The WAVE Report on Digital Media
3D --- Media Creation --- Shared Space
---Published by 4th Wave, Inc.---
Issue #0338------------------11/23/03

 

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0338.1 Hot Topics

0338.2 Story of the Issue

0338.3 Displays

0338.4 VoIP

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0338.1 Hot Topics

***AT&T Files Patent Infringement Suit Against PayPal and eBay
(November 20)

AT&T Corp. today filed a patent infringement suit against PayPal, Inc. and eBay, Inc., in federal district court in Delaware. AT&T alleges that, through the use of their online payment systems, PayPal and eBay have infringed AT&T's U.S. patent that covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet. The use of a trusted intermediary ensures that one party will not have to disclose sensitive information, such as a credit card number or bank account number, to the other party to the transaction. AT&T's lawsuit seeks compensation for PayPal's and eBay's unauthorized use of the patented technology.

AT&T stated that more than a year ago AT&T notified both PayPal and eBay that they were using technology covered by AT&T's patent in the PayPal and BillPoint payment systems. AT&T offered to license the patented technology to each of the companies. When the two companies refused to pay the licensing fee, AT&T sued.

AT&T's patent was originally filed with the U.S. Patent and Trademark Office in 1991. In July of 1994, the Patent and Trademark Office granted AT&T U.S. Patent No. 5,329,589 for its invention.

http://www.att.com


***Wave Three Software Deploys SIP Communications at USC
(November 10)

Wave Three Software, Inc., a developer of IP communication software, today announced that the University of Southern California (USC) has purchased and is deploying Session Communication Software and Session Conference Server Software community-wide, making it available to more than 45,000 on-campus and extended community members.

USC is a private research university and the oldest research university in Southern California. The implementation of Session software provides USC students, family, faculty, staff and extended partners with a communication solution: software that performs Voice over IP, Video over IP and data collaboration over standard desktop and laptop computers. The software allows students and faculty to communicate with peers and each other over the university’s broadband IP network, and also allows parents to communicate with students from their home cable modems or DSL connection. Since starting the fall 2003 semester, more than 1,000 students, family, faculty and staff have registered for Session.

The community-wide Session deployment follows on the completion of a successful pilot program held during the 2003 spring semester. The pilot, which involved more than 80 students in on-campus housing, allowed USC to evaluate student and staff demand for Session, its impact on network bandwidth and IT resources, and support requirements for a full-scale deployment. Results from a survey of pilot participants indicated that users considered Session to be easy to install and user friendly, a useful communication tool, and would be used regularly to contact teachers, friends and family if deployed campus-wide.

Wave Three licenses Session software to customers in the university, medical and research markets. The company focuses on those markets because of their distributed campus environments, need for effective communication, access to IP networks and willingness to adopt new technologies. Session is currently in use or evaluation at over 50 universities across the United States.

Wave Three Software, Inc. develops desktop communication software for voice-video-data communication via any IP network, including the Internet. Wave Three’s Session software delivers Voice over IP, Video over IP and data application sharing in an integrated suite. Developed on a SIP-based architecture, Session is designed to deliver the performance of special purpose systems over standard computers and networks. Wave Three has strategic partnerships with dynamicsoft, Hughes Software Systems and Ridgeway Systems.

http://www.wave3software.com


***Sprint and Sanyo Debut Phones with Nationwide PTT Service
(November 17)

Sprint and Sanyo today debuted the new Sanyo PCS phones RL2000 and RL2500, featuring "push to talk" (PTT) capability for nationwide two-way communication. The phones can be used like a walkie-talkie to communicate nationwide with other PCS Ready Link customers, or to make standard wireless phone calls, in addition to supporting PCS Vision services. Both handsets feature a built-in speakerphone for hands-free conversations. The PCS Phones by Sanyo RL2000 and RL2500 are available nationwide in Sprint Stores, online, and through Sprint business channels for a suggested retail price of $299.99, with some rebate offers depending on the service agreement.

The new nationwide walkie-talkie style service called PCS Ready Link gives customers a way to communicate one-to-one or to groups of up to five with the single push of a button. PCS Ready Link is designed to be a way to quickly access co-workers, clients, suppliers, family and friends anywhere on the enhanced Sprint Nationwide PCS Network. The new service makes its debut on the two new PCS Vision Ready Link Phones by Sanyo, complementing a suite of Sprint wireless voice and data products.

