Networking

  • TiVo Software For Comcast In Strategic Partnership

    Comcast and TiVo join in Strategic PartnershipTiVo has signed a multiyear deal to make a version of its personal video recorder software available to customers of Comcast Cable, currently the King Kong of largest cable operators in the US.

    The deal is the first of the partnerships the struggling pioneer hopes to forge with cable operators and will result in Comcast and TiVo working together in peace and harmony to develop a version of the TiVo service to be made available on Comcast’s current DVR platform.

    The new service will be marketed with the TiVo brand, and is expected to be slipping out on Comcast’s DVR products in a majority of Comcast markets in mid-to-late 2006.

    This long-term, non-exclusive partnership will provide Comcast customers with the opportunity to choose the TiVo service with features like Season Pass and WishList, available as an additional option.

    If all goes to plan, the service will showcase TiVo’s home networking, multimedia, and broadband capabilities.

    “We are focused on providing our customers with a 21st Century television experience,” said Brian Roberts, the chairman and CEO of Comcast Corporation. “TiVo has revolutionized the way consumers watch and access home entertainment. By partnering with TiVo, we are continuing to deliver technology that enables our customers to watch what they want when they want on TV. This agreement also reflects our commitment to work with leading technology providers to offer customers more value and choice in their home entertainment experience. Customers love the ease and convenience of our current DVR service, and we look forward to working with TiVo to enhance that service and offer customers the best-in-class DVR experience.”

    Steve Burke, the president of Comcast Cable and COO of Comcast, added, “The strong TiVo brand, the clear track record of customer loyalty it has and its cutting-edge features make this a terrific partnership and exciting new product for Comcast.”

    Tom Rogers, the vice chairman of TiVo, noted, “It is very important that TiVo has found a way to work with the nation’s largest cable operator on a cooperative basis to develop a state-of-the-art TiVo service, fully integrated with a cable set-top box, that will make TiVo available to millions of cable viewers. … This is a real milestone for TiVo and for the cable industry, but most importantly it is a milestone for television viewers.”

    Analysts are hailing the agreement as a lifeline for the Californian-based company, whose shares jumped 75 percent, or US$2.87 (e2.14/£1.50), to close at US$6.70 (e5/£3.50) in Tuesday trading on the Nasdaq Stock Market.

    Although TiVo currently boasts more than 3 million subscribers it has struggled to find a business strategy that would increase its subscriber base and withstand gnawing competition from generic DVRs offered directly by big cable companies.

    In the quarter that ended Jan. 31, TiVo lost a thumping great $33.7 million, substantially heftier than the $12.4 million loss in the same period a year earlier.

    Comcast and TiVo join in Strategic Partnership The Comcast deal means that TiVo will have to adapt its software to work on Comcast’s existing DVR platform. This will enable TiVo to blast out the advertising it sells as interactive video clips in their onscreen menu to Comcast subscribers.

    Comcast will continue to market its own DVR, with new customers getting a dual-tuner DVR, letting viewers record two shows at once and high-definition television; TiVo offers such features only to DirecTV satellite customers.

    Comcast subscribers who plump for the TiVo service will get funky features such as “Suggestions,” which recommends shows based on past viewing habits, and the ability to schedule recordings over the Internet.

    The agreement gives TiVo access to Comcast’s 21.5 million cable customers, including 8.6 million digital cable customers who can take advantage of DVRs

    TiVo
    Comcast

  • Digital TV Grows In Europe, DTTV And IPTV Flourish: Reports Strategy Analytics

    Digital TV Grows In Europe As More Consumers Adopt DTTV And IPTV PlatformsDigital television continued to grow in Europe last year, according to a Strategy Analytics’ survey of more than 70 digital television operators across 16 countries.

    The analysts say 25.7 percent of Europe’s TV households, acquired digital television by the end of 2004, up from 21.1 percent during 2003, with credit for the success down to services such as DTTV (Digital Terrestrial television) and IPTV (Internet Protocol television).

