-
Expedia.com and the licensees of Microsoft
Travel Technologies Achieve One Millionth Airline Ticket
891.2 Story of the Issue
891.3 Processors
891.4 EDA
891.5 Fab
891.6 Test
891.7 Software
891.8 Multimedia 
Zoran's SoftDVD Bundled With NewCom's DVD ROM Drive
891.9 MCAD
891.10 Internet
891.11 E-Commerce
891.12 Broadband
891.13 Standards
891.14 Memory
891.15 Home Entertainment
891.16 Markets
HDTV Broadcasts Have Reached the U.S --------------------------------------
***Expedia.com and the licensees of Microsoft Travel Technologies
Achieve One Millionth Airline Ticket
(September 24)Microsoft announced the sale of the one millionth airline ticket
through Expedia.com and other online travel services powered by
Microsoft Travel Technologies (MTT). The milestone purchase
brings total sales transactions on MTT-licensed sites to more
than $350 million since Microsoft entered the online travel
market in October 1996.MTT is anchored by Expedia.com, a member of the MSN network of
Internet products and services. Other MTT-licensees include
Northwest Airlines, Continental Airlines, KLM and American
Express [for its corporate travel product, American Express
Interactive (AXI)]. MTT is a platform suite comprising server,
applications and content for travel- related services online.Since its inception in October 1996, Expedia.com has become one
of the Web's most successful electronic-commerce sites, with
weekly travel sales exceeding $5 million.http://expedia.com
http://www.microsoft.com/
http://www.nwa.com/
http://www.flycontinental.com/
http://www.klm.com/
http://americanexpress.com/***Three New Specifications From PCI Industrial Computer
Manufacturers Group
(September 29)The PCI Industrial Computer Manufacturers Group (PICMG) has
approved three new specifications that define possible uses for
CompactPCI user-defined I/O pins J2, J3, J4 and J5, mapping to
existing ANSI, IEEE and VITA standards. The specifications
enhance CompactPCI's flexibility and broaden the range of
potential applications.The three new documents are:
-- PICMG 2.2, VME64x on CompactPCI,
-- PICMG 2.3, PMC on CompactPCI,
-- PICMG 2.4, IP on CompactPCI.
PICMG 2.2 enables the configuration of hybrid CompactPCI/VME64x
systems by providing an engineered pin assignment, supported by
extensive simulation, for the VME64x signals on the J4 and J5
connectors. PICMG 2.3 defines the mapping of PMCs (according to
IEEE P1386.1 -- PCI Mezzanine Cards) I/O to the user- defined
CompactPCI I/O pins through the backplane. PICMG 2.4 does the
same, except for IP modules, as defined by ANSI/VITA 4-1995 IP
Modules. All three provide systems integrators with access to a
variety of existing communication and data acquisition functions.The specifications were approved in September 1998 by PICMG's
Executive membership. Copies will be automatically distributed to
all members of the organization, and the specifications will also
be available, bound in one volume, to non-members for a nominal
fee.Five other specifications have been published by PICMG to date:
--the original PICMG specification, which first standardized a
PCI-compatible passive backplane and the single board computer
interface to that backplane;--the PCI-to-PCI Bridge Board (PPBB) specification;
--CompactPCI, a specification for an embedded version of the PCI
architecture, which is based on the PCI specification but uses a
Eurocard rack and card form factor and a high-density, 2mm pin
and socket connector;--the Computer Telephony specification, which defines the
utilization of CompactPCI user-definable pins for the computer
telephony functions of a standard TDM (Time Division Multiplexed)
bus;--the Hot Swap specification, which details how to implement the
capability of removing and replacing components in CompactPCI
systems without turning off the system.Additional active PICMG technical subcommittees currently
include:1. CompactPCI Bridging Beyond 8 Slots -- Standard Practices
2. Dual CompactPCI Buses
3. PCI-Only Definition for Desktop Format
4. Hybrid VME/CompactPCI Systems
5. CompactPCI Extensions for Test and Measurement
6. Front Access Power Connectors for CompactPCI
***Sharp Introduces a Configurable ARM7 Thumb Microcontroller
(September 28)Sharp Microelectronics introduced an ARM7 Thumb microcontroller.
