Tuesday, May 31, 2011

Broadcom Puts Chips in DirecTV STBs


Chip-making giant Broadcom is touting a major win at DirecTV, which will use Broadcom’s BCM7340 HD satellite STB System-on-a-Chip (SoC) in its dramatically smaller HR25 STBs that started shipping this month. The SoC includes MoCA home networking so that users of the DirecTV HD receivers can watch recorded content on any TV set that’s connected by coax. 

The SoC also reduces overall cost and power requirements, Broadcom said. It includes H.264 audio/video decompression and “robust” security technologies. It also allows the box to be small enough to be mounted on the back of flat-panel TV sets and makes the box much faster. The current DirecTV boxes take a long time to respond to commands, even non-satellite ones like displaying the list of recorded shows or deleting one of them. 

There’s no touchscreen on the front and the access card has been moved from the front to the side, making it easier to access when mounted on the back of a TV or on the side of a cabinet.

Henry Derovanessian, senior VP of hardware engineering at DirecTV, points out that mounting the STB on the back of the TV sets means there’s one less box in the home entertainment stack. Perhaps that’ll leave room for a smart-TV adapter to get OTT like Netflix, something that, unfortunately, DirecTV is not including in its box.

Dan Marotta, executive VP and general manager of Broadcom’s broadband communications group, said integrating standards like MoCA into the SoC results in “better system performance at a lower price point.”

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BT Signs Broadband Deal with Alcatel-Lucent

 
Showing its intent to build out a superfast broadband network, BT this week said it will use Alcatel-Lucent’s Motive Service View technology to support its triple play of broadband, IPTV and VoIP services. BT does not have a cellular network but instead is building a UK-wide Wi-Fi network. 

BT wanted its technology up-to-date for the national rollout of YouView, an Internet-connected television platform that is being developed by BBC, Channel 4, ITV, Arqiva, BT and TalkTalk. YouView seems certain to increase substantially the traffic on BT’s network. 

Alcatel-Lucent’s ServiceView will provide BT’s help desks with end-to-end visibility and control plus automated problem analysis and resolution. 

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THIS WEEK IN CONTENT DEALS


Companies Details
RealD, Samsung 3D projection technology developer RealD inked a deal with Samsung to create a new 3D display for televisions and computer monitors.
Netflix, Miramax Netflix signed a new multi-year streaming deal with film company Miramax that will add “hundreds” of Miramax movies to Netflix’s catalog starting in June.
Microsoft, Facebook Microsoft partnered with Facebook to further integrate Facebook with its Bing search engine, by displaying stories and sites “liked” by users’ friends on its results pages.
Nintendo, Best Buy  Nintendo inked a deal partnering with retailer Best Buy to offer customizable Nintendo 3DS downloadable content to customers via Wi-Fi in Best Buy stores.


Companies Details
StackMob, Trinity Ventures, Baseline Ventures, Harrison Metal Cloud-based mobile application development provider StackMob secured $7.5 million in new financing from Trinity Ventures, Baseline Ventures and Harrison Metal.
Dealfind, Insight Venture Partners, Ontario Venture Capital, Georgian Partners Canadian local daily deals site Dealfind landed $31 million in a round of funding led by Insight Venture Partners, Ontario Venture Capital Fund and Georgian Partners.
Simfy, NRW Bank,
Klaus Wecken,
Earlybird, Dumont Venture  
German-based streaming music service Simfy scored $14 million in new financing from previous backers NRW Bank, Klaus Wecken, Earlybird and Dumont Venture.
BlackArrow, Time Warner Cable, Comcast Interactive Capital, Intel Capital, NDS, Motorola Mobility, Polaris Venture Partners, Cisco Systems  Targeted ad platform provider for video-on-demand systems BlackArrow closed a $27 million Round C of funding led by Time Warner Cable, with Comcast Interactive Capital, Intel Capital, NDS, Motorola Mobility, Polaris Venture Partners and Cisco Systems also participating.
LinkedIn  Business-oriented social networking site LinkedIn raised the expected price of its planned initial public offering (IPO) by 30 percent, which means that the IPO could potentially raise over $341 million.
EnQii Holdings, Digital Signage, Jerusalem Partners, Amadeus Capital, Wellington Partners, Aviv Ventures Digital signage software companies EnQii Holdings and Digital Signage partnered on a deal to merge the two companies, with financial assistance from Jerusalem Partners, with participation from prior shareholders Amadeus Capital, Wellington Partners and Aviv Ventures.
TuneSat LLC, General Electric Pension Trust Audio technology company that aids music rights holders in collecting performance royalties TuneSat LLC received $6 million in a round of new funding led by General Electric Pension Trust with participation from previous backers.

