BRIEFS

Cable World,  Oct 13, 2003  

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A CALL FOR TIERED HIGH-SPEED SERVICE

With telecom companies stepping up efforts to steal market share and convert dial-up customers to high-speed, it's crucial for MSOs to give consumers more choice. That's the message from Citigroup Smith Barney analyst Niraj Gupta to cable operators. "We believe it is imperative for the industry to begin offering tiered cable modem service for both defensive and offensive reasons," he writes. Verizon and SBC have become more aggressive in their efforts to attract DSL customers. Gupta expects operators to respond by stepping up lower-priced, lower-speed offerings, and by rolling out IP telephony in a large number of markets next year. Gupta says Comcast, Cox Communications and Cablevision Systems are well-positioned to withstand an onslaught of lower-priced DSL offerings. Industrywide, a lower-priced option means average revenue per subscriber could decline. In a worst-case scenario, if operators introduce a $20 service, and price points of $40 fall to $35, average sub revenue could drop about 12% in 2005, Gupta estimates.

GEMSTAR AND TIME WARNER INK PACT

Gemstar-TV Guide International and Time Warner Cable signed a major long-term licensing and distribution agreement through which TWC will deploy Gemstar's IPG and the underlying technology throughout its digital subscriber base. The agreement, which is more flexible than previous deals Gemstar has cut, allows TWC to customize the IPG to its own customer needs and to use Gemstar's technology in its own IPGs or in guides supplied by third parties. Financial terms were not disclosed.

LORAL REJECTS ECHOSTAR BID

Loral rejected an offer from EchoStar Communications to buy its assets for $1.85 billion, saying it undervalued Loral's satellite assets. EchoStar, which will face a beefed-up competitor when News Corp. acquires DirecTV, may have been looking for a way to enter the satellite manufacturing business on the cheap, becoming a key supplier to rival DirecTV in the process. Purchasing the satellite assets from Loral, which is in bankruptcy proceedings, also would have given EchoStar additional capacity to deploy advanced services such as high-definition TV.

JAIN IN AT INSIGHT

Insight Communications named Dinesh ("Dinni") C. Jain as EVP and COO, effective immediately.

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