The 66 MHz, LH79402 Universal Microcontroller features the
popular 32-bit ARM7TDMI RISC core with 8K bytes of programmable
cache/SRAM, a host of peripherals and user programmability
through Sharp's proprietary crossbar switch technology. This
technology allows each customer to choose the peripheral pin-out
that will best satisfy his application.The LH79402's Thumb extension to the ARM chip architecture is a
subset of 32-bit instructions compressed into a 16-bit format.
Upon execution, the 16-bit instructions are decompressed to 32-
bits without loss of performance. With much higher code density,
applications can fit in smaller, and less expensive, memory.With 8K bytes of programmable cache, performance will be in the
60 MIPS range, enabling a whole new range of performance driven
applications. The on-chip PLL runs from a single low cost 32KHz
crystal and also operates at less than 200mW power consumption on
3.0 to 3.6 volts. The integrated DMA controller provides fast
data transfers between peripheral and memory, and memory and
memory. There is a patent pending on the unique crossbar switch
that allows customers to program the peripheral selection via the
40 general-purpose I/O pins.A Hardware Development Tool Kit will be available later this year
for designing system-level solutions for prototyping and fast
development of customer applications. The kit offers a direct
interface to Flash, EPROM, SRAM and DRAM, IrDA and serial
communication ports and a PC/104 expansion slot. Software drivers
and application notes will also be included. Any software
development toolkit that supports the ARM7 and/or ARM Thumb
architecture can be used to develop software for the LH79402.The LH79402 is Sharp's second microcontroller based on ARM7
architecture. LH79402 Features-- 66MHz ARM7TDMI RISC core
-- Crossbar switch for customized peripheral I/O pin-outs
-- On-chip 8K SRAM, configurable as cache and/or data RAM -- On-
chip phase lock loop (PLL)-- External memory interface to DRAM, SRAM, Flash, EPROM, IrDA
-- Two-channel DMA, two-channel UART, 3 timers, interrupt
controller, parallel I/O, PWM, watchdog timer, real-time clock -
IrDA (maximum 4 Mbps)-- 3.0 to 3.6V, <200mW operating power consumption -- 176-pin
TQFPSamples of the LH79402 are available now with production
quantities due in Q1 '99. Pricing is $11.75 in 10,000 piece
quantities. The LU79402H2BK2 Hardware Development Board will be
available for $995.00 each.***Cadence announces improved IC Craftsman Autorouter
(September 28)Cadence Design Systems unveiled "Stage Three" routing technology
with the latest version of its IC Craftsman autorouter.The shape-based layout automation tool for system-chip assembly
has been updated to account for resistance and capacitance (R/C)
effects occurring at 0.18 micron and below that induce crosstalk,
clock skew, and other effects as wire widths and the distances
between wires shrink.By integrating IC Craftsman into Cadence design flows and forging
strong links with tools like the HyperExtract interconnect R/C
extraction software, the company has made the IC Craftsman router
the obvious choice for the emerging system-on-a-chip (SOC) era of
electronic design.An understanding of R/C effects is required during routing as
wires, widths, and metal layers continue to crowd one another in
deep submicron (DSM) silicon below 0.18 micron. This wiring
density leads to cross- coupling capacitance, crosstalk, and
electromigration of signals.To address these increasingly common challenges, a "Stage Three,"
R/C-driven router, like the IC Craftsman autorouter, embeds
extraction and analysis capabilities directly into the router to
address the issues of electrical integrity at greater
frequencies, smaller geometries, and tighter tolerances.The updated version of the IC Craftsman autorouter is available
today for the Unix operating system. Pricing begins at $180,000.***MoSys Embedded DRAM Cores Set Performance Standards
(September 28)MoSys announced the fastest embedded DRAM. The announcement also
marked an expansion of the MoSys product line to include embedded
memory.Designed to meet performance requirements of graphics and
communications applications, the new cores are manufactured using
proven and readily available Taiwan Semiconductor Manufacturing
Company's (TSMC) 0.35 micron embedded DRAM process. These new
cores are available exclusively from MoSys.MoSys embedded DRAM cores are configurable from 4 to 32-Mbits of
memory, in one Megabit increments and operate at clock speeds up
to 133MHz. Based on MoSys' patented Multibank(r) technology, the
new cores offer three clock random access cycle time, the fastest
of any DRAM to date. The new cores provide an unprecedented 8.5-
Gbytes/sec bandwidth, made possible by the wide 512-bit datapath,
with sustained random access bandwidth exceeding 7-Gbytes/sec.Due to their Multibank architecture, these cores are very power
