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NEWS Monday 28th - Monday 4th January 2002
Scroll down page or click below for news - latest first
Weekend Friday 1st to Monday 4th February
UPC/Liberty
€7.5bn debt swap
NTL
restructure progresses
Austrian
digital platform due
Sagem PVRs on alpha test
Liberty's Deutsche
warning
Banzai
bursts onto C4
Amsterdam-based cableco United Pan-Europe Communications is restructuring
its balance sheet with parent United Globalcom, which when complete will
convert €6 billion of debt and €1.5 billion in preference shares
into ordinary shares of UPC.
The company says that the proposed recapitalisation is expected to address
UPC's financial leverage primarily at the corporate level.
A payment of €113 million interest on outstanding debt, due Friday
1/2/02, is now not being paid by UPC.
John Malone's Liberty Media, which is 72 per cent owner of United Globalcom,
made UGC the largest holder of UPC's debt last month, Liberty already
held a majority of UPC's equity.
UPC shares lost 98 per cent of their value last year, fell nine per cent
to €0.39 on Thursday and were suspended at the start of trading on
Friday.
Results for the year to December 31 will include a one-time charge for
the restructuring and a provision for the write-down of goodwill leaving
a consolidated cash balance of some €850 million, which it said was
sufficient to fund its operating subsidiaries "for the foreseeable future".
It has more than seven million cable customers in 17 European countries
and is switching its strategy from customer growth increasing RPU (revenue
per unit).
Operational performance guidance from UPC has been suspended during renegotiations.
Full-year results are due on March 27.
John Riordan CEO of UPC said, "UGC has today reaffirmed its support for
UPC. We are now in discussions, as part of a controlled process, with
our other key constituencies to effect the recapitalisation of UPC's balance
sheet at the earliest opportunity. We are confident that our banks will
continue to be supportive during the process."
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NTL restructure progresses
On Thursday (31/1/02) NTL suspended all guidance to equity analysts and shareholders on future targets as it formally appointed three restructuring banks (Credit Suisse First Boston, JP Morgan and Morgan Stanley) to tackle its €20 billion debt.
NTL
has already
confirmed it will meet its 2001 earnings target and new plans to issue
a revised business plan to equity analysts in "early 2002".
Estimates of NTL's future capital spending, revenues and cashflows will
be used by bondholders to value NTL ahead of any debt-for-equity swap.
Bondholders must now agree not to trade in NTL bonds and also sign non-disclosure
contracts to gain access to NTL's internal figures, putting bondholders
ahead of shareholders in the restructuring process.
NTL's lending banks, which have first claim on NTL's assets, are adamant
they will not have to write off their €7 billion loans and do not
want new NTL equity.
Shareholders - including France Telecom, Cable and Wireless, and Verizon,
are likely to be very heavily diluted in any restructuring.
Barclay Knapp, chief executive of NTL, said."The recapitalisation process
is not going to be negotiated in public," though estimated that the process
would take "a full six months". Bond interest payments and all other financial
obligations in 2002 would be honoured he said.
Though bondholders are expected to control most of NTL after restructuring,
any new equity investment in by AOL Time-Warner, Microsoft or Liberty
Media could reduce their equity.
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Austrian digital platform due
On January 29th high above the roofs of Vienna Austria's digital platform was presented to the public.
The initiative, formed by the state telecommunications office body KommAustria and the commercially run state regulatory body Telekom und Rundfunk Regulierungs-GmbH, RTR (telecommunications and broadcasting regulation cooperation), aims to prepare the commercial launch of digital terrestrial television (DTT) in Austria, scheduled to take off from next year.
The task of the new body is, to work out a timetable from the launch of digital to the final switching off of the analogue frequencies, working in cooperation with national telecommunications and broadcasting companies.
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Sagem PVRs on alpha test
French manufacturer Sagem, a somewhat secretive company which specialises in military equipment - as well as manufacturing mobile phones, faxes and digital decoders, showed its latest decoders at a private show in Paris this week (28 to 30 January).
Pride of place went to the satellite PVR 500S, currently in alpha test. It features a silent 80 GB hard disc drive, embedded Open TV interactive middleware and Viaccess, as well as a slot for a additional CAM (conditional access module) for other encryption systems and a card reader for other applications, such as bank cards for payment of interactive services.
The user can programme recordings, without being dependent on a listings supplier, then can call them up from a list on screen which can include programme descriptions as well as date and time of recording. However, there is no provision for recording satellite radio.
According to Sagem, the main advantages over current PVRs are the inclusion of Open TV and the particularly well featured hard disc. Unfortunately there are no plans for a Videoguard version (used by Sky Digital).
Two related decoders are the ITD 5000 for DTT and the ADSL 5000 for ADSL based TV and VOD networks.
Particularly innovative was the IXD500 generic mini-decoder. This is very small and can be manufactured in satellite, cable or DTT versions. The price and size are kept low due to the high level of integration. The price is not disclosed, as it will not be supplied to the public but directly to platform operators from this summer.
Sagem also produces Mediahighway decoders. To prove the point it showed the custom decoders it has begun to supply for the Orbit platform in the Middle East. This features the Canal Plus Mediahighway middleware and Mediaguard access control. Outwardly it resembles the standard Canal Satellite decoders, but features a much faster processor (150 MIPs instead of the usual 30), more memory and improved connectivity, including USB master and slave connectors, optical output and additonal A-V connectors.
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Liberty's Deutsche warning
A 70-page warning letter from Germany's antitrust regulators to Liberty Media Corp says the proposed €5.4 billion takeover of the majority of Deutsche Telekom's cable TV network could be blocked if the deal is not changed. Liberty has until March 15 to respond and a decision will be made by March 28.
The Cartel Office's concerns could be assuaged by Liberty promising to upgrade the cable network to allow IP telephony and high speed data, to compete with Deutsche Telekom as increased telephone competition would outweigh reduced cable competition.
Liberty CEO Robert Bennett said the company was considering whether it could meet the objections and still make money with the deal.
Deutsche Telekom said it would support Liberty in its dealings with the Cartel Office, as it wants the payment to reduce its own debt.
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Banzai bursts onto C4
UK interactive TV programme Banzai, from the pay-TV channel C4, is bringing its interactive offering to its parent terrestrial Channel 4.
Previously only C4 viewers on digital TV platforms could use their remote controls to bet Banzai's bizzare gambles, but now Channel 4 Viewers on Sky Digital or ITV Digital also be able to bet.
