latin american iptv and cable operators on the watch: first

Number 249 | Year 6 | Week June 4 to 10 2008

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Weekly news service on the Latin American satellite industry. Only avaliable upon subscription. Convergencialatina’s service

IPTV has given out few life signals so far in Latin

America though those interested have not remained

quiet. Regulatory and technical issues have halted

them. There are also some potential fears from

operators about investing important figures in a

development still in the test stage in the region. In spite

of that, efforts persist. And, in this sense, a confirmation

comes from the fact that the via-satellite IPTV operation

would be launched in a few weeks by IPTV Americas,

partnered up with "main global satellite operators", as

stated by the integrator firm based in Miami. "The time

to announce the agreement has yet to come", the

President and CEO of IPTV Americas, Alvaro Gazzolo,

told LatSat.

The news has some important features, both for

pioneering in Latin American territory, and for the

technological features that make it attractive. For a year,

IPTV Americas has had technicians working in the

development of a technology that would enable cost

cuts for set-top boxes and enhance performance, both

for definition (SD) and high definition (HD). The

development has finally reached an end, and the results

have really pleased the integrator and the TV operators

who witnessed the trials and proved the quality and

efficiency of the new Set-Top-Box (STB) and MPEG-4

(H.264). The new decoders will reach the market in a

few days at a cost of around US$80 (SD) and US$ 90

(HD). To the lower STB cost and the quality upgrade,

the company now adds a confirmation on a satellite

launching to reach IPTV and cable TV operators

(decoders have been adjusted to fit both purposes);

therefore the transcendental news.

For Gazzolo, taking into account IPTV Americas

business plan is supported on the subscriber cost and

the expansion of the pay-TV market to C and D socio-

economic levels, the most important hindrance has come

from the set-top boxes already in the market, with prices

ranging from US$ 150 to 200. "There is a clear conflict

of interests between content and STB providers. STB

costs pose obstacles to trade content. Examples as the

EchoStar's are valid to highlight the said reality. This

company produces STBs and, in turn, controls STB

costs and posts further penetration and content sale

than a company that depends on a STB provider whose

aim is to sell STB as expensive as possible".

The importance of the said launching gains

importance given the possibility IPTV Americas offers

to other integrators as Siemens Nokia, Nortel, Cisco,

and Alcatel Lucent, as well as to different regional

operators, of directly downloading signals from the

satellite and integrate them to their own ecosystems.

The introduction of the satellite venture has no confirmed

date so far, but it may come before next July.

LATIN AMERICAN IPTV AND CABLE OPERATORS ON THE WATCH:

FIRST VIA-SATELLITE IPTV INITIATIVE ABOUT TO BE ANNOUNCED

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THE WORLD

LAUNCHINGS

SATCOM LAUNCHES ZHONGXING-9 SATELLITE

TODAY

On a launch vehicle Long March -3B, the Zhongxing-

9 satellite will be launched today from the Satellite

Launching Center in Xichang, in the South West province

of Sicuani in China.The Satcom satellite, built by Thales

Alenia Space, would be used for live TV transmissions.

THE MEDIA

DIRECTV AND AZTECA AMERICA TO OFFER

AZTECA MEXICO CHANNEL

As from June 11th, DirecTV and Azteca America

will offer a new channel called Azteca Mexico to

broadcast content of channels 7, 13 and Proyecto 40

the Mexican company owns, in the United States. The

Executive Director of Azteca Networks, Adrian Steckel,

explained the signal aims at catching users willing to

have a daily contact with Mexican entertainment, news

and soap-operas.

OPEN TV FALLING FACING BROADBAND

ADVANCES

The Professor of the Columbia Business School,

Eli Noam, pointed that open TV is declining given a

sound broadband advance. During his participation in

Telebrasil Seminar, he pointed there was no way of

reverting the said trend, and assured some stations

would keep their importance as content producers, but

terrestrial transmission spaces were to be significantly

reduced.

Noam pointed out "TV future comes in hand with

selective and bi-directional video on demand". On that,

he pointed that, in fact, there were few programs

audiences felt the actual need of watching at the same

time as others. "There are few examples of people

needing to watch TV in real time".

He also pointed the example of the United States

where "radio broadcasters have tried for several years

to restrict pay-TV, but failed". "Today, only 15% of the

North American residences get air-TV", he added.

THE AMERICAS

LAUNCHINGS

ANDEAN COMMUNITY SATELLITE STARTS

OPERATIONS IN 2010

The Andean Community satellite will start operating

between late 2009 and early 2010. The unit will be

handled by SES New Skies. In a first stage, the Simon

Bolivar II will work based on the relocation of a satellite

of the fleet controlled by the Dutch operator. Later, along

the first half of 2011, there will be a satellite launching

for a unit to be manufactured, launched and operated

by SES New Skies.

