There needs to be “lots of innovation for various display technologies” so they can adapt to “our new normal life” of COVID-19 work-from-home and remote-learning mandates, Frank Ko, president-chief operating officer of panel maker AU Optronics, told the virtual Display Week conference. His keynote was prerecorded and screened for the first time Friday. Telework and remote learning means people will spend a great deal more time with their displays than before the pandemic, said Ko. AUO is responding by bringing more “eye care display technologies” to market, he said. E-paper displays are “more natural for humans” because they have no backlights and no “light emissions,” he said. “AUO has launched notebook and desktop displays with low blue light.”
Sage Telecom asks the FCC to extend an order that waives dropping Lifeline subscribers based on recertification, reverification, usage and certain other enrollment requirements during the pandemic. That order expires Aug. 31. “Unfortunately, not much has changed with new US unemployment claims increasing again this week,” the company told an aide to Commissioner Jessica Rosenworcel, said a Friday posting in docket 17-287.
COVID-19 sent GoPro Q2 revenue tumbling 54% from the 2019 quarter, up 12% sequentially, said CEO Nicholas Woodman on a Thursday call. “Demand for GoPro cameras consistently improved throughout the second quarter, and we've seen a faster-than-expected rebound in sell-through at retail,” he said. “We remain on track with our product launches slated for the second half." The company's shift to a more direct-to-consumer business model with lower operating costs is working, said Woodman. “GoPro has adapted to the pandemic, and we believe our consumers are learning to live with the pandemic, too.” The stock closed 11% lower Friday at $4.94.
An early sunset of FCC data cap and interconnection conditions from Charter Communications' purchase of Time Warner Cable and Bright House Networks would hurt consumers and make broadband access more difficult during the COVID-19 pandemic, said the New York State Public Service Commission in a docket 16-197 posting Thursday. Charter's ask for early relief (see 2006180050) "is ill-timed" given the health crisis and the strong need for broadband for such applications as telecommuting and telehealth, it said. Charter didn't comment.
The California Public Utilities Commission conditionally opened 13 small LEC markets to cable and wireline competitors. Commissioners voted 5-0 for the proposed decision despite concerns raised by rural incumbents and would-be competitors (see 2007280058 and 2008040051). Federal and state law requires the commission to allow competition in the markets that cover 17 counties in hard-to-serve parts, said Commissioner Martha Guzman Aceves at the agency’s livestreamed virtual meeting Thursday. She noted it’s “ironic” that the carriers that want to compete “often are some of the major barriers to competition elsewhere.” Conditions for possible entrants are nondiscriminatory and competitively neutral, she said. Commissioner Cliff Rechtschaffen said the decision “strikes the right balance by advancing competition,” with “many safeguards to ensure fairness, to ensure the quality of service and to safeguard consumer rights.” It gives wireline companies the same opportunity as wireless providers to compete with RLECs in the 13 markets, said Commissioner Liane Randolph. CPUC President Marybel Batjer called the decision “a cautious step forward.” The item focuses on voice amid a pandemic that shows people need the internet, so the commission should tackle that issue next, she said. Earlier in the meeting, members unanimously cleared a California Advanced Services Fund proposal as part of its consent agenda. The decision closes docket R.12-10-012 and authorizes staff to set application windows and timelines for broadband infrastructure account and allow staff to use state operations funds to provide technical assistance for tribes (see 2007060047). CASF “needs many more reforms statutorily,” said Guzman Aceves. The program’s 6/1 Mbps broadband standard is insufficient, but even under that many tribes are unserved, she said.
The FCC Wireless Bureau approved a request for reviews to proceed under Section 106 of the National Historic Preservation Act for towers that U.S. Cellular is building in Lawrence and Oshkosh, Nebraska, during the pandemic.
Nearly 40% of U.S. employees can telecommute, reported Recon Analytics Thursday. Of those, slightly more than half are contemplating moving to a smaller city or town, it said. “The pandemic has prompted many Americans to reevaluate their priorities and living conditions.” The prevalence of videoconferencing drove bandwidth requirements upward, “especially on the upload side,” it said. The analyst firm canvassed 1,600 employees on COVID-19 videoconferencing, finding more than a quarter use it frequently for work, 21% occasionally.