ITV Digital viewers will be able to register their scores to compete for a prize at the end of each programme.
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French
launch gourmet TV
No Canal+ sale at Vivendi
Sky's
Terrestrial ambitions
Kudelski puts $1bn in Echostar
Filipino DTH delayed
Karmazin stays at Viacom
AOL
TW - revenues up, profit down
AT&T
adds data, digital subs
Kingston
inmedia cuts expenditure
French launch gourmet TV
The French gastronomic channel Gourmet TV is to launch on March 20, broadcasting 24 hours a day with six hours of new programmes each day. The channel had originally planned to launch at the end of September 2001 but the launch was put back "four to six weeks" following the 11 September events. The delay turns out to be nearer six months. The channel will launch simultaneously on both satellite platforms, TPS and Canal Satellite, and on the Noos cable networks. It is run by Guy Job and star chef Joel Robuchon, with the participation of 130 chefs totaling over 180 Guide Michelin stars between them.
Gourmet TV has an annual budget of around nine million euros. Its shareholders include Gourmets Associes (the channel's founders plus some private investors) as well as France Television which is contributing programmes and handling advertising, and the agency "Communication et Programmes", which specialises in sponsorship and merchandising. Two other partners are Guy Job's production company Futur TV, and AOCC (Art of Cooking Company), specialists in the international distribution of cookery programmes including those from Futur TV.
Last September, at the 'non launch' party, Guy Job had talked about the possibility of a merger with Cuisine TV, a cookery channel launched last year on Canal Satellite. However, negotiations have not gone through, nor have negotiations for a stake by the Lagardere Media group.
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No Canal+ sale at Vivendi
Rumours that French media giant Vivendi Universal could sell its Canal Plus pay television arm have been described by the company as absurd, as the company sought to dampen negative financial speculation in the wake of 6.3 per cent share price fall in a generally bear media market.
Disappointing results from French broadcasters TF1 and M6 also hit European media stocks.
While Vivendi shares recovered to end 4.93 per cent down at €51.10 on Wednesday (30/1/02) the company has suffered a 17 per cent drop since the start of the year.
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Sky's Terrestrial ambitions
BSkyB Chief executive Tony Ball told a hearing of a UK governmental Culture, Media and Sport Select Committee that the company would also like to move into terrestrial broadcasting.
Ball was also reported in the Independent newspaper (30/01/02) as describing ITV Digital's business model as flawed, as well as suggesting that expansion at the BBC threatened to destroy commercial television.
The comments were made in response to a complaint from terrestrial broadcaster ITV to Oftel over the €28 million a year fees for conditional access that it pays to show its main ITV1 channel on the Sky platform.
Ball countered that ITV executives "couldn't run a bath" and blamed the dire financial position of ITV Digital on management failure.
Ball also called for media laws prohibiting Sky from becoming a terrestrial broadcaster to be dropped, saying Sky was disadvantaged by not having a terrestrial outlet for cross-promotion and in bidding for programme rights.
* Despite several positive recommendations ahead of figures next week BSkyB shares have fallen - 6.3 per cent down to 673p on volume of 43 million shares.
Apparently a Morgan Stanley note - with a 626p target - suggested that the satellite broadcaster would only have attracted 200,000 new customers in the last quarter of last year and would not hit the broker's target of 7million customers by the end of next year.
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Kudelski puts $1bn in Echostar
EchoStar could get a $1billion (€1.16 billion) investment from conditional access company Kudelski which may buy around $500 million (€580 million) worth of shares in the satellite TV company by April, "..depending on certain conditions linked to the merger of EchoStar and DirecTV," Chairman Andre Kudelski is reported to have told a Swiss newspaper Finanz und Wirtschaft.
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Filipino DTH delayed
One of the Philippines' dominant media companies has announced that one of its related companies will delay the rollout of a direct to home (DTH) satellite TV platform as it waits for its cable operation to merge with another of the country's leading operators.
Nation Broadcasting Corp, an affiliate of the Philippines Long Distance Telephone (PLDT) company will have its plans to operate a DTH service on hold until PLDT has merged its Home Cable operation with that of the Lopez Group's SkyCable. Although the merger valued at €324 million was announced in mid-2001, the two sides have made slow progress towards combining the two platforms.
Nation Broadcasting Corp was set to offer subscribers a basic platform of channels, telephony and Internet services for around €116 a month - a fairly high figure given the cost for cable TV access averages at €14 a month. PLDT is unable to operate a DTH service on its own because of cross media ownership laws.
There are 680,000 cable subscribers, a penetration rate of 39 per cent of the three million homes passed, but just eight per cent of all TV homes. The subscribers are concentrated around the capital Manila, and other large cities.
It is unclear if the delay in rolling out DTH is also related to PLDT's debt burden. Late last year the company suspended plans to buy the country's second-largest broadcaster, GMA Network.
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Karmazin stays at Viacom
Despite well publicised differences between Viacom Chief Operating Officer Mel Karmazin and Viacom Chairman (and majority owner) Sumner Redstone, the company's Wednesday (30/1/02) board meeting agreed that Karmazin would keep his job and the company's top management would remains intact.
Karmazin, who is popular with company investors, has said he has no plans to resign before his contract expires at the end of 2003, and he and Redstone appear to have agreed that they need to cooperate.
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AOL TW - revenues up, profit down
AOL Time Warner, the world's largest media company, reported fourth-quarter net loss of €2.09 billion on Wednesday (30/1/02) compared to a net loss of €1.27 billion, a year earlier. The increased loss was attributed to €52 million in pre-tax merger costs and a non-cash write-off of €2 billion.
However, company earnings before interest, depreciation, taxes and amortisation (ebitda) rose 14 per cent to €3.2 billion, as revenue rose four per cent to €12 billion.
These figures were in line with revised - lowered - expectations set three weeks ago by Richard Parsons, who becomes chief executive role when Gerald Levin retires this spring.
Parsons, who had previously been accused of over-optimistic forecasts, said on Wednesday said the company was assuming there would be no recovery in the advertising market in 2002, and that revenue and earnings in the current period would be "essentially flat."
Revenue growth is projected as 5 to 8 per cent in 2002, with ebitda expected to rise 8 to 12 per cent. The group saw advertising and e-commerce revenue fall 14 per cent in the fourth quarter to €2.5 billion.
However, digital cable subscribers pushed revenue up 18 per cent.
