TechLuver.com

EL SEGUNDO, Calif –BUSINESS WIRE– Dec 19, `07 — Public Television stations across the country will soon be available in high-definition (HD) to DIRECTV customers through a landmark agreement reached today by DIRECTV, the Association of Public Television Stations (APTS) and the Public Broadcasting Service (PBS). DIRECTV viewers will have access to other Public Television content as well.

Continuing its unprecedented expansion of HD services, DIRECTV, the industry leader in HD programming, will include the local HD feeds of Public Television stations in its HD rollout plans beginning in 2008. DIRECTV currently offers local HD programming in 68 markets, representing more than 72 percent of U.S. TV households.

DIRECTV, APTS and PBS also will work together to develop new video on demand offerings to make available local and national public television programming to DIRECTV’s customers anytime they want it. In addition, DIRECTV will carry two national standard-definition channels of Public Television programming, further expanding its commitment to high-quality educational programming.

The terms of the deal were unanimously approved by the APTS Board of Trustees yesterday and are pending approval by the PBS Board of Directors. The agreement must be ratified by local Public Television stations. More at DIRECTV.

NEW YORK — AT&T said on Tuesday it will stop selling satellite television services from DirecTV Group in the first quarter in a sign the phone company may favor EchoStar as its sole satellite partner, Reuters reports.

Reuters further writes, “Still, AT&T Chief Financial Officer Rick Lindner told Reuters separately that the company has not made a final decision on the matter and could take until the second half of 2008 to decide.

AT&T has a marketing partnership with EchoStar in some markets and with DirecTV in others, and the phone company is also expanding its own video service called U-verse, which is delivered over high-speed fiber optic cables.

The company said it would stop offering DirecTV’s services to phone customers in the first quarter, while its current agreement with EchoStar extends until the end of 2008.” More at Reuters here and here.

New 65 Nanometer Solution Features the Latest HD AVC Technology to Support Multiple Video Formats and a 50% Reduction in Power Consumption

IRVINE, Calif — Dec 05, ‘07 — /PRNewswire-FirstCall/ — Broadcom today announced a new single-channel, multi-format high definition (HD) satellite receiver chip that enables manufacturers to develop low cost satellite set-top boxes (STBs).

The new satellite system-on-a-chip (SoC) is manufactured in 65 nanometer (nm) process technology and includes the highest level of functionality, fully integrating a single tuner/demodulator, as well as the latest AVC (advanced video coding) decoder that supports multiple video formats.

By reducing the number of components required to develop satellite set-top box products, Broadcom has reduced power consumption by more than 50% over competing solutions, lowering system bill of materials (BOM) cost while reducing the complexity and size of designing next generation satellite STBs.

The BCM7325 operates on a dual-threaded MIPS(R) CPU core running at 333MHz resulting in over 550DMIPS of performance. The BCM7325 is designed to support UMA and non-UMA memory architectures, utilizing a 400-MHz clock, 32-bit wide DDR2 memory I/F for enhanced performance and allows cost-effective memory implementations.

The BCM7325 supports several interfaces for TV output on-chip including HDMI, baseband composite, component or S-Video, and incorporates Broadcom’s advanced 2D graphics engine that enables true studio-quality text and graphics, efficiently using its memory and bandwidth. More at Broadcom.

WASHINGTON — The Federal Communications Commission (FCC) is moving toward resurrecting a proposal that would limit the size cable operators could reach on a nationwide basis, agency officials said Thursday, Nov 29, the AP and Reuters are reporting.

FCC Chairman Kevin Martin is circulating the proposal among his fellow commissioners for a possible vote at the agency’s next meeting, scheduled for Dec 18 and has enough support on the five-member commission to pass a measure that would bar cable companies from owning systems that have more than a 30-percent share of U.S. multichannel video subscribers, according to one FCC source.

Martin, fresh off a marathon meeting that featured a bruising battle with the cable industry, also wants commissioners to vote on a number of media ownership issues, including his proposal to allow one company to own both a newspaper and a radio or television station in the nation’s 20 largest markets.

Fearing the potential monopoly power of cable television companies, Congress in 1992 directed the FCC to establish limits on how many customers cable television companies could reach nationwide. The FCC settled on a 30 percent cap, but the U.S. Court of Appeals for the District of Columbia Circuit rejected the rule in 2001, saying the agency had failed to adequately justify its reasoning.

The issue has remained largely dormant since then as direct broadcast satellite providers — and more recently, traditional telephone companies — have continued to cut into the market share of the nation’s major cable television companies.

The immediate impact of such a cap would appear to be negligible. Comcast Corp., the nation’s largest cable company, reported 26.2 million subscribers to the FCC through Sept. 30, for a nationwide market share of all pay-television subscribers of 27 percent. More at AP, Reuters.

MOUNTAIN VIEW, Calif — November 30, 2007 — Google announced today that it will apply to participate in the Federal Communications Commission’s upcoming auction of wireless spectrum in the 700 megahertz (MHz) band.

