Wave Report

3Dlabs has announced the availability of the Wildcat II 5110 – a professional 3D graphics accelerator. The Wildcat II 5110 incorporates the latest evolution of 3Dlabs’ ParaScale architecture; integrating multiple geometry and rasterization pipelines into a single accelerator. The Wildcat II 5110 will initially be available through 3Dlabs’ OEM partners.

The Wildcat II 5110 has been optimized for the Pentium 4 processor-based workstations, taking advantage of PCU performance and bus bandwidth increases. The dual-pipeline architecture of the Wildcat II 5110 includes a tuned geometry accelerator, along with a rasterization engine and bus interface chipset for use with AGP Pro 4X slots. The result is high Viewperf and real-world application performance. Dedicated DirectBurst, frame buffer and texture memory offer a total of 144 MB of onboard memory for image quality and performance.

Wildcat II 5110 delivers hardware-accelerated 3D volumetric texturing, OpenGL 1.2 compliant image processing, SuperScene full scene-based anti-aliasing and VGA and DVI-I outputs that can provide single-board dual-screen capability under Windows 2000.

http://www.3dlabs.com

***eTesting Labs Posts Product Testing Reports

eTesting Labs, a company that provides labs-based research, analysis, and development services to publications, Web sites, vendors, and IT organizations has posted several reports detailing product testing on the following companies.

Network Appliance’s NetCache C6100 Streaming Media

Sanctum’s AppShield Software

Sorenson Vision’s USB-Based Desktop Video Conferencing Products

Among others - more details at:

http://cgi.zdnet.com/slink?31512

***Panasonic Television With ReplayTV Inside

(February 14)

Panasonic has just debuted a TV combination product, the PV-SS2710 TV/ShowStopper Hard Disk Recorder that combines a 27-inch PanaBlack television with ReplayTV service. The PV-SS2710 will be available in consumer electronics retail stores this month for $899.95.

ReplayTV gives viewers control over their TV watching experience with features like pause, instant replay, rewind, QuickSkip, and slow motion on live and recorded TV shows. The PV-SS2710 with ReplayTV also automatically searches, finds and records up to 30 hours for anytime playback.

ReplayTV gives viewers the ability to create their own on-demand television schedules filled with their favorite shows and movies. A keyword search lets viewers find their favorite titles, subjects, actors or directors, then record them.

http://www.replaytv.com

***WAVE Comments

Personal television, of which ReplayTV is one implementation, is all about giving consumers control over the television experience. The problem in this market is that it is an expensive add-on box and sales have been a gross disappointment. In order to drive the cost down this function needs to be integrated into the television set. Further, we also see the market taking off when the disk or storage component is a module that can be easily removed and upgraded by the consumer. With such a strategy a consumer need not buy personal TV when the set is bought - it can be an aftermarket add on.

Yet, the consumer electronics industry has not shown the leadership necessary to drive a standard they all can adopt. A modular approach would drive costs by having module makers compete for both the add-on, replacement and original equipment markets. This announcement by Matsushita Electric is an important step ahead in making personal TV widely available at low cost as a part of the TV set. Much more needs to be done. There remains one aspect of the technology which is akin to hell freezing over - automatic commercial elimination. We all have hope it will come someday.

0109.2 Story of the Issue

***Content, Infrastructure and the Internet

By Amanda Rogos

In the last year, in part, due to the Internet market downturn, a debate has arisen surrounding Internet content and infrastructure. In 1999, the market put its faith in content, and predicted that broadband would foster even larger increases in subscriber growth for the Internet because it enabled more and richer content. This is now being challenged. Analysts have concluded that content does not make a venture successful, but instead infrastructure drives usage – and therefore broadband, instead of merely increasing subscribers, will actually drive the whole market not just content.

The main issue revolves around the role that each of the following play in driving the market: content, infrastructure and functions. The debate can also be described with the following questions.

Is content alone enough to attract consumers?

Does infrastructure drive subscribers regardless of content?

Will applications need infrastructure partners to compete?

4^th Wave has followed this debate and this article frames the issues by defining content, examining the business models in traditional media outlets and Internet business models. We will also look at the role of broadband and infrastructure in order to determine their importance in market acceptance and the future of the Internet.

