Dish Chairman Charlie Ergen: 'I don't want to kill ads'

Dish Network founder and Chairman Charlie Ergen (Credit: Dan Farber)

DANA POINT, Calif.--You might think that Dish Network Chairman Charlie Ergen wants to kill TV advertising. With the introduction of the Dish Hopper with Sling HD DVR nationwide this week, the company ironically launched a new series of commercials to promote the latest version of its ad-skipping product.

In one commercial, the "Boston guys" sit on a couch paying their last respects to commercials. "Now that we have the Hopper, we can watch commercial-free TV," they said. "Commercials are out of our lives."

Granted, viewers keep the fast-forward button handy to skip ads on their DVR, but automating the process has forced the broadcast networks to take up arms against Dish's AutoHop feature.

CBS Corp., parent company of CNET, NBC (Comcast), ABC (Disney), and Fox (News Corp.) have all filed suits against Dish.

In a brief on January 31, Fox accused Dish of breaching its contract by creating an ad-free copy of Fox's content:

Dish did not "create commercial free TV." Fox has been offering VOD and commercial-free TV to consumers for years. Instead, Dish created a competing, premium, VOD service that Dish's top executive boasted would make licensed services like Hulu obsolete, and that threatens the ad-supported broadcast television ecosystem. Contrived legal argument to avoid abiding by conditions in a license agreement is not innovation.

But Ergen maintains that he really doesn't want to kill TV ads, he just wants to change the way ads are delivered to consumers.

In conversation with Peter Kafka at the All Things D Dive into Media conference here, Ergen was asked about the new ads.

"It's not an ad that the networks are going to run. It's our team having a little bit of fun," he said. "I don't want to kill ads. I think advertising is great. I am very aware of the multiple revenue stream in television, subscription and advertising. But I also don't want to put my head in the sand. As an example, Hulu did a good job. You can pick an ad that is relevant to you. With the Hopper, we have technology that allows you to pick an ad relevant to you. But the broadcast industry is slow to adapt to that.

"We have the ability to skip commercials, so it makes sense to give more targeted, meaningful, and fewer commercials, and they can make more money," he said, adding as an example, "A single mom may not need the testosterone ad that runs time and time again. She may want something about fashion," Ergen said.

In pursuit of that "smarter Hopper" mission, Ergen wants to compete with the cable and wireless providers to offer a complete set of services inside and outside the home, and to use all the data to target customers with ads. Dish has tried to acquire DirectTV to expand its satellite footprint and has been trying to acquire wireless spectrum from Clearwire. So far, he has struck out.

In its own suit against the broadcast networks, Dish claims that the AutoHop feature doesn't infringe copyright because the technology doesn't alter the broadcast signal since the ads are not deleted from the recording.

It appears that Ergen is less focused on killing advertising than taking a piece of that action. "They [broadcasters] are trying to run their business and do right things for their shareholders. I am trying to explain to them how to make more money, not less," Ergen said. But, in its marketing, Dish talks about skipping ads, not about reframing how the $60 billion per year in TV ads are delivered.

"The lawsuits will ultimately decide the fate of commercials. If the broadcasters win on their claims, it would outlaw the DVR," Ergen said. That may be an exaggeration, but it wouldn't stop Ergen from trying to upend the delivery of TV services. "I believe it's less risky to embrace change...you can lead it and make the rules or be a fast follower or slow follower and pay more to catch up."

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Tornado rips through Miss. city, causes major damage

HATTIESBURG, Miss. An apparent tornado tore through Hattiesburg on Sunday as part of a wave of severe storms that downed trees, damaged buildings and caused at least several injuries.

The twister traveled down one of Hattiesburg's main streets and caused what officials described as major damage, officials said, hitting several buildings on the campus of the University of Southern Mississippi. Kyle Hopkins, emergency operations director for surrounding Forrest County, said officials hadn't confirmed injuries. There were reports of several people hurt elsewhere in the state.