As part of the nationally mandated transition to digital television, the 700 MHz spectrum auction — which begins January 24, 2008 — will free up spectrum airwaves for more efficient wireless Internet service for consumers.

Advocacy by public interest groups and Google earlier this year helped ensure that regardless of which bidders win a key portion of the spectrum up for auction (the so-called “C Block”), they will be required to allow their users to download any software application they want on their mobile device, and to use any mobile devices they would like on that wireless network.

The winner must ensure these rights for consumers if the reserve price of $4.6 billion for the C Block is met at auction.

“We believe it’s important to put our money where our principles are,” said Eric Schmidt, Chairman and CEO, Google. “Consumers deserve more competition and innovation than they have in today’s wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet.”

Schmidt also praised the leadership of FCC Chairman Kevin Martin and his fellow commissioners for adopting the new rights for consumers earlier this year.

Google’s formal application to participate in the 700 MHz auction will be filed with the FCC on Monday, December 3, 2007 — the required first step in the auction process. Google’s application does not include any partners.More at Google.

Bidding separately instead of assembling a coalition does not rule out Google later signing up partners if it wins the bidding, said a source familiar with the company’s strategy. But the FCC has “anti-collusion” rules that prevent deal-making between potential bidders during the auction period.

The auction is expected to take several weeks, or even months, of daily, back-and-forth bidding, with the identities of the bidders kept secret. Big spectrum bidders typically draw up elaborate strategies, often with input from game-theory experts.

FCC officials hope the company’s participation will mean a possible new player in the wireless business and boost the amount of money the government can bring in from the auction.

New York — Nov 21, ‘07 –Reuters is reporting on much speculated EchoStar, AT&T deal, “EchoStar Chief Executive Charlie Ergen holds the key to whether the satellite television provider may be sold to AT&T and he’s unlikely to be swayed easily by money, industry sources and analysts said.

Ergen is not likely to want to leave the business he created, nor is it likely he would want to join a telephone behemoth that would probably frown on a maverick executive known to have ditched quarterly analyst calls for family vacations, they said on Tuesday.

Ergen, 54, owns about 50 percent of EchoStar’s shares and controls about 80 percent of voting rights. “People like Charlie Ergen don’t really care about the money per se at this point, they just want to stay in the game,” said the source, who has dealt with Ergen in the past. “He’s an entrepreneur at heart. He very much likes coming to work and operating his own business everyday.”

Long-running speculation of a deal between EchoStar, the second-largest U.S. satellite television operator, and AT&T, the biggest phone company, was reignited this week by reports in financial news providers Barron’s.

The reports said AT&T was looking to make an offer between $64 and $68 per share for EchoStar, or about $30.2 billion in total. Ergen founded EchoStar in 1980 and it is now the third-largest U.S. pay-TV operator with 13.7 million subscribers.

A source familiar with AT&T, who spoke on condition of anonymity, said a bid for EchoStar was not imminent.

Wall Street analysts said the business rationale for a merger makes sense: the two companies already are partners, with AT&T selling EchoStar’s DISH satellite television service alongside phone and Internet services.

Both face competition from cable companies like Comcast, which are selling bundled phone, video and high-speed Internet services to consumers.” More at Reuters.

Nov 18, ‘07 — AT&T is reportedly trying to put together a bid for EchoStar Communications before year’s end, whetted by the satellite operator’s recent stock dip, Reuters said citing Barron’s financial newspaper.

Reuters further writes, ”In the past, AT&T has supposedly offered $65 a share and EchoStar has demanded $75 a share, Barron’s said. The report follows months of speculations that AT&T may buy EchoStar to expand its video business and compete with cable providers.

On Friday, Citigroup upgraded EchoStar from a “hold” to a “buy” rating, citing an attractive valuation and its belief that there’s a 65 percent chance that AT&T acquires the satellite company over the next 12 months.” More at Reuters, Barron’s.

EL SEGUNDO, Calif –BUSINESS WIRE — Nov 16, ‘07 — Congratulating NASA on the completion of a successful shuttle mission to the International Space Station (ISS) and the recent unveiling of a new living space aboard the orbital laboratory, DIRECTV is offering the ISS a complete HD makeover – including its industry-leading line-up of national HD channels, the most advanced HD DVR on the market, a 42” flat screen HDTV and a sturdy velcro-wrapped remote control.

With the solar array repaired and the Harmony module – the ISS’s first new living space in six years – successfully bolted into its permanent location, DIRECTV is ready to offer the DIRECTV HD experience to the ISS crew, allowing them to catch up on current events or enjoy the best HD whenever their leisure time allows. If NASA accepts DIRECTV’s offer, the nations #1 satellite TV company is prepared to offer its top engineer to assist in the installation of the familiar satellite dish on the roof of the new module.

