SCTE•ISBE MEMBERS VOTE OVERWHELMINGLY TO BECOME A SUBSIDIARY OF CABLELABS®
On December 10, 2020, SCTE•ISBE members attended a SCTE•ISBE special meeting to vote on a motion for SCTE•ISBE to become a subsidiary of CableLabs. A quorum was achieved and 86% of SCTE•ISBE Members voted to approve the proposed transaction. Therefore, the motion passed and SCTE•ISBE will officially become a subsidiary of CableLabs on January 1, 2021.
There were a small number of individuals who encountered technical difficulties during the meeting. Each of these individuals was offered the opportunity to submit their votes via chat or email.
We look forward to speaking with those members who may not have supported this transaction to address their concerns.
SCTE•ISBE members will be voting to combine forces with CableLabs, streamlining the cable industry’s technology-based associations by uniting its two largest engineering organizations into one. This transaction will not affect your current member status or benefits. With the commitment to 10G in mind, the transaction will represent the industry’s ongoing efforts to deliver to consumers new innovations and services which will meet changing consumer needs and support the future expansion of broadband deployment.
If approved, the transaction will ensure that the industry not only meets the current pace of change – but will be in a position to accelerate it. The transaction will:
• Expand the availability of training, learning, development, and certification programs to members of both groups.
• Ensure that specifications, standards, training, and deployment of both groups are more closely aligned with one another.
• Leverage strategic, technical and operational resources, member and vendor relationships on a global scale, and optimize subject matter expertise and resources between organizations that will increase value delivered across the industry.
There are no plans for reducing staff within either organization, decreasing costs or budgets or eliminating services, programs or chapters. The increased alignment of investments, resources, innovation and execution is critical in order to expand programs, and engage vendor and international relationships creating efficiencies in connecting across the industry with implementation, best practices, needs and allocation of resources.
Q1. What are you announcing?
SCTE is in the process of becoming a subsidiary of CableLabs.
Q2. Why are you doing this and why is it important?
• Increasing the collaboration between CableLabs and SCTE
• Pace of innovation
• Enhanced industry alignment
• Leveraging strategic, technical and operational resources
• Leveraging international relationships
• Leveraging vendor relationships
• Scale economies with reinvestment in member/vendor support
Q3. What are the key benefits and most notable changes (for members, their customers, consumers, etc)?
• Members: Extension of CableLabs and SCTE benefits across common members in a more streamlined, efficient organizational dynamic. Opportunity for CableLabs members to access a greater array of SCTE benefits and services.
• Members’ Customers: Improved network performance and support through the expansion of training, learning, development and certification programs to an increasing number of technical and operations staff across members.
• Vendors: Leveraging and expanding vendor relationships to optimize alignment of innovation, technologies and implementation across the industry. Envision. CableLabs commitment to vendor experience and relationships.
• Consumers: Improved network experience due to more industry efficiencies in creating and educating the cable workforce.
Q4. Why now?
The refresh cycle of technologies in the network is accelerating, and our traditional model of collaboration must change to keep pace.
Q5. How did it come about?
Discussions with CableLabs and SCTE Executive Committees initially drove this initiative.
Q6. When is the effective date?
January 1, 2021.
Q7. What is the official name? Is it trademarked or registered?
No change to either SCTE or CableLabs name or trademarks. SCTE has become a subsidiary of CableLabs without otherwise changing name, brand or other marks or identity.
Q8. Will you be relocating any employees as a result of this transaction?
Q9. Is anyone exiting the organization, or do you see layoffs as a result of this transaction?
No. This transaction is driven by opportunities with respect to industry collaboration and alignment, innovation, leveraging member and vendor relationships on a global scale and leveraging strategic, technical and operational resources. This transaction is not about reducing staff, decreasing costs or budgets or eliminating services or programs.
Q10. Will EXPO continue to occur?
Yes - Cable-Tec Expo scheduled for October 12-October 15, 2020, and was held virtually; SCTE•ISBE plans to host the event in 2021 October 11 - October 14 in person in Atlanta, Georgia.
Q11. What will happen to the SCTE Foundation?
The SCTE Foundation will continue.