"We had a tornado touch down. We have a lot of damage," Hopkins said.

The university released a statement saying that several buildings had been damaged but that no injuries were reported. Campus police have declared a state of emergency and asked anyone not on campus to stay away.

Video by CBS affiliate WHLT-TV shows the heavy damage to the university, including busted windows, wood panels strewn on the lawn and fallen fences.

The storm overturned and damaged vehicles and threw debris around parts of the campus.

To the west, Marion County emergency director Aaron Greer says three injuries have been reported in the community of Pickwick, about seven miles south of Columbia. He says two people were taken to hospitals, but the third didn't have the injury examined.

Greer says one mobile home was destroyed, three other structures have major damage and several have minor damage.

National Weather Service meteorologist Joanne Culin says there have also been reports of injuries in Marion County.

Nasty weather has settled in on much of Louisiana and Mississippi, including tornado or flash flood watches.

The National Weather Service says bad weather is likely to stretch into Fat Tuesday in southeast Louisiana. Jefferson Parish has canceled a Monday night parade.

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Possible Dorner Sighting Leads to Store Evacuation

A Northridge, Calif., home improvement store was evacuated tonight because of a possible sighting of suspected cop-killer Christopher Dorner, just hours after police announced a $1 million reward for information leading to his arrest.

As helicopters hovered overhead and a command center was established, police searched the Lowe's store and eventually told shoppers they could leave, but could not take their cars out of the parking lot.

LAPD spokesman Gus Villanueva said the major response to the possible sighting was a precaution, but couldn't say whether Dorner was in the area.

The announcement of the $1 million reward today came as authorities in Big Bear, Calif., scaled back their search for Dorner, the disgruntled ex-cop who is suspected in three revenge killings.

"This is the largest local reward ever offered, to our knowledge," Los Angeles Police Chief Charlie Beck said at a news conference today. "This is an act of domestic terrorism. This is a man who has targeted those that we entrust to protect the public. His actions cannot go unanswered."

The money for the reward was pooled by businesses, government, local law enforcement leaders and individual donors, Beck said.

PHOTOS: Former LAPD Officer Suspected in Shootings

The reward comes on the fourth day of a manhunt for Dorner, who has left Southern California on edge after he allegedly went on a killing spree last week to avenge his firing from the police force. Dorner outlined his grievances in a 6,000 word so-called "manifesto" and said he will keep killing until the truth is known about his case.

Irvine Police Department/AP Photo

Manhunt for Alleged Cop Killer Heads to California Mountains Watch Video

Christopher Dorner Search: Officials Search for Ex-officer in the Mountains Watch Video

Dorner's threats have prompted the LAPD to provide more than 50 law enforcement families with security and surveillance detail, Beck said.

Authorities are chasing leads, however they declined to say where in order to not impede the investigation.

Dorner's burned-out truck was found Thursday near Big Bear Lake, a popular skiing destination located 80 miles northeast of Los Angeles.

Investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned, sources told ABC News.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

Full Coverage: Christopher Jordan Dorner

Officers have spent the past couple of days going door-to-door and searching vacant cabins. The manhunt was scaled back to 25 officers and one helicopter in the resort town today, according to the San Bernadino Sheriff's Office.

On Saturday, Beck announced he would reopen the investigation into Dorner's firing but said the decision was not made to "appease" the fugitive ex-cop.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," Beck said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint."

Dorner is suspected of killing Monica Quan and her fiancé Keith Lawrence last Sunday in their car in the parking lot of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

Quan's father, Randal Quan, was a retired captain with the LAPD and attorney who represented Dorner before a police review board that led to Dorner's dismissal from the force in 2008.

On Wednesday, after Dorner was identified as a suspect in the double murder, police believe he ambushed two Riverside police officers, killing one and wounding the other.

The next day, Randal Quan reported he received a taunting call from a man claiming to be Dorner who told him that he "should have done a better job of protecting his daughter," according to court documents documents.