The AOL internet service saw a 10 per cent rise in ebitda and revenue, with AOL subscriptions up 17 per cent to €1.6 billion, while advertising and commerce revenue fell seven per cent to €740 million, mitigated by 'in-house' company advertising.
Ebitda rose two per cent on revenue growth of four per cent in the company's cable television networks, which include CNN.
AOL Time Warner reported a full year net loss of €5.6 billion, compared with a full-year net loss of €5 billion, in 2000. This year's loss included €290 million in pre-tax merger-related costs and a pre-tax non-cash investments write-off of €2.9 billion. Full-year ebitda rose 18 per cent to €11.5 billion.
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AT&T adds data, digital subs
AT&T Broadband has seen a 27.9 percent increase in subscribers during the fourth quarter, compared to the previous quarter - adding some 568,000 new 'revenue-generating units' (RGUs) for cable telephony, high-speed data and digital cable TV.
By the end of 2001, AT&T Broadband said it had more than a million broadband telephony customers, more than 1.5 million high-speed data customers and about 3.5 million digital cable customers.
AT&T saw a loss of €1.6 billion for the three-month period closing out 2001 compared to a loss of €2 billion for fourth quarter 2000.
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Kingston inmedia cuts expenditure
Kingston inmedia, the broadband storage and content division of UK independent telco Kingston Communications, saw Q4 turnover fall eight per cent with ebitda down from €1.8 million to €1.6 million compared to the previous quarter.
Capital expenditure has been cuts, and spending for the year is forecast to be €188 million - almost 12 per cent down on the €213 million target announced in September.
Among 15 redundancies is chief operating officer Ian McKenzie.
Parent company Kingston Communications as a whole saw a 33 per cent increase in third-quarter earnings before interest, tax and depreciation. Ebitda rose to €14 million for the third quarter to December 31 and Steve Maine, Chief Executive, said Kingston was on target to meet analysts' full-year ebitda expectations of about €46 million. He also said there was a "realistic level of expectation" that the group would return to profit by 2004.
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Malone
bid faces rejection
Vivendi Liberty Media alliance?
Rug
pulled from Kirch
NTL sell Australian assets
Advertisers
comment on data
Stream
in share issue
Mediaset
cuts expenditure
VP
at Cartoon Network
Malone
bid faces rejection
Recent German news reports say that the German antitrust authority 'Kartellamt'
is about to forbid Liberty Media to take over about 60 per cent of the
German cable TV systems from Deutsche Telekom AG. The US media investor
could be given notice of objections as early as this week say the reports.
However, the Kartellamt has denied that it will be taking any immediate
action. The talks are still under evaluation, a spokesman for the authority
said, adding "We haven't written any warning letter," but he declined
to say whether such a letter was planned. The investigation period, originally
scheduled to end early in January, has been extended to February 28.
Usually the authority informs companies of any objections to a deal about
three weeks before the period ends to allow final alterations in the companies'
attitudes, but a warning letter does not mean that the deal could not
go through.
The Deutsche Telekom stock price faltered when the news reports came out,
because analysts expect that the payback of the company's €65 billion
debt will be slowed down severely if the •5.5 billion payment from Liberty.
The German business daily Handelsblatt said Liberty had not offered to
make any major changes to its cable TV plans following the deal, which
would give it control of cable assets covering 60 percent of Germany's
cabled homes.
Reuters reports that Liberty was not expected to appeal to economics minister
Werner Mueller to overturn an unfavourable ruling from the cartel office
if the deal was blocked.
The Cartel office had sought concessions in other areas, including upgrading
the cable network to adapt it for multimedia and telephone applications
to increase competition in the fixed-network sector dominated by Deutsche
Telekom.
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Vivendi Liberty Media alliance?
Jean-Marie
Messier, head Vivendi Universal in France, is reportedly interested in
forming an alliance with US cable guru John Malone's Liberty Media. "We
are going to strengthen our positions and continue to work on seeking
alliances," said Vivendi Chief Executive Messier in an interview with
La Libre Belgique published on Tuesday (29/01/02). "One such alliance
which is important for me in the domain of television is one between Vivendi
and Liberty Media."
John Malone recently said his company and Vivendi had a common goal of
developing thematic and interactive programming in Europe and elsewhere
in the world.
Malone's Liberty Media became Vivendi's biggest corporate investor with
a 3.6 per cent stake in December, as part of a deal in which Vivendi took
over the entertainment assets of USA Networks, partly owned by Liberty.
Vivendi also offered Liberty shares for its holding in a European cable
joint venture with Vivendi, Multithematiques.
Liberty Media is buying a 76 per cent stake in UnitedGlobalCom, the parent
company of Dutch cable operator UPC, and has also invested in regional
cable TV networks in Germany.
Back to top
Rug
pulled from Kirch
By Dieter Brockmeyer
Yesterday
(Wednesday 30/1/02) Axel Springer Verlag announced that its supervisory
board and management had decided to drop the option of giving Germany's
KirchGroup three months to pay
a fixed price of €767 million for its 11.5 per cent stake in the
commercial TV holding ProSiebenSat1 - despite talks to postpone payment.
KirchGroup responded by saying that it will take legal steps against this
decision. Talks however are to continue. KirchGroup does not want to pay
the fixed price at this time as it is facing a variety of other financial
problems. Another factor against the sale being made now is the sharp
decline of the ProSieben share price during the last few months.
Taking a current price of €4 to €5 per share, this would mean
Kirch has to pay about 80 per cent of the current market capitalisation
of the company, which is made up from two of the largest commercial TV
networks in Germany, Pro Sieben and Sat.1, plus a number of smaller channels
and service companies. What Springer's intentions are in taking this step
is not yet clear. On the one hand, Springer CEO Martin Doepfer needs to
improve the publishing group's financial results due to the sharp decline
of the advertising market.
On the other
hand, rumours suggest that the founder's widow and largest shareholder
Friede Springer sees a chance of getting rid of the 42 per cent shareholder
KirchGroup as, with her 50 per cent plus holding she is Springer's largest
shareholder. She is simultaneously side by side with Rupert Murdoch who
is said to be just about to take control of Kirch's money eating digital
Pay TV platform Premiere World, also gaining significant influence in
Kirch's core business Kirch Media AG which is to be merged with ProSieben
by the mid of the year. This could result an integrated media conglomerate
similar to Bertelsmann. KirchGroup's founder Leo Kirch always followed
a strategy to achieve this aim, but failed to do so.
