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2014/08/18

| 08.18.14 | TWC ramps up RSN battle with DirecTV in L.A.; Comcast-TWC merger faces new hurdles

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August 18, 2014
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This week's sponsor is Vindicia.

Watch Colin Dixon, nScreenMedia chief OTT analyst, and Vindicia SVP Kris Nagel, monetization industry expert, discuss prescriptive strategies for how leading consumer brands are adapting to consumer expectations with subscription-based business models. Register to watch now!


Today's Top Stories

  1. TWC beefs up Pac-12 Net carriage in L.A., targets DirecTV
  2. Comcast-TWC merger faces California scrutiny, Bright House deal complications
  3. Dissonant Synacor shareholders: 'We'll pay for meeting to oust board'
  4. Former Charter exec Schremp launches home automation platform
  5. FCC extends net neutrality comment reply period to Sept. 15


Editor's Corner: Making 4K a reality

Also Noted: Telrad Networks
Spotlight On... CableLabs Innovation Showcase: Avegent's 'virtual retinal display' takes top honors
Texas' Grande signs onto SEC Network; Warner may buy Xbox Entertainment Studios and much more...

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- Latin American market holds promise for pay TV providers, vendors as consumers get more television opportunities
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News From the Fierce Network:
1. Verizon undercuts AT&T with $60 plan for unlimited talk, text and 2 GB for individuals
2. T-Mobile's family plans now support up to 10 lines
3. Sprint, SoftBank partner with Sharp for low-cost phones, starting with Sharp Aquos Crystal
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This week's sponsor is Equifax.

Webinar: National Consumer Telecom and Utilities Exchange (NCTUE)
Wednesday, September 24th | 2pm ET / 11am PT

This must-attend Equifax webinar - led by the NCTUE board members Buddy Flake (SCANA), Leon Broughton (Citizens Energy Group) and Bob Romeo (AT&T) - dives deep into the mechanics of an industry specific data resource from the (NCTUE) that offers practical, relevant credit insight on more than 170 million consumers. Register today!




Editor's Corner

Making 4K a reality


Sue Marek4K is the next-generation of high definition TV with four times the resolution of current HD screens. Unlike 3D, which failed to take off due to multiple technical hurdles, many expect 4K to blossom and become the next step in the high-definition migration path.

Analysts, for the most part, are bullish on 4K's future.  Parks Associates expects 80 percent of people to have a 4K viewing device in the next 10 to 12 years.  But much of this migration is dependent upon price points--in the next three to five years Parks expects 4K TVs to get down to the $1,000 price point, making them much more appealing to consumers.

So far there are some first generation 4K TVs on the market, primarily in Asia. IHS Research reports that 4K TV shipments topped 1 million a month in March and total sales could surpass 15.2 million by year-end.  

But there are some hurdles to 4K's progress.  According to The Diffusion Group, the lack of end-to-end infrastructure is standing in the way of 4K despite the fact that content creators, service providers and TV manufacturers are betting on 4K to be the next great step in TV technology that will drive sales and provide a differentiator in devices and services.

But not all programmers are sold on the move to 4K video. In an interview with FierceCable Contributing Editor Jim Barthold, Michael Davies, senior vice president, field and technical operations at FoxSports said 4K is a huge investment for broadcasters and he thinks it will be some time before 4K becomes widespread in the broadcast industry--noting that the industry as a whole just made a huge investment in upgrading to HD.

Interestingly, Davies also speculates that some may be waiting to see what happens with 8K video, which is already being trialed in Japan.  You can see the full text of the Davies interview by downloading our 4K ebook here.