    “The arrival of successful DTTV and IPTV services is shaking up the established digital television market,” says Martin Olausson, Senior Analyst. “New business models such as free-to-air and bundled services will add further impetus to market growth.”

    According to the market research, Europe’s DTTV operators – such as the UK’s FreeView and Germany’s free-to-air broadcasters – added a hefty 4.4 million subscribers during 2004.

    Meanwhile, providers of IPTV – such as France’s Free and Italy’s Fastweb – boosted their user base by 450,000.

    All the signs are that DTTV will continue to grow rapidly as more countries establish services, with a predicted user base of 42.2 million households by 2010.

    Digital TV Grows In Europe As More Consumers Adopt DTTV And IPTV Platforms IPTV is expected to have become an established fourth digital platform by that time, with an estimated 11.3 million subscribers.

    Satellite is still the numero uno digital television platform in Europe, reaching 25.0 million households at the end of 2004, with further growth expected with new services such as HDTV.

    Cable put in an unexpectedly solid performance, registering the best user uptake for three years, adding1.2 million new digital subscribers. Strong growth is predicted, as penetration is still low with only 16 percent of all cable subscribers currently taking a digital service.

    Strategy Analytics

  • ASA Reports Bulldog DSL Not “The Ultimate Broadband Experience”

    ASA Reports On Broadband Advert By BulldogThe Advertising Standards Authority (ASA) has dished out a mixed ruling on a complaint about claims made by Bulldog (owned by Cable & Wireless) for its 4Mbps broadband service.

    Three complaints were made, but only in one instance was the complaint upheld. The challenged statements were:

    1. “the ultimate broadband experience”
    2. “the peak of speed”
    3. “makes other broadband services look like dial-up”.

    The ASA ruled that Bulldog’s claim that it offered the ‘ultimate broadband experience’ was misleading, but conceded that Bulldog was entitled to say it offered ‘the peak of speed’ and that it ‘makes other broadband services look like dial-up’ – at the time of the advert.

    The company’s online promotion, run last summer, bigged up their services like Mohammed Ali in a boasting mood: ‘It’s the ultimate broadband experience. Makes other broadband services look like dial-up. … Bulldog 4 gives customers in central London the peak of speed and value.’

    The ASA ruled that, at the time, it was not accurate to say that the service was the ultimate broadband experience, although it was the fastest available and Bulldog had been named Best Consumer Broadband ISP 2004 in the industry’s awards.

    Bulldog seems to have become unstuck by the success of their own advertising, with customers instantly clambering for a piece of the ‘ultimate broadband experience’.

    The rapid increase in customer numbers following the launch of the service significantly affected service quality, and complaints started to roll in.

    The ASA ruled: ‘the severe customer service difficulties that all Bulldog customers had experienced after the appearance of the online advertisement and the significantly reduced speeds some Bulldog 4 customers had experienced meant the claim that the advertiser’s service offered “the ultimate broadband experience” was likely to mislead.’

    Interestingly, the ASA said that much of the evidence for the poor service had come from Web forum discussions – and they confirm that this is the first time they’ve used this type of input.

    Despite all the online moaning and service difficulties, the ASA ruled that Bulldog was still entitled to say that its service offered ‘the peak of broadband speeds’, as ‘many Bulldog 4 customers had benefited from the full speed 4Mbps service.’

    The ASA concluded that, ‘because the advertisers were able to offer 4Mbps broadband, which was the fastest home broadband service available at the time, the advertisement appeared, the claim was justified.’

    How times have changed. From August to 8Mbit from UK online.

    The ASA also agreed with Bulldog’s assessment that, ‘if the starting point for broadband was 512kbps, it was approximately 10 times the speed of standard dial-up; the Bulldog 4Mbps connection was eight times the speed of a 512kbps connection’.

    In other words, it agreed that that it was fair to say that Bulldog 4 made other broadband services ‘look like dial-up’.

