--Report Alleges Company's tru2way TV Sets Failed CableLabs Testing
--Claims Testing Brought to Light "Dozens and Dozens" of Bugs

Consumer electronics giant, Panasonic, made a strong show of support
for the US cable industry's tru2way standard at the NCTA Cable Show
in New Orleans last month. tru2way-based Panasonic products on
display at the show included:
- The PCH2180 HD DVR, a multi-tuner box that offers HD video
recording, a multi-stream CableCARD host interface for separable

security, and a high-speed DOCSIS modem that supports DOCSIS Set-
Top Gateway Signaling (DSG). It supports a range of codecs, including
MPEG-2, MPEG-4 and VC-1, and can also incorporate a MoCA Home
Networking option, Panasonic says. "The PCH2180 HD-DVR platform
truly is the next-generation all-digital set top and is ready for the
roll-out of tru2way technology in the field," Charlie Hare, Panasonic's
national sales and marketing manager for cable products, said in a
prepared statement. "The PCH2180 will ship in quantity starting in July
2008 and is available to all cable MSO's whose network supports
tru2way specifications."
- The VIERA Plasma HDTV, a 42-inch digital television set that
integrates a tru2way cable receiver (thus eliminating the need for a
separate set-top box).
- The TZ-LC100, a tru2way-based portable DVR that was first
announced at the Consumer Electronics Show in January. According to
Panasonic, the device incorporates full DVR functionality into a
Panasonic portable DVD player platform, and features a 60GB hard
drive, an 8.5-inch folding LCD display, integrated stereo speakers, and
dual audio headphone jacks. When used in conjunction with a
companion docking station, it functions as a standard DVR. It is slated
for availability early next year.

"We are proud that Panasonic has been able to work closely with the
cable industry in developing tru2way products ranging from advanced
digital cable boxes incorporating digital video recorder capability,
which cable companies can provide to their subscribers, to spectacular
new tru2way-enabled VIERA Plasma HDTV's, which will be available
for consumer purchase at retail this fall," Dr. Paul F. Liao, CTO of
Panasonic Corporation of North America, said in a prepared statement.
"And we are especially delighted to be partnering with Comcast,
CableLabs, and other leaders in the cable industry in rolling out
tru2way technology. This technology brings the benefits of open
networks to cable subscribers."
Panasonic's tru2way efforts received some not very favorable publicity
earlier this week when the blog, IP Democracy, citing unnamed
sources, reported that the company's tru2way integrated digital
television sets had failed CableLabs certification after "dozens and
dozens" of bugs came to light during certification testing. According to
the blog, some of the bugs were so severe that they even violated FCC
broadcasting rules, including a rule that requires cable systems to
prevent viewers from tuning away from disaster alerts issued through
the Emergency Alert System (Panasonic's devices allegedly would have
allowed viewers to do exactly that). If the problems described by the
blog are true, it seems unlikely that Panasonic will be able to launch its
tru2way TV sets in select markets this September, as it had originally
planned, or even launch them in time for the holiday shopping season.
CableLabs has since issued the following response to the report:
"Certification test results are not published by CableLabs. While we
cannot address speculation made in the media about specific test
results, it is important to understand that it is common for devices to
require multiple test runs before achieving CableLabs certification.
Manufacturers generally account for such timing in their product plans.
CableLabs conducts multiple test waves throughout the year in order to
accommodate additional testing. Panasonic has entered an upcoming
certification wave, which provides ample time for products to reach the
marketplace to meet the company's roll-out schedule. Other tru2way
products, including products from Samsung and ADB have already
been Certified by CableLabs."
The IP Democracy report also claimed that Panasonic's alleged tru2way
problems "will likely all but destroy rumored plans by Comcast to
unveil tru2Way TV service" in August in Denver and Chicago where
the MSO "was readying a test of the innovative technology...and
Panasonic was gearing up to sell its tru2Way sets in area Circuit City,
Best Buy and Sears stores." Comcast subsequently issued the following
response: "Comcast continues to be completely committed to tru2way.
We are confident in the technology and are on track to introduce this
software platform and services at retail later this year in select markets.
We are working closely with multiple CE companies to bring
interactive services and products to consumers. As is the case with
most certification processes for new technologies, there are many steps
and trials that companies need to go through before technologies are
introduced to consumers. As with any innovative and complex
technology, the development, testing and certification phases require
work and issues will arise."