Transitioning to a new technology is never easy--it comes with numerous technological and cost hurdles. In this ebook from FierceCable, we analyze the challenges that face content owners and distributors in migrating to 4K.--Sue

Read more about: 4K
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FierceLive! Webinars

> LTE Broadcast - Evolving and going beyond mobile - Tuesday, August 26th, 1pm ET/ 10am PT
> Consumerization and the CIO - Now Available On-Demand
> The New Reality: LTE Solutions for Fixed Applications - August 27th | 2pm ET / 11am PT
> Making the Network Efficient Through Traffic Management - Wednesday, September 17th | 2pm ET/ 11am PT
> CSPs Using Predictive Analytics to Solve Some of Their Biggest Problems - Thursday, September 25th, 10amET/7amPT

Events

> Don't Miss this FierceWireless 5G Breakfast at Super Mobility Week! - September 9, 2014 - Las Vegas, NV - Sponsored by Ericsson, Intel, Nokia, and SOLiD
> Don't Miss this FierceWireless IoT Breakfast at Super Mobility Week! - September 10, 2014 - Las Vegas, NV - Sponsored by AT&T, RacoWireless, and Sierra Wireless
> The Kaitz Dinner - Wednesday, September, 17, 2014 - New York Marriott Marquis - Sponsored by Walter Kaitz Foundation

Marketplace

> Whitepaper: Next-generation OSS is critical to delivering service agility in new virtualized networks
> Whitepaper: TV Brand Advertisers Want Your Audience
> eBook: Gearing Up For the Launch of 4K
> Whitepaper: Network Inventory Reconciliation Redefined
> Whitepaper: Just-In-Time (JIT) Testing in the Virtual Network
> Whitepaper: Benchmarking the Test Process
> Whitepaper: VoLTE - Using Policy to Deliver High Definition Voice Services
> eBook: eBrief | Connected TV Advertising's Growing Potential
> Whitepaper: Next Generation Technical Support
> Whitepaper: Cloud RAN
> Whitepaper: Realizing Open Flow Switches with Aricent Frameworks
> Whitepaper: Increasing LTE Revenues: Top 10 Innovations and Operator Examples

Jobs

> Lead Engineer - Converged Technologies - Monroe, LA
> Senior Engineer - System Automation - Monroe, LA
> Medicaid SAS Report Analyst - Durham, NC (US)
> Administrator, Systems - Corpus Christi, TX (US)
> Backend Java Developer - Alpharetta, GA (US)
> Principal Confirguration Analyst - Warrenton, VA (US)
> Sr Technician, Systems - Hanahan, SC (US)
> Senior Information Security Analyst TS.SCI Required - Jackson, SC (US)
> Sr Network Administrator with TS/SCI - Bethesda, MD (US)
> Sr Analyst, Telecom - Knoxville, TN (US)

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Today's Top News

1. TWC beefs up Pac-12 Net carriage in L.A., targets DirecTV


Further solidifying its position of Los Angeles regional sports network supremacy, Time Warner Cable (NYSE: TWC) has added five additional Pac-12 Networks channels to its local Sports Pass bundle.

The move ramps up a heated battle between the Nos. 1 and 2 pay-TV operators in the nation's second biggest television market, with runner-up DirecTV (NASDAQ: DTV) the only provider in the region not to carry the RSN home of the Pacific 12 athletic conference as it heads into its third college football season.

The additional channels give L.A. TWC subscribers access to all of the Pac-12's other schools beyond just USC and UCLA, with channels situated in Oregon, Washington, Arizona, Northern California and Utah/Colorado joining the bundle.

Despite a reported price point of around 80 cents per subscriber, DirecTV continues to resist a Pac-12 Networks deal, even though it has reached an agreement to deliver the new ESPN-backed SEC Network nationally.

Individuals with knowledge of DirecTV's thinking say the operator is concerned about the quality of Pac-12 football games that are not already covered by national networks such as ESPN. 

DirecTV has also refused to carry TWC's far more expensive RSN home of the Los Angeles Dodgers, SportsNet LA.

