Samsung Elec to build $1.16 bln Russia digital TV plant

SEOUL (Reuters) - Samsung Electronics Co. Ltd. said on Sunday it will build a 30 billion rouble ($1.16 billion) digital television plant in Russia by 2010 to meet growing demand from the region.

Samsung, which makes products ranging from semiconductor chips, LCD panels and handsets to home appliances, will break ground for the 47.3 hectare plant in Kaluga, southwest of Moscow, in July, its spokesman Anthony Lee said.

The South Korea-based company, competing with Japan's Matsushita Electric and hometown rival LG Electronics, is aiming to churn out 2.2 million digital TV sets at the new plant a year in 2010.

Panasonic-brand maker Matsushita said last year that it would begin liquid crystal display (LCD) television assembly in Russia, taking aim at strong growth potential in flat TV demand there.

http://in.today.reuters.com/news/NewsArticle.aspx?type=technologyNews&storyID=2007-06-10T104926Z_01_NOOTR_RTRMDNC_0_India-302412-1.xml

Change in set-top boxes could increase cable bill

On the gizmo glamour scale, the TV set-top box is a bit of a frump -- something the cable company dumps on the doorstep, not the quarry of a shopping spree at Best Buy.

But next month, a new federal rule goes into effect that's aimed at creating a retail market for set-top boxes and fostering more competition and innovation in a business dominated by Schaumburg-based Motorola Inc. and one other company.

While that may sound like admirable policy, some cable equipment analysts doubt it will work well: They say consumers will be reluctant to pay a few hundred bucks for a box when they can rent one for a few dollars a month, as they do now. Electronics manufacturers, including TV industry upstart TiVo Inc., beg to differ.

What seems more certain is that consumers' monthly cable bills are likely to rise a few dollars after the new rule takes effect. That's because the cable box born from the regulation costs more to produce, a cost likely to get passed down to TV watchers, analysts and cable operators say.

The rule change pivots on security technology, which allows consumers to watch only the channels they've paid for. That technology is integrated into the set-top box. As of July 1, it will be separated via a "cable card" that's plugged into a slot in the back of a set-top box.

The rule change doesn't require cable customers to get a new cable box. Only boxes deployed after July 1 must have separable security. And cable companies can pre-install the security card before delivering boxes to new subscribers. That's what Comcast, Chicago's dominant cable provider and Motorola's largest cable customer, plans to do.

Separable security in cable boxes was mandated in a landmark 1996 telecommunications bill. But until recently, neither Congress nor the Federal Communications Commission put pressure on boxmakers and cable operators to implement the rule, said Mike Paxton, a cable and broadband industry analyst at tech researcher In-Stat.

Neither party has much of an incentive to change.

For cable operators, the integrated security system has done a bang-up job thwarting thieves, and it's helped them control the distribution of TV programming. For makers of set-top boxes -- well, no corporation is likely to rush into something aimed at giving it more competition.

The U.S. cable set-top box business is dominated by Motorola and Scientific Atlanta, a unit of communications equipment-maker Cisco Systems. In 2007's first quarter, Motorola had a commanding 41 percent share of the combined U.S. cable and satellite set-top business, according to ABI Research, a market researcher.

Policymakers felt that decoupling security from a set-top box would lead to more competition. Now, the world's biggest consumer electronics-makers can't compete because Motorola and Scientific Atlanta effectively have a lock on cable security technology in this country.

With the new rule, security will be an external element to the box, via the cable card. Motorola and Scientific-Atlanta make the security cards, which can then be plugged into a box made by another manufacturer.

"There will be nothing preventing a Samsung or Sony in effectively providing the electronics," said Lawrence Harris, an analyst at Oppenheimer & Co. And a Samsung-made or Sony-made set-top box could then be peddled through traditional electronics channels such as Circuit City or Best Buy stores.

Electronics manufacturers have pushed hard for separable security. "It's a really important thing," said Matthew Zinn, TiVo's general consul.

