News Archive
Telcos Keep Delivering for DBS & Annual Customer Satisfaction Ratings Ring Hollow & Starz Launches Restructured Look -- Posted by soullezz
on Wednesday, August 30 2006
Telcos Keep Delivering for DBS
Satellite TV may find it tough to compete in a triple-play world, but small dish services bundled with telco offerings of voice and DSL continue to win customers, according to this week's issue of The BRIDGE.
Second quarter data contained in the publication shows that thanks to its bundling relationship with DirecTV, BellSouth is king of the telco/DBS hill. During the period ending in June, 63,000 BellSouth customers added the DBS service to their triple play, resulting in 691,000 customers taking the DirecTV bundle.
Qwest's customer net additions for DirecTV service grew 25 percent in the three-month period, with subs totaling more than 210,000. And while Verizon may be pushing ahead with FiOS TV - its fiber-based video service - the telco added 70,000 customers to its DirecTV bundle, taking that total to 485,000.
As for EchoStar's lone bundling relationship with AT&T, the telco giant signed up 42,000 customers for its DISH Network triple play, boosting its total to 533,000. This summer, the companies launched their Homezone product, which combines DISH Network television with wired-based broadband functionality.
(It also should be noted that AT&T is preparing to acquire BellSouth, a multi-billion dollar deal still before regulators.)
Annual Customer Satisfaction Ratings Ring Hollow
As another round of self-congratualtory press releases make their way across news wires everywhere, two themes appear to be resurfacing in the ongoing debate about pay-TV's customer satisfaction rates.
First, satellite subscribers are, as has become the norm, more satisfied with their service than those who get TV from cable. Second, cable operators continue to close the satisfaction gap with their satellite competitors.
Bernstein's Craig Moffett said that while both of these findings are true, the pay-TV industry remains oblivious to one major conclusion from this year's J.D. Power's cable/satellite customer satisfaction study. The bottom line, he said, is that satisfaction with cable - and satellite (and telcos, for that matter)... is absolutely terrible.
Moffett and colleagues fielded a customer research study a while back on consumers' willingness to take phone service from their cable operator. The results: 25 percent of cable subs said they would be willing to switch from their RBOC even if they got no discount at all (original emphasis).
"Those respondents were effectively voting 'no confidence' in their phone company; the dissatisfaction with their telco was so great, they were ready to leave regardless of price," Moffett said.
But before cable ops get too excited about the results, another 25 percent said they wouldn't give their phone service to their cable company for any price (again, original emphasis). "Those respondents apparently harbored such distaste for their cable provider that they wouldn't give them the extra business for love or money," he said.
Intelsat to Supply Sintel Satellite
Commercial satellite company Intelsat has been selected to provide its Network Broadband service to Sintel Satellite Services, an integrator and manager of satellite communications networks across the globe.
According to SintelSat, the company is establishing a managed network service using an Intelsat satellite located over the Indian Ocean Region and Intelsat ground facilities to provide the backbone network for an end-to-end solution.
The Network Broadband service initially connects seven remote sites in Afghanistan and Iraq to the Intelsat-owned teleport facility, VSAT hub equipment and Tier 1 Internet Service Provider access in Germany. The virtual network operator capability elected by SintelSat allows an end-user to self manage the overall network from a remote location, the company said.
SintelSat's Network Broadband service, which utilizes the iDirect VSAT technology, delivers secure VoIP, video, internet/intranet access, e-mail, and multimedia where ground-based infrastructure is unreliable, insecure or non-existent. Benefits of the service include high-speed access, minimal capital outlay, private network security, fiber-quality reliability critical to IP-based applications, the company said.
Starz Launches Restructured Look
BUSINESS -- Starz, LLC, made its debut Tuesday, the result of combining recently-acquired IDT Entertainment with Starz Entertainment Group. IDT Entertainment was renamed Starz Media and Starz Entertainment Group has been renamed Starz Entertainment. In related news, William D. Myers was named president and COO of the company, formerly serving as EVP and CFO.