Content

Originally, content was created by traditional media outlets - TV networks, publishing houses and/or Hollywood studios. Most of the content was distributed in broadcast or printed form with limited, if any, personalization capabilities. Even the Internet began with limited content distribution methods. With the advent of personalization services like My Yahoo, Webclipping.com and peering services like Napster and EarthcamTV, consumers have begun to build their own content. This has fundamentally changed content distribution and affected the range of business models present in the market. Our market research characterizes this as Casual Media. This is media that the individual has a substantial role in creating. A result is that the value to the individual is much higher. The best illustration is voice over a telephone.

Napster, as a form of content distribution, had 10 million registered users after only 8 months online. It could be said that the driving factor in Napster’s success was the free component but we believe that peer-to-peer has the potential of being an enduring means of media support because it also supports the concept of casual media.

On the video side of the market, the NPD Group estimates that 1.3 million PC cameras (still-video cameras which operate only while connected to a PC) were sold between January and October 2000. During the same time in 1999, 425,000 units were sold. Granted some of these cams may have been for business use, but it proves that building content – especially interactive and video content, is happening. Note again that this usage model is supportive of the notion of casual media.

Subscriptions

In traditional media outlets, specifically print media and cable television, subscription services have been very successful. On the Internet, except for adult content sites, the model has been more difficult to build. On one hand, the efficiency with which the Internet allows information to be updated, supports the subscription model. Yet, the fact that residual content, if left online, may devalue each individual piece of content – has restricted subscription use.

Another facet of the subscription model, pointed out by George Bell, Chairman and CEO of Excite@Home during a speech in November was that consumers can only handle so much content. For example, in a cable system, when the first 20 channels are introduced, people become loyal to, on average, 3-4 of them. When the next 20 channels are introduced, people will add 1-2 more channels to that preferred set. When channels 40-60 are introduced, displacement begins, and instead of adding channels, existing ones are replaced. A churn rate of 20-40% per year (typical of HBO and Showtime) adds to the consumer retention complexity.

We note that AOL has announced that it will release a flat rate subscription fee for streaming audio on their site. This may represent one approach to the future of online subscription.

According to the Online Computer Library Center (OCLC), the total number of unique websites on the Internet has grown 170% since 1998, from 2.6 million to 7.1 million in 2000. What is going to happen to a consumer’s preferences with this amount of choice?

Success story: Consumer Reports is the number one subscription site on the Internet. The site made its online debut in 1997 and currently had over 502,000 paid subscribers in November 2000. It also is one of the few online sites that boasts positive revenues. Executives at the organization attribute the organization’s success to its independence from commercial interests, which includes prohibiting advertisements and endorsements on its sites, buying all test products through consumer channels, and refusal to except donations or demo products. The site charges $24/year or $3.95 for a month’s access to the site’s information. More about Consumer Reports Online can be in the WAVE Report’s Issue #2057:

http://www.wave-report.com/2000%20Wave%20Issues/wave2057.htm

On-Demand Media

Video on demand, although promising, has not reached its market potential. With limited content choice and continuing conflicts with the content owners, the service has been only moderately successful in luring subscribers, even in its early tests. Pay-per-view, on the other hand has proved more successful, but provides less of an opportunity for everyday video rental. PPV’s draw is in events that provide here and now entertainment.

Replay and TiVo entered the market intending to change this by selling Personal Video Recorders (PVRs) that use a hard drive to store movies and television shows for a mock, VOD experience. Costing between $499-999 for about 10 hours of content storage, market acceptance was lukewarm. Cahners In-Stat estimated that the PVR market would barely break 300,000 units in 2000. Consequently both companies have shifted business models in recent months. The companies will position themselves less as consumer hardware and service vendors by licensing their PVR technology to set-top box manufacturers and cable service providers.

In its November announcement, Replay also released the news that its CEO had resigned and that the company would layoff up to half its work force (company has 260 employees total). Rumors circulated that the company would be sold. The company, which has sold 20,000 units, also announced software licensing trials with Time Warner, Comcast, Charter Communications and AT&T. A development agreement with Motorola was in the works.

A potential stumbling block for on-demand media is the fact that as storage capacity increases, consumers need to renew less and less content. “On-demand” therefore turns into “saved for life.” This has copyright implications as well business ones that will need to be resolved before the market really evolves.