TiVo invented the digital video recorder, distributing it through satellite TV operators and electronics retailers. Seeing the popularity of TiVo's DVR, the cable operators followed. But for hardware, they turned to traditional suppliers Motorola and Scientific Atlanta.

"I doubt the cable industry would be using DVRs if TiVo had come out with them," Zinn said.

TiVo has been historically hurt by its lack of sales through cable networks. It stands to gain if a retail set-top market gets a boost from the new FCC rule.

But some cable industry analysts are skeptical that cable boxes and DVRs will be a big sellers at retail. "Retailers -- Wal-Mart, Best Buy -- have shown virtually no interest in set-top boxes," said In-Stat's Paxton. They take up valuable shelf space but offer retailers relatively low profit margins and little post-sale service revenue, he said.

The outlook isn't bright, either, for the other side of the retail equation -- consumers, said Paxton and other analysts.

A set-top box with a built-in DVR would cost $300 minimum, and more likely at least $400, Paxton said. Meanwhile, renting a similar box through a cable company costs $5 to $10 a month, he said. Plus, by renting, consumers can easily upgrade to a new box when a new technology like HDTV becomes available.

"Consumers have no interest in buying a set-top box," Paxton said. "They're very comfortable leasing the box."

TiVo's Zinn acknowledged that while many people are happy renting a box from a cable operator, others want more sophisticated options. As for the cost of a box, Zinn and other electronics-makers expect that to fall over time as the market develops.

"That's the way of electronics," Zinn said. "Things get much cheaper very quickly."

In the short term, the new FCC regulation will add to the cost of a set-top box. That's because a cable-card box involves more complicated engineering than a box with integrated security, said Mark DePietro, vice president of strategy for Motorola's digital video solutions operation.

Motorola says cable-card technology tacks on $70 to $75 to the cost of a box, regardless of whether it's a cheaper model or a more sophisticated DVR. Thus, the cost of Motorola's low-end digital box will effectively double.

Tivo's Zinn scoffed at Motorola's estimate. "That's nonsense," he said. "Seventy dollars may be the difference they are charging Comcast, but it's not the difference in cost." Zinn estimated the extra cost per box at around $20.

Whatever the cost, cable subscribers will end up paying part of it. "Customers will ultimately end up paying more," said Rich Ruggiero, a Comcast spokesman. He declined to elaborate on how much more.

Matthew Polka, president of the American Cable Association, said consumers with basic digital packages will likely see their monthly rental charges double, in order for cable operators to cover the doubling of the box's price.

Polka's group represents 1,100 smaller cable operators -- including 29 in Illinois -- many of whom serve rural areas. Those operators charge subscribers about $2.50 per month to rent a digital box in a basic package, Polka said, so consumers would end up paying an extra $30 a year if their rental rates are doubled.

The added cost for separating security should go away in a couple of years, though.

By then, the cable-card method of separating security will give way to a cheaper technology -- software downloads directly from the cable company to the set-top box.

http://www.chicagotribune.com/business/chi-sun_settop_0610jun10,0,1337296.story?coll=chi-business-hed

Aftermarket Technology Corp.'s Logistics and Electronics Business Honored by AT&T as Outstanding Supplier

Commitment to excellence over the past year has earned Aftermarket Technology Corp.'s Logistics and Electronics business recognition as an outstanding supplier to AT&T Inc., one of the world's leading data, voice, wireless and Internet services providers.

"We are proud of our long-standing tradition of providing unparalleled products and services to our business and residential customers," said Maureen Merkle, President, AT&T Procurement. "We're successful on that front in large part thanks to supplier partners like Aftermarket Technology Corp.'s Logistics and Electronics business that consistently go above and beyond the call of duty."

Aftermarket Technology Corp.'s Logistics and Electronics business received one of 39 supplier recognition awards for its work in helping AT&T deliver outstanding service to its customers during the past year. Aftermarket Technology Corp.'s Logistics and Electronics business was recognized for its contributions in the Product & Service Performance category.

