Fast Net News, DSL Prime, DOCSIS Report

"We have to get cable out of the house!" Ivan has long said, and a flexible approach about to video has long been on their agenda. Seidenberg and Brian Roberts both have told me they have discussed offering Comcast's cable programming to FIOS customers outside of Comcast's territory, although nothing has moved forward. Verizon was tempted by the possibility of besting Time Warner in New York City by offering Comcast and other video packages as well as their own FIOS. Many other Verizon execs, including decisionmaker Shaygan Kheradpi and video guy Terry Denson, also accept the logic of opening the FIOS set top to all the video on the web. They may lose a few FIOS video subscribers, but video isn't where Verizon makes money. They expect to more than make up the difference with increased sales of the far more profitable voice and data. Verizon, like all telcos, expects TV to be a loss leader for years. They also know cable will have a hard time matching, because programming sales have long been the heart of their business.

FIOS has better video quality than Time Warner cable, is so far more reliable, and is being attractively marketed. That isn't enough to cause many people to switch, with FIOS takeup surprisingly low. So dramatic steps - like the open and expandable set top - are the logical strategy.

Green of CableLabs confirmed to Hansell “Sony coming aboard was a huge step forward,” he said. “It allows a common platform.” But Saul points to a key problem: "All of these applications have to be tested by CableLabs and approved by your cable operator. That’s the same crowd that took five years to agree to let Sony build its own electronic program guide."

The most important app for Tru2Way will be a full web browser that supports Flash, Microsoft, and Apple video. Will Time Warner block that? Should the FCC step in? There's a new FCC coming in with Obama that is far less beholden to the carriers.

Here's the official note to the FCC.

June 10, 2008

Ms. Monica Desai

Chief, Media Bureau

Federal Communications Commission

445 12th Street, S.W.

Washington, D.C. 20554

Re: CS Docket No. 97-80; PP Docket No. 00-67.

Dear Ms. Desai:

On May 27, 2008, Sony Electronics and Comcast Corporation briefed you and your staff

on an agreement between the six largest cable operators in the United States and Sony

Electronics that establishes a national platform for retail devices to receive interactive cable

services. The terms of the agreement are embodied in a binding Memorandum of Understanding

(MOU) negotiated by Sony Electronics and the six largest cable companies – Comcast

Corporation, Time Warner Cable, Cox Communications, Charter Communications, Cablevision

Systems Corporation, and Bright House Networks. Those cable companies serve more than 82

percent of all U.S. cable subscribers. As we discussed, other consumer electronics companies

will be beneficiaries of this new national two-way “plug-and-play” platform whether or not they

sign the agreement, but they have also been invited to formally join the MOU.

At our meeting, staff requested that we submit a copy of the agreement to the Bureau.

We are pleased to do so. The agreement itself is a binding contract which addresses all of the

significant issues in the above-referenced Commission proceeding. It does not require further

government action to facilitate bidirectional compatibility of cable television systems and

consumer electronics equipment – the goal described by the Commission in seeking comment on

proposals in the two-way “plug-and-play” proceeding.

In this regard, we note that Representative Rick Boucher (D-VA), a senior Member of the

House Energy and Commerce Committee and one who has been one of the leading advocates in

Congress for new technology and consumer freedoms, said:

A decade ago Congress set out to ensure that consumers would have access to

plug and play devices, and since that time, I have often encouraged the consumer

electronics and cable industries as well as the FCC to speed the introduction of

two-way plug and play devices. The agreement reached between Sony, Comcast

Ms. Monica Desai

June 10, 2008

Page 2 of 2

- 2 -

and Time Warner provides a number of principles for which I have long

advocated including ensuring consumers can enjoy the benefits of choice,

competition and innovation. Additionally, the agreement allows consumers to be

confident that products they buy today will work for a reasonable length of time

in the future, promotes the fair and open establishment of a set of standards for

manufacturers building devices, and encourages cable operators and device

manufacturers to rely on the same technologies.

As we explained in our meetings with you and your staff, we believe this agreement will

provide a national, open, and interactive platform. This marketplace solution will quickly result

in more choices of services and products for consumers, and do so without government

involvement. If you have any questions, please contact one of the undersigned.

