Whose chips does SA use?
scientific-atlanta.com
Release Date: December 10, 1996
For Further Information:
Scientific-Atlanta
Crescent Communications
Bill Brobst
Doug Breuer, ext. 106
770-903-6306 (office)
Caroline March-Long, ext. 124
Hotel: 714-750-4321
Hotel: 714-751-2400
bill.brobst@sciatl.com
dbreuer@crescomm.com or
cmlong@crescomm.com
Time Warner Cable
Mike Luftman
203-328-0613
Scientific-Atlanta Named Prime Contractor for Time Warner
"Pegasus" Digital Services Deployment
-- Time Warner contract calls for Scientific-Atlanta to supply 550,000 Explorer(TM) 2000
digital set-tops initially and supporting headend and related products --
-- Scientific-Atlanta will make set-top technologies available to additional manufacturers ---
ATLANTA, GA -- Scientific-Atlanta, Inc. announced today its selection as the prime contractor for
the Time Warner Cable "Pegasus" project. Pegasus is Time Warner's program to bring
next-generation digital video, audio and data services to its cable subscribers throughout the United
States.
The three-year contract calls for Scientific-Atlanta to supply its new Explorer 2000 analog/digital
set-tops, which include the company's PowerTV(TM) operating system and PowerKEY(TM) security
system and can support Internet access via PC or television set. Also included in the contract are
digital headend systems, network control and management software, and product integration
services to Time Warner. Scientific-Atlanta will initially supply 550,000 Explorer 2000 set-tops plus
related headend hardware and network control software, although Time Warner has the ability to
reduce or increase the purchased quantity of set-tops under certain conditions. Shipments are
scheduled to begin in the second half of 1997.
James F. McDonald, Scientific-Atlanta CEO, said, "We are pleased to support this major initiative
by Time Warner to make broadcast and two-way digital cable services appealing and cost effective
for its subscribers. Real-time two-way communications over cable television networks will make a
wide range of new services available to American cable viewers. Eventually Internet access via PC
or television will be available to cable subscribers with this technology."
Jim Chiddix, chief technology officer for Time Warner, said, "This contract reflects our confidence in
open standards and in Scientific-Atlanta's technology. Scientific-Atlanta's Explorer 2000 system,
combined with its licensing strategy, offered the most compelling and open solution to our Pegasus
RFP."
Open industry standards benefit network operators, content providers and subscribers by allowing
a wide diversity of products and programming to operate within the same network.
For technologies not covered by open standards, Scientific-Atlanta has a strategy to license its
technology to other equipment suppliers. For example, Scientific-Atlanta has licensed its
PowerKEY security (also known as conditional access) system and the PowerTV operating system
to Pioneer New Media Technologies Inc. to enable them to supply fully interoperable analog/digital
set-tops. Scientific-Atlanta is in the process of negotiating a similar license with Toshiba America,
Inc. in accordance with a non-binding letter of intent between the companies.
"To make digital cable services more attractive versus other, more limited digital alternatives, the
set-top must be reasonably priced, include real-time reverse communications from the subscriber to
the cable operator, and be based on fully open standards," said McDonald. "The Explorer 2000,
we believe, will be the first deployed digital set-top that meets these objectives."
Scientific-Atlanta has supported Time Warner in the past
Scientific-Atlanta is a major supplier of advanced analog set-tops and other cable network
equipment to Time Warner. Previously Scientific-Atlanta provided Time Warner with much of the
digital network infrastructure, including digital set-tops and RF transmission equipment, for the Full
Service Network trial in Orlando, Florida -- one of the first and largest interactive digital video
system trials over a broadband hybrid fiber coax (HFC) network. This network delivers movies on
demand, video games, home shopping, and other multimedia interactive video services being test
marketed to 4,000 subscribers in the Orlando area. The Orlando system, notes Chiddix, is has been
"the largest, most significant digital HFC system in the world with working, interactive, MPEG
set-tops. Pegasus is a direct outcome of the lessons learned in Orlando.
Significance of Time Warner's Pegasus project
Time Warner has indicated its plans to roll out a range of digital services, such as digital broadcast
programming, Road Runner, and, ultimately video-on-demand, charting a new course for
broadband operators to become fully competitive with digital broadcast satellite (DBS) and
proposed digital MMDS systems.
With its Pegasus request for proposals, Time Warner called for a hybrid analog-digital system
architecture ready to migrate from broadcast to interactive services as market demand and content
increase.