For more:
- read this Los Angeles Times story

Related links:
Pac-12 commissioner Scott: DirecTV will only negotiate with conglomerates
Playing the SportsNet LA blame game: Include the fans and the team, too
DirecTV set to take over Houston RSN it refused to carry

Read more about: DirecTV
back to top



2. Comcast-TWC merger faces California scrutiny, Bright House deal complications


As top Comcast (NASDAQ: CMCSA) executives visited the FCC to continue lobbying for their proposed $45 billion acquisition of Time Warner Cable (NYSE: TWC), elements complicating the deal continued to emerge.

For one, the takeover is facing growing opposition outside the Beltway on the state level, with California's public utility commission contributing a memo to the Federal Communications Commission's review process. Here's an excerpt:

"Comcast and TWC, through their California subsidiaries, would potentially combine the two largest providers of high-speed last-mile broadband service in the state. The merger would impact competition and consumer welfare in California's market for wholesale telecommunications, retail voice, backhaul and broadband services.

"More importantly, the merger would have an impact on broadband deployment in California as two of the largest cable broadband services in the state form one entity."

News that California is joining New York among states independently scrutinizing the Comcast/TWC merger comes amid word that there's continuing consternation among regulators as to how to approach a longstanding deal between TWC and Bright House.

As the Wall Street Journal reports, Bright House has contracted with the larger TWC to handle programming rights and technology acquisition negotiations for several decades.

Bright House, the No. 6 cable operator in the U.S. with 2.1 million video subscriptions spread from California to Florida, has paid a fee for nearly two decades to exploit TWC's greater scale.

As the Journal reports, the FCC faces a decision in reviewing the merger: let the combined Comcast/TWC enjoy even more consolidated market power by keeping the Bright House deal intact; or harm the leverage of a smaller operator by dissolving the deal.

For more:
- read this Wall Street Journal story (sub. req.)
- read this Latin Post story

Related links:
Comcast, TWC back off funding dinner for FCC's Clyburn
FCC starts 180-day clock on Comcast-TWC merger review
Comcast's Cohen pleads merger case to FCC officials

Read more about: Comcast
back to top



3. Dissonant Synacor shareholders: 'We'll pay for meeting to oust board'


Not even a better-than-expected second quarter earnings report has succeeded in calming the ire of Synacor's dissonant shareholders, who have offered to independently conduct a meeting to overthrow chairman Jordan Levy and other key board members.

JEC Capital Partners and Ratio Capital Partners jointly control about 10 percent of shares for Buffalo-based Synacor, a leading developer of multiscreen technologies for the pay-TV industry. With Synacor stock cratering 60 percent since the company's IPO, these investors have been seeking to clean out Synacor's board of directors and put the company up for sale--a movement the board has resisted by, among other tactics, making it difficult to convene the shareholders meeting needed to conduct such a vote.

On Aug. 19, JEC and Ratio Capital publicly released a letter, indicating they'd pay to convene shareholders themselves: "Board change at Synacor is so urgently needed that we are willing to pay the costs of a special meeting so shareholders can effectuate the removal of chairman Jordan Levy and director Andrew Kau," the letter reads., "Mr. Levy and Mr. Kau have each served 13 years on the Synacor Board and shareholders have seen and endured enough."

Among the institutional investors' grievances: In April 2013, the board voted to increase its compensation level by 500 percent.

Synacor management has yet to respond to JEC and Ratio Capital's latest volley. The board has preached a "stay-the-course" message, believing that the growth and proliferation of pay-TV multiscreen services will soon improve the company's bottom line.

On Aug. 5, Synacor announced the hiring of former Comcast (NASDAQ: CMCSA) and Charter (NASDAQ: CHTR) executive Hamesh Bhise as CEO. On Aug. 12, the company continued to report sliding revenue, tallying just $24.12 for the second quarter. But that beat analysts' consensus forecasts, and the $1.9 million loss for the quarter was buffered by the fact that Synacor still has $25.7 million in cash on hand.