PROGRAMMING -- This Labor Day, there will be a Booger on your TV. Actor Curtis Armstrong, aka Dudley "Booger" Dawson from the movie Revenge of the Nerds will host Starz's 80 Hours of 80's Movies starting Friday, Sept. 1. Features of the event will include Ghostbusters, Weekend at Bernie's, Die Hard and live music performances from members of The Go-Go's, Devo, Toto and more.
HD RADIO -- WGUC-FM 90.9, Cincinnati's Classical Public Radio, started broadcasting in surround sound on its HD1 Channel on HD Radio and on its main analog channel using Neural Audio's 5.1 technology. According to the station, WGUC is now the first radio station in the country to go 5.1 on its main channel with commercially available 5.1 music.
as seen on skyreport
EchoStar forced to deactivate DVRs & Satellite TV Loses Wireless Spectrum Bid -- Posted by soullezz
on Tuesday, August 22 2006
EchoStar forced to deactivate DVRs
By Ellen Sheng, Dow Jones/AP
NEW YORK — EchoStar, parent of the Dish Network satellite TV service, on Friday said a federal appeals court temporarily blocked a lower-court order that would have forced EchoStar to turn off about 4 million of its digital video recorders within 30 days.
Earlier Friday, a U.S. District Court judge in Texas granted a motion by TiVo for the DVR shutdown and ordered EchoStar to pay $89.6 million in damages.
The decision comes after a federal jury in April determined that EchoStar willfully infringed on TiVo's "time-warp" patent, which applies to the way a DVR simultaneously records one program while playing back another.
"We continue to believe the Texas decision was wrong, and should be reversed on appeal," EchoStar said in a statement. The Englewood, Colo., company also said it is working on modifications to its new DVRs so that they won't infringe on TiVo's patent.
EchoStar is the country's second-largest satellite TV provider with about 12.5 million subscribers.
TiVo, the Alviso, Calif., company that is credited with introducing DVR technology, said it was "pleased" with the injunction.
"This decision recognizes that our intellectual property is valuable and will ensure that moving forward EchoStar will be unable to use our patented technology without our authorization," the company said in a prepared statement.
Because EchoStar's infringement of TiVo's patent was seen as "willful," the judge could have tripled the amount of damages, but chose not to. TiVo is pondering whether to appeal that part of the decision, said TiVo spokesman Elliot Sloane.
EchoStar shares fell 70 cents, or 2.1%, to $32.05 in midday trading on the Nasdaq Stock Market. TiVo shares jumped 41 cents, or 6.3%, to $6.90.
Sector wrap: Satellite TV
The Associated Press/NEW YORK
By JEREMY HERRON
AP Business Writer
AUG. 18 3:26 P.M. ET Satellite television operators DirecTV Group and EchoStar Communications Corp. walked away empty handed from a federal auction of wireless spectrum that by Friday saw total bids near $11 billion, leaving the companies without an immediate plan for offering broadband Internet service.
Cable operators seem poised to land at least a slice of the spectrum, which could be used for wireless voice and data services.
The Federal Communications Commission, which began auctioning portions of the wireless spectrum in 1994 to raise revenue, registered 168 eligible bidders in the current auction of 1,122 licenses of various sizes and geographic coverage.
The radio-wave spectrum is used to carry television broadcasts, cell phone calls, wireless Internet and localized transmissions such as garage-door openers and baby monitors.
Satellite operators, bidding jointly as Wireless DBS, bowed out of the auction Wednesday after using up their eligibility in 15 rounds.
"It now appears likely that either DirecTV or Echostar, or both, will seek to partner with existing spectrum owners in their efforts to secure a broadband solution," said Merrill Lynch analyst Jessica Reif Cohen in a note to investors Wednesday.
UBS analyst Aryeh Bourkoff said DirecTV, which is controlled by Rupert Murdoch's News Corp., and EchoStar, operator of the Dish network, are most likely to invest in broadband by partnering with a spectrum owner such as Motient Corp. He also suggested one or the other could seek to merge with a telecommunications provider, but said that "is not imminent."
