FOR THE RECORD

AT&T Sets 2011 Rate Hikes for U-verse TV

NEW YORK — AT&T, which once argued that telco competition
would keep a lid on cable rates, will increase monthly pricing
for U-verse TV packages by up to 10% in early 2011, its second
consecutive year of hikes.

Effective Feb. 1, 2011, the regular monthly price of U-verse
TV packages will be: U-family, $54; U100, $59; U200, $69;
U200 Latino, $79; U300, $84; and U450, $117. According to
AT&T, customers subject to a current U-verse TV pricing promotion
will continue to receive the promotional benefit until the
applicable promotion ends.

For customers who ordered or will order a TV package from
Feb. 1, 2009, through Jan. 31, 2011, the new rates represent
increases of 2.4% to 9.3%.

DirecTV Raises Rates for 2011

EL SEGUNDO, CALIF. — DirecTV, citing higher programming costs, will
raise rates on most packages 4% effective February 2011 and
also will increase pricing for some optional services.

“Unfortunately, the increasing costs we pay to carry the
channels you see sometimes force us to adjust our prices,”
DirecTV said in a notice on its website about the increase. The
operator said it will provide more information on the new prices
in subscribers’ January or February bills.

Rovi Buying Sonic Solutions for $720 Million


SANTA CLARA, CALIF. — Rovi, stirring over-the-top TV and movie
content into its lineup, has agreed to buy digital-video playback
and distribution company Sonic Solutions for $720 million in
stock and cash. The deal is expected to close in early 2011.

Sonic’s RoxioNow provides more than 10,000 movies
and TV programs, which are accessible through broadbandconnected
consumer electronics devices such as digital TVs,
Blu-ray Disc players and mobile phones. The company’s DivX
video-player software is distributed via more than 350 million
consumer-electronics devices, and the software has been
downloaded more than 100 million times per year and 500 million
times to date.

Rovi will mix Sonic’s video playback and distribution offerings
with its own guide software and metadata services
— which will create a more holistic entertainment solution,
as well as expand Rovi’s advertising opportunity, the
company said.

Rovi changed its name from Macrovision Solutions last
year, after a string of acquisitions, including Gemstar-TV
Guide International, the supplier of interactive program
guides and data.

AT&T Buying Qualcomm’s FLO TV Spectrum for $1.9B

NEW YORK — AT&T plans to buy spectrum licenses in the 700-
MHz band from Qualcomm — which is shutting down its failed
FLO TV mobile TV venture — in a deal worth $1.925 billion.

Qualcomm currently uses the licenses to support FLO TV.
But after signing up only about 1 million subscribers, through
AT&T, Verizon Wireless and its own direct-to-consumer service,
the company this fall decided to shut down the business and
network on March 27, 2011.

AT&T expects to use the licenses to enhance its next-generation
4G wireless broadband services. The spectrum covers a
total of more than 300 million people nationwide.