NOTEBOOK

Television Digest with Consumer Electronics, June 14, 1999

Delivery of high-definition video via very high-speed digital subscriber lines (VDSL) was demonstrated by ViaGate Technologies and Lucent at Supercomm '99 in Atlanta. VDSL lines can deliver 20-50 Mbps of data via copper wire pair, and HDTV requires about 20 Mbps. Lucent said VDSL will make HDTV delivery cost-efficient and easy to install. Mktg. Vp Marc Kaplan said result will be "profound change in the way the world views television." Technology includes ViaGate 4000 Multimedia Access Switch, which aggregates HDTV, data and voice onto channel capable of 26 Mbps downstream, 3 Mbps upstream. Lucent provided VideoStar HDTV encoding and decoding systems.

* Senate Judiciary Committee Chmn. Hatch (R-Utah) said he's considering trying to attach legislation he and Senate Commerce Committee Chmn. McCain (R-Ariz.) introduced that would bar FCC from taking part in mergers (S-1125) to bill sponsored by Senate Antitrust Subcommittee Chmn. DeWine (R-O.) and ranking Democrat Kohl (D-Wis.) setting time limits on FCC merger review (S-467). DeWine said in brief interview he had expected Hatch might try to introduce amendment and said he didn't know who has votes to win. If Hatch's bill were successful, it would lessen need for DeWine- Kohl legislation.

* Rupert Murdoch's divorce will have no impact on "Murdoch family ownership and management" of News Corp., he and wife Anna said after divorce was finalized in L.A. There had been concerns that property settlement would affect his control of media empire. Terms weren't disclosed. Murdoch and wife were married 32 years, separated year ago. Murdoch, 68, said most of his News Corp. shares were in trust for children and grandchildren. Son Lachlan Murdoch is considered likely successor to Rupert Murdoch, and Elisabeth and James Murdoch work for News Corp.

* Sinclair Bcst. said it's considering selling or spinning off its radio operations. Options include placing all radio interests in separate subsidiary and selling stock in it, or outright sale. Sinclair owns or operates 51 radio stations. Stock sale involving minority of radio interests would be expected to raise $175-$200 million, Sinclair said, with proceeds to repay debt.

* ABC will disclose on air when it buys video or other material used in news reports under new policy instituted by ABC News Pres. David Westin. New policy follows complaints that ABC acquired interview with figure in Colo. shooting case by buying videotape from him. ABC denied connection between purchase and interview.

* Don Abelson, chief negotiator for telecom issues in Office of U.S. Trade Representative, has been named new chief of FCC International Bureau.

* Paul Misener, senior legal adviser to FCC Comr. Furchtgott- Roth, has recused himself from many issues before Commission because he plans to leave agency soon and is interviewing for jobs. Misener, who was involved in FCC's Advisory Committee on Advanced TV Service and once worked for Intel, said he has been talking to information technology companies in Seattle area and Northern Va. He said he expects to make decision in month or 2.

* DirecTV parent Hughes Electronics completed acquisition of Tempo high-power assets, adding 2 satellites and 11 licenses at 119 degrees W. DirecTV said it now can offer more than 370 channels of programming from 5 high-power birds. FCC last month approved license transfers (TVD May 24 p4).

* British TV company Pearson TV formed new division to develop Internet and off-screen opportunities based on its TV brands and formats, it announced. New Pearson TV Enterprises is to be headed by Catherine Mackay, exec. vp-N. American operations.

* NBC made equity investment in TiVo Inc., which makes consumer hardware allowing VCR-like storage of up to 30 hours of programming on set-top hard drive. Patented technology is one of 2 aimed at allowing consumers to record, store and view TV programming at leisure, creating what it calls "personal television." Size of NBC investment wasn't disclosed, but network will get prominent display on TiVo's electronic program guide. NBC Exec. Vp Thomas Rogers said network selected TiVo because of its "innovative approach to digital recording." TiVo CEO Michael Ramsey called NBC investment "a tremendous validation" of TiVo concept. Earlier investors included Allegro Capital, DirecTV, Philips, Showtime, Paul Allen's Vulcan Ventures. Forrester Research has predicted that 14 million digital record devices such as those of TiVo and Replay Networks will be in use by 2004.

* Active antitrust enforcement will be norm for telecommunications and other industries for foreseeable future because end of regulation creates "vacuum" that "must be filled," Asst. Attorney Gen.-Antitrust Joel Klein said. Only alternative, he told FCBA lunch June 11, is monopolies. Klein said some have been disappointed by lack of deregulation following Telecom Act, but he was "not surprised by the pace" because of difficulty of dealing with single wire and cross-subsidy issues that have "made the system as difficult as it has been to unwind." Beginning of deregulation often is most regulatory period, he said, particularly for highly concentrated industries such as telecom. Move toward information-based economy puts new importance on connectivity and standards, Klein said, and that's "an important issue for antitrust enforcement." Move to global economy also increases pressure for "very large mergers" that antitrust officials must review, he said. He expressed optimism that pace of progress would increase as RBOCs give up on litigation strategies after experiencing "a significant amount of litigation pain." Instability of markets and regulation, as well as fast- moving technology, also will encourage telecom companies to get on with opening networks and markets, he predicted: "We have turned the first corner."