Respectfully submitted,

/s/ Joel Wiginton /s/ Kathryn A. Zachem

Joel Wiginton Kathryn A. Zachem

Vice President & Senior Counsel Vice President, Regulatory Affairs

Sony Electronics Inc. Comcast Corporation

Attachment

cc: E. Andrion

R. Chessen

R. Brioché

C. Pauzé

A. Blankenship

C. Bohigian

S. Broeckaert

R. Harold

M. Lance

C. Robbins

N. Murphy

B. Murray

J. Wong

A. Stillwell

M. Dortch

1

MEMORANDUM OF UNDERSTANDING

AMONG CABLE OPERATORS AND CONSUMER ELECTRONICS ADOPTERS

REGARDING INTERACTIVE DIGITAL CABLE READY PRODUCTS

April 25, 2008

This Memorandum of Understanding among Cable Operators and Consumer Electronics

Adopters Regarding Interactive Digital Cable Ready Products (“MOU”) sets forth binding

agreements by the undersigned cable operators (Founders) and the undersigned Adopters with

respect to the commercial availability of Interactive Digital Cable Products (IDCPs). The parties

enter into this MOU as of April 25, 2008 (the “Effective Date”).

MUTUAL SUPPORT FOR TRU2WAY

1. Deployment. By July 1, 2009, each of the Founders shall include network support for

tru2way Middleware in the hardware and software of headends serving all Digital Cable

Systems.

2. Technology Solution. The parties agree that the tru2way Specifications define the sole

means for Adopter’s IDCPs to access interactive cable services. A Digital Cable System is

not required to support any other technology.

3. Interactive Retail Devices. Adopter’s IDCPs shall comply with the tru2way Specifications

and License Agreements in order to access interactive cable services. Innovative features

and functions in Adopter’s IDCPs that are not specified in but are consistent with the

tru2way Specifications and License Agreements are allowed and encouraged.

4. Interactive Founder Devices. Each Founder shall include the tru2way Middleware in

twenty percent (20%) of new interactive navigation devices it purchases after July 1, 2009.

This requirement shall terminate when the cable industry has deployed a total of ten million

(10,000,000) interactive navigation devices with tru2way Middleware. These provisions are

not intended to freeze the tru2way Middleware, or require the purchase of predecessor

versions of the tru2way Middleware, or preclude the use of successor versions.

5. Support for Deployed IDCPs. Digital Cable Systems which provide network support for

the tru2way Middleware as required herein shall continue to provide support for the

categories of Founder’s applications running on the version of the tru2way Middleware

contained in an Adopter’s IDCP for five (5) years from the first certification or selfcertification

of an IDCP that includes such tru2way Middleware version. Support may

include advances in the application functions, features, services, and technology that are

backward compatible with such version of the tru2way Middleware version.

6. Subsequent Versions of the Tru2Way Middleware . An Adopter shall have the right to

license and deploy in its products the same version of the tru2way Middleware at the same

time as such version is commercially available for use and deployment by the Founders.

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7. Guide Data. Each Founder Digital Cable System that (1) carries a CBS broadcast signal

containing Gemstar-TV Guide electronic programming guide data (the Gemstar data) and (2)

is covered by a Founder agreement with the owner of rights to the Gemstar data shall refrain

from blocking or removing such Gemstar data in one such CBS signal. CHILA shall direct

Adopters who wish to use the Gemstar data or successor guide data provider to

independently obtain the rights from Gemstar or such successor entity to use such data. This

arrangement shall be non-exclusive with respect to successor signals and guide data

providers. There is no requirement that Founders provide metadata, additional guide data or

any other path for guide data.

8. On Screen Navigation Display. Multifunction IDCPs may overlay the manufacturer’s

navigation control method over cable screens if the overlay (i) is user initiated for each use,

(ii) is solely for navigation (e.g., no ads), (iii) is transitory, and (iv) appears the same

regardless of the channel.

