News

OpenTV Showcase System on Block

11/14/2001 6:20 AM Eastern

In a deal that could affect OpenTV Corp.'s sole U.S. cable deployment,
AT&T Broadband plans to buy USA Media Group's Half Moon Bay, Calif.,
system.

USA Media chief operating officer Jim Faircloth confirmed that the company
plans to sell the 7,500-subscriber system to AT&T Broadband. Faircloth said
he didn't know when the deal will close, but one source said it is expected to
close by the end of the year.

AT&T Broadband spokeswoman Tracy Baumgartner confirmed that the MSO plans
to buy the 550-megahertz cable system. She said the company hasn't decided
whether it will keep the OpenTV interactive-television system.

The deal will expand AT&T's San Francisco cluster.

OpenTV CEO James Ackerman said the interactive-TV product is currently
installed in 'less than 50 friendly homes.' OpenTV and USA Media employees are
the only subscribers with the product, he added.

Although Baumgartner said the MSO hasn't decided whether it'll keep OpenTV
after the deal closes, Ackerman said he was informed by Faircloth that AT&T
Broadband wanted to keep the OpenTV contract.

In the past, AT&T Broadband has dropped interactive-TV services deployed
on cable systems it has acquired.

In March, it shut down a deployment of Canal Plus S.A. middleware on its
Jacksonville, Fla., system, which it inherited through its merger with MediaOne
Group Inc.

Last year, AT&T Broadband dropped Source Media Inc.'s 'SourceSuite'
applications from cable systems it acquired from Cablevision Systems Corp. in
Boston, Framingham and Lexington, Mass.

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