efficient, ideal for mobile application needs where power and
space conservation are very important.The core's architecture is optimized for ease of application
design and testability, supporting a non-multiplexed address bus,
very simple command set and built-in redundancy and test paths.Cores based on TSMC's 0.35 micron embedded DRAM process are
available for design now, with higher performance 0.25 micron
cores under development scheduled for production in second
quarter of 1999.***Toyota Employees Test Electronic Cars
(September 16)Toyota Motor Corp. said it will have a few hundred employees
participate in tests with 50 electronic vehicles (EV) starting
next spring. The tests will be conducted in Toyoda, Aichi
Prefecture, in central Japan. They will be using an improved
model of the two-seat 'e-com' car that the company displayed at
last autumn's Tokyo Motor Show.The company will issue integrated circuit cards that can be used
as car keys. The employees will take turns using the EVs while
commuting to and from work. Toyota will keep track of the EVs
location by installing receivers on them that can pick up signals
from ground positioning satellites.The e-com runs on a rechargeable nickel hydrogen battery. Once
the battery is charged, the car can travel 100 kilometers at a
maximum speed of 100 km per hour.Toyota plans to install 60 battery-charging ports, but the EV's
battery can also be recharged with an ordinary household
electrical outlet. EVs do not emit harmful exhaust gases and run
much quieter than vehicles with internal-combustion engines.The cars do have a drawback - production costs are high and each
charge is only good for 100 km of travel. The auto industry fears
that the lack of charging system infrastructure may limit the
spread of EVs among customers.Currently, Renault SA is also testing EVs on the outskirts of
Paris.***Encryption Standards Eased
(September 16)The federal government has relaxed its controversial regulation
strictly limiting the export of strong data-scrambling
technologies. The Commerce Department will grant US security
software companies the ability to export software containing the
56-bit Data Encryption Standard (DES) to 45 nations around the
world.Until now, software companies wishing to sell products such as
Web browsers or financial programs overseas were forced to use
relatively weak 40-bit encryption.The new guidelines also permit the financial, medical, and health
sectors to export strong encryption with any key length. The
export of encryption products is prohibited to the seven
"terrorist" nations of Iran, Iraq, Libya, Syria, Sudan, North
Korea, and Cuba.***Toshiba and Sigma Designs Join Forces
(September 14)Sigma Designs announced that the Disk Products Division (DPD) of
Toshiba America Electronic Components, Inc. (TAEC) has selected
its REALmagic Hollywood Plus playback card for the Toshiba DVD-
ROM kit.Specifically designed for value-added resellers (VARs) and system
integrators (SIs), the DVD kit is based on Toshiba's 4.8X SD-
M1202 DVD-ROM drive and includes all of the components needed for
high-quality MPEG-2 digital video playback, realistic Dolby
Digital Surround Sound, and
storage for volumes of data and images.With Sigma's advanced analog-overlay technology, integrators can
be confident that their customers will be able to see the full-
motion video with any VGA card.REALmagic Hollywood Plus enables the sharpest video possible at
resolutions from 640 x 480dpi to 1600 x 1200dpi. It consistently
displays 24-bit video, even when working with a VGA card in 256
color mode.Available as an OEM product, Sigma's Hollywood DVD playback card
works with any Intel Pentium 133 MHz (minimum) system without
requiring a specialized graphic adapter. This capability and full
compliance with DVD specifications make it the playback card of
choice for PC manufacturers and DVD upgrade kit providers like
Toshiba.The REALmagic DVD card includes device drivers and Sigma Designs'
DVD Station, an intuitive, easy to use program for DVD navigation
and control. With DVD Station, PC users can take full advantage
of every interactive DVD feature, using simple VCR-like controls
to choose from multiple DVD settings such as sound track and
subtitle language, viewing aspect ratios, and viewing angle.
Users can also interact with DVD Station menus to exercise
parental control and execute search commands, such as jumping to
any point in a movie with the click of a button.The new kit includes the 4.8X SD-M1202, Toshiba's leading-edge
DVD-ROM drive. The SD-M1202 offers transfer rates twice as fast
as previous generations with a high-performance 4.8X speed
playback for DVD-ROM (6, 535 KB/sec.) media, which is equivalent
to a 43.5X transfer for CD-ROM.The SD-M1202 DVD-ROM plays back CD media at 32X (4,800KB/sec.).
