ComboBox put on hold as executives re-think BCE’s convergence strategy

The much-publicized Bell ExpressVu ComboBox has been quietly put on hold for the foreseeable future putting the long-term plans of a key BCE Inc. convergence initiative in limbo. BCE officials won’t comment in detail to inquires from Canadian Communications Reports, but the move to delay the introduction of the ComboBox into the Canadian marketplace is in line with other recent cost-cutting moves by the telecom giant under new president and CEO Michael Sabia. Keith Kocho, president of multimedia firm Extend Media – which had been tapped to deliver new applications for the convergence box – confirms, however, that a Canadian launch has been delayed for at least several quarters. A similar initiative by Rogers Cable Inc. was recently shut down, although its converged set-top box project was always labeled as a trial. The ComboBox project was unveiled to great fanfare in February 2001 when BCE announced plans to introduce a new set-top box that would integrate satellite TV and DSL Internet access with a high-memory/storage personal video recorder (PVR) (CCR, Aug. 15/01). The new technology was to have facilitated the delivery of advanced interactive services for TV and other applications, as well as allow the hook-up of multiple devices on a home network. The project was being developed in conjunction with EchoStar Communications Corp., the hardware provider, along with Extend. Over a year ago, BCE announced that it had successfully entered the final stage of development on the ComboBox, and a commercial launch was planned for the third quarter of 2002. "Things have changed a bit at Bell, as I’m sure you’re aware, in the last several months. They’ve slowed some things down," Kocho tells CCR. "At the moment, the project’s on hold and what we’re doing with them is just assisting them to market the product in other markets. Because it’s both a local offering that’s planned for the future, but also a product that could be re-sold or launched in partnership with other players, we’re off helping them do that, principally in the U.S. market in conjunction with EchoStar." BCE spokesperson Norm Berberich would only say in an email note: "We are currently reviewing how to best launch this type of product in the context of today’s marketplace and our larger examination of how to best bring broadband services into customers’ homes." He cites competitive and planning considerations for declining to make further comment. Kocho says, however, that he expects the project will proceed at some point in the future. In recent months, BCE has made several moves to solidify its bottom line, including selling its Teleglobe division and shuttering its Bell Canada International operation. Observers have predicted further shakeups to come, questioning Sabia’s commitment to predecessor Jean Monty’s convergence strategy. Rogers trial now over Rogers recently concluded a 12-month trial of its own converged set-top box designed to integrate various communication and entertainment devices in the home into one. Dubbed Triple Play, the service combined video (TV set), data and voice (high-speed Internet access and phone service), and audio (radios and stereo systems). Announced in June 2001, the 50-customer trial of the home networking service took place in Ajax and Pickering in Ontario. There are no plans at this point to proceed with commercial deployment of the service. The Rogers trial used technology from Ucentric Systems of Maynard, Massachusetts, whose Ucentric Home Networking Platform connects computers, TVs, telephones, stereos, and other appliances throughout a consumer’s home to each other and to the Internet, without the need for additional wiring.

ComboBox put on hold as executives re-think BCE’s convergence strategy

Broadcast | December 5, 2002

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