Monday February 8, 8:59 am Eastern Time
Company Press Release
SOURCE: MediaOne Group
MediaOne(R) Selects Initial Partners to Deliver OpenCable(TM)
Platform; Initial Partners Include Canal+, DiviCom, General
Instrument and Philips
ENGLEWOOD, Colo., Feb. 8 /PRNewswire/ -- MediaOne®, the Broadband services arm of MediaOne Group (NYSE: UMG - news), 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 - news) 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 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 - news), 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 www.divi.com.
General Instrument (NYSE: GIC - news) 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. 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
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 |