The RL2000 features a blue and black ruggedized cover and a bar-style design. In addition, it offers:

* A thumb-operable PCS Ready Link button on the side of the phone to instantly speak with family members, friends or co-workers from coast-to-coast.
* A built-in speakerphone for hands-free calls and letting friends join the conversation.
* A 1.7-inch, 4,096-color STN LCD display showing the phone's main menu, features and modes, and providing a viewing experience with PCS Vision-enabled Web sites, downloadable Java-based games and screen savers.
* Built-in answering machine allowing the user to screen calls or to answer anytime while the caller is leaving a message.
* Digital talk time of up to 4.5 hours with included standard Lithium Ion battery. Digital standby time is up to 5.8 days.
* The RL2000 measures 5.06"H x 2.18"W x 1.10"D. Weight is 5.3 ounces.

The RL2500 is the first clamshell-design phone that Sanyo has introduced in the United States to include a built-in speakerphone. In addition, it offers:

* A side-mounted, thumb-operable PCS Ready Link button.
* Two 65,536-color TFT LCD displays, including a 2.1-inch main display and 1-inch sub display.
* Built-in answering machine functionality.
* Digital talk time of up to 3.25 hours with included standard Lithium Ion battery. Digital standby time is up to 3.75 days.
* The RL2500 measures 3.60"H x 1.85"W x 1.04"D. Weight is 3.71 ounces.

http://www.sprintpcs.com/
http://www.sanyowireless.com/

0338.2 Story of the Issue

***Insight Media: Inaugural HDTV Forum Report
(November 18)

The HDTV Forum: Enabling HDTV from the Factory to the Home, held last week, was sold out, bringing together executives from throughout the TV food chain. Over 290 people attended the inaugural event, which included over 40 presentations and panel discussions on the creation and distribution of HDTV content, all TV display and electronics technologies, experiences and challenges from the online and retail channels, and market forecasts.

Insight Media reported that highlights from the conference included:

- Keynote Jim Sanduski, Samsung Electronics VP of Marketing, provided five predictions for the HDTV industry, including the expected “tipping point” result of the Plug & Play agreement on HDTV adoption, the impact of cable and satellite competition, what content will prove to be the “killer app”, the importance of recording devices and the impact of new form factors. He also issued requests to broadcasters and suggestions to the FCC and Congress, arguing that the transition to HDTV is the largest and most important in the history of the TV industry due to its impact on resolution, aspect ratio, sound, form factor and expected time to saturation.

- CEA’s Sean Wargo’s data suggested that consumers are aware of some HDTV terminology, but are still quite confused about what it really is. This was echoed by numerous speakers including those from Best Buy.

- HD content is currently being aired, with a lot more coming each month. But again, consumers and many others in the retail chain are not well educated about this.

- HDTV is now moving beyond the “tipping point”, but HDNet’s Karl Miesenbach embarrassed attendees after a show of hands revealed only a small, perhaps 5%, ownership of HDTV sets.

- Network executives Martin Franks (CBS) and Hal Protter (WB) offered comments and observations about the problems that still exist with reception and the selling of HDTV services and systems. They also reiterated their commitment to HDTV.

- Warner Brothers executive Annette Bouso revealed they have the largest high definition film library in the world, with all releases since 1997 created in the 1080p format.

- Pete Putman and other speakers provided an understanding of the effects of compression on the quality of the received HDTV signal and how these signals are manipulated by broadcast, satellite and cable operators.

- Best Buy’s Andrea Kimmel and Stewart Meyer shared their experience with Best Buy’s HDTV customers and explained their strategy for simplifying the HDTV shopping experience.

- Gateway executive Erik Gerson broke down their PDP TV shipments by channel (retail vs. phone vs. online) and by numerous demographic parameters within each channel. He also revealed that Gateway's PDP TV products are attracting new customers to the company.

- CRT TVs are expected to remain the market leader on a unit basis through 2007 in all size segments except 40”+ due to growth in emerging markets.

- Microdisplay-based RPTVs are growing rapidly, but supply chain shortages are limiting sales. Growth will be rapid in the near term as they displace CRT-RPTVs, which could fall to as little as 15% of all RPTVs by 2007 in North America. LCOS is viewed by many as becoming significant in the market in a couple of years as it will offer superior image quality, 1080p resolutions and perhaps, single-chip architectures. DLP looks to be the main RPTV technology as the polysilicon LCD outlook looks mixed.

- Samsung and CMO revealed that they intend to spend $16 billion and $9 billion on new LCD TV panel capacity. Sharp continues to introduce enabling technologies that boost its LCD TV performance. DisplaySearch expects LCD TVs to lead in HDTV unit shipments by 2006.