In addition, it's compatible with CD media, including CD-R and
CD-RW, allowing users to enjoy their existing CD library. The
drive can also read all DVD software formats available today--
from 4.7GB software to dual-sided, dual-layered 17GB packages.***Zoran's SoftDVD Bundled With NewCom's DVD ROM Drive
(September 28)Zoran announced that NewCom is now bundling Zoran's SoftDVD
decoder/player with its DVD ROM drives for the PC retail upgrade
market.It is now possible for end users will be able to upgrade their
266 MHz and faster MMX enabled PCs to play the latest DVD
Hollywood movies and PC games without requiring specialized
hardware for MPEG-2 or Dolby Digital Decoding.SoftDVD enables MMX equipped PCs to play DVD content without
requiring dedicated decoding hardware. All video and audio
decoding, navigation, decryption and 3D audio functions are
performed in software.SoftDVD also supports six 3D audio algorithms for an enhanced
audio experience using only two speakers.***Tecnomatix Launches CAPE Product for Conceptual Design Of
Automotive Body Assembly Workspaces
(September 28)Tecnomatix Technologies introduced FLOW (Fast Layout of
Workspaces). FLOW provides 3D graphics modeling, layout,
kinematics and data management capabilities which enable users to
execute many pre-detailed tasks, such as conceptual design,
workcell layout, rough tooling design, and early detection of
problems, such as non-reaches and clashes.FLOW uses Tecnomatix's CLEO (CAD Linked and Embedded Objects)
technology to access directly the databases of major CAD systems
and is fully interoperable with the Tecnomatix ROBCAD, SIMPLE++
and DYNAMO product lines. Thus, engineers can work with one
single CAPE environment to design a workcell from its initial
concept all the way down to the details.***VPNet, BlazeNet Agreement Brings Virtual Private Networking to
Cable
(September 29)VPNet Technologies and BlazeNet announced that BlazeNet is now an
authorized value-added reseller of VPNet's VPNware products.One of the first Internet Service Providers (ISPs) in the U.S. to
offer virtual private networking (VPN) over cable, BlazeNet will
resell both the VSU-10 and VSU-1010 VPNware Service Units.
Customers can now communicate data securely at high speeds across
the cable infrastructure.VPN over cable offers serious competition to the conventional
pricing model of standard dial-up, Internet-based connectivity
offerings. BlazeNet will offer its new VPN services with its
BlazeNet Express service, which offers 228 kbps connectivity with
bursts up to T1 speeds for $29.95 a month, and its BlazeNet
Express Pro service, which provides symmetrical 500 kbps
connectivity at $34.95 a month. Enhanced Security, High
PerformanceBlazeNet evaluated and tested products from several VPN vendors
with its cable modem solutions. Of particular importance to
BlazeNet was the fact that VPNet's products did not cause any
perceived degradation in the performance of its cable data
services.VPN products typically use encryption to provide security, but
since the act of encrypting data is computationally intensive it
can have a negative effect on overall performance. VPNet employs
several powerful encryption technologies to provide security, but
mitigates their performance-reducing effects by supporting packet
compression in hardware.The entry-level VSU-10 VPN Service Unit is a hardware device that
provides small businesses with VPN connectivity at up to 8 Mbps.