Neither DirecTV nor EchoStar were immediately available for comment.
Investors had mixed reactions to the failed bids as neither company's stock showed much movement. EchoStar shares are down about 4 percent for the week, but most of the damage came Friday after a court enjoined the company late Thursday from selling its digital video recorders. DirecTV was down as well but up 4 percent from last Friday's close.
After 24 rounds, through Thursday night, T-Mobile USA, the wireless phone unit of Germany's Deutsche Telekom AG, led the bidding at $3.7 billion with potential winning bids for 130 licenses. Verizon Communications' wireless venture entered bids worth $2.8 billion for four licenses.
SpectrumCo LLC, a joint venture of the largest cable operators, including No. 1 Comcast Corp. and No. 2 Time Warner Inc., has the third-highest bids at $1.48 billion, for 93 potential licenses.
The auction started Aug. 9. Analysts expect it could last up to 10 weeks and bring the FCC up to $15 billion.
as seen on businessweek
Intelsat Reports 2Q Results & DISH/DirecTV Partnership Falls Off Spectrum & Hughes Floats Helius Tech Into HughesNet & On Command, NBC Universal Reach Content Deal -- Posted by soullezz
on Tuesday, August 15 2006
Intelsat Reports 2Q Results
Fixed satellite service provider Intelsat reported results for the second quarter with an increase in revenues and a solid performance of lease services and managed solutions. Numbers released by the company do not reflect the July acquisition of PanAmSat - now known as Intelsat Holding Corporation.
For the three month period ending June 30, Intelsat reported revenue of $310.5 million and a net loss of $42. million. Total revenue for the period increased $20.7 million (7 percent) over $289 million the company reported for the same time last year.
Intelsat said the results were driven by its lease, channel and managed solutions services. Lease services increased $13.9 million (8 percent), the company said, primarily from greater demand from network services and telecom customers in North America, Africa and the Middle East. Channel revenue increased $9.5 million to $66.7 million for the period.
Mobile Satellite Services (MSS) and other revenues declined by $9.9 million (45 percent) to $12 million for the quarter as compared to $21.9 million in the prior-year period, primarily due to reduced usage of mobile satellite services sold to customers of Intelsat General, the company said. These declines were partially offset by increases in managed solutions revenue, which increased by $7.2 million (26 percent) to $34.9 million from increased demand for trunking and private line solutions.
DISH/DirecTV Partnership Falls Off Spectrum
When DirecTV and EchoStar's DISH Network joined hands to bid on advanced wireless services during the FCC's auction, the companies shot out of the gates and made a splash as the bidding began. But now as the auction turns nearly a week old, Wireless DBS - the two satellite company's joint effort - has fallen out of the top 10 bidders for the precious communications spectrum.
As the FCC put a lid on the 12th round of bidding during the first stage, T-Mobile continues to lead the board with nearly $1.52 billion in net PWBs (provisionally winning bids). Verizon's Cellco Partnership finished the round in second place with $1.04 billion and Cingular is showing with $957 million in net PWBs.
Other companies remaining in the top 10 include the Comcast/Time Warner/Sprint effort Spectrum Co. ($817 million), Cricket ($472 million) and Dolan Family Holdings ($56 million) in no particular order.
Hughes Floats Helius Tech Into HughesNet
Hughes Network Systems and Helius, Inc. are teaming up for new features of the satellite company's broadband service HughesNet. The companies have agreed to utilize Helius' technologies to enhance HughesNet Digital Media's suite of services.
HughesNet Digital Media services offers customers access to a complete, single-source managed solution for the delivery and management of multimedia content for a variety of business IPTV and digital signage applications.
Helius provides business-class data broadcasting solutions through broadband IP over satellites and local area networks. The company's products serve as a communications bridge between the satellite transmission and terrestrial integration of business data, addressing in particular the requirements for video transmission.
Hughes said that HughesNet's Digital Media services are an extension of the company's satellite broadband service.