Peer-to-Peer Networks

With the advent of Napster, peer-to-peer networks were brought to the forefront of the Internet space. These networks allow large amounts of data to be shared and accessed at very low cost – and potentially at no cost at all. The music industry initially fought to eliminate Napster, then in October 2000 a deal was made with Bertlesmann AG, the parent of label BMG Entertainment, in which the company would instead attempt to harness the power of peer-to-peer communication. Bertlesmann agreed to drop its part of a lawsuit pending against Napter, if the company would create a commercial, subscription-based program that would generate royalties for the artists. If a program was developed, Bertlesmann also offered to buy a stake in Napter. Napster is planning to launch the system this summer.

The recent (February 12^th) ruling from an appellate court accusing Napster of encouraging copyright infringement and then profiting from the practice, could shut down the system until the new program is released. The circuit court panel backed a district court injunction holding Napster liable for violating music labels' copyrights, and directed the district court to modify the language of its ruling to more explicitly describe the limits of that liability.

This represents an opportunity for the industry as well as a sizable challenge – how to get paid for IP-based services that can be shared between users with little control?

According to a report from DFC Intelligence, video streaming on the Internet grew 215% in 2000 to over 900 million total streams accessed. Broadband streams made up almost 29% of total accesses. If peer-to-peer networks were to expand to video streams, the possibilities could be significant. Sharing would be greatly increased, but potentially so would pirating of content. The Net Economy Magazine, in an article entitled, “The Value Addled Proposition,” posited that due to these types of networks and pirating techniques, content will be greatly devalued on the Internet. Their conclusion? Becoming a gatekeeper is a much safer proposition.

Viacom’s Chairman, Sumner Redstone disagrees though arguing that solid entertainment programs were what the masses wanted. He believes that people don’t watch technology or distribution, they watch content. Therefore what will ultimately propel the Internet as an entertainment medium will be creativity – not technology.

Bill Roberts, secretary-general for NAB also gives a pitch for content. Citing Viacom’s $46 billion purchase of CBS and AOL’s $164 billion merger with Time Warner, Roberts claims the high valuation put on content in today’s market proves his point. He quotes Viacom’s Redstone as saying that the Internet will represent a new form of distribution for television, not a direct competitor and said that, “Technology paves the way. But make no mistake: content is the fuel that drives this industry forward.”

Infrastructure

Networks, whether fiber, copper or wireless are important real estate as companies begin to integrate the functions of the PC, television and telephone. Dell has estimated the size of the Internet infrastructure market for server and storage hardware alone could be as large as $180 billion during the next 5 years. Forrester and IDC predict that the total infrastructure market could hit $1.5 trillion in 2003. There are many proponents of the equipment that allows the networks and communications to function – devices, routers, gateways, the networks themselves. Infrastructure plays would also include ISP/network partnerships and the formation of always-on broadband connections. But does infrastructure drive subscribers regardless of content? Industry opinions are listed below.

In January 2000, during the World Economic Forum’s Annual Business Summit, a panel discussion focused on this same subject of technology or content, and AOL’s Stephen Case argued for technology. Case stated that success will arrive when the Internet is a fundamental part of people’s lives, which will only be accomplished when the PC, television and telephone are contained in a more unified environment. This union is irrespective of content, and although content is important, the union must come first. AOL’s merger with Time Warner plans to do just that – combine Internet services, news and entertainment in an effort to capture more users.

At a TV Over the Internet Conference sponsored by the Columbia Institute for Tele-Information, participants agreed and cited Ron Howard and Steven Spielberg’s Web site and Oxygen Media, which had very appealing content but did not succeed (Oxygen Media is an ongoing Web site, but is struggling to find a niche) as examples of content that lacked the correct conduit.

They posited that infrastructure and service marketing are worth much more than content. Without broadband connections, no household is going to want to watch television over their PC and most will not want to play games or search for simple items – like movie listings or telephone numbers. These applications will only be successful when a broadband always on environment is provided and the timeframe for widespread broadband is an unsure guess at best.

Functions

Yet another argument exists, this one for functionality – the content delivery, applications and ease of use of these offerings. Functions include control of appliances and physical devices through remote usage and automation, voice recognition as well as content on demand. The question here is will these applications need infrastructure partners to compete?