- PDP suppliers are making significant progress in improving lifetimes and minimizing burn-in with 60K hour lifetimes now quoted by two suppliers. PDP suppliers remain optimistic on their growth despite massive investments in TFT LCDs focused on the 30” and larger TV market.

- Consumer front projection products will increase steadily, but opinions differ dramatically about the size of this emerging segment. HP went out on a limb suggesting they might supply 1M projectors a month to consumers in the not too distant future.

The HDTV Forum attracted presenters from companies that included ABC, ATI Technologies, BBC, Best Buy, Brillian Corporation, CBS Network, CEA, Chi Mei Optoelectronics, ClairVoyante Laboratories, Coretronic, DisplaySearch, Echostar, Gateway, HDNet, Hewlett-Packard, iFire, InFocus, Insight Media, Joe Kane Productions, LG.Philips LCD, Motorola, National Semiconductor, OCLI, Pixelworks, Runco, Samsung Electronics, Samsung SDI, Sharp, Silicon Image, Silicon Monitor, Sony Electronics, Texas Instruments, Thomson/RCA, Toshiba, USDC, Warner Brothers, WB Network and Zoran.

Sponsors included ATI Technologies, CustomRetailer, Dealerscope, HighDef Magazine, High Definition Television Association of America (HDTVAA), Pixelworks, Residential Systems, Sony, USDC, Widescreen Review and Zoran.

The event was sponsored by market research firms DisplaySearch and Insight Media as well as the Consumer Electronics Association and also included a small exhibition area. The proceedings are now available on CD for $795 from Insight Media.

http://www.insightmedia.info
http://www.displaysearch.com/

0338.3 Television

***DisplaySearch: Global LCD TV Shipments Jump 162% in Q2 03
(October 29)

DisplaySearch, a provider of flat panel display (FPD) market research and consulting, indicated in its latest Quarterly LCD TV Shipment and Forecast Report that =10” LCD TV shipments rose 17% Q/Q and 162% Y/Y to 715K units. If multi-function LCD monitors with integrated TV tuners (MFM TVs) are included in the total, LCD TVs reached 831K units, with MFM TVs earning a 14% share of the total, on 29% Q/Q growth. DisplaySearch also stated that in Q3’03, they expect faster growth for both LCD TVs, up 46% Q/Q, and MFM TVs, up 34% Q/Q, as existing players roll out a growing number of products and new players enter, with combined shipments expected to reach 1.2 million units on 45% Q/Q growth.

The company reported that after a weak Q1’03, Japan drove the LCD TV/MFM TV market on 24% growth, causing its share to rise from 36.7% to 38.5%. North America experienced the slowest sequential growth, up 9% Q/Q, after a strong Q1’03, causing its share to fall from 31% to 29%. By size, 15” XGA overtook 20” VGA to become the single most popular product. While 15” XGA was most popular in North America, Europe and ROW, 20” VGA was the most popular format in Japan. The Japanese market is trending toward larger sizes, with the average LCD TV diagonal at least 1” larger than other regions and expected to be 2” larger than Europe and North America in Q3’03 as space-sensitive Japanese buyers look to LCD TVs for their family rooms and bedrooms. Japan led the LCD TV market with a 42% share, up from 39%, while North America led the MFM TV market with a 45% share, up from 40%.

By resolution, VGA continued to lead, but its share dropped from 51% to 37%, losing ground to XGA and WXGA. WXGA is expected to overtake VGA in Q4’03 as larger sizes, which employ this resolution, grow rapidly. By aspect ratio, wide formats rose from a 22% to a 29% share and are expected to overtake 4:3 aspect ratio products by the middle of 2004. The latest report also surveyed LCD TV brands on their shipments by input type. DisplaySearch found that 50% of LCD TVs/MFM TVs in Q2’03 featured an RGB or VGA input with 13% featuring a DVI input.

In terms of LCD TV/MFM TV shipments by brand:

Sharp remained the leading LCD TV and LCD TV/MFM TV brand in Q2’03 for the 9th consecutive quarter with a 31% share, down from 45.5%, on a double-digit decline due to weakness outside of Japan. It remained #1 in Japan and North America, but fell to #3 in Europe and ROW. It led the LCD TV market with a 36% share, down from 52%. By size worldwide, it led the LCD TV/MFM TV market in most categories including 10”–14”, 15”–16”, 20”–21”, 22”–27”, 28”–32” and 33”–37”. The only size segments it did not lead were 17”–19” and 40”+. Although it did not participate in the MFM TV segment in Q2’03, it entered that market in Q3’03 and is expected to reach the #4 position. It is expected to lead the Q3’03 LCD TV market with a 30% share and the LCD TV/MFM TV market with a 31% share, retaining its #1 ranking in Japan and North America and rising to #2 in Europe and ROW. With Sharp enjoying a strong position worldwide, beginning mass production at the world’s first 6th gen TFT LCD fab in Q1’04, and enjoying an approximate three-quarter time to market advantage over the next 6th gen fab, resulting in a significant cost advantage, it will likely be difficult to unseat Sharp as market leader in 2004.