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NTL sell Australian assets
NTL Inc is to sell its Australian TV operations as it attempts to roll
back some of its €20 billion debt before interest payments worth
€257 million are due to be paid on April 15.
NTL Telecommunications Ltd is a TV transmission network that the company
bought for €383 million three years ago from the Australian government.
NTL Australia spokesman Glen Frost confirmed that the company was up for
sale, but he would not comment on suggestions that the country's largest
telco, Telstra and Houston-based Crown Castle International Corp were
among those in the running to buy.
NTL Australia's highest-profile investment is a 15-year digital TV contract
with the government-funded Australian Broadcasting Corporation covering
441 transmission sites signed in December 2000. Observers say that the
company is unlikely to earn back what it paid in 1999.
A telecommunications offshoot, is building a network in four out of seven
Australian states. NTL owns 51 per cent of the operation, with Australian
regional broadcasters WIN TV and Southern Cross Broadcasting taking 26.6
per cent and 22.5 per cent respectively.
Frost said NTL Australia was the 'jewel in the crown 'of its international
operations and that there was no danger of local services being scaled
down.
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Advertisers
comment on data
The advertising community in Australia has added its voice to the submissions
to the government about the future of the country's datacasting regime.
The industry wants officials to allow datacasters to operate more like
broadcasters to give them more opportunities to reach viewers and reduce
their reliance on the three commercial TV networks, and build new forms
of campaigns based on interactivity and t-commerce.
The submission is among those lodged with Communications Minister Richard
Alston who asked for input from stakeholders earlier this month about
how to use spectrum allocated for what the government called datacasting.
In mid-2001 Alston cancelled a proposed spectrum auction because would-be
players dropped out beforehand, saying content restrictions made it unviable.
The restrictions were made after intense lobbying from the commercial
stations, who said the €290 million they are spending to digitise
their network gave them a guarantee of no competition before 2007.
The Advertising Federation of Australia (AFA) and the Australian Association
of National Advertisers said the commercial free to airs took more than
30 per cent of the national €4.6 billion a year ad spend.
"Interactivity possible under datacasting could revolutionise consumer
viewing habits and jump-start the convergence to digital television,"
the AFA said.
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Stream in share issue
Directors at Italian pay TV operator Stream met on Monday (28/01/02) when
they decided to cut back the company's capital of €421.360.000 with
an issue of 99,098,472 shares of the nominal value of €2.29 each,
to assign to Stream's shareholders (Telecom Italia and News Corporation).
This had been decided in order to cover accumulated losses of about €226,935,500.
Nothing has been announced about the deal with Vivendi to sell Stream
to Telepiu.
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Mediaset
cuts expenditure
In the face of declining profitability due to the advertising crisis,
Mediaset, the Italian broadcaster owned by President Berlusconi, is to
cut €150 million of expenditure, particularly expenses and investment
in TV rights.
The first victim of this new policy will be summer soccer. However, Roberto
Zaccaria, President of RAI, is focussing on advertising during the World
soccer Championship.
Zaccaria asked Communication Minister Gasparri for a derogation of the
law on advertising to make the event profitable.
The dispute between Gasparri and Zaccaria appears to be growing increasingly
bitter. The debate looks set to last until February the 16th, when applications
to the Board of Directors at Rai will be closed and new nominees announced.
The Minister of Communication has three faults, according to President
Zaccaria. First, the episode of RaiWay, when Gasparri forbade the sale
of a 49 per cent share to an American group, which resulted in lost revenues
for the state broadcaster of 800 billion lire (€415 million) which
could have been invested in terrestrial digitisation. Second was banning
the right to make telepromotions on Rai, a privilege given to Mediaset.
Third is the minimum increase brought to Rai's subscription fee, which
cut fundamental resources for the broadcaster.
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VP at Cartoon Network
Simon George has been promoted to Vice President of Off Channel Commerce for Cartoon Network in Europe, the Middle East and Africa.
Simon joined Cartoon Network in Autumn 1999 to develop its off channel business which includes licensing and merchandising, video games, video and DVD, publishing, theme parks and retail.
He is now working with over 180 licensees across all major product categories and has launched Cartoon Network magazines with a combined monthly circulation in excess of 200,000 copies in the UK, Spain, Norway, Denmark, Sweden and Germany.
"It's great to see all sorts of really creative and fun Cartoon Network products available throughout the region," said Stephen Johnstone, General Manager and Senior Vice President of Cartoon Network Europe.
Back to top
DTT
nearer
in Norway
Murdoch
eyes Premier - again
Graivity
takes off at Extreme Sports
Echostar growth
expectations
DirecTV Latin swaps out cards
Fearom
joins e-district board
Agency.com in iTV focus
Alcatel expands broadband
NDS results now out
DTT
nearer
in Norway
Norway's national DTT network launch took another step forward on Monday,
when the top executives of the two leading players in the project, public
service broadcaster
NRK and its private commercial rival TV2, held
a press conference to announce the formation of a new, joint venture,
Norges Televisjon (Television of Norway). The company also announced the
appointment of its first MD, Tor Fuglevik, previously head of NRK's new
media department, NRK Futurum.
Murdoch
eyes Premier - again
According
to German press reports Rupert Murdoch intends to take control of the
Premiere World digital Pay TV platform before KirchGroup has completed
its internal
merger of Kirch Media and
its commercial free to air TV holding ProSiebenSat.1 scheduled for mid-year.
German bank had already been ordered by both parties to work out an agreement
for the deal. Only a week earlier Murdoch had said in an interview with
the same Sunday paper that he did not to rule out the option of taking
control of the pay TV venture whose financial results are below expectations.
Murdoch currently holds about 22 per cent of Premiere World via BSkyB.
A Kirch spokesman confirmed that talks are due on the future of an 11
per cent stake which German publishing group Axel Springer still holds
in ProSiebenSat.1. An earlier agreement obliges Kirch to buy out this
share for a fixed price of about €770 million prior to any merger.
Both Springer and Kirch refused to comment on the content of their talks.
Rumours in the business state that Springer might use the financially
difficult situation of Kirch, which holds a 43 per cent stake in Springer,
to turn the situation around and make Springer - in conjunction with Murdoch
- a major shareholder in the KirchGroup itself. Newspapers are already
quoting so called business experts saying that Murdoch would never be
satisfied without control of Premiere itself - expected by June 2002 This
only would make sense if he could also acquire a major stake in the core
company itself.
In the meantime Premiere is inviting offers from new set top box manufactures.