“Sure, there’s the awe-inspiring view of planet earth from more than 200 miles up, but what do you do for an encore after you’ve entered your 180th day in space?” said Jon Gieselman, senior vice president, marketing for DIRECTV, Inc. “But on a more serious note, we truly applaud both the shuttle and ISS crew for their incredible accomplishments and are honored to offer an HD experience worthy of the International Space Station. As a satellite TV service we obviously have a vested interest in space exploration and we’ve certainly benefited from NASA’s many technical and scientific achievements over the years. This is one way we can give a little something back.”

WASHINGTON — The FCC, hoping to reduce the rising costs of cable television, is preparing to strike down thousands of contracts this week that gave individual cable companies exclusive rights to provide service to an apartment building, the agency’s chairman says. 

The new rule could open markets across the United States to competition. It would be a huge victory for Verizon Communications and AT&T, which have challenged the cable industry by offering their own video services. The two phone companies have lobbied aggressively for the provision. They have been supported in their fight by consumer groups, satellite television companies and small rivals to the big cable providers. 

Commission officials and consumer groups said the new rule could significantly lower cable prices for millions of subscribers who live in apartment buildings and have had no choice in selecting a company for paid television. Government and private studies show that when a second cable company enters a market, prices can drop as much as 30 percent.

The change, which is set to be approved Wednesday, is expected to have a particular effect on prices for low-income and minority families. They have seen cable prices rise about three times the rate of inflation over the last decade. A quarter of American households live in apartment buildings housing 50 or more residents, but 40 percent of households headed by Hispanics and African-Americans live in such buildings. 

“Exclusive contracts have been one of the most significant barriers to competition,” said Kevin Martin, chairman of the commission, in a recent interview. Cable prices have risen “about 93 percent in the last 10 years,” he said. “This is a way to introduce additional competition, which will result in lower prices and greater innovation.”

By DIONNE SEARCEY and DANA CIMILLUCA of The WSJ — October 24, ‘07 — AT&T Inc. has been circling the satellite-television sector for several years, contemplating a bid for one of the two major players. Now, with consolidation in the telephone industry mostly done, AT&T appears to be getting ready to swoop in.

AT&T has been consulting lawyers in Washington about how long it would take to get government approval to purchase either EchoStar or DirecTV, people familiar with the matter said. If it does make a bid for one of the satellite providers, AT&T could unveil the offer before year’s end in hopes of getting federal antitrust officials to approve the combination before a new administration takes over, these people say.

A final decision on a bid hasn’t been made. AT&T hasn’t even decided which satellite-TV firm to go after, although a purchase of EchoStar, of Englewood, Colo., could be easier to undertake because it has a less-complicated ownership situation. There also isn’t any guarantee that either company would be available.

But what AT&T shareholders and other investors are likely to focus on is the potential cost of a deal — between $30 billion and $40 billion, depending on the target — and the San Antonio telecommunications giant’s ability to absorb another acquisition after last year’s purchase of BellSouth Corp.

Talk about AT&T’s interest in a satellite-TV firm has swirled for several years, as the company, like rival Verizon, has made a big push into offering television service to counter cable-TV operators’ push into phone service. AT&T announced that through the third quarter, it had signed up 126,000 subscribers for its “U-verse” TV service, which uses Internet-based technology. The company says it will offer U-verse to 18 million homes by the end of next year, a project estimated to cost $6.5 billion.

A satellite deal would give AT&T a way of fending off rival cable operators luring customers with low-priced bundles of phone, TV and high-speed Internet services. A purchase also would allow AT&T to negotiate less expensive content deals for its TV service. And it would save AT&T the cost of rolling out U-verse in certain parts of the company’s expansive territory where laying the fiber optics is expensive.

Still, the premium AT&T would have to pay to land a satellite concern may offset those cost savings. Of the two satellite firms, DirecTV, which has 16.3 million customers in the U.S., versus EchoStar’s 13.6 million, would be cheapest as measured by a multiple of its earnings. DirecTV, of El Segundo, Calif., has a market value of about $30 billion, roughly 21 times earnings for the past 12 months.

More at WSJ

CNNMoney, Citigroup analyst Jason Bazinet,  TheStreet.com senior writer Scott Moritz and Bloomberg News are speculating on the rumor – ”AT&T is likely to buy EchoStar”. AT&T has hired Goldman Sachs to explore the acquisition of EchoStar, TheStreet.com has learned.Goldman was hired by AT&T about a month ago, says a source familiar with the companies. It was around that time that EchoStar said it was considering splitting its TV broadcasting operations from its wholesale satellite transmission business.

The deal would make sense for both companies with AT&T struggling with its TV service called U-verse and EchoStar facing competition from companies with deeper pockets such as DIRECTV. With AT&T as an owner, EchoStar could invest more heavily in projects such as new satellites for High-Definition TV channels.

AT&T said it had no comment. “We are not commenting,” an EchoStar representative said.