Don Johnson, Chairman, President and CEO of Aftermarket Technology Corp. said, "We are honored to be recognized by AT&T for this Outstanding Supplier Award for Product & Service Performance. We have been partners with AT&T for over a decade and take pride in the relationships we have built with this valued customer company-wide. We are pleased to be a part of the AT&T success story."

As part of its annual supplier recognition program, AT&T took out a half-page ad in the June 5, 2007 edition of The Wall Street Journal to publicly thank the selected companies."

Aftermarket Technology Corp. is headquartered in Downers Grove, Illinois. The Company provides outsourced engineered solutions and supply chain logistics services to the light and medium/heavy-duty vehicle aftermarket and consumer electronics industries.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?Feed=PZ&Date=20070611&ID=7019264

Detroit Based Car Tunes Mobile Electronics Named National 'Retailer of the Year' by Mobile Electronics Magazine

NATIONAL AND LOCAL AWARDS STEM THE TIDE OF BAD NEWS

ALLEN PARK, Mich., June 11 -- Mobile Electronics Magazine, the industry's top trade publication, awarded Car Tunes Mobile Electronics of Allen Park, MI as the top mobile electronics "Retailer of the Year" in the nation.

With headlines of budget deficits, plant closings and job layoffs filling news reports coming out of Detroit, the mobile electronics "Retailer of the Year" award stems the tide of bad news and provides some well-deserved national recognition to Car Tunes, a part of Detroit's retail landscape for 30 years.

"It's great to be nationally recognized for the excellence in products and service we provide to our customers. We've been saying it for years, but the fact that these awards came as Car Tunes is celebrating 30 years of business in Detroit makes it even better," states Mark Constantakis, founder of Car Tunes.

The competition for Retailer for the Year began in December of 2006 as members of the mobile electronics industry began nominating candidates. More than 2,500 industry insiders and mobile electronics experts throughout the United States voted, placing Car Tunes as a finalist within the "Top 12" mobile electronics retailers in the nation.

At the end of January 2007, Car Tunes was asked to submit materials for judging. The materials included location and event pictures and samples of promotional and marketing items. It also contained a comprehensive questionnaire outlining customer service practices, employee training, community involvement and information regarding business operations.

The "Retailer of the Year" award came right on the heels of the "Real Best of Detroit" award given by Real Detroit Weekly Magazine naming Car Tunes Mobile Electronics as the "Best Car Audio Store" in Detroit. The "Real Best of Detroit" award was the result of voting by Real Detroit Weekly readers to find "the D's best of the best in all things nightlife, food, culture, music, sports and entertainment."

About Mobile Electronics Magazine

Mobile Electronics Magazine strives to support the mobile electronics industry by providing timely news, information and support to the retail community. The publication educates members of the industry with content intended to help retailers improve their profitability. Mobile Electronics maintains a policy of editorial integrity, focusing on the value of the content provided to its readers, while sustaining a level of profitability that fosters continued value and growth. Its primary goal is to bring buyers and sellers together in today's market both in print and online.

http://www.theautochannel.com/news/2007/06/11/051524.html

Electronics stolen from house built for charity

SCOTT DEPOT — A thief took $1,300 worth of electronics from the St. Jude Dream Home on Sunday night — a week before the house is to be raffled off for the children’s hospital.

The criminal swiped two flat-screen TVs, two DVD players and a digital camera from the home off Rocky Step Road, said Putnam Sheriff Mark Smith.

“It’s horrible,” said Aaron Wood, managing partner of Eimors Construction, which built the house. “I just hope they catch whoever did this.”

The $500,000 house was built on a donated lot at the Cobblestone subdivision to raise money for St. Jude Children’s Research Hospital in Tennessee. The hospital helps children fight cancer and other life-threatening illnesses with research and medical care, at no cost for the children’s families. People have been buying raffle tickets for a chance to win the luxurious house.