On Command, NBC Universal Reach Content Deal
In-room entertainment provider On Command Video will make NBC Universal feature films and special events available to hotel rooms in the U.S. and in Canada and primetime TV shows here in the States.
Guests staying in rooms being served by On Command's video services will now be able to watch films from Universal Pictures (recent hits including The Inside Man and The Break Up). Also, NBCU approved On Command's new in-room HD copy protection technology where films from select studios will be shown securely in HD.
In addition, On Command said it will offer top-rated network and cable TV programming from NBCU on an on-demand basis just hours after its original airing. Prime-time shows such as "Law & Order: SVU," "Law & Order: CSI," "The Office," "Monk" and "Battlestar Galactica" will be made available in the U.S.
as seen on skyreport
NFL Network Dispute Unsettled & Tackling Tweeners at the Portals & VOD Usage Grows, On-Demand Impact Flat -- Posted by soullezz
on Monday, August 7 2006
NFL Network Dispute Unsettled
The Federal Communications Commission ordered Time Warner Cable to reinstate carriage of the NFL Network after the NFL filed for immediate injunction concerning the cable company's actions. Cable systems Time Warner acquired through the Adelphia deal will again carry the 24/7 football channel, for now.
But hours after the decision, Time Warner released a statement of its own suggesting that it had no intention of restoring the network to around one million subscribers who had access just a few days ago.
According to the FCC, the NFL alleged Time Warner Cable violated a section of the law that states an operator must provide subscribers 30-day notice when carriage of a certain channel will be terminated. The NFL Network was dropped from the cable systems on Aug. 1, less than two weeks after the FCC finalized the Adelphia transaction on July 21.
For these reasons, the agency said, "we order Time Warner, on a temporary basis, to reinstate carriage of the NFL Network on all of its newly acquired systems...until we are able to resolve the NFL's petition."
"This order was issued without offering us the opportunity to respond to the NFL Network's allegations," said Time Warner Cable spokesman Mark Harrad. "We believe the FCC's decision is wrong and we are considering our options."
The FCC said at this point in the proceedings it is unable to issue a final decision on the NFL's claims but the league is "entitled to appropriate interim relief." The order is to carry the network under the same terms it was carried before Aug. 1 and give Time Warner until Aug. 15 to file a reply.
Tackling Tweeners at the Portals
The topic of tweener satellites for satellite TV services recently surfaced again at the Federal Communications Commission, with one DBS player urging caution with the potential capacity boost "tweeners" could provide the business.
"Tweener" satellites would be positioned 4.5 degrees from existing DBS orbital locations, compared to the 7 degree separation between satellites today. There's also talk about putting Ku-Band and Ka-Band "topper" satellites above traditional orbital locations to increase satellite capacity.
In recent meetings with FCC officials and staff, DirecTV executives said the technical nature and the potential interference that could be posed by tweeners should compel the commission to consider an extended comment period to allow for thorough engineering analysis. The company also said consideration should be given to other satellite spectrum.
"Given the availability of other spectrum for DTH services, including Ka-Band and the reverse band, and the potential impact tweeners could have on existing and future DBS services, any rulemaking should begin by examining the threshold question of whether licensing tweeners would serve the public interest," DirecTV said in a filing detailing its meetings at the FCC.
VOD Usage Grows, On-Demand Impact Flat
People may be watching more video-on-demand, but the technology's influence on overall television viewership has yet to create the impact many were expecting.
According to new information from the Leichtman Research Group, the number of digital video recorder (DVR) and video-on-demand (VOD) users have increased significantly over the past few years. The study says 60 percent of all digital cable subs have used VOD (up from 25 percent two years ago) and around 12 percent of United States households now have a DVR (up from 3 percent two years ago).
Even though the numbers are growing, Leichtman says the overall impact of DVRs and VOD on US television viewing remains small. The research firm estimates that less than four percent of all TV viewing in the country is from recorded DVR or on-demand content.
as seen on skyreport
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