Send Medianews mailing list submissions to
        medianews@twiar.org

To subscribe or unsubscribe via the World Wide Web, visit
        http://twiar.org/mailman/listinfo/medianews_twiar.org
or, via email, send a message with subject or body 'help' to
        [EMAIL PROTECTED]

You can reach the person managing the list at
        [EMAIL PROTECTED]

When replying, please edit your Subject line so it is more specific
than "Re: Contents of Medianews digest..."


Today's Topics:

   1. On this day (Feb 16) (Greg Williams)
   2. Digital music sales may be playing a swan song (George Antunes)
   3. Update: Delta 2 / THEMIS Upcoming Launch Coverage TONIGHT
      (02-17) @3:45pm ET. NASA DVB (Dishnut)
   4. AACS: A Tale of Three Keys (Monty Solomon)
   5. Inventor of the TV Remote Dies (George Antunes)
   6. Driver's License Emerges as Crime-Fighting Tool, but Privacy
      Advocates Worry (Monty Solomon)
   7. Drive-by Web attack aimed at home routers (Monty Solomon)
   8. First look: Apple offers 802.11n, and a wireless wow
      (Monty Solomon)
   9. Cuba Embraces Open-Source Software (George Antunes)
  10. Why is US always last in line for new cell phones?
      (George Antunes)
  11. Tire Reef Off Florida Proves a Disaster (George Antunes)
  12. Will AT&T make acquisitions to rescue its bumpy video     effort?
      (George Antunes)
  13. DirecTV or DISH? Both could be buyout targets for AT&T
      (George Antunes)


----------------------------------------------------------------------

Message: 1
Date: Sat, 17 Feb 2007 01:30:52 -0500
From: Greg Williams <[EMAIL PROTECTED]>
Subject: [Medianews] On this day (Feb 16)
To: Media News <medianews@twiar.org>
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset=windows-1252; format=flowed

http://www.smartcomputing.com/editorial/dictionary/detail.asp?guid=&searchtype=1&DicID=19535&RefType=Encyclopedia

Although it might seem hard to believe because of the way the Web has 
grown in popularity, computer users used to rely on dial-up systems, 
called BBSes (bulletin board systems), for their online work. And, 
stranger yet, they enjoyed it.

Ward Christensen and Randy Suess? invention of the BBS sparked a major 
change in the way people used their computers. Through a BBS, a computer 
user could dial in and connect with other computer users from almost 
anywhere. BBSes contained software, games, and message boards. Many 
computer-related companies ran BBSes, using them to post company news or 
software patches.

The first BBS, which Christensen and Suess called CBBS, began operating 
Feb. 16, 1978, in Chicago. The two men had been contemplating the idea 
for a while, but a timely snowstorm early in 1978 that made travel 
difficult in Chicago gave them the impetus to start the project. CBBS 
ran on a CP/M-8080 computer with a 300-baud modem.

CBBS became open to the public in 1979. CBBS was short for Computerized 
BBS (not Christensen?s BBS, as some people theorized). It didn?t take 
long for those using CBBS and other BBSes to drop the ?C? from the name.

Christensen had spent some time programming mainframe computers for IBM 
when he and Suess began working on the CBBS, which they envisioned as an 
electronic version of the traditional paper bulletin board where people 
could use a modem, dial into the BBS, and leave messages for other 
dial-up users. Suess handled the hardware setup, while Christensen wrote 
the software?many components of which remained in use throughout the 
lifespan of BBSes?and became the system operator. The entire setup 
process took only one month. After Christensen and Suess wrote a story 
about their BBS in the November 1978 issue of Byte magazine, others 
began creating BBSes, too.

Within a couple of years, CBBS had more than 11,000 users from all over 
the world. By 1992, 45,000 BBSes were operational in the United States, 
up from 9,000 just five years earlier. Christensen?s original BBS 
remained in operation into the mid-1990s, long after many BBS operators 
had closed shop or moved their data exclusively onto the Internet.

Although Christensen probably is best known for his work with BBSes, he 
also wrote the software behind the Xmodem protocol (sometimes called the 
Christensen protocol), which was the first file transfer protocol in 
widespread use. The Xmodem protocol, developed in 1977, was key in 
allowing easy file transfers over a phone line, especially in the early 
days of modems. It?s considered slow and impractical compared to today?s 
standard protocols for modems, but it was perfect for the modems of the 
time.

Christensen, who describes himself as ?somewhat of a loner,? became 
interested in computers during his senior year of high school when he 
built a simple computer. After attending college for a few semesters, he 
dropped out and worked with IBM, where he became more interested in 
computers.

IBM suggested he return to school, and he received a degree in physics 
and chemistry at Milton College (now defunct) in Milton, Wis. He then 
took a job at IBM as a systems engineer. He continued to work with 
computers as a hobby, purchasing the first popular computer kit, an 
Altair, in 1975.

Christensen received the 1993 Pioneer Award from the Electronic Frontier 
Foundation and the 1992 Dvorak Award for Excellence in 
Telecommunications for his pioneering work with BBSes. He also is a 
member of the Shareware Hall of Fame.

-- 
Greg Williams
K4HSM
[EMAIL PROTECTED]

http://www.twiar.org
http://www.etskywarn.net




------------------------------

Message: 2
Date: Sat, 17 Feb 2007 01:43:28 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Digital music sales may be playing a swan song
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

February 15, 2007

Digital sales may be playing a swan song

By KEVIN MANEY
USA TODAY

http://indystar.gns.gannett.com/apps/pbcs.dll/article?AID=/20070215/TECH01/701260346/1001/TECH


The online digital music business stinks.

ITunes, Rhapsody, Zune Store, Napster - you name it. They're all failures.

The hype has people believing otherwise. Bloggers, tech writers and your 
friends who know more about computers than you do shout that iTunes is the 
best thing to happen to music since the microphone. Or maybe psychedelic drugs.