From March, for the first time ever, a set top box other than the Kirch
owned d-box will be able to deliver the Premiere bouquet to the audience.
But Galaxis will not be the only hardware compiler. During the next months
more contracts are due to be signed. Manufacturers hope to sell at least
1.2 million digital boxes this year, said the new CEO of Premiere, Georg
Kofler. And his company would try to secure that on the majority also
his digital pay bouquet could be seen.
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Gravity takes off at Extreme Sports
Extreme Sports Channel has won the TV rights for extreme sports event, the Gravity Games. The event, one of the largest in the world with prize money totalling €1,130,000 and a worldwide TV audience of over 120 million including NBC in the US, will be broadcast throughout the month of March.
The Gravity Games, successfully broadcast on BBC in the UK last year, has made the transition to Extreme Sports Channel. Action from the 1999 and 2000 games will be screened throughout the month, climaxing with the coverage of the 2001 Games in the last week.
The Gravity Games captures the lifestyle of extreme sports with 250 competitors from 17 countries competing in 16 events, including BMX, aggressive inline skating, skateboarding, street luge, wakeboarding and freestyle motocross.
Andy Warkman, Head of Programming and Acquisitions for the Extreme Sports Channel, saidm "This is a fantastic coup for us. The Gravity Games is highly respected and considered by many as the Extreme Sports Olympics. The event encompasses the best of extreme sports action and fits well with our other prestigious events, as well as opening up a number of exciting sponsorship opportunities."
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Echostar growth expectations
Analyst Salomon Smith Barney Armand Musey expects 'reasonable' financials and subscriber growth for EchoStar's fourth quarter.
The company's business model is reported to be allowing the company to grow revenues faster than operating costs.
Musey and Salomon Smith Barney projects that EchoStar will add 430,000 new subscribers in the fourth quarter, bringing 2001 net additions to 1.6 million. The projected fourth quarter subscriber counts compare to 360,000 in the third quarter and 495,000 in fourth quarter 2000.
Subscriber acquisition costs (per subscriber) for the fourth quarter are expected to be €644, monthly churn around 1.6 per cent, and APRU of €56.
Strong top-line growth and improved margins for EchoStar's DISH Network DBS service are expected to result in fourth quarter revenue of €1.25 billion, a 35 per cent increase compared to the €930 million in fourth quarter 2000, Musey said. Fourth quarter EBITDA should be around €180 million, compared to an EBITDA loss of €48.5 million during the same period in 2000.
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DirecTV Latin swaps out cards
DirecTV Latin America recently upgraded its customers throughout the Latin America and Caribbean region to new smart cards, part of the company's latest efforts to deter signal theft.
The project concluded last week as earlier versions of smart cards were deactivated throughout the region served by DirecTV Latin America. The last step in the smart card process helped eliminate pirated signals, the company said.
In total 1.3 million new cards were hand-delivered to customers in 28 countries throughout Latin America and the Caribbean. New DirecTV customers received the new smart card as part of their equipment when they signed up for service.
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Fearom joins e-district board
Andrew Fearon, former Director of Static 2358, has joined e-district as Chief Operating Officer and a member of the Board. He will be responsible for consolidating operations and will contribute towards the commercial development of the company. The new role is intended to exploit Fearon's track record of forming strategic alliances, proven legal expertise and understanding of digital media.
As Director of Business and Legal Affairs at Static 2358, Fearon led negotiations for its recent sale to Open TV. Following the sale, Fearon took the position of Head of iTV and Broadband at Netdecisions.
Michael Sinclair, Chairman of e-district, comments, "Andrew Fearon is young, energetic and exceptional, with a unique combination of legal training, digital savvy and a proven track record of success. His talent for negotiation will facilitate e-district's distribution across European-wide broadcasters and platforms and the development of joint ventures and licences."
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Agency.com in iTV focus
Agency.com is creating centres of excellence to increase its interactive TV service offer to clients.
The centres, operating in New York and London, are the first move Agency.com is making in iTV since the exit of iTV tech firm Visionik, which was sold back to its original owners in December.
Agency says it has never planned to completely pull out of the sector, as iTV has become an even more crucial part of its client offer than before.
The iTV teams will be led by partners Tim Larcombe in New York and Craig Dwyer in London.
"We feel iTV is mature enough for us to offer it to all clients. We're realigning with the needs of marketing and content owners. But we won't be doing any back-end hi-tech work."
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Alcatel expands broadband
French broadband technology supplier Alcatel, has expanded its portfolio of broadband access technologies with the Alcatel 7340 fibre-to-the-user (FTTU) solution.
Alcatel's 7340 solution delivers high quality voice, interactive video supporting hundreds of analogue and digital channels, and Internet access at speeds up to 3000 times faster than dial-up modem schemes.
Fibre to the user is suited for service providers to deploy in new-build residential communities or overlay networks as a complement to Alcatel's digital subscriber line (DSL) and digital loop carrier solutions. The Alcatel 7340 FTTU offers carriers another opportunity to reclaim and retain customers with a triple play of voice, video and data from the same provider.
"Alcatel's experience as a leading broadband access provider gives it the edge in providing a fibre-to-the-user solution," said Jean-Christophe Deverines, Senior Analyst with Frost & Sullivan. "Alcatel can leverage that broadband access position with its strengths in optical transmission, ATM and network management to provide a carrier-class alternative that equips service providers to compete directly with cable operators."
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NDS results now out
Conditional access systems and interactive applications developer NDS
Group plc Europe, a News Corporation company has issued its unaudited
results for the quarter ended 31 December 2001.
Dr Abe Peled, President and Chief Executive Officer, said, "Our performance
this quarter reflects continuing progress in our strategy of winning new
conditional access platforms and deploying interactive applications for
our current customers. We are particularly pleased with the year-on-year
four-fold increase in revenues from new technologies, which provides tangible
evidence that this revenue stream can become a significant driver of NDS's
future growth."
Rick Medlock, Chief Financial Officer, added. "The excellent financial
performance, including our highest ever quarterly profits, further illustrates
the strength of NDS's business strategy. It has been a quarter of intense
activity to deliver projects for existing customers and launch interactive
applications for new customers. These achievements, plus the benefits
of tight cost control, have enabled us to deliver an outstanding financial
performance and strong cash generation".
Operational Review
As at 31 December 2001 approximately 27.3 million set-top boxes containing
NDS technology were in use worldwide, up from 24.5 million at 30 June
2001 and 25.7 million at 30 September 2001.