Is It Now or Never for G.hn? For P1905?

From The Online Reporter   

The HomePlug/MoCA crowd lists these reasons for not including G.hn in P1905 at this point:
- P1905 is meant for standards that are finished. G.hn is not a finished standard. G.hn does not have any products or an installed base. No field tests have been completed.
- A G.hn interoperability test has not been conducted, although one is scheduled for G.hn chips for next week. 

There are no scheduled G.hn interoperability tests for products, commonly called a “plugfest.”
- There is no written certification standard, which some say should be done before the interoperability tests.

A standard is not finished until there is a written certification process; interoperability tests and field tests have been conducted because in many cases they show that further technology development — tweaking the standard — is needed before it’s ready for prime time.

The feeling among the MoCA/HomePlug crowd is that the G.hn crowd should concentrate on finishing the standard, produce certified chips and make interoperable products, then come back and talk to the P1905 group.

The G.hn gang responds that the effort to exclude G.hn from P1905 is an anti-competitive move.

As we see it, there are three possible outcomes:
1. G.hn is included in the initial P1905, the best-case scenario for G.hn. It gives a “seal of approval” they can put on their products like manufacturers do for Wi-Fi and DLNA-compatible products. It also gives them a standardized method for closely integrating Wi-Fi, which they and everyone else will need.
2. G.hn is not included in P1905. It’s a worst-case scenario for G.hn because of the perceived compatibility that MoCA and HomePlug will gain. More importantly, it adds a standardized Wi-Fi integration to MoCA and HomePlug chips/chipsets. And Wi-Fi, as we have predicted for years, is going to be in every STB and smart TV that’s made.
3. The whole P1905 thing falls apart. It’s not a bad result for G.hn but is a blow to consumers and product makers.
In any event, a valid vote to exclude G.hn from the initial P1905 may already have taken place. If not it will happen soon. 

The other option is that the MIMO technology that Wi-Fi chipmakers are developing may doom the wireline network market. Motorola has said it’s is going to produce an STB for pay-TV companies and consumers that uses Quantenna’s 4xMIMO Wi-Fi chips and the FCC has approved a Cisco STB that has Wi-Fi that AT&T is expected to deploy.

Stay tuned!


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PC Sales to Consumers Decline at HP & Dell

 
- Tablets? Competition? Economy? Neglect? 

It could be tablets, the economy, neglect or competition, but something is causing a decline in PC sales to consumers at Dell and HP, probably Acer too. The PC market has clearly split into two camps: consumers and the corporates. 

HP reported that total PC sales in the fiscal quarter ending April 30 fell 5%, including a 23% in sales to consumers and despite a 13% increase in sales to businesses. 

HP CEO Leo Apotheker called the PC market “bifurcated” during a conference call with analysts. He said, “Even though our consumer PC expectations had been cautious, the steepness of our Q2 decline is greater than what we had anticipated.” 

In the meantime, of course, consumer purchases of tablets have soared. HP does not even have a tablet on the market yet and Dell’s is a run-of-the-mill Android tablet. 

Dell said its sales to businesses in its quarter more than replaced its decline in sales to consumers. Sales to the corporates increased 5%, but its sales to consumers declined 7%. 

Dell CFO Brian Gladden said sales to consumers were weaker than expected. The consumer market only accounts for 20% of Dell’s revenue, so perhaps it needs a tablet that’s suited to the corporates like one that uses Windows, if and when a tablet-friendly version of Windows arrives. In the meantime, the corporates have begun buying iPads.

Perhaps the bifurcation is greater than HP’s Apotheker thinks with the entire consumer business moving to Apple, whose success with its Apple retail stores has been far greater than many expected, including us.
Or, the PC makers can keep blaming the decline in sales on consumers or the decline in the economy. In either case, they should notice that at Apple they are booming. 


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Optus to Offer FetchTV on 2m Mobile Devices


FetchTV wants every Australian broadband service, wireline and wireless, to offer its IPTV service — except for Telstra, of course, which has its own pay-TV service. FetchTV has signed up the cellco/telco/cableco Optus, which will be the first to offer live FetchTV on mobile phones and tablet devices. Optus expects to have 500,000 subscribers by the end of 2012. 