But it's just not true. Nearly six years after the introduction of iTunes 
and the iPod, online music has failed to interest the vast majority of the 
world's music consumers. Which is no doubt why Steve Jobs recently called 
for an end to copy-protection software on digital songs. Something has to 
change, or iTunes and its ilk will never break into the mass market.Jobs 
admitted that iTunes' penetration has been weak. In his discussed-to-death 
essay, "Thoughts On Music" - posted a couple of weeks ago on Apple's Web 
site - Jobs noted that only about 3 percent of songs on a typical iPod are 
bought on iTunes. The rest are either ripped from CDs and transferred into 
iPods, or illegitimately downloaded for free off file-sharing sites such as 
Kazaa or eDonkey.

The reality for iTunes might not even be that good.

In a report released in December, Forrester Research said it did a 
strenuous, independent analysis of iTunes purchases. It found that just 3.2 
percent of all "online households" - homes that have computers and Internet 
connections, a subset of all homes - made an iTunes purchase over a 
one-year period.

About 10 percent of buyers purchased just one track during the entire year. 
About one-quarter of buyers spent $5 or less for the year. Most iTunes 
users, Forrester says, own fewer than two CDs' worth of iTunes music.

Really, it's as if tens of millions of people each had a big honkin' 
refrigerator, and put a quart of milk in it a few times a year.

Worse for Apple, Forrester found that the number of monthly transactions 
per iTunes household was declining in 2006. "It is too soon to tell if this 
decline was seasonal or if buyers were reaching their saturation level for 
digital music," the report says.

Apple rebutted Forrester's report, saying that iTunes sales continue to 
grow. But Apple did not offer specific numbers to counter Forrester's. 
Jobs' music manifesto certainly confirmed that consumers - people who 
already bought iPods, for Pete's sake - are simply not buying many iTunes 
songs.

It's not just an iTunes problem. In January, the International Federation 
of the Phonographic Industry - the global bureaucracy guarding music 
copyrights - said that online music sales in 2006 "nearly doubled." Which 
sounds amazing. Until you get to the part where the IFPI says that sales 
had tripled in 2005. So the growth rate had slowed.

"Downloads, as a business model for digital music, has failed," Dave 
Goldberg, VP of Yahoo Music, told a crowd at Digital Music Forum West late 
last year. "When you look at people who are buying downloads, it is older 
people who have money and time, and people who are doing it through gift 
cards."

How about subscription services, like Rhapsody and Napster? Not much joy 
there, either. Rhapsody reportedly has about 1 million subscribers. The 
rest, all together, have about another million. That's an audience share 
that approaches the 0.7 rating Animal Planet got when it aired "Puppy Bowl 
III" before the Super Bowl.

It's certainly not that people don't want to buy stuff on the Internet. 
Amazon.com's sales soared in 2006. Blue Nile is thriving selling diamond 
jewelry, and eBay sells millions of cars. Getting people to buy songs ought 
to be a snap.

And people want music. The Grammy Awards on Sunday were a giant celebration 
of music's popularity. People listen to more music in more ways than ever.

But for the majority of people, downloading songs is too hard and too 
frustrating. Some of that problem is the digital rights management (DRM) 
software that limits where and how songs can be played. It makes iTunes 
songs playable only on iPods, Rhapsody subscription songs playable only on 
certain devices, and so on.

The record companies believe DRM keeps people from pirating music, which 
may or may not be true. But DRM definitely keeps people from buying online 
music. As Jobs says, if consumers could buy music from any online store and 
play it on any device, the entire industry would thrive.

"The more you try to control music, the more you limit business 
opportunities," says Steve Waite, author of the book "Quantum Investing" 
and a professional musician.

Or as music artist Moby told me last week, "Personally, I see 2 percent of 
DRM as protecting copyright and 98 percent annoying consumers."

There are other reasons downloads are stalled. People who grew up with CDs 
- or vinyl LPs before that - like the packaging and cover art, and like to 
get songs deep in an album that are not hits but grow on you over time. At 
99 cents a song, digital downloads don't offer enough value to give up the 
packaged CD niceties.

Especially when pirated music is so easily available for free.

If digital downloads are going to take off, they probably need to be 
DRM-free, simpler to buy and much cheaper. Then again, that will only 
happen with the record companies' blessing, and since they get 90 percent 
of their revenue from CD sales, maybe they just don't care about taking 
digital downloads to the mass market.

I guess we'll find that out if record label EMI, as rumored, decides to 
sell songs with no DRM.

After Jobs released his essay, I asked Apple spokeswoman Natalie Kerris why 
he chose to do it at that time. She said there was no particular reason. 
But Jobs never does anything for no particular reason. He manipulates the 
media and timing better than anyone in tech.

More likely, Jobs realized it was time to save iTunes.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 3
Date: Sat, 17 Feb 2007 05:45:18 -0800
From: Dishnut <[EMAIL PROTECTED]>
Subject: [Medianews] Update: Delta 2 / THEMIS Upcoming Launch Coverage
        TONIGHT (02-17) @3:45pm ET. NASA DVB
To: Medianews <medianews@twiar.org>,    Satellite TV Wild Feeds List
        <[EMAIL PROTECTED]>,    Tom & Darryl Mail List
        <[EMAIL PROTECTED]>,    TVRO Newsgroup <TVRO@yahoogroups.com>,
        TVRO Talk Newsgroup <TVRO-TALK@yahoogroups.com>,        WildFeeds List
        <wildfeeds@twiar.org>
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

Dishnut wrote:
> Tonight (2-16) United Launch Alliance is scheduled to launch the THEMIS 
> spacecraft for NASA on a Delta II rocket (7925 configuration)  from 
> SLC-17B, Cape Canaveral, Florida.
> 
> Ground and high-altitude winds are the primary concern for todays launch 
> attempt.
> 
> Launch is scheduled at 6:05 p.m. EST. with a window extending to 6:23 
> p.m. EST.
> 
> 
> THEMIS satellite separations occurs approximately 73 minutes after liftoff.
> 
> THEMIS, (Time History of Events and Macroscale Interactions during 
> Substorms) is a constellation of five identical satellites to resolve 
> the tantalizing mystery of what causes the spectacular sudden 
> brightening of the Northern Lights or the aurora borealis - the fiery 
> skies over Earth's northern pole.
> This is NASA's first five identical satellite mission.
> 
> This will be the first NASA launch for ULA which is a joint venture 
> between Boeing and Lockheed Martin combining the Delta and Atlas rocket 
> fleets under the ULA organization.
> 
> Broadcast coverage:
> 
> NASA TV MPEG2 available on AMC-6 at 72? W, transponder 17C (4040 V)
> SR: 26665  VPID: 273 APID: 276 PCR: 273
> 
> NASA TV MPEG2 available on AMC-7 at 137? W, transponder 18 (4060 V)
> SR: 26665  VPID: 273 APID: 276 PCR: 273
> 
> Broadcast coverage starts at 3:45 p.m. EST.
> 
> Don't have a dish? Webcast is available at:
> 
> http://www.nasa.gov/multimedia/nasatv/
> 
> Additional coverage at:
> 
> http://www.spaceflightnow.com/delta/d323/status.html
> http://www.space.com/missionlaunches/launches/next_launch.html
> http://www.nasa.gov/mission_pages/stereo/main/index.html
> 

Due to unfavorable upper level winds a scrub was called, another attempt 
will be made tonight.