The Andean Community satellite will be placed in

the position 67º West, and its footing will reach all the

Americas. As for capacity, it will have between 30 and 50

transponders to be distributed on the Ku-band and the

extended C-band. The variation in the number of

transponders has to do with the fact that negotiations still

go on, and landing right issues have yet to be dealt with.

The agreement between the Andean Community

and SES New Skies offers free capacity to the States.

In turn, the United States promised not to re-sell the

said capacity, but to implement it to serve government

needs such as social, e-government and defense

projects, among others.

REGULATION

COLOMBIAN CNTV TOLD SMALL PRODUCERS

TELMEX CAN TRADE PROGRAMS

The National Television Commission (CNTV) told

independent producers that Telmex is able to trade its

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productions as the channels are not owned by the cable

operator. When the CNTV authorized the integration of

Cable Pacifico, Satelcaribe and Cablecentro, it imposed

a condition on Telmex whereby the firm could not trade

own production channels for a year as from the integration,

or until the CNTV set specific rules on the matter.

BRAZIL POINTED SEVERAL COUNTRIES IN THE

REGION WERE TO ADOPT JAPANESE DIGITAL

TV STANDARD

The Communications Minister, Helio Costa, pointed

there were very good prospects for neighbouring countries

to finally decide for the Japanese ISDB for digital TV. Along

his participation in a Seminar organized by Telebrasil, in

Costa do Sauipe, Costa stated "Chile informed this week

on the possibility to make a decision, and there are good

chances that they adopt the same system as us".

He also indicated that the ministry he is responsible

for has committed to go to Venezuela, within the next

60 days "for another presentation of the Japanese-

Brazilian open digital TV system". He added there are

also plans to travel to Colombia to address the issue,

and added "Argentina is also considering this system".

When asked about the decision of Uruguayan

government of adopting the European DVB standard,

Costa pointed that the said decision was not official and

added it could be reconsidered".

PROGRAMMING LIMITS HINDER APPROVAL OF

NEW RULES FOR BRAZILIAN PAY-TV

The Communications Minister, Helio Costa, pointed

that the programming limits set to encourage national

content production and drive independent producers

were the main obstacle for the House to pass a hill on

Law No. 29. The said bill sets forth new rules for the

pay-TV market and authorizes telecom companies to

join the segment.

RADIO BROADCASTING ACT AMENDMENT IN

ARGENTINA TO BE BASED ON US RULES I

The representative of the Federal Radio Broadcasting

Committee (COMFER-acronym in Spanish), Gabriel

Mariotto, is to travel to the United States on June 19th

and 20th to gather information on the local radio

broadcasting act. According to a press release issued by

the Argentine Embassy in Washington, "The United States

does not allow the same company to own a newspaper

and a TV channel or radio station within the same market".

And added: "For several weeks, the embassy has held

meetings with Senators and US representatives, involved

in the recent approval, thus rejecting a wider concentration

in the media. Among the subscribers to the legislative

norm, there were the Senators Barack Obama and Hillary

Clinton, together with other 24 legislators."

MEDIA

MULTICANAL AND CABLEVISION ARGENTINA

ADDED AL JAZEERA, AL IRAN AND ANTENA 3

TO THEIR OFFER

The cable signals Multicanal and Cablevision, both

under the multimedia group Clarin, have enlarged their

digital grid by including new information signals such as

Al Jazeera, Al Iran, Antena 3, and entertainment

channels as Eurochannel (European film channel) and

NsatGeo. In addition, as from this month, audiences will

be able to listen to Mitre, Del Plata and FM 100 radio

transmissions.

IN BRAZIL, 1Q ADVERTISING INVESTMENT

EXCEEDED THAT OF PAY TV

Advertising investment on the Internet totaled US$

82.5 million along the first quarter, thus implying an

increase of 36% compared to same the period last year,

according to the so-called Proyecto Inter-Medios.

Therefore, for the first time, Internet advertising exceeded

that of pay-TV, since the former got a share of 3.24%

on total advertising numbers, and pay-TV, 2.84%.

DIRECTV LAUNCHED PRE-PAID SERVICES

FROM US$ 23 A MONTH IN COLOMBIA

DirecTV lunched a pre-paid service consisting in

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an offer of 41 TV channels and 37 audio signals that

can be accessed upon the purchase of a kit including

a decoder, and antenna, and a month of service for US$

116 (VAT included).The plan can be recharged with US$

23 a month, and clients can also make partial payments

of US$ 8.7 to get an 11-day service.

