ENGLEWOOD, Colo., Feb. 8 /PRNewswire/ -- MediaOne(R), the Broadband
services arm of MediaOne Group (NYSE: UMG), has become the first U.S. cable
company to select an open conditional access system -- already widely used
overseas -- that allows cable companies to accommodate digital set-top boxes
from several manufacturers in a given market.
In addition, MediaOne has chosen several global providers of digital
technology -- Canal+, DiviCom and Philips -- to provide initial digital video
platforms that will use this system and will be compliant with U.S.
OpenCable(TM) specifications. These suppliers already collaborate on multiple
digital cable projects around the world.
And MediaOne has expanded its agreement with General Instrument, an active
participant in the OpenCable process and the leading interactive digital video
network and set-top supplier in North America. As part of that expansion, GI
has committed to evolve the digital systems that it supplies to MediaOne to
incorporate the international open system consistent with the other technology
partners, scheduled to be accomplished in collaboration with those partners by
the first quarter of 2000.
OpenCable is important because it allows operators to accommodate hardware
and software from a variety of vendors without proprietary technological
constraints. This competition among vendors means lower prices for both
operators and consumers. The open standard will also allow set-top boxes to
be sold at retail, giving customers the opportunity to purchase boxes
themselves, as they do with other consumer electronics. This consumer option
has been a long-standing goal of the Federal Communications Commission and
legislative leaders.
MediaOne's OpenCable platform will be compliant with the OpenCable
specifications developed by CableLabs, and supports multiple conditional
access technologies. Conditional access allows cable companies to scramble
programming signals and to authorize descrambling for customers who pay to
view specific networks or special events.
MediaOne launched digital service in suburban Detroit last year, and is
planning to launch digital in two additional markets by the end of second
quarter 1999. In one of these markets, MediaOne will use GI digital headends,
software and set-top boxes; in the other market, MediaOne will deploy Canal+,
DiviCom and Philips products.
In this market, Canal+ will supply the open software platform, which is
currently deployed in more than three million households internationally.
Silicon Valley-based DiviCom will supply MediaOne with OpenCable-qualified
headends. Philips, a global leader in digital video and consumer electronics
equipment and one of the largest set-top box suppliers world-wide, will
provide the digital set-tops. Canal+, DiviCom, and Philips, through their
collaboration, have broad and deep experience on multiple digital projects,
primarily in Europe.
"Our customers will benefit from our selection of this OpenCable platform.
They'll get to choose from a variety of set-top boxes from different
manufacturers, all with better features and lower prices. In addition, this
move is a giant step for both MediaOne and the U.S. cable industry," said Jan
Peters, president and CEO of MediaOne. "We could not have picked a better set
of world class, global partners to meet our goals for the deployment of
digital video."
In support of MediaOne's announcement, Dr. Richard R. Green, CableLabs
president and CEO, said, "We have enjoyed strong support from our members in
the OpenCable effort. This initiative by MediaOne is indicative of that kind
of support and greatly facilitates our ability to complete the OpenCable
project and to meet the needs of our member companies and cable customers."
"MediaOne's move toward an OpenCable platform is a welcome development for
the OpenCable effort," said Bill Schleyer, who has been heading the OpenCable
initiative for CableLabs, the research and development arm of the U.S. cable
television industry. "CableLabs has been aggressively developing OpenCable
specs that will create an environment of new development in content and
hardware, ultimately creating a better product at a better price."
"Time Warner is a strong supporter of the OpenCable initiative, as opening
the doors for competition will ultimately benefit customers with more choice
in set-top boxes, functionality and content," said Glenn Britt, president of
Time Warner Cable. "This OpenCable path is the direction the industry should
go to provide our customers the next generation of video services."
"Working with a large number of international manufacturers has allowed
Canal+ to achieve extremely competitive prices and enabled us to achieve a
high degree of independence from any particular supplier," said Henri Joubaud,
group senior vice president, Technology, of Canal+. "The Canal+ technology is
now being integrated by several manufacturers into television sets and set-top
boxes that are increasingly being sold at retail, particularly in the United
Kingdom, France, Italy and the Netherlands, making it a standard consumer
electronics good," adds Joubaud. "With over three million digital set-top
boxes from ten leading vendors, Canal+ is delighted to share our unique field
experience with many different countries and with clients in Europe, Asia,
Latin America and the Middle East to make the MediaOne digital roll-out a
success."
"In an open standards environment, cable operators can directly benefit
from a competitive marketplace for all the components of their digital
television system. As a leading provider of open standards-based systems for
digital television, DiviCom enables companies like MediaOne to take advantage
of the best solutions to meet their business needs," said Tom Lookabaugh,
president of DiviCom, a C-Cube company. "DiviCom is pleased to be chosen by
MediaOne for this historic installation."