In its response to Time Warner's request, Scientific-Atlanta proposed a digital set-top terminal with
a built-in real-time reverse path based on open standards. The Explorer 2000 set-top will provide
the advanced PowerTV operating system, PowerTV's Eagle(TM) multimedia technology, seamless
support of both analog and digital video services, Internet access via a PC or a television, and a
modern, secure conditional access system -- all at attractive unit prices.
Scientific-Atlanta products and services to be provided
Under the contract, Scientific-Atlanta will supply the following products and services over a term of
approximately three years:
Explorer 2000 analog/digital home communications terminals -- Scientific-Atlanta will
manufacture these set-tops provisioned for both broadcast and interactive services. The unit
supports broadcast analog services, broadcast digital services, Internet/Web access, interactive
viewing guides , pay-per-view and/or near-video-on-demand, and even true video-on-demand. The
Explorer 2000 set-tops will include the Eagle multimedia accelerator, a high performance graphics
and audio device that make efficient use of the set-top's unified memory architecture.
Headend equipment -- Scientific-Atlanta will provide components of its digital broadband media
system, including satellite receivers, Broadband Integrated Gateways, QAM modulators,
DAVIC-compliant QPSK modulators and demodulators, and the Digital Network Control System.
Prototypes of much of this equipment have been field tested in Time Warner's Full Service
Network trial in Orlando and in other field trials.
Integration services -- Scientific-Atlanta will provide system integration and engineering support
services, including system definition, acceptance test planning, an Atlanta test lab, beta site
management, training, and launch support.
Scientific-Atlanta's licensing approach
Open industry standards, particularly CableLabs/SCTE and DAVIC, define most aspects for the
system components of an interoperable, end-to-end digital video, voice and data network. The
PowerKEY system and PowerTV operating system complete a standards-based system with
leading edge conditional access and operating system features, all made openly available via
licensing.
Technologies being licensed under Scientific-Atlanta's licensing partnership strategy include:
Scientific-Atlanta's PowerKEY conditional access system, which uses both
public and private key cryptography to meet network security demands of
interactive applications. With the PowerKEY system, theft of service, falsified
or denied orders, and vandalism of software and databases can be curtailed.
Sensitive information can be encrypted and decrypted, and message content
can be authenticated.
PowerTV's Operating System, designed specifically for set-top units which will
provide cross-platform software support, high performance, and
state-of-the-art functions.
Scientific-Atlanta's CableLabs/SCTE, DAVIC, and MPEG-compliant
integrated circuit chips, which consolidate many functions into a single package.
In addition to supporting standards, these chips are tested with the PowerTV
operating system and the PowerKEY conditional access system.
"We have carefully created a licensing program that maximizes our licensing partners' ability to be
successful," said Michael P. Harney, Scientific-Atlanta's vice president and general manager, digital
video systems. "Our end-to-end system has an unparalleled reliance on true open standards and
third-party technologies so that licensees are not dependent solely on us and can add their own
value. This open approach to delivering technology is the quickest path to success in the
marketplace and is a key contributor to our success with Time Warner."
This press release may contain "forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. The Company cautions investors that a variety of factors
could cause the Company's actual results and experience to differ materially from the anticipated
results or other expectations expressed in the Company's forward-looking statements. The
Cautionary Statements of the Company contained in Exhibit 99 to the Company's quarterly report
on Form 10-Q for the quarter ended September 27, 1996, which was filed with the Securities and
Exchange Commission, are incorporated into this press release by reference. Investors are referred
to such Cautionary Statements for a description of factors which could affect the Company's
operations and any forward-looking statements contained in this press release.
Scientific-Atlanta, Inc. (NYSE:SFA) (http://www.sciatl.com) is a leading supplier of broadband
communications systems, satellite-based video, voice and data communications networks and
worldwide customer service and support. The company was the Official Broadband Video
Distribution Sponsor of the 1996 Olympic Games in Atlanta, Georgia.
###
Notes to editors:
A photo of the Explorer 2000 analog/digital terminal is available at the above numbers.
In conjunction with this announcement, Scientific-Atlanta has prepared a white paper: Digital Broadcast
with Real-Time Reverse: The Key To Economical Deployment of Digital Systems. This paper is available
on request (770-903-6306 or www.sciatl.com).
Acronyms:
MMDS: Multichannel Multipoint Distribution Services
MPEG: Moving Picture Experts Group
DAVIC: Digital Audio-Visual Council
QAM: Quadrature Amplitude Modulation
QPSK: Quaternary Phase Shift Keying
SCTE: Society of Cable Telecommunications Engineers
PowerKEY and Explorer are trademarks of Scientific-Atlanta, Inc.
PowerTV and Eagle are trademarks of PowerTV, Inc. |