-- 

Dishnut-P

====================================================================
Operator of RadioFree Dishnuts - Producer of The Dishnut News
              heard Saturdays at 10pm EST. on
RFD, W0KIE Satellite Radio Network G-26 (T6) Transponder 1 / 6.2 & 6.8Mhz
(4DTV T6-999) WTND-LP 106.3, and many micro LPFM stations.
http://dishnuts.net
RFD Listen Links: http://dishnuts.net/#Listen
Show Archives: (Partly Up) http://dishnuts.net/archive/

    **In Loving Memory of Mom (Dishnut Gerry)**



------------------------------

Message: 4
Date: Sat, 17 Feb 2007 11:35:21 -0500
From: Monty Solomon <[EMAIL PROTECTED]>
Subject: [Medianews] AACS: A Tale of Three Keys
To: undisclosed-recipient:;
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"


AACS: A Tale of Three Keys
Thursday February 15, 2007 by J. Alex Halderman

This week brings further developments in the gradual meltdown of AACS 
(the encryption scheme used for HD-DVD and Blu-Ray discs). Last 
Sunday, a member of the Doom9 forum, writing under the pseudonym 
Arnezami, managed to extract a "processing key" from an HD-DVD player 
application. Arnezami says that this processing key can be used to 
decrypt all existing HD-DVD and Blu-Ray discs. Though currently this 
attack is more powerful than previous breaks, which focused on a 
different kind of key, its usefulness will probably diminish as AACS 
implementers adapt.

To explain what's at stake, we need to describe a few more details 
about the way AACS manages keys. Recall that AACS player applications 
and devices are assigned secret device keys. Devices can use these 
keys to calculate a much larger set of keys called processing keys. 
Each AACS movie is encrypted with a unique title key, and several 
copies of the title key, encrypted with different processing keys, 
are stored on the disc. To play a disc, a device figures out which of 
the encrypted title keys it has the ability to decrypt. Then it uses 
its device keys to compute the necessary processing key, uses the 
processing key to decrypt the title key, and uses the title key to 
extract the content.

...

http://www.freedom-to-tinker.com/?p=1121




------------------------------

Message: 5
Date: Sat, 17 Feb 2007 13:52:16 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Inventor of the TV Remote Dies
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

Inventor of the TV Remote Dies

Feb 17, 2007  7:52 AM (ET)

By SHANNON DININNY
Associated Press

http://apnews.myway.com//article/20070217/D8NBFLC00.html


BOISE, Idaho (AP) - Hit the mute button for a moment of silence: The 
co-inventor of the TV remote, Robert Adler, has died.

Adler, who won an Emmy Award along with fellow engineer Eugene Polley for 
the device that made the couch potato possible, died Thursday of heart 
failure at a Boise nursing home at 93, Zenith Electronics Corp. said Friday.

In his six-decade career with Zenith, Adler was a prolific inventor, 
earning more than 180 U.S. patents. He was best known for his 1956 Zenith 
Space Command remote control, which helped make TV a truly sedentary pastime.

In a May 2004 interview with The Associated Press, Adler recalled being 
among two dozen engineers at Zenith given the mission to find a new way for 
television viewers to change channels without getting out of their chairs 
or tripping over a cable.

But he downplayed his role when asked if he felt his invention helped raise 
a new generation of couch potatoes.

"People ask me all the time - 'Don't you feel guilty for it?' And I say 
that's ridiculous," he said. "It seems reasonable and rational to control 
the TV from where you normally sit and watch television."

Various sources have credited either Polley, another Zenith engineer, or 
Adler as the inventor of the device. Polley created the "Flashmatic," a 
wireless remote introduced in 1955 that operated on photo cells. Adler 
introduced ultrasonics, or high-frequency sound, to make the device more 
efficient in 1956.

Zenith credits them as co-inventors, and the National Academy of Television 
Arts and Sciences awarded both Adler and Polley an Emmy in 1997 for the 
landmark invention.

"He was part of a project that changed the world," Polley said from his 
home in Lombard, Ill.

Adler joined Zenith's research division in 1941 after earning a doctorate 
in physics from the University of Vienna. He retired as research vice 
president in 1979, and served as a technical consultant until 1999, when 
Zenith merged with LG Electronics Inc.

During World War II, Adler specialized in military communications 
equipment. He later helped develop sensitive amplifiers for ultra high 
frequency signals used by radio astronomers and by the U.S. Air Force for 
long-range missile detection.

Adler also was considered a pioneer in SAW technology, or surface acoustic 
waves, in color television sets and touch screens. The technology has also 
been used in cellular telephones.

The U.S. Patent and Trademark Office published his most recent patent 
application, for advances in touch screen technology, on Feb. 1.

His wife, Ingrid, said Adler wouldn't have chosen the remote control as his 
favorite invention. In fact, he didn't even watch much television.

"He was more of a reader," she said. "He was a man who would dream in the 
night and wake up and say, 'I just solved a problem.' He was always 
thinking science."

Adler wished he had been recognized for more of his broad-ranging 
applications that were useful in the war and in space and were building 
blocks of other technology, she said, "but then the remote control changed 
the life of every man."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 6
Date: Sat, 17 Feb 2007 20:19:01 -0500
From: Monty Solomon <[EMAIL PROTECTED]>
Subject: [Medianews] Driver's License Emerges as Crime-Fighting Tool,
        but Privacy Advocates Worry
To: undisclosed-recipient:;
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"


Driver's License Emerges as Crime-Fighting Tool, but Privacy 
Advocates Worry

By ADAM LIPTAK
The New York Times
February 17, 2007

BOSTON, Feb. 12 - On the second floor of a state office building 
here, upstairs from a food court, three facial-recognition 
specialists are revolutionizing American law enforcement. They work 
for the Massachusetts motor vehicles department.