In its June 2000 issue, Red Herring claimed that the real issue is content delivery. The magazine found that participants at the Capacity Wholesale Market 2000 Global Conference, were equally focused on the content as they were on the conduit. Nick Jeffery, managing director of international and partner services for Cable & Wireless stated that, “It’s essential for carriers to gear up their networks to support new users and data types, and any carrier who ignores content does so at its own peril.” To this end, Cable & Wireless has shed some of its voice-related concerns and purchased a number of small European ISPs to increase its content-hosting and delivery options.

Marcus Bicknell, president of CMGI’s European division stated that, “Content is not king, but functionality and consumer friendliness will reign.” He went on to explain that although content was not king, giving consumers the content they want, when they want it will determine the viability in the carrier market of the near future. Bicknell cited the AOL/Time Warner as an example and believes that this type of partnership will become the norm in the future.

This view was shared during the Next Generation Networks 2000 Conference, by George Bell, Chairman and CEO of Excite@Home. In a presentation, Bell said that the company is in the process of marrying @Home and Excite (content+acess). He stated their belief although that people have little awareness of the delivery mechanism, they have a very deep awareness of the content, therefore content will drive usage. Yet in Bell’s mind, companies must change the paradigm towards a content experience enabled by functionality – and therefore the two are interchangeable and dependent on one another for success.

Assessment

The jury is still out on whether content, infrastructure or functions will become the driving factor in the Internet market. We believe that the combination of these offerings will be the key to a product’s success. No household will watch movies with their 56k modem – infrastructure is important. But providers selling broadband connections need compelling content to make a $40/month sale. And content can only benefit from the addition of key applications – streaming media partnered with voice recognition software to facilitate remote tuning; videos on demand partnered with applications that let the consumer watch the video on whatever device is convenient etc.

The bottom line is that consumer value both tangible and entertainment will drive content. Content with poor delivery has limited value and thus cannot stand on its own. The Internet as a delivery means for content, infrastructure and functions is years behind its promise.

0109.3 Computers/PDAs

***Acer Introduces Fingerprint Recognition Notebook

Acer Sertek, a branch of Acer Group, has introduced a fingerprint recognition system to provide high-end business security. The notebook model's Acer TravelMate739TL has a 15-inch TFT-LCD screen and a sensor pad that requires the user to press down during boot-up for fingerprint verification. The computer can only be operated if the system confirms the finger print match with the users initial scan. Beside the sensor touch pad, the TravelMate series also supports a three-tier password security mechanism with optional wireless network equipment.

***Sony's F Series to be Produced by Asustek

After the expiration of Sony’s OEM agreement with Quanta, Asustek has shipped an initial 5,000 to 6,000 notebooks for Sony's approval. Once approved Asustek will increase its monthly production to 200,000 notebooks. Currently, Asustek is launching a full-scale notebook production expansion in China. In Taiwan, Asustek has the capability to manufacture and distribute complete models, but its facilities in China are still below Sony’s standards. Asustek hopes to transport finished products to clients directly from China when it completes its manufacturing and distribution network in China.

As of January 2001, notebook makers in Taiwan, like Quanta, have shipped 140,000 units, Compal 100,000, Acer 80,000 and Asustek 20,000 notebooks.

***Taiwan's Manufacturers Must Ramp up PDA Production

Many Taiwanese IT manufacturers believe that the next generation of IT industry is moving to the Personal Digital Assistant (PDA) or any handheld PC. Global PDA sales in 1999 reached 6.5 million units and in 2000, it grew to 10 million units with a 60 percent increase. And this year PDAs are predicted to reach 20 million units. This is double compared to 2000 and with an adjustment based on the market downturn. But the production output is far from forecast. Most of the local manufacturers are receiving OEM contracts from foreign companies such as Compaq, IBM and soon Palm Pilot. Taiwanese computer manufacturers like Acer, Mitac, First International Computer (FIC), Palmax and High Tech are producing models supporting Linux or WinCE operating systems (OS), hoping to attract Taiwan users as well as foreign OEMs.