Sony’s LCD TV shipments rose 91% in Q2’03 boosting its share from 7% to 12% enabling its ranking to rise from #3 to #2. In the case of its position in the total LCD TV/MFM TV market, its share and ranking were slightly lower at a 10.5% and the #3 position as it does not offer MFM TVs. By region for LCD TV/MFM TV shipments, it rose from #3 to #2 in Japan, remained #3 in North America, rose from #7 to #6 in Europe and remained #5 in ROW. By size in Q2’03, it was #4 at 15”–16” and 17”–18”, #3 at 20”–21” and 22”–27” and #2 at 28”–32”. In Q3’03, it is expected to boost its LCD TV/MFM TV share further to 13.6%, nearly equivalent to Samsung, on dramatic growth. In just LCD TVs, it is expected to maintain the #2 position with a 16% share. Regionally, it is expected to remain #2 in Japan, #3 in North America and #6 in Europe and fall to #6 in ROW.

Samsung remained #2 in LCD TV/MFM TV shipments with a 13.3% share, down from 14.2%, on 12% growth. Although its LCD TV share rose from 9% to 11% on 44% growth, it fell behind Sony and LGE to drop to the #4 position. In the case of MFM TVs, it remained #1 with a 29% share, down from 51%, despite a double-digit decline. Regionally for LCD TVs/MFM TVs, it was #5 in Japan, #2 in North America and Europe, and #1 in ROW. By size, it was #3 at 15”–16”, #1 at 17”–18”, #2 at 22”–27” and #1 at 40”+. In Q3’03, Samsung is expected to remain #2, but just barely as its share advantage over SONY/AIWA falls to just 0.1%. It is expected to overtake LGE in LCD TVs rising to #3, with its share rising from 11% to 13%. On the other hand, it is expected to fall to #3 in MFM TVs. By region, it is expected to fall to #6 in Japan, remain #2 in North America, rise to #1 in Europe and remain #1 in ROW.

This report also looks forward five years and estimates that, with TFT LCD manufacturers pulling in their investment schedules, the LCD TV/MFM TV market will grow at a 96% CAGR to 39 million units and a 21% share of the TV market, up from 3% in 2003. If MFM TVs are excluded, LCD TVs would still rise at a 92% CAGR to 36 million units and a 19% share. DisplaySearch stated that the optimistic outlook is derived from consumers’ desire for flat TVs along with a significant amount of TFT LCD capacity being added that is optimized for LCD TVs, resulting in lower prices. The latest report also provides shipments by type (LCD TVs vs. MFM TVs) by region by size by supplier for the first time so readers can learn who the leading players are at each size in each region. It also forecasts shipments forward eight quarters by type by region by size. As with previous reports, it also provides panel shipments, deinterlacer shipments, TV brand-OEM-panel supplier relationships, panel supplier roadmaps and a detailed bill of materials (BOM) and BOM forecast for all sizes. In the case of deinterlacer shipments, the report reveals that motion adaptive deinterlacer shipments rose 68% Q/Q and 617% Y/Y in Q2’03 and are expected to rise 74% Q/Q and 714% Y/Y in Q3’03.

The >200-page Quarterly LCD TV Shipment and Forecast Report is available in print or electronically for $3,495 or $3,995.

DisplaySearch, in partnership with Insight Media and the Consumer Electronics Association (CEA), is also sponsoring the first annual HDTV Forum: Enabling HDTV from the Factory to the Home on November 12–13, 2003 at the Marina Del Rey Marriott in Marina Del Rey, California.

http://www.displaysearch.com


***TANDBERG Television Showcases TV Over IP Solution at TelcoTV
(November 17)

At the TelcoTV conference last week, TANDBERG Television showcased its open iTTV delivery platform for interactive television deployment via commercial xDSL and FTTH (fiber to the home). The iTTV delivery platform offers a four-tier solution for a path to air and opens the possibility for telcos to offer a “Triple Play” service of telephony, high-speed internet and broadcast television over one network, coupled with video-on-demand (VOD). In addition to having its own stand for the first time, TANDBERG Television’s presence was visible throughout the TelcoTV exhibition floors as its solutions will power equipment at several other stands.

