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December 5, 2011 @ 1:01 AM
showtime
Maxwell: How Many Ringy Dingies?
by Paul S. Maxwell


Or cell vibrations ... or inappropriate ring tones ... or disrupted cable conferences ... or what happens when an iPhone along with an iPad, an iPad2, an Android phone or so as well as an 80” Sharp internet connected 3DTV along with a Sony Bravia 55” connected HDTV along with an cable STB along with a video wrist watch all try to watch the same game?

And which device (or customer[s]) belongs to whom?

Will it work?

Well, on the one hand, there was PrimeStar ... and Cable in the Classroom (now on life support) ... and long gone Cable Positive ... and a PCS venture ... and a united advertising initiative ... and that fills up the 1st hand.

On the other hand, there’s the NCTA and CableLabs.

So condemning the SpectrumCo/Verizon Wireless with 3 (count ‘em, 3!) MSOs venture out of hand[s] won’t quite cut it ... yet.

In the meantime:
    • will the NCTA invite Verizon Wireless as an MVPD member?
    • and AT&T Wireless (along with U-verse), DISH, DIRECTV and FiOS parent (the other Verizon)?  (How would they keep them out?  Besides, if having one group of frenemies inside the tent is good, why not all of them?)
    • will the deal pass regulatory muster?  Is 5 years long enough to about double your bet ... or is it too long to hold spectrum without action (other than selling it, that is)?
    • how long will it take AT&T (with or without Deutsche Telekom) to hit back?
    • is this really a game changer?  (Yep, but not overnight; more like what happens in the 21st month after 4 years of trying to work out the future ringy dingies.  Long enough to make a real college try and long enough for all the tempers to fray.)
    • did you short Sprint and Clearwire (yet)?
    • does this mean cable consolidation will accelerate again?
    • does it mean Time Warner Cable and Comcast can really work together nicely?

Lots of good questions ... for more looking ahead, take a look at the overlapping signal coverage in the map on this page (from mapELEMENTS featuring American Roamer and MediaBiz/MediaCensus data) with almost all of Verizon Wireless’ many cellular bands along with the footprints of Bright House, Comcast and Time Warner Cable blended.  The overlapping is where the colors blend into various shades of purple.  If you'd like to see some other views ... such as each MSO or each Verizon Wireless cellular band (including LTE), send an email to max@mediabiz.com.



Meanwhile, I’m all for C-SPAN’s cameras in the Supreme Court ... although I somewhat empathize with the Justices in their fear of sound bite hell being visited upon them, I sure don’t think that’s a good enough reason to keep the Court shrouded in the dryness of words on a page.  While I can imagine one or two of them saying something that would challenge the boundaries of “good behavior” and skirt up against “high crimes and misdemeanors” I can’t imagine a trial in the Senate booting one of them (ever) nor an impeachment from the House ... no matter how irrationally partisan it gets.

Besides, it certainly couldn’t be worse than Donald Trump moderating a Republican presidential candidate “debate.”

    • I won’t tell you about whom among us the following quote was written in a glossy magazine ... but, if it were written about anyone I know, including especially me, they and I would be more than just a little bit embarrassed!  Here it is ... for real: “And even when he’s at ease, he stands ramrod straight, hands on his hips, elbows out, a satisfied smile playing across his lips, like Superman observing a peaceful Metropolis from the top of some tall building—­his résumé fanning out behind him like a cape.”•

Cable's Wireless Deal 'Reorders Universe'

Cable is abandoning its wireless 4-play strategy. In a major move to embrace the 'TV everywhere' future, the Comcast/Time Warner Cable/Bright House joint venture SpectrumCo. has agreed to sell its spectrum to Verizon Wireless for $3.6B… a cool 50% return on its investment just five years ago. With the announcement, the cable industry has all-but-ensured it will not pursue plans to build a wireless network, opting instead on advancing already-established WiFi blueprints.

Specifics of the deal look like this: For a $3.6B price-tag, Verizon Wireless will acquire 122 advanced wireless service spectrum licenses covering ~259M POPs. Comcast, which owns 64% of SpectrumCo., will receive about $2.3B from the sale, with TWC (31%) receiving $1.1B and Bright House (5%) to bank $189M. In addition, the cable companies and Verizon Wireless "will become agents to sell one another's products" (with an option for cable to wholesale Verizon services) and will form an additional JV to develop advanced wireless/wireline integration technologies.

The deal is subject to FCC approval and review, but initial reaction was swift and strong. On the wireless side, the deal has to be seen as another major blow to AT&T as its main competitor will now be able to grow its wireless data networks. Said Bernstein's Craig Moffett: The "most significant deal the industry has ever seen" represents "a complete reordering of the competitive universe" as former "mortal enemies" are now strategic partners.

ISI's Vijay Jayant said the deal is a victory for Verizon and cable investors "given the backdrop of AT&T's very public - and even embarrassing - apparent failure to acquire T-Mobile" while offering "clarity on where (cable) management has set its focus: core operations."

And as this new universe unfolds, BTIG's Walter Piecyk says don't be surprised if there's one more major spectrum deal in the stars before year's end. In light of the SpectrumCo. developments, and Clearwire avoiding liquidation, "AT&T, T-Mobile, DIRECTV and most notably MetroPCS face increased pressure to address their spectrum needs." The analyst said potential buyers will have to negotiate with… Charlie Ergen who, over the past week, has blown DISH Network's strategic value to the heavens.