"We have announced that China Network Systems (CNS), Taiwan's leading
cable TV service provider, has selected NDS to provide conditional access,
broadcast control and systems integration services for the digital transition
for their digital cable TV network upgrade. We will licence NDS set-top
box middleware and our Value@TV infrastructure.
CNS will commence the digital upgrade of cable networks in the second
quarter of 2002. CNS is the leading cable TV service provider in Taiwan,
with access to more than a million analogue cable TV viewers currently.
During the quarter NDS entered into a contract to supply Versatel with
its Videoguard conditional access for Eastern Europe's first digital cable
network. Versatel will offer more than two million Moscow households access
to quality digital TV services through the existing cable system, using
directional microwave technology (MMDS) to reach 400 cable head-ends,
thereby reaching the maximum possible users.
At the beginning of the quarter, Sky launched its Sky+ service using its
XTV technology within a PVR device. The service has reportedly been very
well received by consumers and received favourable comment in the press.
Its initial uptake has been above expectations says NDS.
Cablevision, the company's first US cable customer, launched its iO: Interactive
Optimum digital cable network in New York. NDS's Open VideoGuard, Cablevision
iO customers can access a range of new digital broadcast channels, music
audio channels, video-on-demand (VOD), and interactive television services.
In Israel, the satellite broadcaster Yes and the cable operators Matav
and Tevel each launched interactive services using NDS Value@TV infrastructure
solution.
Peled adds, "We are working towards delivery in 2002 of a new integrated
DTH system for SkyLife in Korea, a number of projects in China and further
system enhancements for other customers."
Financial Review
(£1= €1.6)
Revenues for the quarter ended 31 December 2001 were £55.6 million, an
increase of 5 per cent from £52.7 million in the previous year. For the
half year, revenues increased 8 per cent from £107.4 million to £115.6
million.
Operating income for the quarter, before charges for the amortisation
of goodwill, was £13.4 million, which represents a 23 per cent increase
from £10.8 million for the second quarter of the previous financial year.
For the half year, operating income before amortisation of goodwill increased
by 18 per cent from £21.7 million to £25.7 million.
Conditional access revenues at £25.0 million for the quarter and £50.1
million for the half year, were lower than the same periods last year
due to a decrease in the volume of smart cards supplied. The volume of
cards supplied in the first half of FY 2001 was particularly high. The
decrease in volumes this financial year reflects a slow down in the rate
of subscriber growth, especially in Latin America, and also to customers
drawing down on their inventories. The base of active smart cards protecting
customers' revenues rose by 1.6 million in the quarter to 27.3 million
at 31 December 2001. This compares with a rise of 1.2 million in each
of the previous two quarters.
Revenues from integration, development and support for the quarter were
£9.1 million, compared to £10.7 million in the second quarter of the previous
financial year. For the half year this revenue stream amounted to £23.0
million compared to £19.6 million in the first half of the previous year.
Deliveries in the quarter were mainly enhancements and upgrades to systems
supplied in previous years.
Licence fees and royalties amounted to £8.3 million for the quarter and
£17.2 million for the half year, compared to £5.5 million and £15.3 million
respectively for the previous financial year. The growth reflects buoyant
shipments by IRD manufacturers, the recognition of additional licence
fee income upon delivery of system enhancements and on certain customers
reaching subscriber growth thresholds which triggered additional licence
fee payments.
Revenues from new technologies amounted to £11.7 million in the quarter
and £18.3 million for the half year, compared to £2.6 million and £4.5
million respectively in the previous financial year. Some of the year-on-year
growth is attributable to the contribution from Orbis for periods after
1 December 2000. New technologies' revenues amounted to 21 per cent of
total revenues for the quarter. This includes revenues from XTV delivered
to BSkyB and launched at the beginning of the quarter as Sky+.
Gross margin for the quarter increased to 68.8 per cent compared with
64.3 per cent in the corresponding period last year. For the half year
period, the gross margin improved from 62.3 per cent to 67.2 per cent.
Although margins from conditional access were lower, due to the mix of
customers and their stage in the smart card life cycle, overall margins
were boosted by the high licence fee and royalty income and revenue from
new technologies.
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TV
viewing up in France
SMS
UK channel launch
Thai viewership
quesitoned
BBC builds interactive suite
Jurisdiction dispute in US
Gates
puts €569m in Cox
Chum
opposes MTV Canada
TV
viewing up in France
Average daily viewing by France's 38.3 million over-15 audience is up
five minutes on the previous year at three hours and 29 minutes, according
to the latest 2001 TV viewing results from the French TV advertising association
SNPTV. For those aged four and over (45.2 million viewers) the average
daily viewing figure is three hours and 18 minutes. Every month in 2001
had record viewing figures, except for June and July which had exceptional
sporting events in 2000 (the victory of the French team at the World Cup
football) and October which was exceptionally warm for the time of year.
According to the SNPTV, during 2001 almost 85 per cent of people aged
15 and over watched the television at least once each day. This would
suggest that the majority of the population continue watching TV every
day even when on holiday.
The six members of the SNPTV association handle advertising for a total
of 90 channels. The survey points out that watching TV has become a major
activity. 10 million homes have more than one TV set. This increase in
viewing benefits the 'complementary' cable and satellite channels as well
as the mainstream channels.
"Other channels," which include cable and satellite as well as foreign
channels viewed in border regions, increased their viewing by two minutes
a day.
The SNPTV also reminded commentators that Mediametrie now carries out
a twice yearly survey of viewing of new media channels. The latest Mediacabsat
survey, published last August, found that the 21. per cent of the population
aged four and over have access to an enlarged TV supply (cable or satellite)
spend 68.8 per cent of their viewing time watching the mainstream channels.
The next Mediacabsat survey, covering the period 3 September 2001 to 17
February 2002, will be published in March.
Full results are on the SNPTV web site, www.snptv.org
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SMS UK channel launch
Sirius Retail Television's new TXT ME channel, Britain's first television channel devoted to mobile phone users and SMS text users, which went on-air on the Sky Digital platform in December 2001, has awarded a range of uplink services to Kingston inmedia.
TXT ME provides an SMS messaging forum and a range of information and products for UK mobile phone owners. The channel provides a live Q&A chat room for SMS users as well as offering products such as icons, ringtones, SMS services and WAP games for sale.
TXT ME is aimed at the 16-24 year old audience and follows a trend begun in Europe where similar television channels have already launched successfully.