For more:
- read this press release

Related links:
Dissonant Synacor shareholders react to poison pill
Synacor management resists activist investors' call for sale
Synacor investors seek board spot as vendor hunts new CEO

Read more about: Synacor
back to top



4. Former Charter exec Schremp launches home automation platform


Former Charter Communications (NASDAQ: CHTR) executive Ted Schremp's SmartHome Ventures has announced a new retail-focused home-automation platform designed to compete with services offered by top pay-TV providers.

PEQ home automation

Screenshot of PEQ's home automation control app.

SmartHome's P?Q (pronounced "peek") home automation service will be available at select Best Buy retail locations, as well as BestBuy.com starting Aug. 31, with an entry-level price for a self-install starter kit of $119.99. Customers control the system from apps that run on smart phones, tablets and personal computers.

SmartHome says the typical customer can set up the system by themselves in less than half an hour.

The technology is powered by Incontrol Networks, which also supports home security and automation platforms for Comcast (NASDAQ: CMCSA), Time Warner Cable (NYSE: TWC), Cox Communications and Bright House Networks, among other MSOs.

"With widespread adoption of broadband Internet, smart phones and tablets, consumers are ready to embrace the concept of a smart home," said Schremp, in a statement. "However, consumers are still hesitant because of the lack of a simple, affordable and consistently reliable platform. With P?Q, we're making home automation easy, reliable and accessible through a consumer friendly design, a rigorous lab certification process for devices, ongoing firmware and app updates, and dedicated customer support."  

For more:
- visit the SmartHome homepage

Related links:
AT&T, cable home automation supplier iControl join AllSeen Alliance
Verizon drops home monitoring and control service
Google's $3.2 billion Nest Labs buy paves way for company's home automation aspirations

Read more about: Bright House Networks, Charter Communications
back to top



5. FCC extends net neutrality comment reply period to Sept. 15


The FCC has extended the period during which it will accept replies to public comments regarding new net neutrality rules by three business days, setting a new deadline of Sept. 15.

The move comes after the Federal Communications Commission extended the initial comment period in July by three days.

"To ensure that members of the public have as much time as was initially anticipated to reply to initial comments in these proceedings, the bureau today is extending the reply comment deadline by three business days," reads a statement put out by the FCC's Wireline Competition Bureau.

The FCC has received more than 1 million comments about how it should craft rules governing how Internet service providers govern traffic on their networks.

FCC Chairman Tom Wheeler has said he wants to have these rules drafted by the end of 2014.

For more:
- read this Reuters story

Related links:
TWC's CEO says FCC's focus on net neutrality, other acquisitions could hold up Comcast deal
Why the FCC should take the Title II path to net neutrality
Net neutrality: Cohen says Comcast not 'degrading' content, Netflix tells FCC to classify ISPs as utility

Read more about: FCC
back to top



Also Noted

This week's sponsor is Telrad Networks.

[Webinar] The New Reality: LTE Solutions for Fixed Applications
Wednesday, August 27th,  2pm ET / 11am PT

This Webinar will explore how operators, municipalities, utilities and others can leverage LTE in a seamless migration and what it means for them and their customers — today and tomorrow. Reserve Your Spot Today!


SPOTLIGHT ON... CableLabs Innovation Showcase: Avegent's 'virtual retinal display' takes top honors

Think of Avegent's new Glyph as a kind of Oculus Rift, only instead of virtual reality, the wearable device delivers a totally immersive viewer experience from a mobile device using LED technology. "There is no screen, no LCD or OLED ... We're actually mimicking the way you naturally see," says Avegent founder Edward Tang in a presentation to CableLabs' Innovation Showcase, where the "virtual retinal display" tied for top honors. Scroll down the page here to see Avegent's pitch, as well as the other technology presentations delivered at CableLabs Summer Conference in Keystone, Colo.

More cable news from around the Web.