Anyone with information leading to the arrest of Christopher Dorner is asked to call the LAPD task force at 213-486-6860.

ABC News' Dean Schabner, Jack Date, Pierre Thomas, Jason Ryan and Clayton Sandell and The Associated Press contributed to this report.

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Gunbattle rocks Gao after rebels surprise French, Malians

GAO, Mali (Reuters) - Islamist insurgents launched a surprise raid in the heart of the Malian town of Gao on Sunday, battling French and local troops in a blow to efforts to secure Mali's recaptured north.

Local residents hid in their homes or crouched behind walls as the crackle of gunfire from running street battles resounded through the sandy streets and mud-brick houses of the ancient Niger River town, retaken from Islamist rebels last month by a French-led offensive.

French helicopters clattered overhead and fired on al Qaeda-allied rebels armed with AK-47s and rocket-propelled grenades who had infiltrated the central market area and holed up in a police station, Malian and French officers said.

The fighting inside Gao was certain to raise fears that pockets of determined Islamists who have escaped the lightning four-week-old French intervention in Mali will strike back with guerrilla attacks and suicide bombings.

After driving the bulk of the insurgents from major northern towns such as Timbuktu and Gao, French forces are trying to search out their bases in the remote and rugged Adrar des Ifoghas mountains, far up in the northeast.

But with Mali's weak army unable to secure recaptured zones, and the deployment of a larger African security force slowed by delays and kit shortages, vast areas to the rear of the French forward lines now look vulnerable to guerrilla activity.

"They infiltrated the town via the river. We think there were about 10 of them. They were identified by the population and they went into the police station," said General Bernard Barrera, commander of French ground operations in Mali.

He told reporters in Gao that French helicopters had intervened to help Malian troops pinned down by the rebels, who threw grenades from rooftops.

Malian gendarme Colonel Saliou Maiga told Reuters the insurgents intended to carry out suicide attacks in the town.

SUICIDE BOMBERS

No casualty toll was immediately available. But a Reuters reporter in Gao saw one body crumpled over a motorcycle. Malian soldiers said some of the raiders may have come on motorbikes.

The gunfire in Gao erupted hours after French and Malian forces reinforced a checkpoint on the northern outskirts that had been attacked for the second time in two days by a suicide bomber.

Abdoul Abdoulaye Sidibe, a Malian parliamentarian from Gao, said the rebel infiltrators were from the MUJWA group that had held the town until French forces liberated it late last month.

MUJWA is a splinter faction of al Qaeda's North African wing AQIM which, in loose alliance with the home-grown Malian Islamist group Ansar Dine, held Mali's main northern urban areas for 10 months until the French offensive drove them out.

Late on Saturday, an army checkpoint in Gao's northern outskirts came under attack by a group of Islamist rebels who fired from a road and bridge that lead north through the desert scrub by the Niger River to Bourem, 80 km (50 miles) away.

"Our soldiers came under heavy gunfire from jihadists from the bridge ... At the same time, another one flanked round and jumped over the wall. He was able to set off his suicide belt," Malian Captain Sidiki Diarra told reporters.

The bomber died and one Malian soldier was lightly wounded, he added. In Friday's motorbike suicide bomber attack, a Malian soldier was also injured.

Diarra described Saturday's bomber as a bearded Arab.

Since Gao and the UNESCO World Heritage city of Timbuktu were retaken last month, several Malian soldiers have been killed in landmine explosions on a main road leading north.

French and Malian officers say pockets of rebels are still in the bush and desert between major towns and pose a threat of hit-and-run guerrilla raids and bombings.

"We are in a dangerous zone... we can't be everywhere," a French officer told reporters, asking not to be named.

One local resident reported seeing a group of 10 armed Islamist fighters at Batel, just 10 km (6 miles) from Gao.

