Consumer Electronics Daily News

Microtune Adds to Recent DTV Converter Box Woes

Microtune, Inc. has sent a letter to the National Telecommunications and Information Administration  identifying, "a matter of critical importance to the U.S. government and to American consumers in the successful implementation of the U.S. digital television transition."

According to the company, internal testing has revealed tuner-related performance failures in certain certified coupon-eligible converter boxes that do not contain Microtune tuners. These converter boxes are widely available in retail channels, and Microtune says their failure to meet NTIA regulatory performance requirements could potentially result in the loss of digital TV reception in a number of major metropolitan areas, potentially impacting the millions of Americans who will rely on these converter boxes to receive free over-the-air TV broadcasts. Microtune has made its test results, the methodologies of which have been reviewed and validated by a third-party industry expert, available to the NTIA.

"As a U.S. tuner company and as a stakeholder in the country's historic conversion to digital TV transmission, we believe it is vital to raise an issue that could dramatically impact the success of this transition," says James A. Fontaine, President and CEO of Microtune. "The NTIA has established rigorous and necessary performance standards for the CECB program, which is subsidized by the U.S. government, and the NTIA requires converter box manufacturers to comply with these technical standards. To protect the interests of American consumers, we have vigorously urged the NTIA to quickly audit through expanded testing potentially non-compliant converter boxes that are currently in production, and we have offered to support its efforts by briefing its representatives on our test findings."

For a full copy of the letter, click here (warning: PDF link).

Motorola Splitting In Two: Mobile Devices & Mobility Solutions

Motorola, Inc. today announced that the company is readying a split to create two independent, publicly-traded companies. Today’s decision follows the Motorola's January 31 evaluation of the structural and strategic realignment of its businesses and represents affirmative steps to position its Mobile Devices and Broadband & Mobility Solutions businesses for success, while creating value for all Motorola shareholders, the company said in a statement this morning.

“Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and Board of Directors, together with independent advisors,” says Greg Brown, Motorola’s President and CEO. “Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus – as well as more targeted investment opportunities for our shareholders.”

The two standalone businesses are expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies:

The Mobile Devices business is an industry leader in multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.

The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and IP video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.

For more information, click here.

CBA Seeks Halt of DTV Converter Box Marketing

Association Representing Low Power Analog TV Broadcasters Says NTIA, FCC Are Working To Restrict Access to Analog Channels After DTV Transition

The Community Broadcasters Association filed a grievance in U.S. District Court in Washington D.C. today, charging the FCC with denying access to low-power analog TV broadcasts and seeking to prevent the marketing of DTV converter boxes that block analog signals.

CBA says the devices -- which have been heavily co-marketed by the National Telecommunications and Information Administration, FCC, National Association of Broadcasters and Consumer Electronics Association in the run up to the Feb. 2009 conversion to digital broadcasts -- eliminate the ability for consumers to access low-power analog broadcasts and severely limit access to stations that use such technology and plan on continuing to do so past February 2009. 

Thousands of low-power analog stations, including many local stations and Spanish-language stations, are not required to make the move to digital-only broadcasting and most of the DTV converter boxes approved for rebate by the federal government do not allow these low-power analog signals to pass through.

The court filing (known as a writ of mandamus), seeks to require the FCC to only market devices that allow for this analog signal pass-through, thus allowing consumers to access low-power stations.

While the FCC, which is tasked with shepherding the DTV transition process to completion next year, has not commented on the legislation, proponents of the current DTV plan expressed outrage at the CBA opposition.

“CEA is amazed that this group which stood silently while broadcasters, the electronics industry and government successfully implemented the DTV transition is now trying an 11th hour litigation strategy to freeze the entire nation in analog," says CEA President and CEO Gary Shapiro. "Now, as cover for its refusal to shift to DTV, CBA wants to impose new costs on millions of Americans who do not rely on or use their service. This is an irresponsible lawsuit, as was CBA’s advertising calling the government program a 'scam.' CBA should act in the national interest and either shift to digital or promote the several converter box models with analog pass-through that already provide the solution CBA seeks. Instead, CBA would block the DTV transition, threaten $20 billion in analog auction revenue, waste billions of dollars in sunk investment and force consumers to spend much more to buy converter boxes."

For more information, click here.

Harvey Extends Bankruptcy, Closing All But Two Stores

Financially troubled home theater, audio and video retailer Harvey Electronics, Inc., has received a renewal of its interim financing order from the United States Bankruptcy Court for the Southern District of New York.

The move gives Harvey the go-ahead to conduct store-closing sales at five of its seven locations -- stores in Paramus and Bridgewater, N.J.; Greenvale and Mt. Kisco, N.Y.; and Greenwich, Conn.

YA Global Investments, L.P., the secured lender, will continue providing funds for up to eight weeks from a $1.5 million Debtor-in-Possession line of credit established at the time of the company's Chapter 11 bankruptcy filing in December 2007.

"This court order allows us to move towards the conclusion of our restructuring efforts," Michael Recca, Interim Chief Executive Officer and Chief Restructuring Officer, said in a statement. "We will continue to operate two Manhattan stores...These stores are very important to redefining our business model, maintaining consumer awareness and completing existing customer orders. As we continue to restructure our operations to exclusively focus on the custom integration of in-home technologies, Harvey is exploring additional store-within-a-store locations in the New York metro area."

The store closings are expected to be completed, "over the next several weeks," the company said in a statement today. For more information, visit www.harveyonline.com.

