Panasonic Drops Plasma

Panasonic has announced it will discontinue production of plasma display panels (PDP) next month and close three factories that were building the HDTVs.

The company will stop selling plasma TVs for consumer use and PDP-related products for commercial use, such as Interactive Plasma Displays, with the current line of TVs. It expects to stop business operations at three of its display plants — the Amagasaki P3 Factory, the Amagasaki P5 Factory and the Amagasaki P4 Factory — by the end of March 2014.

Samsung and LG continue to produce plasma display televisions, but theirs are lower-end or entry-level models; they have generally put development dollars into LCD TVs, according to Paul Gray, a research analyst with NPD DisplaySearch.

“Samsung and [LG] were at best uncommitted to PDP,” Gray said in a blog post. And as for Panasonic, Gray said its “PDP research team had to counter every move in LCD and translate it to their technology…. Inevitably, they slowly lost ground.”

Since 2000, Panasonic has been the leading PDP maker. It led the global flat-panel display market by using PDP for large displays and LCD screens for small- and medium-sized displays. Only three years ago, Panasonic claimed 40% of the plasma display market.

In 2010, plasmaaccounted for 40% of flat panel TVs; this year, PDPs are expected to represent only 5% of the flat-panel market, according to according to market research firm NPD DisplaySearch.

Over the past two years, Panasonic has lost $15 billion through investments in flat-panel TV production, according to financial reports.

Plasma displays have increasingly lost market share to LCD TVs as they moved to LED backlights that narrowed the performance gap between the two technologies.

“With the rapid development of large-screen LCDs, and facing the severe price competition in the global market brought on by the Lehman Shock in September 2008, the company consolidated production in the Amagasaki P4 Factory, made a shift towards commercial applications and worked to improve the earnings of the business,” Panasonic said in a recent statement.

Panasonic will now focus its attention on “non-TV applications” and is moving to reduce its fixed costs for production of both plasma and LCD panels.

The move away from plasma HDTVs is reminiscent of the video tape wars of the 1970s and 1980s.

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The DoD May Share Airwaves

The U.S. Defense Department is proposing to share some of its radio airwaves with private industry, a nod to growing pressure from the wireless industry and the Obama administration that federal agencies ease their control of valuable spectrum.

In a letter released by the Federal Communications Commission on Tuesday, the Department of Defense offers to share the airwaves it now dominates in the slice of frequencies from 1755 megahertz (MHz) to 1780 MHz with spectrum-hungry wireless and Internet companies.

The military would rearrange its systems within that slice of spectrum as well as the 2025-2110 MHz band and compress programs into the 1780-1850 MHz band that it would retain.

The Defense Department uses the airwaves for programs such as pilot training and drone systems and has faced criticism from some in the industry and in Congress for resisting efforts to open those airwaves for commercial use to satisfy growing demands posed by data-hungry gadgets and services.

The Pentagon had pointed to its own need for airwaves as its use of drones and other reliance on wireless technology grows. It also had estimated the process of moving its programs to new frequencies would cost more than $12 billion.

Under the new plan, the Defense Department drops the cost estimate to $3.5 billion by compromising on sharing slices of airwaves without completely clearing any of the spectrum bands.

In the letter, originally sent on July 17 to the National Telecommunications and Information Administration, which oversees federal airwaves, DOD Chief Information Officer Teresa Takai called the proposal “a workable balance to provide access to the 1755-1780 MHz band most desired by the commercial wireless industry while ensuring no loss of critical DoD capabilities.”

The NTIA, in its own letter to the FCC, said it had not had enough time to review the proposal and could not yet endorse it.

The FCC, with NTIA’s help, is preparing for several auctions of airwaves to take place in coming years, including one that would sell off chunks of federally controlled spectrum. They will be the first reshuffling of airwave ownership since 2008.

Congress has required the FCC to auction off the 2155-2180 MHz band by February 2015 and the industry has sought to pair up that slice of spectrum with the valuable 1755-1780 MHz band, arguing it would collect more money. Lawmakers in the House of Representatives have introduced a bill to ensure such pairing.

The FCC has been drafting a notice of proposed rulemaking that would seek public comments on how the FCC should auction those federally owned or already cleared airwaves to the wireless companies and an FCC official said the agency’s notice will address the Pentagon’s new proposal.

President Barack Obama last month directed federal agencies to look for ways eventually to give up or share more of their airwaves with the private sector. This followed his June 2010 call to open up 500 MHz of federal spectrum for commercial use.

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