Q12. What will happen to the SCTE building in Pennsylvania?
SCTE staff will continue to occupy – and members, vendors and others will continue to benefit from – SCTE’s headquarters building in Exton, PA.
Q13. Who will lead SCTE?
Mark Dzuban will continue to lead SCTE as President and CEO. Mark will report to Phil McKinney, President and CEO of CableLabs.
Q14. What happens to my SCTE•ISBE Certification(s)?
No change to your SCTE•ISBE certification(s) status. Your certifications will remain valid to term. When due, you will take required actions to renew; and certifications will continue to be offered.
Q15. Does this impact Kyrio?
Kyrio will benefit from relationships developed across a larger universe of broadband providers representing SCTE’s membership, together with a larger vendor community.
Q16. Are we partnering with any organizations or standards bodies?
We aren’t anticipating any changes. SCTE will continue its accreditation with the American National Standards Institute (ANSI) and its liaison relationship with the International Telecommunications Union (ITU). CableLabs will continue its relationships with industry associations, groups and standard7 bodies representing the interests of and advancing the technologies for its members.
Q17. How does this move support or factor into the 10G initiative?
With our commitment to 10G in mind, this transaction represents the industry’s ongoing commitment to deliver to consumers new innovations and services which will meet changing consumer needs and support the future expansion of broadband deployment.
Q18. Does this transaction affect ANSI Accreditation?
SCTE is the cable telecommunications organization accredited by the American National Standards Institute (ANSI). ANSI is a non-profit organization that promotes voluntary conformity standards in the United States. ANSI also represents the United States in international standards organizations, helping to create guidelines that are universally accepted in multiple industries – including the cable and broadband industries. The International Telecommunication Union (ITU) also recognizes SCTE, allowing SCTE standards to be referenced by the ITU. SCTE submits standards to the ITU through the U.S. Department of State and works in cooperation with the European Telecommunications Standards Institute (ETSI).
Q19. Does this impact other industry organizations like CTAM or ACA or NCTA or NCTC?
No. CableLabs and SCTE continue their close collaboration and partnerships with other industry trade associations and, through this transaction, will assure even greater alignment and support.
Q20. Why would someone want to become a member of SCTE [or CableLabs] and how do they apply?
Q21. How is membership affected if I am a member of SCTE and not a member of CableLabs?
SCTE members that are not members of CableLabs will continue their SCTE memberships with access to the same programs and services – and at the same fees and rates – as are now in effect at SCTE. They will not have access to the benefits of CableLabs membership unless they choose to join CableLabs [and are qualified for CableLabs membership].
Q22. The slide that you shared that lists SCTE associate member benefits states that current CableLabs members would have access to all SCTE programs and benefits, and all non-CableLabs SCTE associate members would keep their current benefits. Is there any change in programs or benefits for an SCTE individual?
SCTE•ISBE associate members who are [employed by] a CableLabs member company may participate in CableLabs access to SCTE programs and benefits. SCTE•ISBE associate members who are retired, no longer employed, or employed by a company that is not a current CableLabs member keep their access to SCTE programs and benefits through their individual associate membership dues or company’s CAP fees.
Q23. SCTE membership dues are due by January 1. What should we do regarding membership?
Renew. SCTE will still offer individual associate membership for anyone with interest in the cable industry. If you are employed by a CableLabs member company, we will work with your company depending on the December 10th vote concerning next steps.
Q24. Are At-Large Board seats appointed or elected?
Elected. The associate membership would vote and elect six board members to the new SCTE Board.
Q25. Will SCTE continue to allow individuals to become associate members with their payment of membership dues?
Q26. What about SCTE's Corporate Alliance Program? Will that remain?
Yes, the Corporate Alliance program will continue. We will take the CableLabs Tier Level Service benefits that the associate member will receive and incorporate them into the SCTE•ISBE CAP agreement for 2021. Companies with 10 or fewer training seats may or may not be CAP, depending upon their desire to expand spend beyond the CableLabs Tier Level Service benefits.
Q27. How does this transaction impact CAP as CableLabs is sending MSOs a rate increase that includes seats similar to our CAP agreements? Chapter leaders push CAP and try to gain members through their MSOs who we know are CAP members.