BrandsMart Renews Service Partnership With Warrantech

BrandsMart USA, one of the nation's largest discount retailers of consumer appliances and electronics, has signed a new five-year service contract agreement with Warrantech Corporation to continue to administer BrandsMart's service contract program.

A leading independent provider of service contract programs and after-market products, Warrantech has worked with BrandsMart USA since 1990. Florida-based BrandsMart USA operates five stores in South Florida and three in Atlanta, each of which stocks more than $8 million in merchandise and sells thousands of consumer products.

"We've worked with BrandsMart USA for 18 years now, and our new agreement means we'll be on board for at least five years more," says Joel San Antonio, Chairman and CEO of Warrantech. "When a company as respected as BrandsMart USA chooses to partner with you for more than two decades, it says something about your own organization as well.

Electronic Recyclers International Now Offers 1-800-Recycling

Electronic Recyclers International (ERI), the nation's leading recycler of electronics and e-waste, has officially launched 1-800-Recycling, a division of ERI dedicated to enhancing and simplifying the consumer recycling experience.

Profiled in this week's BrandWeek Magazine, ERI's 1-800-Recycling concept is currently being used as a resource for information regarding the recycling of electronics in California and Massachusetts and will be expanding to cover the entire nation later this year.

John S. Shegerian, Chairman and CEO of ERI, said that on November 15th of this year (National Recycling Day), 1-800-Recycling will be launched nationally as a fully integrated Web site (1-800-Recycling.org) and live-operator phone line. Both the site and the phone service will be able to direct users to responsible recyclers of electronics, tires, oil, paint, glass, plastic, household hazardous waste, wood, mattresses, carpet, junk -- basically everything that can be recycled.

"We are very excited about this launch," Shegerian said. "What we were able to successfully accomplish within the financial aid industry with FinancialAid.com, we are now doing with 1-800-Recycling. We have taken the most intuitive and memorable name possible for the recycling industry and we are doing something remarkable with it. This time, we are changing the experience that the American public has when they want to recycle any and all items they have come across that they want to get rid of responsibly. Providing an easy-to-use resource to consumers coast to coast and helping people get in touch with their green DNA is something that has been part of our vision from the start."

For more information about Electronic Recyclers, call 1-800-recycling or visit www.electronicrecyclers.com.

Jaco Authorized to Distribute ISSI

Jaco Electronics, Inc., a global distributor and integrator of electronic components and customized flat panel display solutions, and provider of value-added logistics services, today announced that it has been appointed distributor of ISSI's full line of products, including high speed and low power SRAM and low and medium density DRAM for the digital consumer electronics, networking, mobile communications and automotive electronics sectors.

"We look forward to developing and growing our new relationship with Jaco Electronics and their experienced North American distribution team," says Sanjiv Asthana, ISSI Vice President of Sales and Marketing. "We believe they are an excellent fit to assist us in further expanding the reach of ISSI's high performance integrated circuits."

For more information, visit www.issi.com.

Geek Squad Now Offers Home Theater Consult, Install Services

Best Buy's Geek Squad brand, once the company's IT repair arm, is branching out even further with plans to offer home theater installation and setup services at a variety of locations nationwide.

The Geek Squad has offered basic, in-home setup services of PCs and other electronics, but until now has not ventured into the living room for home theater systems. The company now offers a variety of home theater consultation, setup, TV and speaker system mounting, remote control programming and other services. In-home consultations on home theater design start at $100, with a variety of other a la carte home theater services (from wall mount TV installation to full HTPC setup and installation) available.

For more information, click here.

Toshiba Wraps National Dealer Meeting

Toshiba America Business Solutions Inc. (TABS) closed the doors on its annual National Dealer Meeting last week, an event that brought more than 550 attendees to see Toshiba President and COO Mark Mathews unveil TABS' new color product family based on a newly-developed technology platform.

Additional introductions included open platform architecture support for the next-generation e-BRIDGE controller, upgraded monochrome product lines and new software solutions, value-add partnerships and service-oriented programs.

"Toshiba's National Dealer Meeting affords us the opportunity to not only showcase our new and upcoming products and solutions for our dealers, it also provides a setting where we can spend valuable face time and personally express our appreciation for our dealers' valuable contribution to our organization," Mathews says. "Every product, solution and partnership we've shown or announced this week in some way relates directly back to the needs of our dealers and their customers. It is through this relationship that TABS continues to deliver the difference with tools, education, products and services that give Toshiba dealers the competitive edge in today's market."

For more information, visit www.copiers.toshiba.com.

U.S. Department of Justice OKs SIRIUS/XM Merger

Despite delays, objections and other administrative hurdles, the U.S. Justice Department have given their stamp of approval to the merger of satellite radio giants XM and SIRIUS.

The $4.59 billion merger cleared it's final anti-trust hurdle this morning, paving the way for a swift completion of the deal, though both companies are still waiting for approval from the Federal Communications Commission. The two companies issued a statement following the DOJ news, rehashing a list of dozens of independent groups that support the merger, and calling on the FCC grant its approval for the plans as well.

The deal was first rumored at CES 2007 and formally announced a few weeks later. However, the approval process has been slow after intense opposition from the National Association of Broadcasters and other groups.

"We are astonished that the Justice Department would propose granting a monopoly to two companies that systematically broke FCC rules for more than a decade," NAB Executive Vice President Dennis Wharton said in a statement.

SIRIUS and XM have promised a variety of new service plans for new and current subscribers pending completion of the merger, including al la carte options for individual radio stations as well as cutting redundant content from one provider or another to make room for other content options.

For more information, click here.