It supports Internet Protocol Security (IPSec) encryption with
both DES and Triple-DES, packet-level authentication using HMAC-
MD5, and easy-to-deploy, SKIP-based key management.The base unit also supports packet compression in hardware to
mitigate the performance-reducing effects of IPSec packet
expansion and resulting fragmentation. A software upgrade to the
entry-level unit includes IKE key management and network address
translation (NAT) features that are suited to multi-company
extranets.The VSU-1010 Service Unit, designed for branch offices and
enterprises, delivers IPSec-compliant encryption, authentication,
key management, and compression services -- including powerful
Triple-DES encryption -- at up to 10 Mbps wire speed.Additional services include RADIUS support for user
authentication and NAT to ease integration into existing networks
for intranet, extranet, and remote access applications. The VSU-
1010 has been designed to FIPS-140-1 standards and has received
certification as a cryptographic device from the International
Computer Security Association (ICSA).Both the VSU-10 and VSU-1010 systems come with multi-user
VPNremote Client Software that allows remote and traveling users
to connect to the VPN. The VPNremote is compatible with Windows
95, 98, and NT. Activating when IP packets are transmitted, the
VPNremote software uses IPSec security technology to encrypt,
authenticate, and compress VPN data.***BixRate Signs Agreement with America Online to Provide
Merchant Ratings
(September 15)BixRate has announced an agreement with America Online to provide
AOL members with the ability to review customer ratings of AOL
merchants. The merchants will be rated on price, selection and
availability, on-time delivery, and ease of shopping/returns.Under the agreement, BizRate will monitor members' shopping
experiences by giving AOL members the option to respond
anonymously to a survey at the end of transactions.AOL hopes that by taking this step it will provide members with a
quality shopping experience and ensure customer satisfaction.***Chip Vendors Deliver DSL Building Blocks
(September 10)Communications Today described progress in DLS chips. A pair of
silicon-chip vendors has unveiled chip sets that promise to help
build the next generation of asymmetrical digital subscriber line
(ADSL) modems.In recent months, digital subscriber line service (DSL) offerings
have popped up in most major U.S. cities. In general, these
services have been deployed by numerous incumbent carriers that
are targeting low-hanging fruit: the corporate customer. However,
mass deployment of ADSL will require widespread services to the
average consumer. To be successful the ADSL modem must begin to
replace the analog modems now widely used to surf the Internet.Integrated Telecom Express Inc. and Virata, both of Santa Clara,
Calif., are tackling the ADSL market with products that include
support for the proposed G.Lite standard. G. Lite is a variant of
full-rate ADSL that enables high- speed Internet connections at
downstream transfer rates of up to 1.5 Mbps and 384 Kbps upstream
over regular telephone lines, allowing for simultaneous voice and
data transfer.Integrated Telecom Express recently announced an ADSL modem chip
set optimized for personal computers, set-top boxes, notebook
computers and handheld personal data assistants. The chip set is
also compatible with the ANSI T1.413, the full-rate ADSL standard
providing downstream transfer rates of up to approximately 8
Mbps.The modem chip set is unique because it includes software that
does ADSL processing using the available power of a PC's host
CPU. The chips work with a 300 Mhz Pentium-II host processor and
will support future processors from Intel Corp. of Santa Clara,
Calif. This processor-dependent approach reduces costs and power
consumption, and also allows the software to be modified to
conform to potential changes in future ADSL standards.For portable device operation, the ADSL modem chipset software
provides power management and can put the chip set into a low
power mode when devices are not being used.The chip set and software samples will be available in November
with production in the first quarter 1999. The chip set including
software is priced at $40 in quantities of 1,000.Virata, a provider of integrated software on silicon solutions,
this week also announced Beryllium, a variety of modems-on-a-
chip. When it reaches the market next year, modems that
incorporate this new chip will give users a choice of standards
to access the Internet - for example, standard Ethernet at the
office, G. Lite from home or a 56 Kbps on the road.Beryllium incorporates the physical layer, networking protocols
and all the necessary software to develop a high-speed modem or
network interface card into a single product. The single chip
semiconductor and integrated software enables modems to operate
in G. Lite, V.90 (56 Kbps), Ethernet, and fax modes utilizing
asynchronous transfer mode (ATM) or Internet Protocol (IP).It includes standard computer interfaces including: the PCI
internal expansion bus, the universal serial bus and Ethernet 10-
Base- T - to match the different types of modem connections.
Future iterations of the Beryllium family will be developed
specifically for combo card/PCMCIA applications for the mobile
market.Virata will offer Beryllium at under $35 each in OEM quantities
including the software right-to-use licenses. Beryllium will
sample in the summer of 1999.***Industry Leaders to Launch Semiconductor Industry Standard
(September 21)Semiconductor and EDA industry leaders have launched Open SIPPs
International (OSI) to focus on the performance issues
fundamental to developing high performance, deep sub-micron
chips.OSI will be formed as a non-profit mutual benefit corporation.
OSI's goal is to develop and promote the Standard Interconnect
Performance Parameters (SIPPs), the industry's first model
describing the electrical performance of the interconnect -- the
millions of microscopic connections between transistors.The advent of new deep sub-micron processes has brought an
impediment to chip design, sometimes referred to as the
interconnect barrier.This effect occurs because the interconnect dominates the overall
performance of deep sub-micron devices and traditional
methodologies used to predict the performance of designs are no
longer accurate. Accurate interconnect models are required to
break the interconnect barrier. SIPPs promises to deliver such
accuracy.OSI will define the standard model and demonstrate that it is
sufficient and accurate to enhance the efficiency of chip design.
