International News 3rd November

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Premiere secures Bundesliga deal

German pay TV platform Premiere will pay Swiss sports rights dealer Infront, about E300 million ($351 million) for the rights to broadcast matches from the Bundesliga, Germany's first- and second-division soccer leagues, through 2006.

Premiere CEO Georg Kofler reportedly said he hoped the Bundesliga deal would help Premiere's chances of securing the rights to broadcast the next World Cup from Infront. "We assume that (this deal) will be taken into account in the awarding of the 2006 World Cup rights," Kofler said. "After all, we are German soccer's most active partner and are the trend-setter in modern, innovative soccer coverage." The 2006 World Cup, which will take place in Germany, is already expected to break local ratings records, particularly if the home team repeats its 2002 feat of making it to the final.

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Microsoft, Google to merge?

Software giant Microsoft has reportedly approached Google to discuss a possible merger. The web search engine said last week that it is considering an IPO that could value the company in the range of $15-$25 billion.

Previously, Microsoft approached Google about an acquisition but Google turned the offer down.

Microsoft's portal and search engine, MSN, lost $299 million in its fiscal 2003 ended June 30. The company previously said it intends to develop its own search programs to compete in the growing search engine market.

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NMI/China Aerospace partner on DTV?

A Hong Kong company has signed an alliance with China Aerospace
International (CASIL) to develop digital TV in mainland China, according to local media reports, which suggest that New World Infrastructure (NWI) will invest up to E65 million to manufacture digital set-top boxes with its Chinese partner, a government owned company, that is actively seeking to expand its operations beyond aerospace projects.

NWI said that the venture's hopes of success were unaffected by the company 's E70 million loss last year, almost half of which was down to the manufacture of STBs. It said the new deal would allow it to construct boxes able to handle video-on-demand programming.

This would make the technology sellable in not only the Chinese market, but in other overseas ones as well, managing director Douglas Chan was quoted as saying. "The digital television market is where we put our mainstream investment. Our products are leading the industry and we can use the technology in other overseas markets."

However NWI subsequently issued clarification of the reports on October 28, noting that CASIL is independent of and not connected with the directors, chief executive or substantial shareholders of NWI or its subsidiaries or any of their respective associates.

Under the strategic alliance, NWI will subscribe for new shares at a cash consideration of HK$150 million in a wholly owned subsidiary of CASIL which will be renamed as China Aerospace New World Technology Limited (‘‘CANW''). Thereafter, CANW will have an issued share capital of HK$300 million, owned 51 per cent by NWI and 49 per cent by CASIL. CANW will combine NWI's unique interactive digital TV technology with CASIL's solid framework in cable TV industry in China to launch interactive cable and satellite digital TV services in China.

Initially, CANW will deploy interactive digital TV services to hotels three star and above, high-end residential complexes, institutions and universities. CANW will aim to reach over 2 million subscribers in China over the coming two-year period. The total investment that would have been required when subscribers reach 2 million is estimated to be around HK$4 billion based on the approximate cost of set-top-boxes and other equipment. This investment will only be made when there are significant subscriber demands and will be spread over 2 to 3 years. CANW has no present commitment to invest HK$4 billion.

Further announcement will be made by NWI as and when appropriate.

NWI directors emphasised that the digital TV initiatives under the strategic
alliance were only in the preliminary phase and recommended that shareholders of NWI "exercise caution" when dealing in the securities of NWI.


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SingTel's mobile subscriber base exceeds 40 million

SingTel, Asia Pacific's largest multi-market mobile operator, announced that its aggregate mobile subscriber base in the region hit 40.8 million on 30 September 2003. This represents a 41 per cent year-on-year increase in the total number of mobile subscribers of SingTel, SingTel Optus and SingTel's four regional associates, compared to the base of
28.9 million customers a year before.

The company also announced that it would spend $20 million over the next three years to provide i-PhoneNet, an intelligent IP Centrex service delivered over SingTel's managed data network. The service will be available by the first quarter of next year.

IP Centrex is a new technology that allows companies to merge their intra-office voice and data communications into a single network and outsource it entirely to a service provider like SingTel.

Unlike the traditional telephone systems such as PBXs, Key Telephone Systems (KTS) or existing Centrex services that offer only voice communications, SingTel's i-PhoneNet offers a suite of IP applications such as remote presentation of files and retrieval of phone messages via a web portal. Normal telephone functions such as retrieval of directory information, dialling, call transfers and forwarding can be controlled through the web portal via the user's PC.

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Mediaset prepares DTT platform launch

Italian commercial media group Mediaset is set to launch a new digital terrestrial service within the next month. Mediaset's free-to-air DTT platform will be available to viewers via television sets able to receive digital signals or those equipped with set-top boxes.

Owned by Italy's prime minister Silvio Berlusconi, the group is injecting E200 million into DTT between 2003 and 2005.

Public broadcaster Rai is expected to enter the DTT arena next year.


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Intelsat to issue senior notes

Global satellite operator Intelsat is to issue and sell $900 million aggregate principal amount of its Senior Notes in the United States. The company plans to use the money to finance the proposed purchase of the North American satellite assets of Loral Space & Communications Corporation and certain of its affiliates and for general corporate purposes.

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TiVo and Universal in multi-film deal

Digital video recorder (DVR) pioneer TiVo and Universal Pictures have signed a multi-film promotional agreement that will also promote TiVo on DVD releases of major feature films.

Universal Pictures will promote more than 20 films and DVD titles using TiVo Showcases, the promotional platform that allows advertisers to distribute long-form branded content to the rapidly growing TiVo subscriber base.

Anthony Price, Senior Vice President of Media, Universal Pictures said: "We plan to create special promotional content which will include interviews, trailers, and behind-the-scenes footage of our major theatrical and DVD releases."
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Irdeto, Adtec, and COSHIP Team-Up

Netherlands based Irdeto Access has partnered with Adtec and Coship Electronics to provide an end-to-end pay-TV-delivery solution.

The DVB-compliant solution incorporates Adtec's Edje 2100 real-time MPEG-2 distribution encoder and Edje 3000 transport stream multiplexer/data encapsulator; Irdeto Access' Irdeto M-Crypt and Irdeto PIsys conditional access
(CA) systems and Coship's CDVBC5120 digital cable set-top receiver (STB) with
integrated Irdeto Access smart cards.

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SES Global to launch benchmark Eurobond

SES Global, the Luxembourg-based fixed satellite services operator, is to launch an inaugural benchmark Eurobond, subject to market conditions. This launch follows an extensive series of investor update meetings. The bond issue will broaden the funding base of the company and refinance existing debt.