Optus did not say whether it would also offer FetchTV STBs to its wireline broadband subscribers. In December it signed a deal with FetchTV rival Foxtel to offer Optus subscribers Foxtel’s iQ HD STBs and Foxtel’s HD channels. The deal also allows Optus to resell Foxtel’s satellite TV services as an agent. 

Foxtel is a 50/50 joint venture between Telstra and News Corp

Optus, which Singapore-based Singtel owns, said the FetchTVservice will be available to all of its two million subscribers when FetchTV launches. 

FetchTV CEO Scott Lorson said the Optus deal was “a seminal moment in terms of building our distribution capability.” If FetchTV gets all the service providers other than Telstra, the service will be available to almost half of Australia’s 4.2 million wireline broadband customers.
Lorson told ComputerWorld Australia, “I think the fact that we’ve been able to nab the number two, number three and number five [Internet service] providers in the country bodes very well for the rest of the others.” 

Until now FetchTV’s mobility strategy was much like what the pay-TV services in the States did initially: it allowed users to view TV guides and film information, remotely control the box and purchase or rent content — but no streaming IPTV on the mobile device. 

FetchTV has deals with Internode, iiNet (the first to deploy FetchTV boxes) and Adam Internet and is reportedly negotiating with TPG and Primus, according to The Australian. The paper lists the following competitors to FetchTV:
- The incumbent telco Telstra with 110,000 to 150,000 of its T-boxes installed. It has channels for exclusive sports programming, such as AFL, rugby league, motor racing and horseracing. 

- Foxtel offers versions of its pay-TV service on Telstra’s T-box and Microsoft’s XBox 360.
- Smart-TV adapters and gaming consoles such as Apple TV, Hybrid Television’s TiVo and Sony’s PlayStation

FetchTV Australia is not connected with FetchTV UK in any way. They each use different technology and have a different business model. Malaysia-based Astro All Asia Network owns 40% of FetchTV. 

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G.hn Wins P1905 Skirmish, Bigger Battles May Lie Ahead

From The Online Reporter    

G.hn gets a victory. But the P1905 war isn’t over.
The IEEE last week ruled against the vote to overturn G.hn’s inclusion in the first version of the P1905 standard that is being developed. The G.hn gang had appealed the vote on the grounds that it did not conform to established parliamentary procedures. The IEEE made a ruling on a strictly procedural basis that a vote by the working group to overturn the inclusion of G.hn in P1905 was not in conformance with parliamentary procedures.
This does not mean that G.hn will be included because the IEEE’s Communications Society (COMSOC) has to approve a formal change to the Project Authorization Request (PAR) to include G.hn. Members of the P1905 working group that oppose including G.hn will have a say in that matter. The vote to include G.hn was only done at the working group level and only won by a single vote. G.hn backers are consequentially waiting on the next vote to include or omit G.hn before making any formal statement about G.hn being included in the first version of P1905 that’s to be developed. 

In any event, G.hn, developed under the auspices of the ITU standards body, will eventually have to be included because the P1905 working paper says P1905 will include other network technologies that are standards, not just the existing HomePlug and MoCA.

The P1905 working committee seems to have become an early battlefield for G.hn versus HomePlug/MoCA. It has been difficult to ascertain and report on exactly what happened in the various P1905 meetings. It has also been impossible to get attributed quotes because negotiations and maneuvering over P1905 and G.hn’s possible inclusion are still taking place.

We’ve been told by a usually reliable source that the vote to deny G.hn’s inclusion may have been invalid but the original vote to include G.hn was also invalid. Some suspect that G.hn backers are deliberately attempting to derail the entire initiative out of fear they will be excluded. G.hn backers have told us that if they are excluded they will develop a G.hn-to-P1905 bridge.

Another source told us that no matter what happens, this “desperate push” by G.hn advocates for inclusion in IEEE P1905 is a big admission and endorsement that the IEEE (also the overseeing body for Wi-Fi) and not the ITU, which oversees G.hn, is the nexus for standardization of home networking technologies.

In any event, as far as we at The Online Reporter know, an IEEE-valid vote to omit G.hn from the initial P1905 may have already occurred. The whole process is very secretive, and few people will speak publicly about it. The IEEE has strict non-disclosure rules.

It’s clearly the intent of the IEEE not to oversee the developments of standards that blatantly give one company or group of companies a competitive advantage. But of course, every company that participates in the development of what will become an industry standard wants to influence it to their advantage. That could take the form of using its patents or including technology that it’s been developing.