> Texas-based cable operator Grande Communications has signed on to carry ESPN's new SEC Network. Story

> Current TV co-founders Al Gore and Joel Hyatt have sued Al Jazeera America for allegedly withholding money after purchasing their channel. Story

> Sony has set an Oct. 14 launch date for its new PlayStation TV OTT device. Story

> NFL Network personality Rich Eisen has been given his own show on DirecTV's Audience Network. Story

> Deutsche Telekom is looking at a number of German cable operators, including Tele Columbus Group and PrimaCom AG, with an eye towards possible acquisition. Story

> Despite taking in more revenue than ever, companies that enable automated online ad buying such as Rocket Fuel Inc., YuMe Inc. and Rubicon Project are facing quarterly losses and cratering stock prices. Story

> Microsoft is in talks with Warner Bros. to sell its Xbox Entertainment Studios rather than shutter the operation. Story

And finally … Following huge television ratings performances for World Cup soccer, NBC Sports Group is ready to launch coverage of 380 Premier League matches for the 2014-15 season. Story

News From the Fierce Network:
> Researchers show how to turn a phone's gyroscope into a crude microphone for eavesdropping Post
> Equinix adds CloudSigma to Cloud Exchange, broadens cloud-service reach Post
> Deutsche Telekom says DSL expansion could cost $33.4B, considers acquiring small cable operators Post
> Oregon's Canby Telcom gets into the 1 Gig fiber broadband game Post


Webinars


* Post listing: Click here.
* General ad info: Click here.

> LTE Broadcast - Evolving and going beyond mobile - Tuesday, August 26th, 1pm ET/ 10am PT

Tune-in to this webinar to learn more about Qualcomm's perspective on the various aspects of the evolution, and how our offerings enable operators to offer LTE Broadcast services today. Register Today!

> Consumerization and the CIO - Now Available On-Demand

From devices to services to apps, end users have a lot of choices - and those choices are bleeding into enterprise IT faster than ever. How do these changes affect IT strategy, budget and infrastructure? Register to watch now!

> The New Reality: LTE Solutions for Fixed Applications - August 27th | 2pm ET / 11am PT

Trends show that fixed wireless operators seek to benefit from LTE capacity and standards momentum. However, most LTE solutions remain mobile-centric, neglecting the requirements of fixed networks, like simplified cores, Layer 2 services, etc. This Webinar will explore how operators, municipalities, utilities and others can leverage LTE in a seamless migration and what it means for them and their customers — today and tomorrow. Reserve your spot today!

> Making the Network Efficient Through Traffic Management - Wednesday, September 17th | 2pm ET/ 11am PT

Wireless networks are becoming increasingly complex and operators must manage different network protocols, network topologies and traffic patterns in order to make sure the network is operating at an optimal level. If the network is not managed carefully, it could result in poor performance and faulty coverage causing consumers to switch wireless providers. This webinar will look at the various tools and techniques operators may use to improve their network performance and stay competitive. Register Today!

> CSPs Using Predictive Analytics to Solve Some of Their Biggest Problems - Thursday, September 25th, 10amET/7amPT

Learn how some of the more forward-thinking CSPs are using predictive analytics to up-sell services, increase ARPU and eliminate fraud and risk. Register Today!



Events


* Post listing: Click here.
* General ad info: Click here.

> Don't Miss this FierceWireless 5G Breakfast at Super Mobility Week! - September 9, 2014 - Las Vegas, NV - Sponsored by Ericsson, Intel, Nokia, and SOLiD

Join Kris Rinne, AT&T; Nicola Palmer, Verizon Wireless; and other industry experts as they explore how to get from today's networks to the 5G network of the future. Seats are limited. Register Today!

> Don't Miss this FierceWireless IoT Breakfast at Super Mobility Week! - September 10, 2014 - Las Vegas, NV - Sponsored by AT&T, RacoWireless, and Sierra Wireless

Join Matt Thompson, Microsoft; Alec Saunders, BlackBerry; and other industry experts as they delve into the market segments where IoT technologies are blossoming now, and explore where the next opportunities may lie. Seats are limited. Register Today!