9. Innovation. Innovation in cable networks, cable services, and devices that access cable

services is desirable. The parties agree neither access to the cable network and to a current

offering of cable services by retail devices nor this MOU shall be a basis for limiting or

freezing the cable network, cable services, Adopters’ IDCPs or Founder navigation devices,

or for imposing additional investment requirements on the cable network.

10. Sunset. If fewer than 500,000 additional new retail Adopters’ IDCPs are connected to

receive cable services via CableCARD or mutually agreed upon conditional access

technology from the Founders in any rolling twenty-four month period following July 1,

2009 nationwide, then no further support for IDCPs shall be required under this MOU except

for the application support for deployed IDCPs as required by Section 5, and the Founders

may make their own business judgments about appropriate support for such devices.

REFORM OF LICENSING AND TESTING

11. License Agreements. Licensing of Adopters’ IDCPs shall be under the CableLabs’

licensing suite: CableCARD-Host Interface License Agreement (CHILA), the OCAP

Implementers License Agreement, the Digital Certificate Authorization Agreement, the

OpenCable Contribution Agreement, and successor agreements (“License Agreements”).

Adopters will sign and remain party to the CableLabs’ License Agreements as amended and

attached hereto; provided that Adopters may terminate the OpenCable Contribution

Agreement according to its terms.

12. Certification and Self-certification. Certification testing of Adopters’ IDCPs shall be at

CableLabs using the IDCP Tests. Adopters who have demonstrated that they are consistently

capable of Certifying IDCPs may obtain Self Certification status. Successful Certification of

at least five (5) mutually agreed upon devices on different platforms in CableLabs

Certification Waves indicates such capability.

13. Advisory Board. CableLabs will establish a Founders Advisory Board (FAB) composed of

representatives of the cable television, content, consumer electronics, and information

technology industries for advisory input to CableLabs. CableLabs shall convene such FAB

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at least once annually or at the request of any FAB member preconditioned upon a requisite

change to the tru2way hardware specifications as defined below. At the request of any FAB

member, the FAB shall hold a vote on any proposed changes to the tru2way hardware

specifications that impose a significant cost increase on IDCPs that are unjustified by

consumer choice, interest in innovation, economic burden on the cable operator, or

developments in technology (“requisite change”). Voting is permitted as follows: one single

vote for the group of content participants, one single vote for the group of consumer

electronics Adopters, one single vote for the group of information technology Adopters, one

single vote for each of the Founders. The vote shall be recorded at the request of any FAB

member and is not confidential. A vote is advisory only, and shall not operate as a veto on

proposed changes to the tru2way Specifications. The parties will not interpose this

agreement as a barrier to FCC jurisdiction over such changes to the tru2way hardware

specifications that are issues within the scope of Section 629 of the Communications Act and

FCC implementing regulations, and all parties reserve their rights to petition the FCC for

relief with respect to such changes.

14. Outputs. CableLabs shall approve or disapprove digital outputs and/or content protection

technologies (or “delist” an approved technology) on a reasonable and nondiscriminatory

basis within 180 days of submission by an Adopter of a request and all information necessary

to evaluate such request. In the event of disapproval or delisting, CableLabs will indicate in

writing the specific reasons for its action. CableLabs shall not withhold approval of any such

output or content protection technology that provides effective protection to Controlled

Content against unauthorized interception, retransmission or copying. In making that

determination, CableLabs shall take into account (a) the effectiveness of the technology; (b)

the license terms governing the secure implementation of the technology; and (c) other

objective criteria. In the event that CableLabs disapproves or fails to act within the time

specified above, an Adopter may petition the Federal Communications Commission

concerning such denial, lack of approval, or delisting. The parties anticipate that the FCC

shall determine in an expedited 90-day proceeding whether the proposed digital output and/or

content protection technology provides effective protection to Controlled Content against

unauthorized interception, retransmission or copying, taking into account, among other

things, the factors utilized by CableLabs. CableLabs agrees to be bound by a final order of

the FCC. Notwithstanding the foregoing, in the event that CableLabs is advised that four (4)

member studios of the Motion Picture Association approve a digital output or content

protection technology that provides effective protection to Controlled Content against

unauthorized interception, retransmission or copying, such output or content protection

technology shall be deemed approved by CableLabs pursuant to CHILA, and upon receipt of

notice by CableLabs of such approval by the four studios, CableLabs shall amend the CHILA

Compliance Rules to include such output and/or content protection technology.