Last year they tried an experiment, for sport. Using computerized 
biometric technology, they ran a mug shot from the Web site of 
"America's Most Wanted," the Fox Network television show, against the 
state's database of nine million digital driver's license photographs.

The computer found a match. A man who looked very much like Robert 
Howell, the fugitive in the mug shot, had a Massachusetts driver's 
license under another name. Mr. Howell was wanted in Massachusetts on 
rape charges.

The analysts passed that tip along to the police, who tracked him 
down to New York City, where he was receiving welfare benefits under 
the alias on the driver's license. Mr. Howell was arrested in October.

At least six other states have or are working on similar enormous 
databases of driver's license photographs. Coupled with increasingly 
accurate facial-recognition technology, the databases may become a 
radical innovation in law enforcement.

...

http://www.nytimes.com/2007/02/17/us/17face.html?ex=1329368400&en=8782b7320b2e7a40&ei=5090




------------------------------

Message: 7
Date: Sat, 17 Feb 2007 20:58:42 -0500
From: Monty Solomon <[EMAIL PROTECTED]>
Subject: [Medianews] Drive-by Web attack aimed at home routers
To: undisclosed-recipient:;
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"


Drive-by Web attack aimed at home routers

Too lazy to change default passwords? You'll pay.

Robert McMillan

February 15, 2007 (IDG News Service) -- If you haven't changed the
default password on your home router, do so now.

That's what researchers at Symantec Corp. and Indiana University are
saying, after publishing the results of tests that show how attackers
could take over your home router using malicious JavaScript code.

For the attack to work, the bad guys would need a couple of things to
go their way. First, the victim would have to visit a malicious Web
site that served up the JavaScript. Second, the victim's router would
have to still use the default password that it's pre-configured with
it out of the box.

...

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9011339


Drive-By Pharming
http://www.cs.indiana.edu/pub/techreports/TR641.pdf




------------------------------

Message: 8
Date: Sat, 17 Feb 2007 21:04:34 -0500
From: Monty Solomon <[EMAIL PROTECTED]>
Subject: [Medianews] First look: Apple offers 802.11n, and a wireless
        wow
To: undisclosed-recipient:;
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"


First look: Apple offers 802.11n, and a wireless wow

Do you know your N from your B and your G?

Ken Mingis

February 16, 2007 (Computerworld) -- What a difference a letter makes.

Just as it did in 1999 when it began pushing 802.11b -- the first 
wireless networking standard to go mainstream -- and again in 2003 
when it was on the leading edge with the faster 802.11g networking, 
Apple Inc. is moving ahead again, this time with wireless routers 
that use a standard not yet finalized: 802.11n.

With its latest Airport Extreme base station, Apple has done more 
than revamp the look of its popular wireless router. (The silky white 
UFO look is out; the simple, flat Mac mini look is in.) In addition 
to adopting 802.11n -- a whole new standard in Wi-Fi that promises 
faster transfer speeds and better range -- it is also making a foray 
into home storage networks.

Now you can add a USB hard drive to your Airport Extreme base 
station, creating an ever-present storage repository that anyone on 
your wireless network can access. More about that in a minute.

In case you're not familiar with the vagaries of wireless standards, 
802.11b offers a theoretical maximum speed of 11Mbit/sec. and a range 
of about 150 feet. Its successor, 802.11g, promises about five times 
that maximum speed, 54Mbit/sec., and a slightly wider radius of 
coverage. And 802.11n, according to Apple officials, offers five 
times the speed of its predecessor and about twice the range. Think 
of it this way: fast, faster and fastest.

Apple's new hardware can also use 802.11a networking, which is more 
common in enterprises, and has a built-in NAT firewall and three 
10/100 Ethernet LAN ports.

As always, mileage will vary when you set up your wireless network, 
depending on your hardware, the location of your router and the 
presence of other equipment that might cause interference. But the 
Airport Extreme base station I've been using for a couple of weeks 
has worked flawlessly so far.

...

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9011378




------------------------------

Message: 9
Date: Sat, 17 Feb 2007 20:11:19 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Cuba Embraces Open-Source Software
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED],
        [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

[So, what took them so long to get into open source? This would seem like a 
natural policy preference for any developing nation.]

Cuba Embraces Open-Source Software

Feb 16, 2007  3:42 PM (ET)

By JOHN RICE
Associated Press

http://apnews.myway.com//article/20070216/D8NB1EK05.html


HAVANA (AP) - Cuba's communist government is trying to shake off the yoke 
of at least one capitalist empire - Microsoft Corp. - by joining with 
socialist Venezuela in converting its computers to open-source software.

Both governments say they are trying to wean state agencies from 
Microsoft's proprietary Windows to the open-source Linux operating system, 
which is developed by a global community of programmers who freely share 
their code.

"It's basically a problem of technological sovereignty, a problem of 
ideology," said Hector Rodriguez, who oversees a Cuban university 
department of 1,000 students dedicated to developing open-source programs.

Other countries have tried similar moves. China, Brazil and Norway have 
encouraged the development of Linux for a variety of reasons: Microsoft's 
near-monopoly over operating systems, the high cost of proprietary software 
and security problems.

Cuban officials, ever focused on U.S. threats, also see it as a matter of 
national security.

Communications Minister Ramiro Valdes, an old comrade-in-arms of President 
Fidel Castro, raised suspicions about Microsoft's cooperation with U.S. 
military and intelligence agencies as he opened a technology conference 
this week.

He called the world's information systems a "battlefield" where Cuba is 
fighting against imperialism.

He also noted that Microsoft Chairman Bill Gates once described copyright 
reformers - including people who want to do away with proprietary software 
- as "some new modern-day sort of communists" - which is a badge of honor 
from the Cuban perspective.

Microsoft did not return calls seeking comment. Cuba imports many computer 
preloaded with Windows and also purchases software in third countries such 
as China, Mexico or Panama.

