[opendtv] Re: News: SBC to build network offering digital TV

Gee, not dissimilar to the network that Pacific Bell had actually started
construction of in 1996, but abandoned a $3 billion investment because the
new owners -- SBC -- saw no future in the plan.  Heck, I can even show
people a few hundred feet of the abandoned physical plant (which has
nonetheless still been carried on SBC's books.)

Not as great a failure of timing as AT&T buying and attempting to destroy
NCR, nor Honeywell (which had a large share of the market) abandoning
"mini-computers" in 1973 -- only to try to reenter the business in 1978, but
close.

If I had the time, I'd match up Ed Whitacre's hype then with his hype now.

John Willkie

P.S. I had a "personal" stake in the former Pacific Bell plan.  I spoke in
favor of it at two San Diego City Council meetings, and they committed to
carrying the LPTV station I then ran.

-----Original Message-----
From: opendtv-bounce@xxxxxxxxxxxxx
[mailto:opendtv-bounce@xxxxxxxxxxxxx]On Behalf Of Craig Birkmaier
Sent: Wednesday, June 30, 2004 6:06 AM
To: OpenDTV Mail List
Subject: [opendtv] News: SBC to build network offering digital TV


SBC to build network offering digital TV ; To be=20
rolled out over 5 years as firm steps up battle=20
with cable TV

June 30, 2004 12:00am
Source: ProQuest Information and Learning Company; All Rights Reserved.

  Chicago Sun-Times: SBC Communications will spend=20
as much as $6 billion building a fiber-optic=20
network that offers digital television service as=20
it steps up competition with cable-TV providers.

Microsoft will supply Internet Protocol TV=20
software for the network, which will be rolled=20
out over five years, San Antonio- based SBC said.=20
SBC will use the connections to sell fast=20
Internet service and Web calling to consumers and=20
small businesses.

"It will set the stage for full competition=20
against cable," SBC Chief Executive Edward=20
Whitacre said in a speech at the Supercomm 2004=20
conference in Chicago.

Offering digital television is part of Whitacre's=20
strategy to retain clients as cable-TV providers=20
start offering telephone services.

"This is the evolution of the industry and a=20
response by SBC to a very competitive threat of=20
Internet voice systems" from cable companies,=20
said Craig Nedbalski, managing director at=20
Cleveland- based Victory Capital Management,=20
which owns 6.7 million SBC shares. "My only=20
skepticism is on the timing and rollout of=20
something of this magnitude" and the amount SBC=20
will have to devote to building the network.

Microsoft, with partners Lucent Technologies and=20
Juniper Networks, said its IPTV service acquires=20
on-demand content using its software tools,=20
encodes the programming, and distributes it to=20
customers in both standard and high-definition=20
TV. Microsoft will sell the service to cable TV=20
operators and telecom companies.

SBC said it will spend $4 billion to $6 billion=20
on the project. <<Chicago Sun-Times -- 06/23/04,=20
p. 76>>

<< Copyright =A92004 ProQuest Information and=20
Learning Company; All Rights Reserved. >>





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