Visitors to the TANDBERG Television stand saw a complete headend package designed around the company’s solution for delivering video over IP via commercial xDSL and FTTH (fiber to the home) deployments. The scalable array of solutions for video services, all derived from the iTTV delivery platform, allows a telco to get on-air in four ways:

- Stream it: A straight pass-through streaming package applicable to FTTH
deployments. Digital services are taken off-air, passed through a TANDBERG Television TT7116 Streamer, and streamed directly to the home unprocessed.
- Rate Change it: A bit-rate changing module is added to the TT7116 to alter
the bit-rate of the incoming digital channel so that it can fit into an ADSL stream.
- Standard Encode it: A TANDBERG Television encoder is added to the TT7116
for up to 10 channels of encoding and streaming. A solution for analog to digital conversion and for turnaround of video into lower data rates of DSL. Uses an off-the-shelf encoding chipset with TANDBERG Televisions own MPEG2 ‘smarts’ added to the microcode.
- Premium Encode it: Premium encoding via the TANDBERG Television E5710
MPEG-2 encoder provides better picture quality at the lowest bit-rates. Picture quality can be traded for longer loop length to lower the costs of DSLAM implementation or to send more channels into the home simultaneously.

The operator can mix and match the four-tier solution on a per-channel basis allowing the video quality verses cost calculation to be optimized:

- Premium encoding for the most watched and most complex to encode channels
- Standard encoding or rate-changing for less complex, less watched channels
- Pass-through of services such as digital music channels

A typical DSL or FTTH deployment would feature a complement of TANDBERG Television MPEG-2 encoders, IP streamers, transport stream descramblers, and integrated receiver/decoders. Third-party set-top boxes, video-on-demand servers, and middleware for electronic program guides, channel navigation and other additional services are supported. TANDBERG Television’s prime contractor systems integration skills supports all network management and video processing from content acquisition to feeding the broadband backbone network.

Content Security for TV over IP at TelcoTV

At the TelcoTV conference, TANDBERG Television also showcased its added content security on its iTTV delivery platform. At the recent IBC show in Amsterdam, TANDBERG Television’s iTTV delivery platform was successfully integrated and demonstrated with a diverse array of conditional access solutions from Conax, Latens and Widevine. TANDBERG Television also has plans to integrate its TV over IP system with other conditional access vendors, including VideoGuard from NDS.

The iTTV delivery platform is an integrated broadband IP delivery platform available in a scalable package. Demonstrations at the TANDBERG Television booth included TANDBERG Television MPEG-2 encoders, IP streamers, integrated receiver/decoders, middleware solutions and the iTTV portal EPG, as well as third-party set-top boxes from Amino and i3 micro technology and video on demand servers from Entone and BitBand

http://www.tandbergtv.com

0338.4 VoIP

***Veraz and BroadSoft Partner to Offer Hosted IP Services Solution
(November 17)

Veraz Networks announced its newest partner today. BroadSoft Inc., a provider of hosted communications platforms, has joined the Veraz Open Systems Alliance (VOSA) program and completed interoperability testing to provide an end-to-end solution supporting hosted PBX and IP Centrex applications. The companies stated that the joint Veraz/BroadSoft centrally managed, end-to-end solution can be deployed across multiple global networks with the addition of new services in days rather than months of vendor intervention.

For the interoperability testing, Veraz provided its carrier-class ControlSwitch, which is Veraz's open softswitch platform, along with the I-Gate 4000 line of high-density media gateways. BroadSoft included its hosted communications platform BroadWorks, which offers a range of applications including hosted PBX, IP Centrex, Voice VPN, and collaborative conferencing functionality. This interoperability was completed using the SIP interface between these products.

Veraz and BroadSoft stated that their solution will service providers to enter new markets and compete for customers across continents while supporting different country variations of SS7 and PRI. Veraz provides the PSTN and SS7 interworking, while BroadSoft provides the enhanced applications.

As a new member of the Veraz Open Systems Alliance (VOSA) program, BroadSoft works with Veraz to solve the integration and interoperability issues that service providers face while expanding new revenue opportunities. By creating pre-tested end-to-end solution bundles for service providers based on products from Veraz and partners, the VOSA program is intended to accelerate the deployment of next-generation network solutions.

http://www.veraznetworks.com/
http://www.broadsoft.com/

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