15. Successor Technology. Notwithstanding anything to the contrary herein, CHILA shall

provide that if tru2way support is sunset and CableLabs undertakes to define specifications

for a successor technology on Digital Cable Systems, Adopters who remain party to the

OpenCable Contribution Agreement may participate in such undertaking under the terms of

said Agreement. The parties hereto shall use commercially reasonable efforts to make such

successor technology available under RAND or royalty-free terms.

4

MISCELLANEOUS

16. Definitions

16.1. “Digital Cable System.” A cable system required to provide CableCARDs under

47 C.F.R. §76.1204(a)(1) which have one or more channels utilizing QAM modulation

for transporting programs and services from its headend to receiving devices. Digital

Cable Systems shall not include cable systems which have an activated channel capacity

of less than 750 MHz, or which serve fewer than 5,000 basic cable subscribers.

16.2. “Interactive Digital Cable Product” or “IDCP.” Two-way devices that accept a

CableCARD meeting the CableCARD Interface Specifications and are capable of

receiving interactive cable services, which include, but are not limited to, devices

connected to Digital Cable Systems.

16.3. “tru2way Specifications” means Issued versions of the OpenCable Host 2.1 Core

Functional Requirements Specification (OC-SP-HOST2.1-CFR-I04-080404), the

tru2way Middleware (OC-SP-OCAP1.1-I01-061229), tru2way Multi-Mode

Functionality Requirements, the CableCARD Interface Specification (OC-SP-CCIF2.0-

I14-080404), and the CableCARD Copy Protection System Specification (OC-SPCCCP2.0-

I08-071113 and OC-SP-CDL2.0-I06-080118 including the multi-stream

versions thereof), plus any applicable optional extensions implemented by Adopters in

an IDCP (e.g., Home Networking, DVR, etc.), and other later versions or specifications

available at www.cablelabs.com/specifications. An IDCP is deemed to meet the

tru2way Specifications if it meets the applicable successor tru2way Specifications

published by CableLabs.

16.4. “tru2way Middleware” means the OpenCable Application Platform Specification

1.1 (OC-SP-OCAP1.1-I01-061229) and other later versions or specifications available at

www.cablelabs.com/specifications. A Digital Cable System is deemed to meet the

foregoing requirements if it supports the applicable successor tru2way Platform

specifications published by CableLabs.

16.5. “IDCP Tests” means the test suite and test plan provided to Adopters by

CableLabs that are performed in accordance with the Certification Wave Requirements

and Guidelines posted at http://www.cablelabs.com/certqual.

17. Regulatory. The Founders and Adopters agree to jointly support the positions taken in

this MOU at the FCC, and before any other regulatory legislative, or governmental

body. The Founders and Adopters will vigorously oppose requests to impose additional

obligations on the cable industry or CE industry with respect to these matters.

18. Other Agreements. This MOU does not restrict or preclude private agreements between or

among any of the parties.

5

19. Representations. Each party represents that it has the right to enter into this MOU, that it

has authorized the person who has signed this MOU to execute and deliver this MOU on its

behalf; and that this MOU constitutes a valid and binding obligation, enforceable according

to its terms.

20. Term. The term of this MOU shall begin on the Effective Date and shall continue for ten

(10) years.

21. Limitation of Liability. IN NO EVENT SHALL ANY PARTY BE LIABLE TO

ANOTHER OR TO ANY THIRD PARTY FOR EXEMPLARY, INCIDENTAL,

INDIRECT, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND,

INCLUDING WITHOUT LIMITATION, LOSS OF PROFIT, SAVINGS OR REVENUE,

WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR

CLAIMS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, ARISING

OUT OF THIS AGREEMENT. THE FOREGOING LIMITATION DOES NOT AFFECT

ANY LIABILITY A PARTY MAY HAVE UNDER OTHER AGREEMENTS,

INCLUDING THE LICENSE AGREEMENTS.