OPERATIONS IN NORTHEAST

The French, who have around 4,000 troops in Mali, are now focusing their offensive operations several hundred kilometers (miles) north of Gao in a hunt for the Islamist insurgents.

On Friday, French special forces paratroopers seized the airstrip and town of Tessalit, near the Algerian border.

From here, the French, aided by around 1,000 Chadian troops in the northeast Kidal region, are expected to conduct combat patrols into the Adrar des Ifoghas mountains.

The remaining Islamists are believed to have hideouts and supply depots in a rugged, sun-blasted range of rocky gullies and caves, and are also thought to be holding at least seven French hostages previously seized in the Sahel.

The U.S. and European governments back the French-led operation as a defense against Islamist jihadists threatening wider attacks, but rule out sending their own combat troops.

To accompany the military offensive, France and its allies are urging Mali authorities to open a national reconciliation dialogue that addresses the pro-autonomy grievances of northern communities like the Tuaregs, and to hold democratic elections.

Interim President Dioncounda Traore, appointed after a military coup last year that plunged the West African state into chaos and led to the Islamist occupation of the north, has said he intends to hold elections by July 31.

But he faces splits within the divided Malian army, where rival units are still at loggerheads.

(Additional reporting by Tiemoko Diallo and Adama Diarra in Bamako; Writing by Joe Bavier and Pascal Fletcher; Editing by Kevin Liffey)

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First Singaporean nominated for Grammy falls short

LOS ANGELES - The first Singaporean to be nominated for a Grammy came up short on Sunday, with guitarist Arun Shenoy losing out to top veteran trumpeter Chris Botti for best pop instrumental album.

Shenoy, who was born in the southern Indian state of Karnataka before moving to Singapore, received a Grammy nomination for his debut album "Rumbadoodle," which he recorded during live performances around the world.

Shenoy has described his guitar work as a new perspective on gypsy rumba flamenco, merging the genre with other global influences.

The Grammy ultimately went to "Impressions" by Botti, whose pop-influenced jazz works had won him four previous nominations.

The other contenders in the category -- saxophonist Dave Koz, for a live album recorded in Tokyo, and guitarist Larry Carlton -- also had previous Grammy nominations.

- AFP/ir

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Twitter bumps the price of Promoted Trends to $200K

In a sign that suggests healthy demand for Twitter's advertising, the microblogging site has reportedly increased the daily price of its Promoted Trends to $200,000.

The new price, which is a 33 percent increase over the previous price, went into effect earlier this year, according to an All Things D report. The price has increased 150 percent since the program launched in 2010 with a daily price of $80,000.

Twitter promotes the feature as a way for business to increase interest in a brand or product. Promoted Trends appear in Twitter's Trends section to the left of the users' Twitter feeds, denoted by a yellow arrow. Presuming Twitter sells one Promoted Trend a day, the program could generate $73 million in revenue.

Some of the big-name users of Promoted Trends have included Virgin, HBO, Samsung, and JetBlue. In addition to promoted trend slots, which appear on the right side of any Twitter user's home page, Twitter also offers promoted accounts and promoted tweets, but those are sold through an auction system.

CNET has contacted Twitter for comment on the price increase and will update this report when we learn more.

The moves come as Twitter is reportedly gearing up for an IPO as early as next year. Analyst firm Greencrest Capital pegged Twitter's valuation at between $10.5 billion and $11 billion "by late 2013 or early 2014." It also predicted that Twitter's 2014 revenue would total $1.028 billion, up from estimates of $605 million in 2013 and $295 million in 2012.

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New Yorkers tell of hours stranded on snowy roads

FARMINGVILLE, N.Y. Stranded for hours on a snow-covered road, Priscilla Arena prayed, took out a sheet of loose-leaf paper and wrote what she thought might be her last words to her husband and children.

She told her 9 1/2-year-old daughter, Sophia, she was "picture-perfect beautiful." And she advised her 5 ?-year-old son, John: "Remember all the things that mommy taught you. Never say you hate someone you love. Take pride in the things you do, especially your family. ... Don't get angry at the small things; it's a waste of precious time and energy. Realize that all people are different, but most people are good. "

"My love will never die — remember, always," she added.