    The ASA continued with this Olympic-length sentence (take a deep breath before proceeding):

    The Authority acknowledged the claim was likely to be seen by consumers as an expression of the advertisers” opinion about their services, but nevertheless considered that the severe customer service difficulties that all Bulldog customers had experienced after the appearance of the online advertisement and the significantly reduced speeds some Bulldog 4 customers had experienced meant the claim that the advertisers” service offered “the ultimate broadband experience” was likely to mislead.

    The Authority asked the advertisers not to promise a service standard that could not be provided in future advertisements.

    The lessons to be learnt for both Bulldog and other ISPs is that you’ve got to be able to walk the talk and ensure that you have the resources to cope with the results of your advertising campaigns.

    Bulldog Broadband

  • Diffusion Group Report: Media Servers, Digital Media Adapters Reborn In Converged Platforms

    Stand-Alone Media Servers And Digital Media Adapters Reborn In Converged PlatformsEvidence is beginning to amass that two of the most hyped products in the early digital home market will be lucky if they manage to reach niche market status in the next few years.

    Not so long ago, people were getting very excited by media servers and digital media adapters. They were the future. And then, err, people kinda forgot about them.

    So what happened?

    According to new research from The Diffusion Group, it seems that despite the products being well-hyped, widely discussed and blessed with encouraging early forecasts from a number of research firms, the devices have suffered from extremely limited demand.

    Moreover, the report concludes that demand for both these technologies will remain limited and that what unique functionality these solutions do offer will be quickly integrated into other platforms.

    “It is not that this type of functionality is undesirable,” said Michael Greeson, President of The Diffusion Group. “The premise of networking stored digital media content to multiple devices in the home is valid, but consumers aren’t looking for separate devices to enable this experience.

    Instead, the applications and benefits enabled by these two platforms will be increasingly integrated into devices with which consumers are more familiar – such as DVD players that are now evolving into DVD-recorders or set-top boxes with built-in hard-drives and integrated networking.”

    “While media servers were originally positioned to be the hub of the digital home, demand for these solutions has never gotten off the ground.”

    Although Windows Media Center PCs have proved more popular, Greeson asserts that this is simply down to normal PC replacement cycles rather than consumers finding anything particularly compelling about the concept.

    Other media server platforms have been much less successful, although the push of high-end digital set-top boxes by cable and satellite video service providers offers a case for optimism.

    “However,” says Greeson, “this is a push model, where the equipment is subsidised by the service provider in order to generate digital media service revenue, as opposed to a ‘pull’ model where consumers are so enamoured with the device that they run to the retail store to purchase one.”

    When it comes to digital media adapters or DMAs, the Diffusion Group paints a gloomy picture.

    Introduced a couple of years ago, the idea was to make it easy to share content from the PC to other media devices in the home, such as a TV or stereo using a DMA. But their techie-tastic appeal failed to win over punters.

    “Not long ago, there were ten to fifteen companies offering DMAs,” said Gary Sasaki, a contributing analyst with The Diffusion Group and President of DIGDIA, a media consultancy.

    “At this year’s CES, DMAs were hard to find. Part of the reason for the premature demise of DMAs is that their functionality appeals mostly to early-adopter or technology-savvy buyers. Additionally, and somewhat similar to media servers, the functionality of DMAs is slowly getting integrated into other more familiar product categories.”

    The report suggests that we’ve got an industry in fast transition, with early, stand-alone technologies being picked clean for their useful ideas and then incorporated into more consumer-friendly converged products.

    Diffusion Group

  • T-Mobile Use WiMax and WiFi on UK Trains and Double WiFi Coverage

    T-Mobile fix Trains with WiFiT-Mobile has unveiled ambitious plans to further expand its global Wi-Fi footprint, aiming to install 20,000 hotspots across the world by the end of the year, including trains.

    Clearly mindful of the huge growth in VoIP traffic and the corresponding loss of revenue, the network is hoping to ‘own’ a large slice of the WiFi action and keep raking in the profits, no matter how many consumers disconnect from its telephone and cellular networks.