The adoption of the standard is expected to benefit consumers
through higher performance and lower cost electronic systems.A challenge faced by the semiconductor industry today is being
able to keep up with the demands of the evolution of technology
and the pace at which, complex chips need to be designed and
manufactured.One of the most difficult parts of meeting that challenge is to
provide the process experts with the tools to communicate the
capabilities of their technology to the designers. Those two
communities are quite often talking a different language. The
adoption of SIPPs will bridge the gap for the chip interconnect
and should result in higher performance devices coming out
sooner.OSI represents progress in moving the electronics industry toward
product design flows based on open standard models. The adoption
of SIPPs allows deep sub-micron designers to take advantage of
the accuracy, wide support, and scalability of these interconnect
standards.This is especially critical for designers of leading-edge
products in the computer, communications, multimedia, and
consumer electronics industries.SIPPs include both a physical model and a set of process
parameters describing the interconnect of deep sub-micron
designs. SIPPs will yield accurate and comparable interconnect
performance predictions in deep sub-micron integrated circuits
when measured and combined with appropriate mathematical models.SIPPs can be used as a common interconnect parameter set for all
design calculations including the extraction of the resistance
and capacitance of the interconnect, which together drive the
overall performance of the chip. Unlike today's proprietary
models, SIPPs are scalable across device geometries and are
applicable to all processes, including the new generation of
copper-based technologies. SIPPs are also electrical in nature
allowing direct correlation to the performance of the final
device.The initial specification of SIPPs will be contributed by
Frequency Technology Inc.A first draft of the specification will be available for review
by the end of the year. In a later phase, member companies will
verify and qualify SIPPs for use by their end users. SIPPs
parameters for some of the most popular processes are expected to
be available for delivery in the first half of 1999.Initial members of OSI are AMD, Cirrus Logic, Frequency
Technology, Mitsubishi, Motorola, NEC, and Silicon Graphics.
Other key semiconductor manufacturers, foundries and EDA tool
suppliers are expected to join the founding members of OSI over
the next few months.OSI membership will be open to all interested firms. OSI will
hold its first meeting in early November.***Micron Technology, Inc., Announces Samples of 64 Meg Double
Data Rate (DDR) SDRAMs
(September 24)Micron Technology announced samples of 64 Meg JEDEC-standard
double data rate (DDR) synchronous DRAMs (SDRAMs).Micron's 64 Meg DDR SDRAM is offered in 16 Meg x 4 and 8 Meg x 8
organizations in the 66-pin Thin Small Outline Package (TSOP Type
II).Micron's DDR SDRAMs operate at clock speeds of 143MHz and data
rates of 286 megabits per second per data pin. This allows for
over 2 gigabytes per second of memory bandwidth in PC
applications.Micron will manufacture and test DDR SDRAM using the same
equipment as standard SDRAMs.Samples of the 16 Meg x 4 (MT46LC16M4TG) and 8 Meg x 8
(MT46LC8M8TG) DDR SDRAMs are now being shipped for testing and
evaluation. Micron is also developing 4 Meg x 16 and 2 Meg x 32
configurations.***3DEEP enhances game play with STB's Velocity 4400
(September 24)Sonnetech announced that STB Systems is bundling 3Deep, a gamma
correction software for 3D games and graphics. Inaccurate gamma
settings are responsible for the "washed out" or "too dark"
images seen on many computer games. 3Deep provides a consistent
and high quality solution for improving the lighting and shading
effects in 3D graphics.STB, a leading supplier of multimedia and convergence products,
bundles 3Deep with its Velocity 4400 accelerator.3Deep works with Microsoft's latest API, DirectX6. Game
developers utilize a new feature in DirectX6 to specify gamma
levels in the game.http://www.real3D.dircon.co.uk/gamma.htm
http://www.stb.com
http://www.colorific.com/***Forrester Predicts Bundled Voice, Net & TV Services Market
(September 21)According to Newsbytes and research from Forrester Research, the
current round of mergers in the telecommunications and related
industries are not necessarily keeping pace with consumer's needs
for economical combination communications services.The research from Forrester notes that, although the mergers
sweeping through the information technology (IT) industry are
resulting in "combo" bundled services of voice, Internet and TV
services, the companies are overlooking the fact that consumers
are looking for lower-price services.According to the report, while connectivity services link
consumer devices like telephones, televisions, and PCs to
networks and other devices, most connectivity choices are