Valdes is a hard-liner who favors uniforms and military haircuts, but the 
biggest splash at the conference was made by a paunchy, wild-haired man in 
a T-shirt: Richard Stallman, whose Free Software Foundation created the 
license used by many open-source programs, including Linux.

Middle-aged communist bureaucrats and ponytailed young Cuban programmers 
applauded as the computer scientist from the Massachusetts Institute of 
Technology insisted that copyright laws violate basic morality; he compared 
them to laws that would threaten people with jail for sharing or modifying 
kitchen recipes.

Stallman also warned that proprietary software is a security threat because 
without being able to examine the code, users can't know what it's doing or 
what "backdoor" holes developers might have left open for future entry. "A 
private program is never trustworthy," he said.

Cuba also has trouble keeping proprietary software current. Its sluggish 
satellite link to the outside world makes downloads of updates agonizingly 
slow. And U.S. companies, apparently worried about American laws 
restricting trade with Cuba, are increasingly blocking downloads to the island.

Cubans try to get around the problem by putting software updates on a 
server located on the island. But many computers wind up unpatched and 
vulnerable.

Cuba's Cabinet also has urged a shift from proprietary software. The 
customs service has gone to Linux and the ministries of culture, higher 
education and communications are planning to do so, Rodriguez said.

And students in his own department are cooking up a version of Linux called 
Nova, based on Gentoo distribution of the operating system. The ministry of 
higher education is developing its own.

Rodriguez's department accounts for 1,000 of the 10,000 students within the 
University of Information Sciences, a five-year-old school that tries to 
combine software development with education.

Cuba is also training tens of thousands of other software and hardware 
engineers across the country, though few have computers at home. Most 
Cubans have to depend on the slow links at government internet cafes or 
schools.

Rodriguez shied away from saying how long it would take for Cuba to get 
most of its systems on Linux: "It would be tough for me to say that we 
would migrate half the public administration in three years."

But he said Linux use was growing rapidly.

"Two years ago, the Cuban free-software community did not number more than 
600 people ... In the last two years, that number has gone well beyond 
3,000 users of free software and its a figure that is growing exponentially."

Even so, most of the computers at this week's technology conference showed 
the red, green, blue and yellow Windows start button in the bottom 
left-hand corner of their screens.

And the start of the open-source sessions was delayed as organizers fiddled 
with the computer running their projector. The conference room screen had 
been displaying the words "Windows XP."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 10
Date: Sat, 17 Feb 2007 20:18:59 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Why is US always last in line for new cell
        phones?
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="iso-8859-1"; format=flowed

Why is U.S. always last in line for new phones?
There are several reasons for America's sluggishness in mobile telephony

By Michael Rogers
MSNBC Columnist

Updated: 12:29 p.m. CT Feb 15, 2007

http://www.msnbc.msn.com/id/17154970/


For U.S. gadget lovers, this week has been pretty much torment.  We?ve been 
watching the enormous 3GSM tradeshow in Barcelona ? the Consumer 
Electronics Show of the worldwide cell phone industry ? where the latest 
and greatest mobile phone gadgetry is paraded before the international press.

Why is it torment?  Because much of the hottest new equipment won?t be 
available in the United States anytime soon, if ever.  In an unusual 
turnabout, we Americans have our noses pressed against the shop window of 
the future, admiring technology we can only dream of owning.

What are we missing?  Just one example in Barcelona this week was the 
Samsung Ultra Smart F700, a sleek elegant black phone with a 
high-resolution color touchscreen, slide-out keyboard, a five megabyte 
auto-focus camera, all operating on an ultra-high-speed wireless network 
that will download a 4 megabyte MP3 song in four seconds.  The Ultra Smart 
F700 looks as cool as Apple?s upcoming iPhone ? and actually does more. But 
we?re not going to see it in the U.S. for a long time to come: for 
starters, we don?t even have a network it will run on.

Networks, as it develops, are only one of several reasons for the U.S.?s 
sluggishness in mobile telephony. But it?s probably the root of the 
problem. Early on, most of the world decided to all use the same technical 
standard ? GSM ? for their mobile phones.  In many countries, the 
government actually enforced that decision. In the U.S., on the other hand, 
free enterprise ruled and multiple standards competed, with GSM initially 
only a small part of the market.

By now there are upwards of 2 billion GSM users worldwide; the fragmented 
U.S. market is only a small percentage of that. So when the big handset 
manufacturers roll out a great new product, whom will they serve first? 
Certainly not that divided market over in the States. Even the all-American 
Apple iPhone uses the global GSM standard, which could initially restrict 
its market in the United States (it won?t run on Verizon or Sprint 
networks) but will open up a large market overseas.

Another example of our tardiness is text messaging.  By now SMS (for short 
messaging service) is part of European and Asian life: you can pay bills, 
gamble, bid in auctions, and get every kind of information (including legal 
notices) via SMS; the first novel has already been written via SMS. The 
competitive streak in the U.S. kept text messaging from catching on ? 
initially, if you were a Verizon user, say, you could only text to other 
Verizon subscribers. Only recently have Americans been able to send text 
messages between different carriers.  In Europe they?ve not only been able 
to do that for years, but they can even text between countries.

U.S. consumer behavior put another brake on cell phone evolution: since we 
were far ahead in personal computer adoption, we had less need to use our 
mobile phones for anything but conversation. In other countries, where 
personal computer penetration was lower (or at-home online access more 
expensive) consumers quickly figured out that cell phones could do much 
more than simply voice.  For many Japanese, for example, the mobile phone 
remains their only form of Internet access.  At one time, of course, that 
was rather clumsy and difficult, and we Americans felt sorry for 
them.  Now, however, it?s no longer clumsy, but cool and the Japanese are 
far down the road to cell phone nirvana, with rock-solid video on their 
handsets (plus DVR capabilities) and a mobile e-commerce system that may 
someday replace credit cards and ATMs.