Arena, who was rescued in an Army canvas truck after about 12 hours, was one of hundreds of drivers who spent a fearful, chilly night stuck on highways in a blizzard that plastered New York's Long Island with more than 30 inches of snow, its ferocity taking many by surprise despite warnings to stay off the roads.

Even plows were mired in the snow or blocked by stuck cars, so emergency workers had to resort to snowmobiles to try to reach motorists. Four-wheel-drive vehicles, tractor-trailers and a couple of ambulances could be seen stranded along the roadway and ramps of the Long Island Expressway. Stuck drivers peeked out from time to time, running their cars intermittently to warm up as they waited for help.

With many still stranded hours after the snow stopped, Gov. Andrew Cuomo urged other communities to send plows to help dig out in eastern Long Island, which took the state's hardest hit by far in the massive Northeast storm.

In Connecticut, where the storm dumped more than 3 feet of snow in some places, the National Guard rescued about 90 stranded motorists, taking a few to hospitals with hypothermia.

51 Photos

Powerful blizzard descends on Northeast

The scenes came almost exactly two years after a blizzard marooned at least 1,500 cars and buses on Chicago's iconic Lake Shore Drive, leaving hundreds of people shivering in their vehicles for as long as 12 hours and questioning why the city didn't close the crucial thoroughfare earlier.

Cuomo and other officials were similarly asked why they didn't act to shut down major highways in Long Island in advance of the storm, especially given the sprawling area's reputation for gridlock. The expressway is often called "the world's longest parking lot."

"The snow just swallowed them up. It came down so hard and so fast," explained Suffolk County Executive Steven Bellone.

"That's not an easy call," added Cuomo, who noted that people wanted to get home and that officials had warned them to take precautions because the worst of the snow could start by the evening rush hour. Flashing highway signs underscored the message ahead of time: "Heavy Snow Expected. Avoid PM Travel!"

"People need to act responsibly in these situations," Cuomo said.

But many workers didn't have the option of taking off early Friday, Arena noted. The 41-year-old sales account manager headed home from an optical supply business in Ronkonkoma around 4 p.m. She soon found her SUV stuck along a road in nearby Farmingville.

"Even though we would dig ourselves out and push forward, the snow kept piling, and therefore we all got stuck, all of us," she recalled later at Brookhaven Town Hall, where several dozen stranded motorists were taken after being rescued. Many others opted to stay with their cars.

Play Video

Getting travel back to normal after blizzard

Richard Ebbrecht left his Brooklyn chiropractic office around 3 p.m. for his home in Middle Island, about 60 miles away, calculating that he could make the drive home before the worst of the blizzard set in. He was wrong.

As the snow came rushing down faster than he'd foreseen, he got stuck six or seven times on the expressway and on other roads. Drivers began helping each other shovel and push, he said, but to no avail. He finally gave up and spent the night in his car on a local thoroughfare, only about two miles from his home.

"I could run my car and keep the heat on and listen to the radio a little bit," he said.

He walked home around at 8 a.m., leaving his car.

Late-shifters including Wayne Jingo had little choice but to risk it if they wanted to get home. By early afternoon, he'd been stuck in his pickup truck alongside the Long Island Expressway for nearly 12 hours.

He'd left his job around midnight as a postal worker at Kennedy Airport and headed home to Medford, about 50 miles east. He was at an exit in Ronkonkoma — almost home — around 1:45 a.m. when another driver came barreling at him westbound, the wrong way, he said. Jingo swerved to avoid the oncoming car, missed the exit and ended up stuck on the highway's grass shoulder.

He rocked the truck back and forth to try to free it, but it only sank down deeper into the snow and shredded one of his tires. He called 911. A police officer came by at 9:30 a.m. and said he would send a tow truck.

