Light Reading

Charter Video Plan Good News for Cisco, Samsung

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/5/2012
50%
50%

Welcome to today's broadband and cable news roundup.

  • Cisco Systems Inc. (Nasdaq: CSCO) and Samsung Corp. stand to gain as Charter Communications Inc. takes a page from the Cablevision Systems Corp. (NYSE: CVC) playbook and pursues a software-based video security system. Charter is seeking a two-year waiver to use set-tops with integrated security so it can have ample time to go all-digital and deploy a software-based security system that could be used in leased boxes as well as third-party retail devices. Under then-COO Tom Rutledge, Cablevision obtained a similar waiver in 2009 to aid its rollout of a security system based on the NDS (now Cisco) "key ladder," which is currently being used in Samsung-made set-top boxes. A successful deployment would help Charter shift away from pricey CableCARDs. Charter noted in its waiver request that, like Cablevision, it would employ a "simulcrypt" approach so it could continue to support its legacy security systems alongside the new security platform. (See Former Cablevision Exec Heads to Charter and Cablevision Scores Set-Top Waiver Extension .)

    Charter's already got some in-house know-how. James Blackley, an ex-Cablevision exec who recently joined Charter as EVP of engineering and information technology, was closely involved in the Cablevision deployment. Industry sources say Cablevision has been eager to have other U.S. MSOs adopt its system to help boost product volumes, attract more set-top suppliers, and, of course, drop unit costs. CableLabs , meanwhile, has already specified how a cable operator can implement Cablevision's Open Media Security (OMS) approach. Multichannel News first reported that Charter filed the waiver request at the Federal Communications Commission (FCC) on Nov. 1. (See CableLabs OKs the Cablevision Way.)

  • Netflix Inc. (Nasdaq: NFLX) has adopted a poison pill defense to protect the company against a hostile takeover by Carl Icahn, who recently acquired a 9.98 percent stake in the streaming video giant, Bloomberg reported, noting that it would be triggered if an "activist shareholder" acquired 10 percent of the stock, or an institutional investor bought 20 percent. (See Icahn: Netflix Sale Has 'Crossed Our Minds' and Icahn Nabs 10% of Netflix .)

  • Liberty Global Inc. (Nasdaq: LBTY) posted a third-quarter net loss of $22 million ($0.08 per share), narrowed from a net loss of $333 million ($1.18 per share) in the year-ago quarter, on revenues of $2.5 billion, up 4 percent. The MSO lost 90,000 video customers in the quarter, but added 180,000 digital cable additions. Liberty Global said it has sold more than 50,000 subscriptions for Horizon TV, a hybrid QAM/IP video platform it debuted in the Netherlands in September. Liberty plans to intro Horizon TV in Switzerland later this quarter, followed by intros in Ireland and Germany, its largest market, in 2013. (See Liberty Global Embarks on New TV Horizon.)

  • Time Warner Cable Inc. (NYSE: TWC) blogged Sunday that most of the remaining cable outages caused by the Superstorm Sandy in New York and New Jersey are due to power outages. Among the updates, about 6,000 customers are out in Staten Island; 14,000 in Queens (due in part to damage at the MSO's hub in the Rockaways); 1,600 in Brooklyn; and 12,000 in New Jersey and Mount Vernon, N.Y. Cable services were restored to about 90 percent of TWC's customers in southern Manhattan as of Sunday. (See Operators Slog Ahead in New York & New Jersey.)

  • Mike White has signed on to remain chairman, president and CEO of DirecTV Group Inc. (NYSE: DTV) beyond the end of his current three-year employment contract, which expires on Jan. 1, 2013. According to an 8-K filing, his new deal includes an annual base salary of $1.7 million, and twice that in bonuses in 2013 if White meets certain performance goals. White is also to receive a non-qualified stock option award valued at $12 million.

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (6)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:06 PM
    re: Charter Video Plan Good News for Cisco, Samsung


    Charter acknowledged in the filing that its deployment would probably offer tougher sledding than Cablevision's.  Cablevision had the benefit of deploying in a very centralized, concentrated New York City metro (it has not yet deployed this to its Bresnan properties, to my knowledge), while Charter's will have to support it in more than 190 headends  in 25 states. 