The U.S. may finally be moving out of the cell phone Dark Ages. For 
starters, high-speed cell phone networks ? generically called 3G ? are 
finally rolling out across the U.S., with the four major carriers promising 
that by the end of this year, about 85 percent of the U.S. will be able to 
surf the Web at speeds approaching that of home DSL (assuming customers are 
willing to pony up for the new services).  But there may also be some price 
competition to keep those services affordable: this year, a new technology 
service called WiMAX will appear, initially from Sprint and a start-up 
called Clearwire.  WiMAX will provide an alternative form of high speed 
wireless connection. At the Barcelona show, Sprint showed several new WiMAX 
phones made by Samsung that had powerful Web-browsing features. All those 
new networks will let U.S. carriers start providing the services that 
Europeans and Asian users now take for granted.

But that?s not all.  Another kind of new signal is coming to U.S. cell 
phones this year: direct broadcast television.  That takes a bit of 
explanation.  There is already some video available on existing cell phone 
networks, but the quality of the images tends to be variable and is 
sometimes quite choppy ? more like watching a slide show than video.  What 
the Asians and Europeans have learned is that video works best when it?s 
transmitted as a separate signal ? in a sense, a step back to the way 
old-fashioned television is sent, as a single broadcast that reaches many 
receivers.

In the U.S., Verizon will be the first to introduce this new television 
service later this year, and in Barcelona AT&T announced they will do the 
same.  The good news is that unlike the early days of the U.S. cell phone 
market, both carriers will actually use the same technology, which should 
make a bigger market for cool handsets.  The bad news is that, once again, 
the Americans have chosen a form of mobile TV broadcast that?s different 
than the one most of the rest of the world has adopted, so it could be a 
bit like the GSM situation revisited.

If all that sounds a bit confusing, it is, and in the end that?s the 
central cause of the American mobile malaise.  While choice is generally a 
good thing, it has unquestionably slowed progress.  There?s some optimism 
that as the cell phone industry moves toward the next level of service ? 4G 
? U.S. carriers may begin to converge on network standards.  Or perhaps 
rugged American individualism will once again reject the route of 
compromise.  In any event, don?t put down a deposit on that Samsung Ultra 
Smart quite yet.

URL: http://www.msnbc.msn.com/id/17154970/



================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 11
Date: Sat, 17 Feb 2007 20:20:58 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Tire Reef Off Florida Proves a Disaster
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

[One for the weird file.]

Tire Reef Off Florida Proves a Disaster

Feb 16, 2007  7:07 PM (ET)

By BRIAN SKOLOFF
Associated Press

http://apnews.myway.com//article/20070217/D8NB4EV00.html


FORT LAUDERDALE, Fla. (AP) - A mile offshore from this city's high-rise 
condos and spring-break bars lie as many as 2 million old tires, strewn 
across the ocean floor - a white-walled, steel-belted monument to good 
intentions gone awry.

The tires were unloaded there in 1972 to create an artificial reef that 
could attract a rich variety of marine life, and to free up space in 
clogged landfills. But decades later, the idea has proved a huge ecological 
blunder.

Little sea life has formed on the tires. Some of the tires that were 
bundled together with nylon and steel have broken loose and are scouring 
the ocean floor across a swath the size of 31 football fields. Tires are 
washing up on beaches. Thousands have wedged up against a nearby natural 
reef, blocking coral growth and devastating marine life.

"The really good idea was to provide habitat for marine critters so we 
could double or triple marine life in the area. It just didn't work that 
way," said Ray McAllister, a professor of ocean engineering at Florida 
Atlantic University who was instrumental in organizing the project. "I look 
back now and see it was a bad idea."

In fact, similar problems have been reported at tire reefs worldwide.

"They're a constantly killing coral-destruction machine," said William 
Nuckols, coordinator for Coastal America, a federal group involved in 
organizing a cleanup effort that includes Broward County biologists, state 
scientists and Army and Navy salvage divers.

Gov. Charlie Crist's proposed budget includes $2 million to help gather up 
and remove the tires. The military divers would do their share of the work 
at no cost to the state by making it part of their training.

A monthlong pilot project is set for June. The full-scale salvage operation 
is expected to run through 2010 at a cost to the state of about $3.4 million.

McAllister helped put together the ill-fated reef project with the approval 
of the U.S. Army Corps of Engineers. He helped raise several thousand 
dollars (the county also chipped in), organized hundreds of volunteers with 
boats and barges, and got tires from Goodyear.

Goodyear also donated equipment to bind and compress the tires, and the 
Goodyear blimp even dropped a gold-painted tire into the ocean in a 
ceremonial start to the project.

The tire company issued a press release at the time that proclaimed the 
reef would "provide a haven for fish and other aquatic species," and noted 
the "excellent properties of scrap tires as reef material."

It was a disappointment, just like other tire reefs created off coastal 
states and around the world in recent decades.

"We've literally dumped millions of tires in our oceans," said Jack Sobel, 
an Ocean Conservancy scientist. "I believe that people who were behind the 
artificial tire reef promotions actually were well-intentioned and thought 
they were doing the right thing. In hindsight, we now realize that we made 
a mistake."

No one can say with certainty why the idea doesn't work, but one problem is 
that, unlike large ships that have been sunk for reefs, tires are too 
light. They can be swept away by the tides and powerful storms before 
marine life has a chance to attach. Some scientists also believe the rubber 
leaches toxins.

Virginia tried it several decades ago. But Hurricane Bonnie in 1998 ripped 
the tires loose, and they washed up in North Carolina.

New Jersey scientists thought they had a solution to the weight problem. In 
1986, the state began a small reef project with about 1,000 tires split in 
half, bound together and weighted with concrete. It didn't work. Pieces of 
rubber broke loose and floated free.

"We had to go up and down the coast of New Jersey and collect 50 to 100 of 
those pieces that were all along the beaches," said Hugh Carberry of New 
Jersey's Department of Environmental Protection.

The state then tried stacking tires 10-high and filling the cylindrical 
center with concrete. Each stack weighed about a ton. While the tires 
stayed in place, scientists soon learned they did not have enough surface 
area for marine life to attach, so they switched to using concrete balls.

Indonesia and Malaysia mounted enormous tire reef programs back in the 
1980s and are just now seeing the consequences in littered beaches and reef 
damage, Sobel said.

Most states have stopped using tires to create reefs, but they continue to 
wash up worldwide. In 2005, volunteers for the Ocean Conservancy's annual 
international coastal cleanup removed more than 11,000 tires.