motivated by price -- 64 percent of consumers state that price is
the most important criterion for selecting a service provider.This criteria, the research found, holds true across all product
categories and income groups. For example, price was four times
as likely as service and five times as likely as reliability to
be the reason why consumers switch long-distance providers.In addition, Forrester found that 59 percent of households making
more than $50,000 annually switched long-distance carriers for
price reasons. Similar results were found for cable and satellite
TV and ISPs.The research also found that, in the US, 83 percent of households
already purchase at least one connectivity service beyond local
telephone and long-distance.According to Forrester, despite the potential for decreased
revenues from lower service prices, bundling can be profitable if
it enables the service provider to increase its share of
customers in a new or existing market.Moreover, aggregating and integrating existing customers across
services is less expensive than the marginal cost of acquiring
new customers. Even at reduced rates, the additional revenue from
each new customer will outweigh customer acquisition costs.According to the report, entitled "Do Consumers Want Bundling?,"
the key to a successful bundling strategy is the core service --
a household's most expensive connectivity service.In the US, Forrester found, cable TV (36 percent) and local
telephone (31 percent) are the leading core services, followed by
long-distance (23 percent), cellular phone (7 percent), satellite
TV (5 percent) and the Internet (1 percent).Forrester concluded that, given consumers' price sensitivity,
households will choose providers for bundled services largely on
the price of their core services.The report also found that, in addition to the price of the core
service, consumers will look for connectivity packages that match
their activities. Households that claim long-distance as their
core service, for example, also have a need for cellular and
Internet connectivity.Entertainment-focused households are prime targets for cable TV,
pay- per-view, and Internet connections. To reach lower-income
households, local telephone companies should offer Internet and
cellular services alongside repriced local telephony.***HDTV Broadcasts Have Reached the U.S
(September 29)Stanford Resources reported that while terrestrial broadcasting
of HDTV signals will begin in the United States, conversion of
the equipment for production, transmission, and reception of
broadcast television signals will be a long, costly, and
complicated process. Broadcasters have not yet decided whether or
how much to broadcast high definition programming, and
televisions that can receive all of the possible formats will be
expensive.The first edition of Television Systems predicts that the
worldwide market for color televisions will be 125 million units
in 1998, valued at $59 billion. The average annual growth rate of
unit shipments will be 4% from 1998 to 2004; shipments will reach
155 million units in 2004. Market value will grow by 5% per year
during the period, reaching a total of $80 billion in 2004.
Direct-view CRT televisions will dominate the market throughout
the forecast period (1998-2004). Projection televisions are the
second largest part of the market. Plasma televisions are just
coming onto the market in 1998, but will grow rapidly, reaching
1.1 million units in 2004, for a value of $3.2 billion.The growth of the market for HDTV sets will be slow throughout
the 1998 - 2004 period, as early adopters and video enthusiasts
make up the majority of purchases of the new technology. Since
HDTV sets will cost ten to twenty times as much as conventional
television, and availability of high definition programming will
be limited over the next few years, other features, such as the
widescreen display format and digital sound, will be important
purchase factors."Widescreen television has become widely adopted in Japan,
accounting for half of all CRT-based televisions sold in 1998,
and is starting to grow in Europe, with 6.4% of 1998 CRT
televisions sold in the widescreen format. In North America and
the rest of the world, however, sales of widescreen sets are
nearly zero," stated Stanford Resources' Director of Market
Analysis Paul Semenza. "By the year 2004, widescreen CRT-based
television sales in Japan will level off, with HDTV reaching
nearly 10% of CRT-based television sales sets, replacing some
widescreen sales. In Europe, widescreen sales will grow to 21.5%
of CRT television sales, but HDTV sales will remain below 2%.
HDTV sets will account for 2% of CRT televisions in North America
in 2004, but otherwise there will be no significant sales of
widescreen sets. The rest of world CRT television market will
remain almost exclusively conventional format," added Semenza.--------------------------------------
Copyright 1998 4th WAVE, Inc.
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