Sonos, whose exclusion from the List 4A tariffs was granted in March (see 2005110034), is diversifying its supply chain into Malaysia even amid COVID-19 delays, said Chief Financial Officer Brittany Bagley on a quarterly call Wednesday. The company planned to have “significant” U.S.-bound production from Malaysia ramped up by Dec. 31. Due to pandemic-related government restrictions on manufacturing in Malaysia, reaching scale will take until mid-2021, Bagley said. “Essentially all” Sonos products subject to 7.5% tariffs fall under the exemption, which was retroactive to Sept. 1, but expires Aug. 31. Sonos began the process of seeking refunds. Revenue fell 4% in fiscal Q3 ended June 27 to $249.3 million. Gains were offset by higher freight costs to increase inventory levels and fill back orders to meet “higher-than-expected” demand. Most of Sonos’ physical retail partners were closed for in-store sales during much of Q3, said the shareholder letter. The majority have reopened but with capacity and other restrictions. It’s confident it can continue to scale its direct-to-consumer channel, up 299% in the quarter, “over time.” On the transition to the S2 operating system, which left many legacy product owners angry, CEO Patrick Spence said there's “no churn" and “millions” of homes have converted. The wireless multiroom audio company, which last week settled with Lenbrook over a patent infringement lawsuit (see 2007300059), remains confident about its patent fight with Google at the International Trade Commission, said Chief Legal Officer Eddie Lazarus. There are “quite a few companies” in the multiroom audio space that Sonos believes are infringing its patents, “and we're in touch with many of them.” The stock closed 18.3% lower Thursday at $14.29.
Lockdowns helped Roku add 3.2 million incremental active accounts, a record for a non-holiday quarter, said Chief Financial Officer Steve Louden on a Wednesday evening call (see materials here under Q2). The company ended Q2 up 41% year on year in active accounts, at 43 million, fueled by shelter-at-home mandates. Revenue jumped 42% to $356 million, reflecting growth in platform and player segments. Player sales rose 28%, while average selling price decreased “only 2% ... given less promotional activity due to strong demand” and some inventory constraints, said Louden. The stock closed 6.9% lower Thursday at $153.87. The outlook for that industry remains “highly uncertain” for this year and it will be “well into 2021 before TV ad investment recovers to pre-pandemic levels,” said CEO Anthony Wood. The ad streaming market is in “very early days,” said Wood, envisioning that “all television is going to stream. Streaming hours per active account peaked in early Q2 and “has since moderated, but remains above pre-COVID levels,” said Louden. Responding to a question on HBO Max and Peacock, which launched over the past few months outside the Roku platform, Wood said, “We're not always first when it comes to adding new services to our platform because it's important to us that we establish a win-win-win relationship.” The company wants to “add all the content that we can.” Roku’s economic model with content distribution partners and advertisers “is what funds our business” and allows the company to sell low-cost players." MoffettNathanson tempered its view in a Thursday investor note, saying “looming competition from Android and TV OEMs,” and lack of key performance data makes it difficult to extrapolate COVID-19 lockdown gains into the future. The slowdown in ad impression growth in Q2 to 50% from nearly doubling in Q1 “is a bit worrying” given linear ad market trends, said Michael Nathanson. Ad-based VOD “appears a bit weaker than anticipated” given the rise in active accounts, he said. Though Roku appears well-positioned for the trend, the analyst said “it remains unclear if they will get a cut of Mulan purchases on Disney+ or share the economics of similar transactions on other major [Subscription] VOD platforms” (see 2008050037).
Rules for the 70/80/90 GHz bands should be optimized for wireless backhaul and compatible applications, said T-Mobile and other carriers in comments posted Thursday in docket 20-133, in response to a June NPRM (see 2008050058). Others sought broader use.