Kingston Communications' UK-based satellite-centric broadband solutions provider Kingston inmedia extended its relationship with Sirius Retail TV, and has been awarded the contract to provide collocated up-link, space segment, rack space and production offices for the new TXT ME channel.
"Kingston inmedia's integrated media centre at Gerrard's Cross (England) not only saves us money, but also allows us to work more efficiently and quickly," says Ed Hall, Chief Executive of Sirius Retail TV. "Being able to collocate the channel with up-linking saves us approximately £50,000 per year per channel, which would otherwise be spent on fully redundant fibre circuits.
"There's simply nowhere in the UK where we could work as cost-effectively and as efficiently. And being part of a large quoted telecommunications group, means that Kingston inmedia will be able to accommodate our future technology needs, whatever they may be.
Nick Thompson, Managing Director of Kingston inmedia commented, "We were able to get TXT ME on-air in just a couple of weeks. This is the second innovative shopping channel we have helped Sirius Retail TV launch and we are really looking forward to seeing what great ideas Sirius Retail TV comes up with next."
Matthew Ivey, Head of Sales, Broadcast Commercial Operations of Kingston inmedia, adds, "As shopping channels and T-commerce really take off we look forward to continuing to meet the challenge of providing this exciting sector of the broadcast market with relevant, robust and innovative technology solutions."
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Thai viewership quesitoned
After recent low audience ratings Thai TV channel iTV, controlled by the Shinawatra family's Shin Corp, criticised international ratings company AC Nielsen on its methodology in Thailand - ahead of an initial public offering next month.
An iTV investigation tracked down about 100 of the rating agency's 865 'confidential' sample Thai households, and concluded that the AC Nielsen survey focuses too heavily on low-income viewers, resulting in skewed ratings that do not accurately reflect the popularity of its programmes.
"From our own surveys, iTV is number one in the news, but from AC Nielsen, we have no rating. Only Thai soap operas have good ratings, but the good programmes die because they have no ratings. That's why iTV took this action. To protect Thai society," one iTV staffer was quoted in the press as saying.
Sunchai Anuman-Rajadhon, Managing Director of AC Nielsen Media Thailand, defended the agency's methods, saying they are consistent with international standards and aim to capture the reality of Thailand's national television watching habits.
AC Nielsen also says its household sampling leans heavily towards higher-income brackets, with 66 per cent of the viewers drawn from the upper and middle-income groups, which represent about 41 per cent of the population.
The channel has seen internal and external criticism resulting in first-half revenues dropping to Bt435 million (€11 million) in 2001, down from Bt584 million during the same period the previous year. Its full-year revenues for 2001, which have yet to be announced, are projected at about Bt900 million, down from Bt1.19 billion, and well short of its estimated break-even point of Bt1.8 billion.
An IPO was planned to raise cash to build a new studio and pay off short-term debt - with a target of Bt1.5 billion to Bt1.8 billion from its IPO.
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BBC builds interactive suite
UK pubcaster, the BBC, has just completed its new Multi-Channel Streaming Area at BBC Television Centre, London, commissioned by BBC Technology with design and construction awarded to ATG Broadcast.
The installation centred on an Omnibus Systems Colossus Automation with custom-designed ATG Broadcast control panel interfaces to allow rapid manual intervention on any channel. Additional equipment included BBC Technology BNCS control, Omneon Video Area Network servers, Eyeheight PresTX presentation mixers and Zandar DX-16 multiviewers.
To allow future expansion the system design allows extra transmission channels to be installed "cost-efficiently" when additional capacity is required. The new installation is being used to transmit BBC CHOICE and interactive services.
A second contract encompassed new vision, audio and communication facilities for the BBC's TC3 studio, together with a new control room suite. This was the first time that the BBC has awarded a combined refurbishment contract for all areas to one company. The contract covered the supply of the first digital audio system for a BBC TV Centre studio.
ATG Broadcast managing director Graham Buchanan commented,"These two contracts confirm ATG's ability to design and build elaborate multichannel interactive television systems in addition to conventional broadcast installations. The BBC Multi-Channel Streaming Area is one of the most advanced systems of its kind to be installed anywhere in the world and is one of the most exciting projects we have ever undertaken. The key to success in such an undertaking is to combine technical innovation with operational simplicity and absolute on-air reliability."
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Jurisdiction dispute in US
The US Justice Department has undertaklen an informal hearing plans to swap areas of antitrust oversight with the Federal Trade Commission.
The intention had been to reallocate by industry the agencies' antitrust review authority, giving the Justice Department sole jurisdiction over media, telecommunications and entertainment industry mergers.
Criticism that the Justice Department had withheld details of the plan from oversight committees in Congress led to the plan being dropped. Justice Department representatives were reportedly not prepared to answer the majority of the questions fired at them in the subseqent hearing, with no statistical data to back up why they think the FTC should cover one set of issue areas while DOJ should cover another."
The Consumer Federation of America and Consumers Union said they had "deep concerns about the ability and the willingness of the Department of Justice to vigorously administer antitrust laws," following DOJ's "extremely weak settlement" with Microsoft Corp. In contrast, the FTC's past actions were praised.
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Gates puts €569m in Cox
A personal €569 million investment by Bill Gates in US cableco Cox Communications last autumn has just been revealed following a request from the Securities and Exchange Commission.
Gates' personal investment company, Cascade, had previously asked for its involvement to be kept quiet. The 13.5 million Cox shares bought by Cascade amount to a 2.25 per cent stake in the company.
At the time Gates was striving to block a rival bid for AT&T Broadband from arch-rival AOL Time Warner, backing bids from both Cox and Comcast, which eventually won the three-way auction.
The move came despite Microsoft taking a €1.1 billion charge last October to cover a decline in some of its investments in telecommunications and European cable companies (which include UPC, Telewest and NTL) demonstrating faith in the idea that cable is a long term bet for broadband delivery. Cox - along with AT&T Broadband is one of just two US cablecos investing in telephone over cable.
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Chum opposes MTV Canada
Canadian broadcaster Chum Ltd has filed a complaint with the country's Radio-television and Telecommunications Commission stating that MTV Canada, owned by Craig Broadcasting, has failed to live up to the conditions of its category 1 digital licence.
Category one licences have must-carry status. The licence was originally granted to Craig for a teen-themed channel called Connect. Once the licence was granted Craig did a deal with MTV and renamed the channel MTV Canada.