The list price for Compaq’s iPAQ Pocket PC, a high-end model, is NT$15,000 in Taiwan, but many manufacturers target on low-end models with limited features and a lower price. There are those in Taiwan that believe it should the other way around - high end first. That is, the manufacturers should concentrate on quality products because of the personal computer market is saturated and that technologies such as Internet Appliances (IA), mobile phones and specially the PDA are getting public attention and have high demand. For example, it is expected that five million units of Compaq’s iPAQ PC PDA are needed to meet the global market needs. The initial Compaq’s iPAQ order was only one million units. Now there is a severe shortage of this PDA in the market. High Tech Computer, Compaq’s OEM partner based in Taiwan is increasing their production from 100,000 units per month in 4Q, 2000, to 300,000 units per month starting in early 2001. High Tech will have a new factory ready in June to ramp up production to ease Compaq’s iPAQ demand.

0109.4 Semiconductor

***VIA and SONICBlue Finalize Establishment of S3 Graphics

(February 9)

VIA Technologies and SONICblue have announced that they have finalized the establishment of their joint venture. Called S3 Graphics, the company is focused on the design and development of high-performance graphics cores for use in discrete graphics subsystems and integrated graphics and core logic chip sets for the volume OEM desktop and notebook PC markets.

0109.5 Wireless

***SOCO Strikes Development Deal with Islandssimi GSM for GPRS Mobile Service Applications

(January 10)

SOCO, a privately held application service provider for next-gen computing environments, has announced that it has entered into a product development agreement with Islandssimi GSM, the mobile division of one of Iceland’s telcos. Under the agreement, SOCO will develop launch applications for Islandssimi’s GPRS mobile service, scheduled to go live this month. SOCO’s initial offerings will include Web-to-Phone Short Messaging Service (SMS), custom ring tones, and custom graphics applications.

SOCO will retain ownership of all products outside of Iceland, allowing the company to integrate them into a larger product catalog that will be marketed worldwide to other mobile carriers.

http://www.sococorp.com

***XM Production Chipset Completed

(February 9)

XM Satellite Radio has announced the completion of its production chipset design and ST Microelectronics, the chipset manufacturer, has commenced fabrication to make the components available to radio manufacturers by the end of March, ensuring mass production of XM ready radios for its Summer 2001 commercial launch.

Last month, XM unveiled a full product line of XM-Ready radios representing 24 different models from six different manufacturers including Pioneer, Sony, Alpine, Delphi-Delco Electronics, Blaupunkt and Clarion. The XM-Ready radios were based on the XM first pass chip design for its two chips. Radio manufacturers will be able to replace the prototype chips with the production chips.

XM also recently announced agreements with Visteon and Panasonic to design, develop and market XM-Ready radios for factory installation in new car and trucks

http://www.xmradio.com

0109.6 Displays

***Sony's Display Prototype Revealed

(February 7)

According to ZDNet News, Sony has announced a prototype active-matrix display that takes advantage of organic electroluminescence (OEL) display technology. The display technology allows for thin, bright monitors that respond well to fast-moving images, such as those found in video.

The company said the technology will lend itself well to handhelds and mobile phones. Sony expects it will eventually replace cathode ray tubes currently used in televisions and traditional computer monitors. The display technology is also viewed as the successor to LCDs (liquid crystal displays).

OEL display technology has been on the drawing boards at several companies for the last few years, including Kodak, Sanyo and Seiko. The displays use an organic polymer material with self-luminous properties that eliminate the need for a backlight, which is used to improve the brightness of LCDs. Without the need for a backlight, manufacturers can create thinner displays that use less power.

The advantage of OEL is cost - it's about 20% less expensive than LCD technology and performs better than LCDs in direct sunlight. But so far yields for manufacturing have been inconsistent and the technology has a lower life span than LCDs. LCDs tend to operate for 10,000 to 15,000 hours, but OELs last only 5,000 hours.

Demand for LCDs increased in the late 1990s as notebooks, cell phones and handheld computers grew in popularity. A shortage of LCD glass kept the price of notebooks unnaturally high in 1998. In the past two years, product designers often blamed high display prices for the inability of the Internet appliance market to catch fire. The thin screens added so much cost that it was as cheap, if not cheaper, to manufacture full-fledged PCs. But a supply glut has changed all that.