The tires retrieved from the waters off Fort Lauderdale will be ground up 
for use in road projects and burned for fuel, among other uses.

"It's going to be a huge job bringing them all up," said Michael Sole, 
chief of the state Department of Environmental Protection. "It's vigorous 
work. You have to dig the tires out of the sand."



================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 12
Date: Sat, 17 Feb 2007 20:23:51 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] Will AT&T make acquisitions to rescue its bumpy
        video   effort?
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED],
        [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

Will AT&T make acquisitions to rescue its bumpy video effort?

Critics of its battle vs. cable fuel speculation Ma Bell is on the 
acquisition hunt

By Jeffry Bartash
MarketWatch

Last Update: 7:15 PM ET Feb 16, 2007

http://custom.marketwatch.com/custom/myway-com/news-story.asp?guid={9231091C-4003-4527-8E1C-4E22A97BC5E4}


WASHINGTON (MarketWatch) -- AT&T Inc. needs to answer a nagging question -- 
how to hit back at cable companies that are stealing its phone customers.

Wall Street is split on which strategy the phone giant should pursue -- 
invest more in AT&T's fiber-optic push so it can ramp up video offerings, 
or buy a satellite-television operator. Indeed, AT&T (T: news) explored the 
option of acquiring DirecTV four years ago.

One thing is certain: The price tag of either strategy is billions of 
dollars higher than AT&T now plans to spend. Yet the risk of losing 
millions of customers to cable could force AT&T's hand, industry observers say.

"Cable is going to take more phone lines next year and the year after 
that," said Steve Mather of Sanders Morris Harris, who wrote a report in 
September suggesting AT&T might buy EchoStar Communications Inc. "How long 
do you want that to continue?"


Tough customers

The trend is clear. Cable operators, which have jumped into phone business 
in the past few years, are quickly signing up subscribers at the expense of 
traditional carriers AT&T and Verizon Communications Inc.

In 2006, AT&T lost 950,000 primary consumer phone lines to end the year 
with 21.84 million, a 4.2% drop. BellSouth, which AT&T acquired in 
December, suffered a similar rate of decline.

Those losses could accelerate as Comcast Corp. (CMCSK: news) and other 
cable operators expand phone services to more customers. Comcast added 1.5 
million phone customers last year and expects to sign up more than 2 
million households in 2007. About 60% of Comcast's territory overlaps with 
AT&T.

Losing a local phone account may be very costly. Winning a customer back, 
on the other hand, is even more expensive.

AT&T needs a video strategy to protect its most profitable customers. To 
counter the cable assault, AT&T has adopted a two-pronged approach.

For starters, AT&T already offers video via partnerships with both DirecTV 
and EchoStar (DISH: news), owner of Dish Network. So far, AT&T-BellSouth 
has signed up about 1.45 million satellite customers. And the company is 
adding an average of 100,000 each quarter, Chief Financial Officer Rick 
Lindner said after AT&T's most recent quarterly results.

In the long run, AT&T plans to link up more than half the homes in its 
territory by running fiber lines into their neighborhoods.


AT&T vs. Verizon

Under "Project Lightspeed," AT&T plans to spend $4.6 billion to reach 19 
million homes in 13 states. The carrier also plans to lay fiber in portions 
of the nine states served by BellSouth, but AT&T hasn't said how much that 
will cost.

Many analysts are skeptical.

They don't think AT&T's fiber service, dubbed U-Verse, can simultaneously 
deliver super-fast Internet speeds and a television service on par with 
what cable can do. They point to repeated delays in the rollout of U-Verse 
and other snafus. The service only had a few thousand subscribers at the 
end of 2006.

Verizon's ambitious $18 billion plan to bring fiber directly to customer 
homes is viewed as a superior technological solution. If AT&T were to adopt 
the same approach, however, the price tag could exceed $30 billion and put 
a scare into Wall Street.

The attitude of investors is quite evident in the stock performances of 
AT&T and Verizon. Verizon (VZ: news) shares are 5% below where they traded 
at the start of 2005, while AT&T's stock is up 44%.

"AT&T views the Verizon strategy as prohibitively expensive," said Aryeh 
Bourkoff, an analyst with UBS Investment Research.

For their part, executives at AT&T insist their more modest fiber strategy 
is working better than they thought. They say technological progress should 
increase bandwidth over time and allow the carrier to offer faster 
Internet-access speeds and a TV service that will match -- if not surpass 
-- the power of cable.

"There has been a lot of talk about does this stuff work. It works and it 
works well," AT&T Chief Executive Ed Whitacre Jr. said after its latest 
quarterly results were issued in late January. "So this is our Plan A, and 
Plan A we're sticking with."

Michael Coe, a spokesman for the company, reiterated AT&T's stance. "We're 
fully committed to Project Lightspeed."

Yet Whitacre hasn't ruled out another big acquisition and his reputation as 
a dealmaker only fuels the speculation.

Whitacre has orchestrated more than a dozen major deals during his 17-year 
reign, marking him as the most aggressive executive in the telecom business.


Pie in the sky

If the fiber plan fails or cable starts to eat AT&T's lunch, a satellite 
deal becomes inevitable, analysts say.

The cost would be high. Based on current stock prices, DirecTV could fetch 
about $36 billion and Dish about $22 billion, analysts calculate. Mather of 
Sanders Morris figures AT&T would have to pay about a 20% premium for 
either company.

Such a bold move is not farfetched. In 2003, the current AT&T, then known 
as SBC Communications Corp., took a close peek at DirecTV when the 
satellite TV service went on the auction block.

"They kicked the tires and were interested in buying it, but the timing 
just wasn't right," said Paul Wright, a telecom analyst at mutual-funds 
giant Loomis Sayles.

He said a satellite acquisition would speed up AT&T's entry into the video 
market, cost less money in the long run and deliver a better return on 
investment. Both DirecTV and EchoStar, for instance, are projected to 
generate more than $1 billion in free cash flow in 2007.

Wright, whose firm owns shares of AT&T, DirecTV and EchoStar, thinks an 
announcement could happen as early as spring. Yet others think a deal -- if 
it happens at all -- is unlikely for another year or two.