It’s also interesting that this has turned into a sort of battle where it’s the ITU versus the IEEE. 


Schematic of P1905 with G.hn Included

Some Background
  The proposed P1905 spec is based on the fact that the technology underlying all home networking standards is Ethernet. P1905 is a bridging technology between different networks. It’s a standard piece of software that allows chips of different network technologies to be in the same device and to talk with each other. It’s intended to make it:

- Easier for makers of devices like routers to bridge between separate P1905-compliant network chips such as Wi-Fi and HomePlug or Wi-Fi and MoCA. It’s bridged from within the device, making it easier to develop and build a HomePlug or MoCA adapter with built-in Wi-Fi.

 - Less expensive for service providers to use a mix of powerline, coax and Wi-Fi networks in the same home. The consumer could do a self-install rather than having the provider send a truck and an installer to drill holes and pull cables whenever a network outlet is needed in a room that does not have a coax outlet.

 - Better for consumers who would have a single user-interface for setting up security (encryption) on multiple home networks.

P1905 is not by itself a home network standard or a standard that includes a home network technology. It’s a method for different network technologies to pass data with each other — it’s a bridge between them.

P1905 is not a mechanism that allows networking technologies to coexist on the same wire such as P1901 did for HomePlug and HDPLC, two of the powerline technologies. P1901-compliant devices can operate on the same wire. What they cannot do, however, is interoperate.

P1901 deals with the coexistence of different networks on the same media, while P1905 deals with bridging different networks across different media — coax, powerline and wireless.

P1905 does not solve these problems:
- HomePlug and G.hn cannot coexist together on the same powerline.
- MoCA and G.hn cannot coexist on the same coax cable.
- A device with both MoCA and HomePlug will need two separate chips, making the solution expensive for many applications.

One G.hn partisan said P1905 will not make it cheaper to have MoCA and HomePlug in a single device, or even in a single chip. “Today you don’t see devices that support both specs because of cost, and that won’t change with 1905,” he said.

From what we know, here are the issues:
- P1905-compliant HomePlug or MoCA chips can be more easily added to devices that also need Wi-Fi.
- Unless someone makes a single chip with Wi-Fi and HomePlug, Wi-Fi and MoCA or all three, there does not appear to be any cost advantage.
- Gateways made with P1905 versions of HomePlug and MoCA could be used for a mixture of coax and powerline within the home. It would be easier to install, using powerline, in a room that does not have coax.

The final outcome remains murky. The working group’s next vote on whether to include G.hn may take weeks to occur. Or, it may have already occurred. More weeks may pass before the IEEE’s COMSOC approves the change to the PAR. 

In the meantime, several G.hn backers are protecting themselves by developing a bridge to P1905 that would go to the ITU, G.hn’s standard body, for approval. Perhaps it’s a bridge too many. The Wi-Fi Alliance is said to prefer going through IEEE, the standards body that oversees its efforts.

We’re betting that if G.hn is included in the initial P1905 standard you’ll never have to read about it again. The issue will disappear in the black hole of standards’ jargon. Thant’s not likely to happen. 



Some have asked why we have spent so much time covering P1905 developments. The answer is “money.” The market potential is big, bigger even than for chips for consumer PCs.

There are 300 million or so homes in North America, Europe and the Pac Rim that are candidates for one or more Internet-connected TVsets, whether built in or added with a smart-TV adapter. All TVs could eventually come with wireline home network already built in. Add to that 100 to 200 million Blu-ray players that the Blu-ray specs require to have a network connector. There are 200 million or so pay-TV STBs that will come with a wireline network connection. Then there’s 50 to100 million surround sound/stereo receivers that will come with a network connection. The 25 to 50 million consumers who want to get shows from iTunes will need an Apple TV. Smart TV adapters like LGs or Logitech’s version of a Google TV adapter also have to be connected. Add to that the 300 million or so home gateways that will connect the home network to the Web, and you’ve got some numbers that approach a billion or so. It’s a big market and billions of dollars are at stake. 

Two things could upset the wireline home network apple cart: wiring every home with Ethernet cable, which is unlikely, or a wireless technology like Wi-Fi that satisfies the QoS and security requirements of the pay-TV industry and the studios.

Please keep in mind that no one has ever been fired for overestimating the potential of the Internet.


To see 4 free editions of The Online Reporter, the weekly source for competitive intelligence about digital content, online entertainment services, mobile media and wireless networks, visit www.onlinereporter.com/trial_copies.php