Chum owns and operates music services MuchMusic and MusiquePlus. Under Canadian regulations foreign cable channels which compete with Canadian ones are not allowed to be imported. Nonetheless Craig was allowed to go ahead with its makeover from Connect to MTV Canada on the basis that not more than 10 per cent of its content be music videos.
Chum has complained that well over 60 per cent of MTV Canada's content is music videos and that advertisers include wrinkle cream makers and Fantastic cleaners, which hardly positions it as a teen service. Chum hopes the regulator will force Craig to obey the terms and conditions of its licence. Craig has until the end of the month to respond.
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Telenor
MD quits
NTL
names new advisers
Chum goes interactive, wirelessly
BSkyB
signs up Formula One
Shaw
posts €37.5 million loss
VOIP on HK cable
Telenor MD quits
Tormod Hermansen (right), the controversial high-profile head of Norwegian telco Telenor took the Nordic media world by surprise last Friday (25/01/02) by announcing his decision not to renew his present contract when it expires this June. Hermansen will be 62 this spring and both he and the Telenor board have agreed that now is a suitable time to announce his departure. Hermansen has agreed to remain at the disposal of the Telenor board for another year, then he plans to retire.
There had speculation about Hermansen's possible departure for more than a year, but as late as at the end of 2001 the board of Telenor officially refuted the rumours.
During Hermansen's eleven years tenure Telenor has developed from being a traditional, state-controlled telecom operator into becoming a leading player in various new media areas. Today Telenor is not only one of Europe's leading satellite operators, it is also Norway's biggest cable TV operator, through its affiliate Telenor Avidi (last year also expanding into Sweden).
In 2001 Telnor also took 100 per cent control of one of Scandinavia's two biggest DTH platforms, Canal Digital, by buying out its earlier 50/50 partner Canal+. Telenor has also acquired controlling interests in television content operations such as A-Pressen (the one-third owner of TV2, Norway's biggest private commercial TV station), Metropol, a leading network of local urban TV stations. Telenor has also established itself as a leading player in interactive, broadband and other new media operations.
When Telenor and its Swedish counterpart, Telia, finally announced their plans to merge in 1999 Hermansen was appointed the MD of the merged two companies. But after a few dramatic months, with top level political involvment in both countries, the deal was suddenly called off at the end of 1999. Hermansen then had to move back from his intended high-quarters in Stockholm to his Telenor base in Oslo. Sweden's Minister of industrial affairs, Bjoern Rosengren, subsequently described Norway as "the last Soviet state."
The head-hunt for a successor to Hermansen has already begun, organised by Korn-Ferry. Hermansen has put forward his deputy, John Fredrik Baksaas, as the most suitable candidate. Baksaaas has corfirmed his 'availablity'. Telenor's present Chairman, Tom Vigar Rygh, is also considered to be a hot candidate for the post.
NTL names new advisers
Credit Suisse First Boston, JP Morgan Chase and Morgan Stanley banks are expected to be appointed this week as advisors to UK cableco NTL ahead of restructuring to cope with its €20 billion debt. CSFB's involvement has been agreed while talks with the other are reported in the FT newspaper to be ongoing.
The report suggests that up to €9.3 billion of NTL's bond debt being exchanged for new equity, possibly with some cash, which would dilute the equity value of shareholders such as France Telecom.
None of the €7 billion owed to NTL's bank lenders - which include Bank of America, Citibank, JP Morgan and Morgan Stanley Dean Witter, Royal Bank of Scotland, and various Swiss banks - will be written off say the banks.
Consequently NTL is restructuring ahead of an anticipated cash crisis in 2003 in a bid to avoid bankruptcy - with bondholders or a new strategic investor likely to gain control of the company.
The restructuring process is expected to take at least six months and involve banks in the UK, Switzerland and Australia, bondholders, including major media players such as AOL Time-Warner, Liberty Media, France Telecom and Microsoft.
Chum goes interactive, wirelessly
Toronto-based broadcaster Chum Ltd is working with Montreal-based Airborne Entertainment on ways to bring content from their programming franchises like MuchMusic or CityTV to wireless devices.
Airborne is developing games and short messaging features that will allow subscribers to interact with broadcast staff and artists. Airborne is already working on ways to bring properties like Dear Abby and Doonsbury to wireless pagers, phones, personal digital assistants and in-vehicle communications systems. Content is presently being trialled and should be rolled out before the end of the year.
BSkyB signs up Formula One
Pay-per-view interactive TV coverage of Formula One motor racing is to be provided by UK satellite broadcaster BSkyB.
Bernie Ecclestone, Chief Executive of rights holder FOM (Formula One Management), said the deal will offer "radically different coverage" of Formula One on a pay-per-view basis to some 5.5 million UK and Irish Sky digital subscribers. Subscribers will be able to choose between different camera views and call up information such as comparative lap times.
An FT reports suggests that payment to FOM for extended coverage of all 17 grand prix will be "far less" than the €114 million paid by ITV for its five-year terrestrial coverage rights.
A global network of pay-per-view F1 deals is now forecast for Ecclestone and Kirch, the German media group which has majority control of Formula One's broadcasting rights.
Shaw posts €37.5 million loss
Canadian DTH and cable provider Shaw Communications recorded a first quarter loss of €37.5 million, which the company says is largely due to acquisition and interest charges resulting from cable acquisitions and system swaps.
In the same period a year ago, the company clocked losses of €24 million. While revenue rose 30 per cent to €324 million, interest charges rose by 63 per cent to €46 million, partly resulting from debt taken on to acquire Moffat Communications and a cable swap with Rogers. Aside from debt, the company is in good condition with core profits from cable rising by 19 per cent to €81 million. In addition, high speed internet operating profit more than doubled to €17 million.
News from the company's DTH division Star Choice was mixed. While operating losses were cut to €7 million from €15 million a year earlier the company is now predicting a €3.6 million loss for 2002 rather than the same figure in profits. Star Choice has also lowered its subscriber target from 900,000 to 805,000.
VOIP on HK cable
Hong Kong cable television company I-Cable Communications Ltd is to run a large-scale trial of Internet telephony - voice-over-Internet protocol (VoIP) ahead of planned commercial roll-out by the year end.
In the trial VoIP services will be delivered via cable to 45,000 Hong Kong households, joining existing cable TV, dial-up and broadband Internet access services.
Standard phones will connect via cable modem to the cable system and access any standard phone. IP telephony company InnoMedia. Multimedia systems company Cybersys will be providing technical assistance.
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