    Already a big cheese in the world of Wi-Fi, T-Mobile currently has over 5,300 hotspots in the US and over 7,000 hotpots across Europe.

    As part of their uber-expansion meisterplan, T-Mobile (Deutche Telecom’s mobile brand if you didn’t know) is offering WiFi hotspots on trains and what they claim is the first “truly broadband Wi-Fi service” on trains in the UK. We learnt this with some surprise, as GNER have been running a Satellite-powered WiFi service on their trains since April 2004.

    Currently trialing on the busy London to Brighton route run by Southern Trains in the UK, the T-Mobile commercial service will launch in Spring. The selection of the route makes perfect sense, with this train line being the physical embodiment of the Information Super Highway, taking Nuu Media types between the two UK centres of online culture.

    Naturally, there’s some cunning technological shenanigans involved in keeping Internet connections open while trains plunge into long tunnels, and T Mobile has solved this problem by running a WiMax network running alongside the tracks.

    WiMax is a fixed-wireless technology based on the 802.16 standard, and in this instance allows for high speed connectivity of up to 32 Mbps bi-directionally to and from the train. WiMax can run up to 70Mbps. Wi-Fi antennae are then used to distribute the signal within the carriages.

    The service will allow commuters an additional 55 minutes of online time in each direction, letting them liven up their journey with remote office work, Web surfing and the ability to email their loved ones to say that they’re stuck in a tunnel somewhere near Gatwick.

    If you’re fed up with five pounds an hour WiFi access, you’ll be pleased that T-Mobile is also bringing down its once-eye-wateringly expensive Wi-Fi tariffs to something comparable to US rates. A new “all you can eat” WiFi tariff in the UK offers unlimited wireless access for £20 + VAT per month. This includes train-based access.

    Germany appear to get a rougher deal with a time-based, ‘all-bearer’ tariff in Germany priced at 35 Euros for 10 hours. With this customers can download or upload as much data as they like on these schemes via 2.5G, 3G or Wi-Fi over the 10 hours.

    T-mobile

  • UK LLU – OTA Say, “Could do Better”

    OTA: Local Loop Unbundling Lagging BehindThe Independent Office of the Telecoms Adjudicator (OTA) has issued an update on their progress of ‘local loop unbundling’ (LLU – the process of opening BT’s exchanges to competitors).

    The speed of unbundling, or in this case lack of it has a direct effect on the range of competitive broadband providers, and therefore the speed of services that can be provided and their cost.

    To date, some 31,000 lines have been unbundled, but the OTA update reads: “Good. But could do better.”

    There are reports of variable performance in some operational areas, with performance lagging behind the OTA Key Performance Indicator, ‘Right First Time’. This snappily monikered indicator checks to see if services are being delivered in time to meet customers’ expectations.

    The OTA has set a target of 75% with actual delivery being variable at 50-60%. This target rises to 85% in the near future.

    The number of lines unbundled has grown from 12,000 in May 2004 to 31,000 lines unbundled by 31 January 2005.

    Once again, this falls behind the OTA target, which had specified 50,000 unbundled lines by February 2005.

    The Telecoms Adjudicator Scheme is successfully underway, with 14 companies signed up, and encouraging noises about investment commitment, have been heard.

    LLU price reductions were implemented from 1 January 2005, and there are more price reductions on the horizon.

    Despite all this, LLU operators continue to experience operational problems and variable delivery performance isn’t doing wonders for the operators’ marketing plans.

    The Adjudicator’s update tells it like it is: as the orders keep rolling in, operational performance is the key to success for LLU.

    Independent Office of the Telecoms Adjudicator
    Ofcomwatch comments on it.

  • HomeChoice VoD Hits 15,000 Subs, Reach Doubles to 2.4m

    HomeChoice STBVideo Networks Ltd (VNL) has announced that it’s broadband and Video on Demand (VoD) service, HomeChoice, now has 15,000 subscribers, since its relaunch in last September.