At 1 p.m. Saturday, Jingo was still waiting.

"I would have been fine if I didn't have to swerve," he said.

In Middle Island, a Wal-Mart remained unofficially open long past midnight to accommodate more than two dozen motorists who were stranded on nearby roads.

"We're here to mind the store, but we can't let people freeze out there," manager Jerry Greek told Newsday.

Officials weren't aware of any deaths among the stranded drivers, Cuomo said. Suffolk County police said no serious injuries had been reported among stuck motorists, but officers were still systematically checking stranded vehicles late Saturday afternoon.

While the expressway eventually opened Saturday, about 30 miles of the highway was to be closed again Sunday for snow removal.

Susan Cassara left her job at a Middle Island day care center around 6:30 p.m., after driving some of the children home because their parents couldn't get there to pick them up.

She got stuck on one road until about 2:30 a.m. Then a plow helped her get out — but she got stuck again, she said. Finally, an Army National Guardsman got to her on a snowmobile after 4 a.m.

"It was so cool. Strapped on, held on and came all the way here" to the makeshift shelter at the Brookhaven Town Hall, she said. "Something for my bucket list."

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LAPD Reopens Case of Suspected Cop-Killer's Firing

The Los Angeles Police Department announced today it will reopen the case of the firing of Christopher Dorner, but said the decision was not made to "appease" the fugitive former cop suspected of killing three people.

Dorner, a fired and disgruntled former Los Angeles police officer, said in the so-called "manifesto" he released that he was targeting LAPD officials and their families and will keep killing until the truth is known about his case.

"I have no doubt that the law enforcement community will bring to an end the reign of terror perpetrated on our region by Christopher Jordan Dorner and he will be held accountable for his evil actions," LAPD Chief Charlie Beck said in a statement released tonight.

He spoke of the "tremendous strides" the LAPD has made in regaining public trust after numerous scandals, but added: "I am aware of the ghosts of the LAPD's past and one of my biggest concerns is that they will be resurrected by Dorner's allegations of racism within the Department."

To do that, he said, full re-investigation of the case that led to Dorner's firing is necessary.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," he said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint.

Irvine Police Department/AP Photo

Christopher Dorner Search: Officials Search for Ex-officer in the Mountains Watch Video

Hundreds of Officers on Hunt for Alleged Cop Killer Watch Video

"I do this not to appease a murderer. I do it to reassure the public that their police department is transparent and fair in all the things we do."

PHOTOS: Former LAPD Officer Suspected in Shootings

As police searched for Dorner today in the San Bernardino Mountains, sources told ABC News that investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

A man identifying himself as Dorner taunted the father of Monica Quan four days after the former LAPD officer allegedly killed her and just 11 hours after he allegedly killed a police officer in Riverside, Calif., according to court documents obtained by ABC News

A man claiming to be Dorner called Randall Quan and told him that that he "should have done a better job of protecting his daughter," according to the documents.

In his 6,000-word "manifesto," Dorner named Randal Quan, a retired LAPD captain and attorney who represented him before a police review board that led to Dorner's dismissal from the force.

"I never had an opportunity to have a family of my own, I'm terminating yours," Dorner wrote, and directed Quan and other officials to "[l]ook your wives/husbands and surviving children directly in the face and tell them the truth as to why your children are dead."

Monica Quan and her fiancé Keith Lawrence were gunned down last Sunday in their car in the parking of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

The call, according to court records, was traced to Vancouver, Wash., but law enforcement officials do not believe Dorner was there at the time at the call.

Dorner is believed to have made the call early Thursday afternoon, less than half a day after he is suspected of killing a police officer and wounding two others early that morning, sparking an unprecedented man hunt involving more than a thousand police officers and federal agents spanning hundreds of miles.