> The Kaitz Dinner - Wednesday, September, 17, 2014 - New York Marriott Marquis - Sponsored by Walter Kaitz Foundation

The Kaitz Dinner is the annual social and fundraising event that supports and accelerates our industry's embrace of diversity. On Wednesday, September 17 2014 in New York Marriot Marquis, we'll gather in a spirit of camaraderie and shared mission to help shape cable's future. Purchase your ticket/sponsorship today!



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> Whitepaper: Next-generation OSS is critical to delivering service agility in new virtualized networks

This white paper outlines the key role the OSS will play in enabling CSPs to deploy and realize anticipated benefits from service agility, operational flexibility and cost optimization. Download today.

> Whitepaper: TV Brand Advertisers Want Your Audience

Major TV brand advertisers want to run their TV ad units across all digital screens. Integrate YuMe’s multi-screen Audience-Aware SDK to gain greater insights on your audience and access our network of TV brand advertisers for better monetization and results. Get started at www.PlugIntoYuMe.com.

> eBook: Gearing Up For the Launch of 4K

Pay-TV providers and online video programmers are preparing for the launch of 4K Ultra HD, but deploying 4K video comes with challenges. FierceCable will take an in-depth look at the challenges posed in moving to this new technology. Download today.

> Whitepaper: Network Inventory Reconciliation Redefined

This paper shares Aricent's workable solution - based on our experience with leading service providers - for addressing such challenges. The CSPs that wish to introduce LTE, Carrier WiFi/HetNet and SDN/NFV services can leverage this solution to automate network inventory reconciliation. Download Today!

> Whitepaper: Just-In-Time (JIT) Testing in the Virtual Network

This paper attempts to demonstrate how Agile JIT testing has become an integral part of service providers' new product/service introduction process, how it creates value for the client and how it helps reduce cost and time to market. Download Today!

> Whitepaper: Benchmarking the Test Process

This whitepaper assesses how Aricent's KPI framework can be leveraged to bolster the effectiveness of test assets by benchmarking the test processes for carriers, which would result in significant OpEx savings and improved quality. Download Today!

> Whitepaper: VoLTE - Using Policy to Deliver High Definition Voice Services

Learn how operators are delivering improved voice services while gaining the cost efficiencies of LTE. Download this free white paper today.

> eBook: eBrief | Connected TV Advertising's Growing Potential

The lack of industry standards coupled with an uncertain business model is making connected TV ads a challenge, but many companies are preparing for what could be a huge opportunity. In this eBrief, FierceCable discusses the future of connected tv and its advertising marketplace. Download Today!

> Whitepaper: Next Generation Technical Support

The next generation technical support whitepaper provides insights into how these next generation support models can be used to reduce risk and enhance customer satisfaction. Download Now!

> Whitepaper: Cloud RAN

This whitepaper provides an overview of the Cloud RAN architecture. It also offers exhaustive insight into how you can leverage concepts like 'Active Antenna Array', 'Multi-band Radio Remote Heads', 'Centralized Baseband Units', 'Radio Network Controllers' etc. to develop and deploy cutting edge Cloud RAN solutions to improve network performance that can help improve your ROI. Download Now!

> Whitepaper: Realizing Open Flow Switches with Aricent Frameworks

This whitepaper highlights the benefits of Aricent's OpenFlow frameworks, and explores how they can be leveraged to build pure or hybrid OpenFlow switches for deployments across campus, datacenter, enterprise, and service-provider networks. Download Today!

> Whitepaper: Increasing LTE Revenues: Top 10 Innovations and Operator Examples

Download this guidebook to learn about 10 leading service innovations to increase LTE revenue, examples and results from multipe operators worldwide and key BSS requirements to enable these services and reduce time to market. Download Today.



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