    Makes me wonder if others will follow suit and get more big operators on a path that takes them away from clunky CableCARDs. JB

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:05 PM
    re: Charter Video Plan Good News for Cisco, Samsung


    Yeah, that was a smooth move by Cisco in many ways. NDS was suppose to help the MSOs drive a wedge, so Cisco went out and bought the wedge.  JB

    AESerm
    50%
    50%
    AESerm,
    User Rank: Light Beer
    12/5/2012 | 5:18:05 PM
    re: Charter Video Plan Good News for Cisco, Samsung


    Scratching my head wondering how Cisco stands to gain here, then re-read and remembered the NDS angle. That was a quick acquistion. As for relative difficuilty, yes, there's only one large MSO that can control all its sytems from one swivel chair!

    cmmurrey
    50%
    50%
    cmmurrey,
    User Rank: Light Beer
    12/5/2012 | 5:18:04 PM
    re: Charter Video Plan Good News for Cisco, Samsung
    An open-standard, IP-based successor to CableCARD would significantly benefit TiVo and other 3rd party retail devices. The solution that Charter is proposing requires a proprietary hardware chip that would not work beyond Charter and possibly Cablevision. Rutledge and Charter are clearly trying to save cost by not having to buy CableCARDs. If the FCC issues a request for comments on this filing, I will likely submit a response opposing the waiver suggesting that an alternative industry wide IP-based, open-standard, "downloadable solution", not requiring specialized hardware chip, be adopted.
    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:03 PM
    re: Charter Video Plan Good News for Cisco, Samsung


    You're behind in the count, though, since Cablevision already got the FCC to approve its waiver... and Charter pretty much wants a  repeat performance. Not sure how the FCC can deny the waiver request when it was already granted to CVC.  But that doesn't mean we won't see some compelling arguments seeking a denial,  and I suspect the CEA will also try to fight this.  The last time, CVC argued that the NDS key ladder is already supported on a bunch of chips found in CE devices from Broadcom, STMicro, and Conexant. Still, i don't know where this would leave TiVo, or if TiVo could somehow support the NDS key ladder.


    NDS meanwhile pledged to offer this key ladder on an open basis and *claimed* that it can work with anyone's conditional access system... even though Cablevision is using NDS's Videoguard CA with the keyladder, so i place this in the I'll believe it when i see it category. JB '

    cmmurrey
    50%
    50%
    cmmurrey,
    User Rank: Light Beer
    12/5/2012 | 5:17:01 PM
    re: Charter Video Plan Good News for Cisco, Samsung


    Earlier today I submitted my comments to the FCC in opposition to Charter Communications' request. My full filing can be read here or it should go live on the ECFS site sometime tomorrow. 


    Basically my opposition can be summed up as folllows, 





    Charter’s waiver request should be denied because it does not comply with the integration ban in a way that furthers the goals of Section 629. Consumer electronics companies will not manufacture retail devices that only work with one or two cable operatorsin certain geographical areas because consumers won’t buy such products. Consequently, Charter’s “solution” will hurt, not help, retail availability of navigation equipment by placing retail equipment at a competitive disadvantage in terms of cost, support and innovation. Charter’s motivation to support CableCARD will diverge from its own business interests which is precisely what common reliance is designed to prevent. Instead of granting a waiver that would undermine retail alternatives, the FCC should urge the industry to come up withan IP-based downloadable successor to CableCARD that everyone can use.




    Flash Poll
    From The Founder
    Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (0) comments


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Between the CEOs
    Video Exclusive With Basil Alwan, Alcatel-Lucent

    7|24|15   |   26:44   |   (5) comments


    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    LRTV Custom TV
    VDF: Enable the Financial With Mobile Money

    7|20|15   |   06:53   |   (0) comments


    Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
    LRTV Custom TV
    Telefónica on OSS Transformation

    7|20|15   |   06:01   |   (0) comments


    Jose Gonzales discusses the details of Telefónica's operation transformation program.
    LRTV Custom TV
    Judi Achmadi on Huawei's Cloud Storage Solution

    7|20|15   |   03:33   |   (0) comments


    Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
    LRTV Custom TV
    KPN Enlightening Digital Business & IT Transformation

    7|20|15   |   06:19   |   (0) comments


    Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
    LRTV Custom TV
    Stratus Telco-Grade Cloud Solutions & NFV

    7|20|15   |   07:34   |   (0) comments


    Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
    LRTV Documentaries
    The Six Million Dollar Business Man

    7|20|15   |   01:52   |   (0) comments


    Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
    Between the CEOs
    CEO Chat With Anukool Lakhina, Guavus

    7|20|15   |   38:51   |   (1) comment


    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    LRTV Custom TV
    IBM's Flash Storage With Intel QuickAssist

    7|20|15   |   03:18   |   (0) comments


    Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
    LRTV Huawei Video Resource Center
    Thailand's AIS: Transforming to an FMC Operator

    7|17|15   |   4:53   |   (0) comments


    Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
    Hot Topics
    Robbins Succeeds Chambers as Cisco Changes CEOs
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
    Cable Feuds With Senate Dems Over STBs
    Alan Breznick, Cable/Video Practice Leader, 7/31/2015
    RJio to Launch Its Own 4G Devices Brand
    Gagandeep Kaur, Contributing Editor, 7/27/2015
    Qualcomm Wants FCC to Stay Out of LTE-U Fray
    Sarah Thomas, Editorial Operations Director, 7/27/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    Cats with Phones
    Comes With Free Phone Stand Click Here
    Who says cats don't have any skills?