    Eight in ten of their customers have also signed up to the company’s ‘triple play’ package that consists of broadband-delivered TV, broadband and voice calls.

    It’s also taking this opportunity to announce that it’s going to be doubling the number of homes it can reach to 2.4 million in London and the Stevenage area, up from 1.2 million.

    The VoD component of HomeChoice lets subscribers choose from over 1,000 movies, over 3000 music videos and hundreds of hit TV series, all available to watch exactly when you want.

    “The concept of broadband delivered TV and VoD is very new to the entertainment-buying public and to already have 20 per cent market share of new DSL subscribers in our coverage area so soon after our launch is a great achievement. This gives us the confidence to significantly expand our network”, said Roger Lynch, Chairman and CEO VNL Ltd.

    VNL initially made inroads into launching its phase 2 footprint in December 2004 when it enabled five new exchanges, including Stevenage – its first exchange outside of the M25. By ‘unbundling’ the exchange, called LLU (Local Loop Unbundling) in the trade, Homechoice is able to provide customers with a 6.5Mbit connection. 2.5Mb are used for TV and VoD delivery, and up to 4Mbit for Internet connection.

    The company’s major marketing push for the re-launched HomeChoice service began in September 2004. During Q4 of 2004, VNL was responsible for one in five new DSL net additions in its initial launch footprint of 1.2 million homes.

    The company has continued to build on what it offer its subscribers. In August last year, HomeChoice signed a retail deal with BSkyB enabling its subscribers to watch Sky Sports and selected Sky Movies channels on the service. It has also added telephony to its offering, and is about to launch a music download service that will allow HomeChoice customers to buy downloadable music tracks as they appear on screen. It also plans to double the speed of its broadband service from February, at no extra cost: 512Kbps will raise to 1Mb, 1Mbps to 2Mbps, and 2Mbps to 4Mbps.

    HomeChoice

  • Music Download Giant Napster Considers Film Service

    napster provide filmNapster, one of the largest players in music downloads, is considering offering a film download service. The new service would sit alongside its music offering and help to give the company a competitive edge over its rivals. The technology is already in place to download movies, so the same service model could easily apply to films, television programmes and video games, now that broadband connection speeds are getting faster and more prevalent.

    In a move targeted at the younger video-game generation, Napster won’t be the first company to enter the legal movie download market. In the US, MovieLink and CinemaNow are already offering a service to a growing customer base in America. Films on these sites start at around $2.99 (£1.59 Euro 2.29). However, similar to the music industry five years ago, the film industry is struggling to keep piracy at bay with technologies that allow movies to be downloaded quickly and in full to users with high-speed Internet connections. The Motion Picture Association of America has already filed lawsuits against pirates and is cracking down on distribution networks such as eDonkey and BitTorrent.

    Regardless, legal film downloads will be a winner and are the future – just like audio downloads. Since broadband, film downloads have surged considerably, and around one in four people online have now downloaded a film, according to the MPAA. Such statistics have encouraged Napster and others to keep an eye on the market.

    Since Christmas, Napster UK has reduced the price of its entire music catalogue of over 1 million tracks by 20 per cent. In response to record sales, the more aggressive pricing strategy will mean that full albums now cost £7.95 (US$14.89 Euro 11.43), while individual tracks cost 79p (US$1.48 Euro 1.14) when bought by Napster subscribers or purchased with Napster Pre-Paid Cards and Online Music Vouchers. Pricing for movies has yet to be announced, but it’s obvious they’ll have to be a lot cheaper than the latest DVDs for the service to takeoff.

    Napster – UK
    Napster – USA
    MPAA

  • HomeChoice Doubles Broadband Speeds, Free

    HomeChoice STBVideo Networks Ltd (VNL), who run the UK VOD service, HomeChoice, will be doubling the speed of their broadband service from 1st February, at no extra cost.

    512Kbps will raise to 1Mb, 1Mbps to 2Mbps and 2Mbps to 4Mbps.