Shipments for LCDs hit a record high of 1.7 million units in the third quarter, according to DisplaySearch. This marks a 37% increase, after three previous quarters of limited growth.

Sony's prototype is a 13-inch display with a resolution of 800 by 600. Sony representatives hope to start mass production in 2003.

0109.7 Media – Telecom and Television

***SS8 Networks Launches SS8 SignalingSwitch

(February 12)

SS8 Networks has announced the availability of the SS8 SignalingSwitch, a carrier-class IP Signaling Transfer Point (IP-STP) for large-scale IP telephony SIP and H.323 networks. The SS8 SignalingSwitch offers high-density call processing and route management for SIP and H.323 networks.

Combining SIP Proxy server, Redirect server and SIP registrar functions with H.323 Gatekeeper features, the platform offers scalability and reliability in IP telephony networks. The SS8 SignalingSwitch also allows carriers to simultaneously provide IP telephony services for both SIP and H.323 components through a single integrated platform, while enabling a suite of value-added services and applications.

The SS8 SignalingSwitch empowers carriers to increase call processing capabilities across existing Gateways and Soft Switches, while also providing a foundation for intelligent network services. The ITRE provides call routing and enhances the performance, scalability and reliability of IP telephony networks, allowing carriers to deliver high performance voice, data and video services for a variety of SIP and H.323 network elements.

The SS8 SignalingSwitch forms the core of the SS8 open services architecture for signaling and application delivery for the emerging Public Internet Telephony Network (PITN). The SS8 SignalingSwitch works in conjunction with the SS8 ServiceController, the SS8 Service Management System and the SS8 Service Creation Environment to provide features and services - from telephony to multimedia - for businesses and consumers. In addition to traditional IN functionality such as 8xx, 9xx, LNP, CNAM, Prepaid Calling, Postpaid Calling, the SS8 platform also provides value-added applications including One Number Services, Unified Communications, Voice VPN, IP Call Center, Conferencing and fixed-mobile integration.

The SS8 SignalingSwitch functions as an IP Signaling Transfer Point (IP-STP) to intelligently route signaling traffic within and between global IP telephony networks. By offloading call routing and service logic from Soft Switches and Gateways, the SS8 SignalingSwitch simplifies network provisioning and can increase the peak capacity of Soft Switches.

Benefits of the SS8 SignalingSwitch:

- The SS8 SignalingSwitch employs an open, standards-based multi-processor architecture with an embedded real-time operating system that is engineered to deliver performance and scalability. The SS8 SignalingSwitch can provide high density core signaling - supporting millions of customers - on a single redundant system. The platform is designed with hot-swappable components and no single point of failure, making it suited for demanding applications. The chassis can be mounted in a standard 19" rack.

- The SS8 SignalingSwitch provides a production deployment of the IETF Telephony Routing Information Protocol (TRIP) standard for call routing between IP network elements. The ITRE dynamically discovers and updates call routing information to provide real time least-cost, best-quality call routing in distributed IP telephony networks. The system propagates any changes throughout the network and between networks, simplifying provisioning and eliminating the need for manual updates. The platform also automatically aggregates network call routes to optimize quality of service, network performance and route management, thereby preventing network traffic from consuming excessive bandwidth.

- The SS8 SignalingSwitch allows carriers to implement differentiated services through policy-based call routing and element management, ensuring that carriers can support Service Level Agreements with customers and other carriers. Carriers can define policies to reject or accept certain classes of calls from other networks or domains, or to handle calls differently based on the SLA. The SS8 SignalingSwitch also handles failures anywhere on the network by removing affected routes from the routing tables, redirecting traffic to alternate nodes and restoring the original routing once service is re-established.

http://www.SS8.com

***Covad Cuts Link to Internet Express

According to Reuters, Covad Communications, which is building a nationwide network for broadband Internet access, last week cut communication links with one of its distributors, San Diego-based Internet Express, after five months of talks toward restructuring $1.5 million in past-due payments. About 500 subscribers of the DSL service had their access cut. Covad blamed its decision on ISPs in its network not paying their bills. Internet Express CEO Barry Diamond blames Covad for giving its distributors inadequate support, and has threatened a class-action lawsuit on behalf of subscribers and ISPs that helped Covad build its network.