Similar to the above, we will incorporate the seats into the 2021 CAP renewals. MSO’s who are CAP partners and require additional associate memberships can either purchase additional seats (if the employee will want to take training and certifications) or they can purchase associate memberships as they have in the past on either pre-paid or pay-as-you-go bases.
Q28. Will the structure under the Engineering Committee (NOS, IPS, DSS, etc.) be the same as before?
Q29. Will existing SCTE Senior Members, Fellow Members, etc., fall under the umbrella of "Associate Member"?
Yes, all grades of memberships such as Senior Member, Fellow member, Executive Member, etc. will fall under the umbrella of associate member.
Q30. How many members do we currently have?
Approximately 13,200 are current members as of November.
Q31. Will the SCTE-ISBE Board be maintaining its annual budget planning and approval methods or will there be an additional review and approval by the CableLabs Board?
The SCTE-ISBE Board will prepare and approve a June 30 to July 1 budget that will be sent to CableLabs Board for final approva, at which time it will then be included with the CableLabs budget as it is being approved by the CableLabs Board.
Q32. Will there be any changes to the chapter bylaws/associate board members in the chapter bylaws?
No changes to the chapter bylaws or the associate board members in the chapter bylaws.
Q33. Will we still have CLC?
Q34. If the Foundation is separate, then no one from the SCTE board or CableLabs board can be on the Foundation board?
Currently we do have SCTE•ISBE board members that also serve on the SCTE Foundation board.
Q35. Will only Region Reps be qualified to serve on the Chapter Support and Membership Committee? How about subcommittees such as NCLB?
All regional reps will serve on the Chapter Support & Membership Committee, however participation in that committee is open to individuals other than regional reps. All subcommittees (such as NCLB, cable-tec games, etc.) for chapter support and membership committee (as well as Engineering & Learning and Development) will continue as the subcommittees function now.
Q36. Why the rush to create a subsidiary so quickly?
SCTE and CableLabs are longstanding partners within the cable industry and have coordinated for a number of years in many areas, including technology development, training, leadership development and Cable-Tec Expo, which will enable a more rapid, seamless transition.
Q37. Are there financial troubles within the society that prompted this action?
SCTE is in a stable, solid financial position with sufficient reserves and positive cash flows. This transaction would further enhance SCTE’s financial integrity by way of more predictable revenue from common MSO membership generated through additional dues paid to CableLabs for SCTE’s services and programs.
Q38. What happens after the SCTE board approves the motion for SCTE•ISBE to become a subsidiary of CableLabs?
This action must also be approved by the SCTE•ISBE members, details about that vote are as follows:
• The voting meeting will be held through Zoom on December 10, 2020 at 11 am ET.
• Meeting registration will open on November 20th and all eligible members will be emailed the meeting registration information on November 20th. Meeting registration and meeting information can be found by logging into your member account and clicking on https://www.scte.org/scteisbe-member-vote/.
• Members can register for the access information for the meeting until the morning of December 10th. Voting will be embedded within the meeting software.
• The cut-off date for member voting eligibility will be included in the November 19th SCTE board meeting motion.
• Any questions or comments from the SCTE•ISBE membership, must be submitted by 2pm ET on Wednesday, December 9th. Questions/comments received will be read aloud during the meeting. The board will respond to those questions/comments and voting will close as meeting is adjourned.
• The voting information as well as the process to submit questions or comments will be available on a members only webpage that will go live on November 20th.
• Members must attend the meeting in order to vote.
• The ballot will be in “yea” or “nae” format.
• SCTE•ISBE must receive “yes” votes from two-thirds of the total number of eligible voters participating in the vote in order to move forward with the transaction.
What Does a “Yes” Vote Mean?
If the vote passes, SCTE•ISBE will become a subsidiary of the CableLabs organization effective January 1, 2021. There will be no change to either SCTE•ISBE or CableLabs’ names or trademarks.
What Does a “No” Vote Mean?
If the vote does not pass, the organizations will remain separate entities.
What if I Don’t Vote?
If less than 5% of SCTE•ISBE members cast a vote, the organizations will decide next steps which may include re-opening the vote at a later date.
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