    Last week the two UK cable companies, ntl and Telewest, announced they would be offering Video on Demand (VoD) in the UK over their existing connections. They both offer broadband services at a range of speeds, but they are generally distinct from the TV services which are available at extra cost, except from occasional special offer bundles.

    Currently ntl offer “broadband” at 300Kbps (arguable if this is broadband), 750Kb and 1.5Mbps (£37.99/month (~€57.50, ~$75). Telewest offer broadband only services (blueyonder) between 256Kbps and 4Mbps, with the top package being £50/month (~€72, ~$94). As these prices don’t include the TV services, they also won’t include VoD, when it gets rolled out.

    The HomeChoice offering is delivered over a telephone line and includes the TV service; VoD; free evening and weekend phone calls; as well as higher speed broadband connections with their base level service now being 1Mbps. Their 4Mbps service is priced at #45/month (~€65, ~$85).

    Roger Lynch, Chairman & CEO, Video Networks Ltd. said: “Video Networks is constantly looking for ways it can enhance its current suite of services to continue to provide a superb customer experience.”

    It’s taken long enough for competition to arrive in the UK, but it finally appears to be taking root. For the UK consumer, this is all good news, as competing providers clamour to offer better deals to woo subscribers.

    HomeChoice is currently available to over 1.4 million homes around London. VNL have stated that they want to expand their offering beyond London, although details are not yet public.

    Existing HomeChoice customers will be notified of the automatic speed upgrades from 24th January via direct mail.

    HomeChoice

  • ntl On Demand Brings VOD to Glasgow

    ntl VOD BBC Pick of the weekToday ntl turned on its much-anticipated Video On Demand (VOD) service in Glasgow.

    Accessible to all Glaswegian ntl subscribers who have the digital TV service, it features free and paid for content including advertiser-free children’s programmes, a ‘Pick of the Week’ option showing a selection of top shows from the previous seven days, a film service, a music video jukebox service, and adult content.

    No new equipment is needed at the subscriber’s house, as the software in their current Set Top Box (STB) is automatically updated.

    The content is accessed either by pressing the On Demand button on the remote control or by pressing the Red button while watching one of the promotional channels.

    The Pick of the Week channel will be provided by the BBC in a six month initial trial. The editorial decision of what is included will rest with the BBC, and it’s expected that a range of shows will be available, including favourites (not ours) such as Eastenders. Each show will be available for seven days from its transmission and it’ll be free to access.

    The viewer will have the option to pay for content too, giving then 24 hours access to the content. The cost of the items will be added to their monthly bill.

    The film service is supplied by FilmFlex, a separate company run by On Demand Management in a joint venture with Sony and Disney, with “Hundreds of titles, current and classic” films available from 50p to £2. Out of general interest, On Demand applied for the FilmFlex trade mark back in September 2004.

    Over 30 hours of Children’s advertiser-free programming is on offer for 20p-50p. Music videos can also be paid for (range 20p-£1.50) with over 35 hours available.

    The high price ticket at £7 and largest number of hours of content (over 50) available goes to the Adult content supplied by Playboy.

    Coincidentally, Glasgow was also the city chosen to launch ntl’s digital TV service back in May 2000. We imagine that the number of subscribers is manageably low (we did ask for actual numbers but, “this isn’t broken out”), giving ntl a chance to observe the performance of the system and gather feedback, before spreading it around the UK.

    ntl are saying they plan to roll it out regionally over the UK during the next two years and all of their 1.4 million Digital TV customers will be able to receive the service. When we asked about the number of non-digital customers, we were told it was in the single percentage figures, possibly as low as 2-3%. Although asked, they decided to keep the order of the planned rollout cities to themselves.

    In a statement Simon Duffy, Chief Executive Officer of ntl, said, “VOD is TV the way it’s meant to be.”

    Telewest also launched a VOD service today, Homechoice have offered VOD in London and KIT have also been providing VOD in Kingston-upon-Hull for a number of years. ntl
    On Demand management