DSLnetworks is in the same position, with Covad citing DSLnetworks' past-due debt. DSLnetworks' 5,000 customers will no longer have access to Covad's DSL network. DSLnetworks is looking into whether the Covad move is legal.

http://www.covad.com

http://www.internetexpress.com

***Scientific-Atlanta and Metabyte Networks to Enhance Personal TV Experience Aboard Explorer Set-tops

(February 12)

Scientific-Atlanta announced it has licensed preference engine and intelligent storage management software, developed by Metabyte Networks. SA plans to embed Metabyte's MbTV software into its Explorer 8000 set-tops. Together with SA's interactive television navigator, the software is expected to automatically recommend programming, including advertising, that matches each subscriber's viewing tastes. The Explorer 8000 set-top, a home media server that features a hard drive, will have the additional capability to automatically record preferred programming.

http://www.scientificatlanta.com

http://www.mbtv.com

***Time Warner Cable Implements AP Engines Open-access Platform

Time Warner Cable has announced the implementation of AP Engines’ AP InterLink Open Access platform in Columbus, Ohio, where the company is conducting its Multiple Internet Service Provider trial. The platform enables the cable company to carry multiple ISPs over its broadband cable systems. It allows Time Warner Cable and independent ISPs to take and receive orders, qualify users and access new subscriber-service and device data.

It also allows broadband service to be activated independent of the order-taking channel, and subscriber-usage data to be tracked for usage-based billing and routed to multiple systems for settlement.

http://www.aoltimewarner.com

http://www.apengines.com

0109.8 International

***Japanese Cell Phone Market

Nomura Research Institute Limited has compiled a collection of eight bi-annual surveys capturing consumer use of IT equipment and services dating back to 1997. For its most recent survey, Nomura questioned over 1400 participants on the mode of devices used, wired and wireless, as well as on type of usage, SMS to e-commerce or m-commerce transactions.

Highlights of the Wireless Section of the Survey

Cellular phone/PHS usage has reached 69.8%, a two-fold increase over the last three years.

The ratio of participants using short messages is 47.2%, the ratio of those using e-mail is 16.2%

The majority (71.2%) of those using/purchasing cellular phones are looking for basic performance, such as sound quality and ease of access, while 27.4% are interested in Internet connectivity

Users equipped with Internet–enabled devices that use services such as i-mode, EZ, J-SKY constitute 41.7%. Among them 30.4% access the Internet daily, primarily using e-mail services, 63.5%

The fee levels for those who pay for content: 36.5% spend less than $3.46, 30.2% spend between $3.46-$5.20, while 33.3% spend more than $5.20

The percentage of individuals who want to access banking services such as balance references, deposits, and transfer of funds between accounts via cellular phones is 13.1%

http://www.nri.co.jp/english/news/2000/001222.html

***Phone Mobile Web Users Top 5 Million

(February 8)

According to Reuters, Japan Telecom’s wholly owned mobile arm, J-Phone announced that subscribers for its Internet-enabled cell phones were 5.01 million in January. Number two carrier DDI, better known as KDDI, had reached the same milestone in December and logged 5.66 million users for its EZweb Net-access service in January. NTT DoCoMo was ahead of the pack with 18.57 million users for its i-mode Net access system.

The total number of mobile phone users in Japan, including users of existing phones not adapted for direct Internet access, stood at 58.73 million as of the end of January, according to the Telecommunications Carrier Association.

***Taiwan Investments in China Could Backfire

Taiwan Central Bank reported that more than US$ 92.3 billion of investment has poured into China in the last 14 years. A professor from National Taiwan University stated that Taiwan has shifted from labor-intensive to a high-tech industry, which allows China to develop into an industrial power. Even President Chen Shui Bian of the Taiwan Central Bank believes that the "mainland is an inevitable market for global operational strategies of Taiwan companies."

Taiwan's IT companies are trying to establish a strong presence across the strait as the mainland opens its IT industry to foreign players. But the professor warned that China will eventually become Taiwan's toughest competitor. Taiwan is concerned that the movement across the strait could spell doom to Taiwan's "miracle" economy. There has also been concern expressed that the ROC government must come up with a mainland investment policy that will minimize the departure of markets from Taiwan that its economic status could also be maintained.

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