Commenting on the MediaOne agreement, Mr. Rob van Oostenbrugge, managing
director of Philips Digital Video Systems, said, "We are extremely pleased to
provide our open platforms to MediaOne and the opportunity to service the U.S.
cable industry at large. We believe that open platforms are critical for
cable operators to enable the U.S. digital video market to grow and establish
retail distribution for digital cable set-tops. We congratulate MediaOne for
taking this big step and look forward to providing MediaOne and the U.S. cable
industry in general the best choice in digital." Philips has vast experience
in the consumer electronics fields and has wide access to consumer retail
outlets. Philips Digital Video Systems is a world leader company in MPEG-2
compression and transmission systems as well as set-top boxes.
"GI is in a unique position to assist MediaOne in achieving its near-term
commercial objectives and its OpenCable vision," said Ed Breen, chairman and
CEO of General Instrument. "Since 1996, GI has been providing commercial
digital cable infrastructure and set-top terminals to hundreds of systems
throughout North America. We have worked closely with CableLabs and its
member companies in support of our industry's OpenCable initiative.
"Our recent DVB product award from one of Europe's largest cable
operators, United Pan-European Communications, further demonstrates the broad
portfolio of open digital technology solutions that GI has to offer broadband
network operators. MediaOne is drawing on standard, open technologies and
driving them into a brand new mold to best fit its OpenCable, multi-vendor
supply strategy," Breen added.
MediaOne, the nation's leading Broadband services company, provides
entertainment, information, and communications services to about five million
customers. MediaOne Group (NYSE: UMG) is one of the world's largest broadband
communications companies, bringing the power of broadband and the Internet to
more than seven million customers in the United States, Europe and Asia. The
company also has interests in some of the fastest-growing wireless
communications businesses outside the U.S., serving more than three million
customers. For 1997, the businesses now part of MediaOne Group produced $6.6
billion in proportionate revenue.
Canal+ Technologies, the technology division of Canal+, Europe's largest
pay-TV group, is a leading provider of digital broadcasting software solutions
in the world and the largest one in Europe with approximately 65 per cent of
the marketplace. Its product line comprises conditional access software
Mediaguard, hardware-independent interactive system and middleware
Mediahighway as well as over 30 different interactive and multimedia
applications. Canal+ Technologies has an installed base of over three million
digital set-top boxes in the world using its technologies. It most recently
provided the set-top box technology for ONdigital, the world's first digital
terrestrial operator. Canal+ Technologies can be found on the World Wide Web
at http://www.canalplus-technologies.com.
DiviCom Inc. delivers digital television solutions. Products include
audio/video encoding, data broadcast solutions, network management systems,
consulting and integration services. Based on the MPEG-2, DVB and ATSC
international standards, DiviCom products enable digital video broadcasting
over a variety of networks including terrestrial, satellite, wireless, fiber
and cable. DiviCom is a wholly owned subsidiary of C-Cube Microsystems Inc.
(Nasdaq: CUBE), and both companies are based in Milpitas, Calif. C-Cube is a
leading provider of digital video silicon solutions for the consumer
electronics, communications and convergence markets. DiviCom can be reached at
+1-408-944-6700 or at http://www.divi.com.
General Instrument (NYSE: GIC) is a leading worldwide provider of
integrated and interactive broadband access solutions, teaming with its
business partners to lead the convergence of the Internet, telecommunications
and video entertainment industries. http://www.gi.com.
Royal Philips Electronics of the Netherlands is one of the world's biggest
electronics companies and Europe's largest, with sales of over US$39 billion
in 1997. It is a global leader in color television sets, lighting, electric
shavers, color picture tubes for televisions and monitors, and one-chip TV
products. Its 256,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, components,
semiconductors, medical systems, business electronics, and IT services
(Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and
other stock exchanges. News from Philips is located at http://www.news.philips.com.
For More Information, please contact:
Jean-Louis Erneux Ben Stanger Sharon Corbitt --
Media Contact
Canal+ DiviCom Inc. General Instrument
011 33 14425 7581 408-490-6898 215-323-1873
Jerneux@canal-plus.com mediarelations@divi.com scorbitt@gi.com
Dario Santana -- Bart van Dijk - Europe & Far East/Pacific Rim
Investor Contact
General Instrument Philips Digital Video Systems - The Netherlands
215-323-1213 011-31-40-27-37466
dsantana@gi.com dijk3@am.umc.ce.philips.nl
Vince McNey -- Americas
Philips Digital Video Systems Company
801-977-1511
vmcney@mail.philipsdvs.com
SOURCE MediaOne Group
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Related links:
http://www.divi.com
CONTACT:
Tracy Hollingsworth, 303-858-3418, or Dave
Wood, 303-858-3404, both of MediaOne; or Pete Campisi of Ruder
Finn, 212-593-5863
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