New channel adoption is significantly higher among digital cable customers (45%) than analog cable (36%) or DBS (38%) customers, a CTAM study found. The research also showed that digital cable and satellite customers who used an interactive programming guide for watching programs (46%) were more likely to be new channel adopters than those who didn’t (29%). Other findings: (1) Viewers are loyal to branding and themed channels, not specific programs. (2) Breakthrough programs are essential to building brand equity for new channels and ones with weaker brand equity. (3) Digital cable/satellite customers who have had the service for more than one year are more likely than analog viewers to adopt new channels.
Wi-Fi provider Wayport said it reached agreement with CNN Airport Network to use latter’s infrastructure to provide high-speed Internet service for passengers at 38 airports. Service also will support private “mission-critical” applications needed by airport personnel and airlines, companies said.
Financials: Belo TV revenue grew 20.1% to $187.1 million in 4th quarter ended Dec. 31, and TV cash flow was up 38% to $87.3 million. Overall net profit for quarter climbed to $45.9 million from $2.5 million loss year ago… Hearst- Argyle TV profit jumped to $37.4 million in 4th quarter ended Dec. 31 from $7.2 million year ago. Revenue was $207.6 million, up from $172 million.
AT&T Canada said its loss for 4th quarter narrowed to $42 million from $112.5 million year earlier, while revenue dipped to $237 million from $260 million. It said revenue from local, data, Internet and IT services represented 62% of total revenue vs. 59% year ago and long distance represented 38% of revenue, down from 41%. Company said reduction in net loss primarily resulted from increased income from operations and noncash foreign currency translation gain of $26.7 million. AT&T Canada said its local access lines in service decreased 11,029, reflecting repositioning of company’s local services business to focus on local line growth and driving 2% decline in local revenue. Revenue from data and Internet declined 5%, primarily due to weakness in enterprise and wholesale data, it said. Revenue from long distance services was down 17% on 12% reduction in average price per min. and 5% decrease in min. volume. AT&T Canada, which filed its restructuring plan last month, said it expected to emerge from bankruptcy protection by end of first quarter, generating positive annual free cash flow and with no long- term debt.
Federal judge approved sanctions against EchoStar that could result in company’s being fined $300,000 for filing frivolous antitrust suit against aerospace insurer 3 years ago.
BellSouth, SBC and Verizon entered into agreement with Dell that will enable customers to buy high-speed DSL access from Bell company when they buy Dell computer. Companies said they provided DSL in 38 states, including top 10 metropolitan markets. Consumers can ascertain whether they qualify for DSL offering by calling 1-800-WWW-DELL or online at www.dell4me.com/broadband.
As millions of cable subscribers ring in New Year, they probably won’t be celebrating expected rate increases for 2003, in most cases about 5%, according to our informal survey of top MSOs. Consumers Union and other groups have complained vociferously about cable rates (CD Nov 29 p4), and Sen. John McCain (R-Ariz.) also has called rates into question, leaving many in industry fearing he will raise thorny issue when he takes over as chmn. of Commerce Committee when Congress returns from its holiday break.
Digital Teleport asked U.S. Bankruptcy Court, St. Louis, for permission to conduct auction for sale of its regional fiber business, revealing that it already had received $38 million offer from CenturyTel. Digital, which filed for bankruptcy year ago, proposed Feb. 10 auction date with bids from other qualified buyers due Feb. 7.
FCC at our deadline Thurs. approved 2 key Bell applications for Sec. 271 authority to enter long distance business: (1) It voted 4-0 to approve BellSouth’s application for Fla. and Tenn., last remaining states in its territory without Sec. 271 authority. (2) It voted 3-1 to approve SBC’s application for Cal., biggest market in country. Comr. Martin dissented on SBC vote. Comr. Adelstein didn’t vote.
“If North American RBOCs obtain regulatory relief from the FCC or Congress in 2003, DSL subscriptions could consistently grow 15% to 20% every quarter,” said Infonetics Research’s Jon Cordova, lead analyst of Broadband Hardware & Access Routers report. Report said worldwide revenue for DSL, customer-premises equipment (CPE), cable CPE, IADs and access routers reached $1.8 billion in 3rd quarter, worldwide cable modem units grew 17% and revenue 8%. It said steady broadband cable subscriber growth in N. America and strong broadband cable subscriber increases in Europe drove cable CPE market in quarter. DSL market, report said, was highlighted by strong (13%) NGDLC (next generation digital loop carrier) ADSL port shipments in quarter, mostly because of N. American shipments. It said UTStarcom became No. 2 vendor of DSLAM (DSL access multiplexer) ADSL ports. Alcatel’s NGDLC port market share improved to 61% in 3rd quarter from 58% in 2nd quarter, it said. It said Next Level Communications was 3rd in NGDLC market share. Motorola kept its No. 1 position in cable modem sales and Cisco improved its CMTS (cable modem termination system) port market share to 55% from 38% in 2nd quarter.