Light Reading
Netflix erects Icahn defense; Liberty Global sells 50,000 Horizon TV subscriptions; TWC posts Sandy update; DirecTV CEO is staying put

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
    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
    LRTV Custom TV
    A New Security Paradigm in SDN/NFV

    7|28|14   |   02:54   |   (0) comments


    Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
    LRTV Documentaries
    Sprint's Network Evolution

    7|24|14   |   14:59   |   (0) comments


    Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
    LRTV Documentaries
    BTE Keynote: The Software-Defined Operator

    7|24|14   |   18:43   |   (1) comment


    Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
    Light Reedy
    Numbers Are In: LR's 2014 Salary Survey

    7|24|14   |   1:25   |   (7) comments


    Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
    LRTV Custom TV
    Driving the Network Transformation

    7|23|14   |   4:29   |   (0) comments


    Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
    LRTV Custom TV
    Distributed NFV-Based Business Services by RAD

    7|18|14   |   5:38   |   (0) comments


    With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
    LRTV Custom TV
    MRV Accelerating Packet Optical Convergence

    7|15|14   |   6:06   |   (0) comments


    Giving you network insight to make your network smarter.
    LRTV Custom TV
    NFV-Enabled Ethernet for Generating New Revenues

    7|15|14   |   5:49   |   (0) comments


    Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
    LRTV Custom TV
    Symkloud NVF-Ready Video Transcoding, Big Data

    7|9|14   |   3:41   |   (0) comments


    Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
    LRTV Huawei Video Resource Center
    The Evolving Role of Hybrid Video for Competitive Success

    7|4|14   |   4:09   |   (0) comments


    At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
    LRTV Huawei Video Resource Center
    How CSPs Leverage Big Data in the Digital Economy

    7|4|14   |   4:48   |   (2) comments


    Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
    LRTV Huawei Video Resource Center
    Accelerator for Digital Business Future Oriented BSS

    7|4|14   |   3:08   |   (0) comments


    Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
    Upcoming Live Events!!
    September 16, 2014, Santa Clara, CA
    September 16, 2014, Santa Clara, CA
    October 29, 2014, New York City
    November 6, 2014, Santa Clara
    November 11, 2014, Atlanta, GA
    December 9-10, 2014, Reykjavik, Iceland
    June 9-10, 2015, Chicago, IL
    Infographics
    Packet Design asks network professionals how they handle the cloud, SDN, and network management.
    Today's Cartoon
    Vacation Special Caption Competition Click Here
    Latest Comment
    Hot Topics
    The Municipal Menace?
    Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
    Cisco Puts a Fog Over IoT
    Sarah Reedy, Senior Editor, 7/23/2014
    Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
    Salary Survey Report 2014
    Sarah Reedy, Senior Editor, 7/23/2014
    Like Us on Facebook
    Twitter Feed