María Elvira Restrepo, DirecTV Marketing Director

in the country asserted "this year we really want to make

our offer massive and tap our technology to reach the

whole of Colombia". In addition, she explained that with

the development of this service modality, the company

wants to reach people who have not acquired the service

given barriers such as prices and contracts.

TELEFONICA LAUNCHED NEW DIGITAL TV

SERVICES IN PERU L

The firm Telefonica has launched TV Player, an

additional service for Cablemagico users in Lima, to

allow them to control live programming and consuming

it as they please.The initiative coincides with the struggle

started by Telefonica and Telmex facing DirecTV

leadership.

Besides, Mauricio Escobedo, Telmex General

Manager, announced the company had plans to offer

satellite TV, in addition to cable. Meanwhile, as from this

announcement, DirecTV has presented additional

services for its product DirecTV Plus.

OPERATORS

TELMEX CHALLENGES TELEFONICA'S

DOMINANCE WITH US$ 200 MILLION

INVESTMENT IN TRIPLE PLAY IN PERU

In the official launching of its Triple Play pack, the

firm Telmex informed it had invested US$ 300 million in

Peru, in the last four year. Along the 2005-2008 period,

US$ 110 million were channeled to the digital cable,

fixed telephony and broadband Internet plans; US$ 90

million will go along the next months (thus adding up to

US$ 200 million); while another US$ 100 million

correspond to previous investments.

The General Manager of the company in Peru,

Mauricio Escobedo, explained Telmex offers 30% of

corporate services already, serves 9% of SMEs, and

4% of residential analog TV. With the new Triple Play

plan it expects to reach one million `home-passes´

(making reference to the homes to receive its cable

system), both in Lima and El Callao port, and the interior

of the country. With this goal in mind, Telmex would

capture 10% of the national market to late that year,

with 85,000 subscribers.

The company's goal is to cover 25% of the Peruvian

residential market by 2010 -some 300,000 clients -,

moving forward on the absolute dominance of Telefonica

(Spanish capital firm holding 87.4% of the fixed telephony

market share, and 91.7% of the Internet).

Besides, Escobedo stated the US$ 300 million were

devoted to domestic network deployment for long

distance and satellite services, to reach several cities

around Peru. In addition, they completed trials to launch

Telmex TV Satelital.

GLOBAL CROSSING TO OFFER SATELLITE

CONNECTIVITY IN ARGENTINE ANTARCTICA

The global IP solution provider Global Crossing has

completed deployment for a new SCPC (Single Channel

Per Carrier) technology antenna in the permanent

scientific base "Teniente Jubany" in the Argentine

Antarctica, in order to improve communications and ease

information exchanges. Luis Piccolo, Sales VP for the

South for Global Crossing Latin America, explained that

the combination of different Technologies, such as fiber-

optics undersea cables and satellites, allow the firm to

offer worldwide coverage.

WIND TELECOM INVESTED US$ 43.8 MILLION

TO OFFER TRIPLE PLAY IN DOMINICAN

REPUBLIC

The President of the Board in Wind Telecom, Jose

Clase, and the CEO of the firm, Manuel Bonilla, informed

that, with investments for US$ 43.8 million, the company

started to offer Triple Play. The pack includes cable TV,

Internet and wireless digital video signal at US$ 44 a

month.

THIS WEEK’S NEWS


Wind Telecom operates in Santo Domingo. In

August, services will be available for Santiago and

Puerto and Plata, by late this year, coverage will reach

the center of the valley of Cibao. By 2009, Wind

Telecom is to extend coverage to La Romana and

Punta Cana.

TELMEX MAY GET DTH LICENSE IN INCOMING

MONTHS IN URUGUAY

Juan Piaggio, General Manager of the Regulatory

Unit for Communications Services (URSEC), told

Convergencialatina that in the "short term" they may

deliver two new licenses to operate DTH. "One of the

requests was filed by a telco from the North of the

continent operating in the country; the other is a satellite

firm with sound radio broadcasting capacity", he

asserted.

Claro, the company under the Mexican tycoon

Carlos Slim, operates mobile telephony in the country,

as well as Movistar (Telefónica) and ANCEL (State-run

operator). The DTH license won't necessarily remain in

Claro's hands, but Telmex's, as the company already

offers the service in other countries.

THIS WEEK’S NEWS

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Convergencialatina Staff: CEO: Lic. Germán H Rodríguez - Directora General: Mariana Rodríguez Zani, MBA - Editor: Mariano Carril -

Servicios informativos: Convergencialatina.

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latin american iptv and cable operators on the watch: first

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