division head Charles James indicated in a Monday meeting with Ergen, DirecTV CEO Eddy Hartenstein and others that he was unmoved by the 11th-hour compromise from EchoStar, which operates the Dish Network.

James is eager to wrap up the case quickly. Wednesday is his last day at the job; he becomes ChevronTexaco's general counsel December 9. And Justice officials don't want their important announcement lost in the hubbub of midterm elections next week.

The Justice decision is in line with the Federal Communications Commission. It rejected the merger on October 10, though it gave EchoStar and Hughes until mid-November to amend their proposal.

Ergen could try to keep his deal alive by fighting Justice in court. But Hartenstein has said Hughes likely would take its option in the deal's contract to walk away if it isn't closed by January 21.

If Hughes walks away, industry executives and analysts predict the companies will wrangle over EchoStar's agreement to pay Hughes a $600 million breakup fee and to buy its commercial satellite service, PanAmSat, for about $2.7 billion -- well above its current market value.

The Justice Department did not return a call for comment. The companies would not say whether they believe officials are moving to block the deal.

"We haven't received any decision from Justice," Hughes spokesman Richard Dore says.

Cablevision said it is still "optimistic that the government will accept" its proposed side deal with EchoStar as a solution to competition concerns about the larger deal.

Related stories:
Veto of deal forces Hughes, EchoStar into tough choices, 10/11/02
FCC blocks EchoStar-DirecTV merger, 10/10/02

Broadband briefs:

• Gemstar appoints new auditor

KPMG LLP is out at Gemstar-TV Guide International Inc. The auditor has been replaced by Ernst & Young LLP. The decision to replace KPMG was fueled by a disagreement between Gemstar and KPMG relating to Gemstar's restatement of earnings for 2001 and 2002.

Gemstar plans to change the way it accounted for about $113 million in license fees it received from an agreement with Scientific-Atlanta Inc. that expired in 1999. The restatement will affect reported results from July 1999 to March 2002, according to Gemstar.

• Thirdspace ships new product

Thirdspace has begun shipping version 5.1 of its Open Video Server (OVS 5.1). The new version is subdivided into two parts: the OVS video-pump, supporting multiple video server hardware platform vendors, and OVS Central, a new management tool for distributed OVS systems.

Version 5.1 also includes ISO MPEG-4 support.

• Burger King taps BellSouth

BellSouth Corp. has inked a deal to supply communications infrastructure for Burger King Corp.'s new headquarters in Miami.

The company will deliver an integrated, multi-purpose network system, which is designed to enable data, voice and video to travel over one network. Using Cisco's AVVID equipment, BellSouth also will provide ongoing maintenance and support of next-generation equipment.