"I don't think a deal is imminent. They're digesting BellSouth and 
exploring whether [U-Verse] can work," said Areyh, who's skeptical about 
AT&T's limited fiber plan. "If it doesn't, then a satellite deal becomes a 
viable option."

Jimmy Schaeffler, a longtime satellite analyst who runs The Carmel Group, 
is one of the few analysts who believes AT&T's fiber plan will do better 
than expected and temper the need for an acquisition.

Yet he said it will take several years for AT&T to discover whether its 
fiber approach will succeed.

"It's just way too early," said Schaeffler, to make a clear determination."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

Message: 13
Date: Sat, 17 Feb 2007 20:25:54 -0600
From: George Antunes <[EMAIL PROTECTED]>
Subject: [Medianews] DirecTV or DISH? Both could be buyout targets for
        AT&T
To: medianews@twiar.org
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED],
        [EMAIL PROTECTED]
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="us-ascii"; format=flowed

DirecTV or DISH? Both could be buyout targets for AT&T

For AT&T, either satellite firm is seen as a good buyout target

By Jeffry Bartash
MarketWatch

Last Update: 7:14 PM ET Feb 16, 2007

http://custom.marketwatch.com/custom/myway-com/news-story.asp?guid={BE91EDAF-8CF9-41CE-B012-E7974EE77262}


WASHINGTON (MarketWatch) -- Stocks or bonds? Yankees or Mets? Those are 
some of the questions in the minds of Wall Street investors.

Here's another on the rise: Dish Network or DirecTV?

These days, Dish and DirecTV are frequently rumored to be buyout candidates 
of interest to AT&T Inc. (T: news) if the nation's biggest phone company 
decides to jumpstart its fledgling video business.

AT&T is upgrading its fiber-cable network to deliver its own television 
service, but many analysts are skeptical about its chances for success from 
both a technology and a marketing standpoint. See related story.

Taking on entrenched cable and satellite-TV operators like Comcast Corp. is 
"like trying to take share away from Tyson and Ali," said analyst Steve 
Mather of Sanders Morris Harris.

The quickest route into the video business is through the purchase of a 
satellite-TV operator. The only big question: Which one?

DirecTV and Dish both have plenty of fans.


Take your pick

Market leader DirecTV (DTV: news) is generally viewed as the more suitable 
partner. With about 16 million customers -- 3 million more than Dish -- 
DirecTV is the better known brand. What's more, about 57% of the satellite 
customers in AT&T's territory subscribe to DirecTV, according to 
calculations by brokerage UBS.

DirecTV, its stock market value now exceeding $29 billion, has been on the 
auction block several times in recent years. Indeed, controlling 
shareholder News Corp. (NWS: news) is in the process of transferring its 
38% stake in DirecTV to Liberty Media Corp., the broadcast company led by 
former cable titan John Malone.

"John Malone has said repeatedly that he believes the best strategy for the 
telecom providers to get into broadband would be to acquire a satellite 
operator," Andrew Baker of Cathay Financial wrote in a recent report. He 
said a merger with AT&T might be Malone's "ultimate end game."

Yet AT&T has a deeper relationship with EchoStar Communications Inc. (DISH: 
news), owner of Dish, and owns a small stake in the firm. Dish is arguably 
a better-run company than DirecTV, and it's a feisty competitor in the 
video market.

Until recently, AT&T only offered the Dish service, and the two companies 
now offer a widely praised product called Homezone that combines a 
satellite set-top box and a router for high-speed Internet access.

With its acquisition of BellSouth last year, however, AT&T inherited a 
partnership with DirecTV. And because of BellSouth's relatively aggressive 
marketing of satellite service, AT&T now has about 818,000 DirecTV 
subscribers compared to 632,000 for Dish.

AT&T could tip its hand if the company decides to move all its satellite 
customers to either Dish or DirecTV. So far, AT&T hasn't said whether it 
will keep both partnerships or how long the contracts with each company run.

"We really haven't discussed that," AT&T spokesman Michael Coe said.

Some analysts also question whether Charlie Ergen, EchoStar's chief 
executive and largest shareholder, would give up control of the company he 
co-founded. He's a shrewd investor and tough negotiator who would be 
expected to drive a hard bargain.

Ergen, however, has shown a willingness in the past to step aside, as he 
notably did five years when EchoStar tried to buy DirecTV in a move that 
eventually was blocked by federal antitrust regulators.


Rock and a hard place

Mather thinks the time is ripe for Ergen to act. The sale of Dish would 
protect the media empire he's created and fatten his bank account by as 
much as $10 billion.

After years of heady growth, the satellite business is starting to slow. 
Dish and DirecTV are signing up fewer customers, competition is 
intensifying and satellite firms need to invest heavily in high-definition 
technology.

What's more, satellite companies lack the means to supply phone service and 
an affordable high-speed Internet connection, putting them at a 
disadvantage to cable and phone companies.

Comcast Corp. (CMCSK: news) and Verizon Communications (VZ: news), for 
example, can offer consumers a so-called triple-play of packaged services 
-- phone, Internet and video -- all on one bill. They're using such 
discounted bundles of service to lure or retain customers.

A combination of AT&T with a satellite firm might offer a stiffer challenge 
to cable rivals because AT&T would be able to offer a so-called quadruple 
play -- phone, Internet, video and even wireless.

"Without a doubt, it would fill a hole in their portfolio," said Maribel 
Lopez of Forrester Research, but she acknowledged that a buyout is no magic 
wand.

"People are not tripping over themselves to buy satellite. That won't 
change even if it's owned by AT&T," Lopez said. "This is a saturated market."

Jimmy Schaeffler, who runs the satellite-research firm Carmel Group, 
suggests a better alternative for Dish and DirecTV: another trip to the alter.

"Federal regulators might eventually allow DirecTV and Dish to merge and 
become a satellite monopoly if AT&T and Verizon emerge as legitimate 
threats as suppliers of video," Schaeffler said. "That would create a third 
major competitor in the pay-television industry."

Even in a best-case scenario, however, that opportunity is unlikely to 
arise again for a couple of years.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu




------------------------------

_______________________________________________
Medianews mailing list
Medianews@twiar.org
http://twiar.org/mailman/listinfo/medianews_twiar.org


End of Medianews Digest, Vol 186, Issue 1
*****************************************

Reply via email to