22. Law and Jurisdiction. THIS MOU SHALL BE CONSTRUED, AND THE LEGAL

RELATIONS BETWEEN THE PARTIES HERETO SHALL BE DETERMINED, IN

ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, UNITED STATES

OF AMERICA, WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES.

23. No Assignment. A party shall not assign any of its rights or privileges under this MOU

without the prior written consent of the others, such consent not to be unreasonably withheld

or delayed. No consent shall be required for the assignment of this MOU to any whollyowned

subsidiary of a party or for the assignment in connection with the merger or the sale

of that party or party’s business unit provided that the party shall remain liable for its

obligations hereunder. Any assignment in connection with a merger or sale of a Founder

shall not diminish the number of Founder votes pursuant to Section 11. Any attempted

assignment or grant in derogation of the foregoing shall be void.

24. Notice. Any notices required or permitted to be made or given to either party pursuant to this

MOU shall be in writing and shall be delivered as follows with notice deemed given as

indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon

written notification of receipt; (c) by telecopy or facsimile transmission upon

acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail,

return receipt requested, five days after deposit in the mail. All notices must be sent to the

address set forth on the signature page of this MOU.

25. Amendments. No amendment or modification hereof shall be valid or binding upon the

parties unless made in writing and signed by all parties.

26. Deferred Date. With respect to Founder Charter Communications, Inc., the July 1, 2009 date

specified in Sections 1 and 4 shall be July 1, 2010.

27. Waiver. Any waiver by any party of any breach of this MOU shall not constitute a waiver of

any subsequent or other breach.

6

28. Force Majeure. If a party is prevented or delayed in performance of its obligations

hereunder as a result of circumstances beyond such party’s reasonable control, including,

without limitation, Acts of God, war, terrorism, acts of the government, and failure of

suppliers, subcontractors, and carriers, such failure or delay will not be deemed to constitute

a material breach of this Agreement, but such obligation will remain in full force and effect,

and will be performed or satisfied as soon as reasonably practicable after the termination of

the relevant circumstances causing such failure or delay.

29. Joint Work Product. The parties acknowledge that this MOU is the joint work product of

the parties and that, accordingly, in the event of ambiguities in this MOU, no inferences shall

be drawn against any party on the basis of authorship of this MOU.

30. No Third-Party Beneficiaries. Nothing in this MOU shall be deemed to create a third-party

beneficiary relationship.

31. Counterparts. This MOU may be executed in one or more counterparts; each of which

when so executed and delivered shall be an original and all of which together shall constitute

one and the same instrument. Signatures to this MOU may be delivered by facsimile, which,

upon delivery, shall be deemed to be originals.

7

IN WITNESS WHEREOF, the parties hereto have caused this MOU to be duly signed and to be

effective as of the Effective Date above.

FOUNDERS: ADOPTERS:

Comcast Cable Communications, Inc.

Mark Coblitz

Senior Vice President Strategic Planning

One Comcast Center

1701 John F. Kennedy Boulevard

Philadelphia, PA 19103-2838

Sony Electronics Inc.

Stanford Glasgow

President and Chief Operating Officer

16530 Via Esprillo

San Diego, CA 92127

Time Warner Cable, Inc.

Kevin J. Leddy

Executive Vice President of Technology Policy

and Product Management

290 Harbor Dr.

Stamford, CT 06902

Cox Communications, Inc.

Dallas S. Clement

Senior Vice President of Strategy and Product

Management

1400 Lake Hearn Drive, NE

Atlanta, GA 30319

Bright House Networks, LLC

Nomi Bergman

Executive Vice President, Strategy &

Development

500 Campuswood Drive

East Syracuse, NY 13057

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Charter Communications, Inc.

Marwan Fawaz

Chief Technology Officer

12405 Powerscourt Drive

St. Louis, MO 63131-3674

CSC Holdings, Inc.

James Blackley

Senior Vice President Corporate Engineering

and Technology

1111 Stewart Avenue

Bethpage, NY 11714

Reading Saul Hansell regularly is an advanced course in tech journalism,