It should be noted that the deal may face obstacles winning approval as both the FCC and FTC have voiced a desire to have cable and telcos compete for subscribers. •

Big Brother Developments - NBC's Hurry-Up Offense w/ NFL - YouTube's TV-like Redesign

Big Brother: Conspiracy "theorists" seem to be having their day as a handful of stories from the realms of gov't and tech signal chilling implications for the country moving forward. First, news broke last week about Carrier IQ, an alarmingly intrusive data logging program discovered to be secretly running on many mobile devices, including iPhones, Androids and Blackberry. The news was such a shock, Sen. Al Franken (D-MN) immediately wrote a letter to Carrier IQ CEO Larry Lenhart to explain exactly WTH is going on. Second, new Wikileaks cables detail confidential documents that companies use to market surveillance tools to gov't and law enforcement agencies. ArsTechnica has an excellent story with details and links. And third, the eerily non-existent coverage from mainstream media about last week's Senate passage of the National Defense Authorization Act. What's the big deal? The bill includes language that allows the gov't to detain US citizens indefinitely, without legal representation, in a military prison, without even being charged with a crimeBusiness Insider's David Seaman writes: "This is not a drill. The bill is very close to becoming law." Details and links, here. (And you thought Occupiers and Tea Baggers had nothing in common.)

Retrans: The NFL and NBCU are huddling for initial talks about extending their "Sunday Night Football" pact currently set to expire in 2013. Why so soon? NYP says NBC wants to get the deal done now as it preps for retrans negotiations with cable and satellite. Surprise, surprise. --- Mark Cuban nets getting squeezed out? That's his take, all thanks to out-of-control retrans consent negotiations. Read his comments at ContactMusic.

Deals: MTV, the network formerly known as a music video channel, is said to be negotiating with VEVO, the online music video portal, to end their contentious relationship and move forward as friends. Citing sources close to both sides, CNN says the companies are working on a deal that would give MTV's online properties access to VEVO content from Universal, EMI and Sony.

Online: In case you hadn't heard (or seen for yourself already) YouTube unveiled a significant re-design late last week to give users a more TV-like feel. Check it out.

$$$: While it's less than originally thought, social media game maker Zynga plans to raise ~$925M by selling 100M shares (14.3% of the company) at $8.5-$10 per. Reuters has details on the company's IPO.  --- Zayo completed its purchase of 360networks creating a unified entity with estimated annual revs of $393M. RBC Capital Markets acted as financial advisor to 360 in the deal. --- Mixed reaction to news that traders see a silver lining, in fact an up-side, to News Corp.'s ongoing scandal across the globe. Bloomberg sheds light on how COO Chase Carey has The Street placing bullish bets on the media giant.  --- Disney CEO and newly christened Apple board member Bob Iger bought $1M in shares of the iPhone maker last week.

Labor: CenturyLink has agreed to open its books to the Communications Workers of America after the union accused the company of blindsiding retirees with health care premium hikes of nearly 3xs their previous rate. The Denver Post has details.

Retail: Google wants a piece of Amazon's retail pie. WSJ has details on the search giant's plans to work directly with retailers to create a service that would let consumers shop for goods online and get their orders on the next day. Bam. --- iHS says just two weeks after its launch, Amazon's Kindle Fire will surpass all other non-iPad tablets during Q4 with expected shipments to reach 3.9M by the end of the year… a 13.8% global market share. --- The new Apple retail store in New York's Grand Central Terminal will open this Friday (Dec. 9).

Up, Down & Over There: A group of European Broadcasting Union members announced plans to launch a massive European-wide hybrid TV initiative in 2012 committing to open standards like HbbTV, MHP and MHEG-5. Notably missing from the coalition: BBC (which has chosen to support YouView). --- Al Jazeera launched Arabic news apps on Android and Blackberry devices that allow users to view live broadcasts and submit content. --- Viacom International Media Networks signed a deal with Polish TV service ipla for on-demand access to MTV, Comedy Central and Nick. --- MTV Networks Africa is launching Comedy Central in sub-Saharan Africa on MultiChoice's DStv platform this week. --- On Dec. 31, MTV Networks will cancel the last three remaining TMF channels in the Netherlands: TMF Dance, TMF NL and TMF Pure. --- French VOD service Videofutur is now available on all Samsung smart-TVs offering new movies 4 months after theatrical release. (Hat tip to BroadbandTV News for all the great international news.) --- Viacom18 India is set to launch Sonic, a new channel described as a "Sci-Fi platform for the WiFi generation." THR has details.

People: Two people-notes from TVNewser on Friday: 1) Bloomberg TV's sports biz reporter Michele Steele is joining ESPN as an on-air talent, and 2) CNBC anchor Melissa Francis is jumping ship to Fox Business Network. --- Cable360 unveiled its first-ever class to the Communications Technology Hall of Fame. Honorees will receive their recognition at the CT Platinum Awards ceremony this week in NYC. The full list of inductees can be found here.

Ooops!!! In our Rick Perry moment, the quarterly loss number cited for Time Warner Cable was considerably higher than it should have been – a brain-dead  error that could've, should've and I really wish would've been caught.  That aside (the actual TWC loss was 126K), my basic premise stands:   This will be a very interesting company to watch in 2012 as CEO Glenn Britt steers the company into a new media future. EH

--- Catch today's media market news in The Evening BRIDGE. •
 
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