Jonathan Make

Comcast and Charter are expanding simulcasting of programs in digital and analog, in a move that some analysts say may help cable operators head off a must- carry legislative battle. The companies also said 2nd- quarter results, which didn’t impress analysts, were bolstered by adding broadband customers because MSOs haven’t generally cut rates in response to lower DSL prices. The companies lost basic cable customers to competition from DBS and what they called “seasonal” churn.

Tex. lawmakers won’t vote on statewide video franchising until Thurs. at the earliest, when a recess ends. The House will resume floor deliberations 9 a.m. local time, and the Senate returns at 1 p.m., Shelley Burrow, legislative dir. for Sen. John Whitmire (D), told us. Passage of SB 5, backed by Bells and opposed by cable, has already been delayed several times because of a legislative impasse on education financing (CD July 27 p12).

One network is opposing the must-carry legislation supported by other broadcasters. Executives of The Inspiration Network, which carries religious shows, met last week with members of Congress to argue against multicast must-carry mandates, it said in a statement. The network met with 5 House Energy and Commerce Committee members or staffers, senior Vp-marketing John Roos told us. Executives could not meet with Rep. Joe Barton (R- Tex.), chmn. of the panel, which someday may address the issue (CD July 8 p1), Roos said. “We wanted to meet with more people, we were very fortunate to get the meetings that we did,” Roos said: “They've got a lot of other issues.” Multicast legislation would harm “independent cable networks like ours who must compete for carriage,” the programmer, which reaches 22 million homes, said Thurs.

Comcast, Cox Communications and Time Warner have formed a consortium to consider offering wireless service, Cox’s Patrick Esser told us Wed., a day after being named pres. (CD July 27 p14). Officials from Comcast and Time Warner confirmed the talks. A spokesperson for Comcast indicated no deals or announcements are imminent. Time Warner, also a consortium participant, started a wireless trial with Sprint in March in Kansas City, a spokesman said. U.S. cable customers may have wireless headsets that double as home phones, NCTA Pres. Kyle McSlarrow has said (CD July 20 p1). Esser said he'll be working with McSlarrow and retiring Cox pres. Jim Robbins the next 6 months on telecom policy: “I need his [Robbins'] time to better understand” issues such as video franchising in states such as Tex. (CD July 27 p13). “We need to make sure that our representatives in Washington understand our business,” Esser said. His strategy includes “grassroots efforts” and having local officials speak with members of Congress. “We're going to do a better job,” Esser said. Separately, he said bidders for some of the company’s cable systems are conducting due diligence. Those systems, with 900,000 subscribers, could fetch nearly $3 billion, UBS cable analyst Aryeh Bourkoff estimated.

A vote by Tex. legislators on a video franchising bill again has been delayed, this time at least until next week, said Bill Bragg, spokesman for Senator Troy Fraser (R). Fraser wrote the legislation, formerly Senate Bill 21 and now Senate Bill 5. Progress on the bill, backed by Bells and opposed by cable operators, has been blocked by Lt. Gov. David Dewhurst (R), Bragg said, echoing other legislative aides comments. Dewhurst has said education legislation must be passed before he'll approve other bills. The Senate was expected to pass the telecom bill Mon. Instead, it met briefly and adjourned, an aide said (CD July 26).

PHILADELPHIA -- Time Warner, seeking to placate advertisers and up revenue, plans to offer video-on-demand (VOD) service that lets subscribers replay programs without skipping commercials. The product will use gear in cable head ends that converts live shows into VOD that can be watched “seconds” later with “no ad skipping,” Time Warner Cable senior Vp Bob Benya said. The product will have 15-20 channels, he said, declining to name them. A test will begin in Columbia, S.C., this fall, with “measured rollout” to follow. Benya spoke in an interview here after a breakfast panel at the Cable & Telecommunications Assn. for Marketing (CTAM) conference.

Cox Communications CEO-Pres. James Robbins will retire at year’s end after leading the cable operator, recently taken private, for more than 20 years. COO Patrick Esser has been named pres., the company said, without specifying who if anyone will be named CEO and when Esser starts his new job. David Easterly is retiring as vice chmn.-Cox Enterprises, the owner of the cable operator and other media assets, and is being replaced by Dennis Berry. Jimmy Hayes, Cox Communications CFO, is leaving immediately to become exec.-Vp Cox Enterprises. He'll take Berry’s job of pres. and COO at year’s end. Officials at Cox Communications and Cox Enterprises didn’t return phone calls and e-mails seeking comment beyond a statement from each firm.

PHILADELPHIA -- Cable operators and programmers must work together to ensure their industries’ continued vitality, Comcast CEO Brian Roberts told the final keynote gathering of the Cable & Telecommunications Assn for Mktg. here late Tues. “My No. 1 priority is to find ways for programmers and operators to work together to support each other,” said Roberts, who is also NCTA chmn. “Only by working together, particularly in Washington, will we succeed, and apart I believe we will both fail.” Speaking to us after the show, he said “we''ve made real progress” in relations. He declined to be more specific.

PHILADELPHIA -- C-COR, which recently bought Larry Ellison’s media advertising system provider, expects to expand to new markets a deal to help Comcast sell ads in the Philadelphia area. C-COR Solutions Pres. Michael Pohl, speaking in an interview here at the Cable & Telecommunications Assn. for Mktg. (CTAM) conference, said the company “will deploy in a number of other markets with them.” He wouldn’t elaborate.

Committees of the Tex. House and Senate passed a video franchising bill during a 2nd special session, according to a legislative official and a cable industry source. A House panel passed Senate Bill 21, a spokeswoman for Speaker Tom Craddick (R) told us. A Senate committee also passed the bill, a cable industry official said Fri. The bill, stalled due to a squabble over education funding, is expected to be voted on by the full House and Senate as early as today (Mon). Passage of the bill, backed by SBC and Verizon, clears only one “speed bump” for the Bells’ effort to sell video service, Precursor CEO Scott Cleland told us: Winning “a political battle doesn’t always mean squat in the business world.”