The stolen goods belonged to St. Jude’s staff members and volunteers, said Dan Warbel, associate director of the state’s St. Jude office. “What was missing is not that significant,” Warbel said. “It’s just the principle.”

Last year, Eimors and Cobblestone teamed up for the fund-raising project. About 40 Eimors employees and 20 volunteers have worked on the house since construction started in October, Wood said.

Nationwide, the Dream Home program is St. Jude’s third largest fundraising campaign, Warbel said. The Scott Depot home is West Virginia’s first, and has raised almost $800,000 for the hospital. Its construction was inspired by the story of Ben Bowen, a Huntington toddler who died of a brain tumor in 2005.

Whoever stole the items knew the house was for charity, Wood said. “There’s a sign out front that says this has been donated and built for St. Jude’s.”

He hopes a Web cam across the street will help investigators. The camera was installed so people could view the house on the Internet. “We actually will have a picture of the person who did it,” Wood said.

Wood and Warbel said the thief probably entered the home through an unlocked front window. On Saturday and Sunday, more than 1,500 people toured the house. They suspect someone unlocked the window, then returned Sunday night to burglarize the home.

Similar incidents have occurred at other St. Jude Dream Homes across the country, Warbel said. Last year, someone stole electronics from a Dream Home in Kansas City, Mo. “We’ve never had a house vandalized or anything like that,” he said.

St. Jude’s won’t let the crime deter its cause, Warbel said. WCHS-TV is still set to host the big giveaway on Sunday from 2 to 4 p.m.

Anyone with information about the break-in should call the Putnam County Sheriff’s Department at 586-0256.

To contact staff writer Alison Knezevich, use e-mail or call 348-1240.

http://www.wvgazette.com/section/News/2007061120

Ultra Electronics to buy Criticom for up to 33 mln usd in cash

LONDON (Thomson Financial) - Ultra Electronics Holdings PLC said it has agreed to buy Criticom Inc for up to 33 mln usd in cash, adding the acquisition of the US video conferencing company is expected to add to its 2007 earnings.

The defence and aerospace company will pay an initial 28 mln usd and an additional payment of up to 5 mln usd if certain performance-based measures are met by June 30 2008.

'Criticom is a company that complements Ultra's existing battlespace IT and secure communication systems capabilities,' said Ultra Electronics chief executive Douglas Caster. 'The acquisition of Criticom broadens still further Ultra's range of specialist solutions.'

Ultra Electronics said it will finance the acquisition using its existing facilities. The transaction is expected to be completed within 45 days.

In the year ended Dec 31 2006, Criticom achieved sales of 19.3 mln usd.

TFN.newsdesk@thomson.com

ukn/faj/ms1

http://www.forbes.com/markets/feeds/afx/2007/06/12/afx3810952.html

Universal Electronics Rises on Upgrade

NEW YORK (AP) - Shares of Universal Electronics Inc. jumped Monday after an analyst upgraded the stock and forecast strong growth for the remote-control maker.

Universal Electronics shares rose $3.27, or 10.2 percent, to $35.42 at midday. The stock has traded from $16.21 to $34.57 over the past year.

Cypress, Calif.-based Universal Electronics makes pre-programmed universal remote controls for consumer electronics manufacturers and cable and satellite providers, and also sells its products directly to consumers.

WR Hambrecht analyst Matthew Kather upgraded the stock to "Buy" from "Hold" because he expects overall industry trends and new product introductions will help the company maintain "solid" earnings results in the coming quarters.

The analyst forecast strong growth potential from cable and satellite providers, both domestically and overseas.

"We have greater confidence that the opportunities in Asia for (Universal Electronics) will likely begin to accelerate quicker than most people currently expect," he wrote.

Earlier this month, the company settled a patent infringement case with RTI, a maker of home theater control products, for undisclosed terms.

http://news.moneycentral.msn.com/category/topicarticle.aspx?feed=AP&Date=20070611&ID=7018358&topic=TOPIC_HOT&isub=2