FULL COVERAGE: Christopher Jordan Dorner

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Israel's Lieberman says Palestinian peace accord impossible

JERUSALEM (Reuters) - Israel has no chance of signing a permanent peace accord with the Palestinians and should instead seek a long-term interim deal, the most powerful political partner of Prime Minister Benjamin Netanyahu said on Saturday.

The remarks by Avigdor Lieberman, an ultranationalist whose joint party list with Netanyahu narrowly won a January 22 election while centrist challengers made surprise gains, seemed designed to dampen expectations at home and abroad of fresh peacemaking.

A spring visit to Israel and the Palestinian territories by U.S. President Barack Obama, announced this week, has stirred speculation that foreign pressure for a diplomatic breakthrough could build - though Washington played down that possibility.

In a television interview, ex-foreign minister Lieberman linked the more than two-year-old impasse to pan-Arab political upheaval that has boosted Islamists hostile to the Jewish state.

These include Hamas, rivals of U.S.-backed Palestinian President Mahmoud Abbas, who control the Gaza Strip and spurn coexistence with Israel though they have mooted extended truces.

"Anyone who thinks that in the center of this socio-diplomatic ocean, this tsunami which is jarring the Arab world, it is possible to arrive at the magic solution of a comprehensive peace with the Palestinians does not understand," Lieberman told Israel's Channel Two.

"This is impossible. It is not possible to solve the conflict here. The conflict can be managed and it is important to manage the conflict ... to negotiate on a long-term interim agreement."

Abbas broke off talks in late 2010 in protest at Israel's settlement of the occupied West Bank. He angered Israel and the United States in November by securing a U.N. status upgrade that implicitly recognized Palestinian independence in all the West Bank, East Jerusalem and Gaza.

Israel insists it will keep East Jerusalem and swathes of West Bank settlements under any eventual peace deal. Most world powers consider the settlements illegal because they take up land seized in the 1967 Middle East war.

Lieberman, himself a West Bank settler, said the ball was "in Abu Mazen's (Abbas') court" to revive diplomacy.

Abbas has demanded Israel first freeze all settlement construction. With two decades gone since Palestinians signed their first interim deal with Israel, he has ruled out any new negotiations that do not solemnize Palestinian statehood.

Netanyahu's spokesman Mark Regev noted that Lieberman, in the Channel Two interview, had said he was expressing his own opinion.

Asked how Netanyahu saw peace prospects for an accord with the Palestinians, Regev referred to a speech on Tuesday in which the conservative prime minister said that Israel, while addressing threats by its enemies, "must also pursue secure, stable and realistic peace with our neighbors".

Netanyahu has previously spoken in favor of a Palestinian state, though he has been cagey on its borders and whether he would be prepared to dismantle Israeli settlements.

Lieberman's role in the next coalition government is unclear as he faces trial for corruption. If convicted, he could be barred from the cabinet. Lieberman denies wrongdoing and has said he would like to regain the foreign portfolio, which he surrendered after his indictment was announced last year.

(Writing by Dan Williams; Editing by Stephen Powell)

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Merkel counts cost as minister quits in election year

BERLIN, Germany: German Chancellor Angela Merkel was left licking her wounds on Sunday after her education minister quit amid a plagiarism scandal, depriving her of a key ally as she gears up for September elections.

Merkel betrayed rare emotion as she accepted "with a very heavy heart" the resignation of Annette Schavan, a personal friend, who quit to fight charges from her former university that she plagiarised her thesis 33 years ago.

Although Merkel enjoys a sizeable lead in the polls and a high level of personal popularity, this is the second body blow in recent weeks after what she termed a "painful" loss in a state election on January 20.

"The year could hardly have started worse for Mrs Merkel," gloated the chief whip of the opposition Social Democratic Party (SPD), Thomas Oppermann.

Nevertheless, the level of alleged plagiarism in Schavan's thesis "Person and Conscience" was thought to be much less than in a similar case two years ago when popular defence minister Karl-Theodor zu Guttenberg quit.

And even some opposition figures showed some sympathy for Schavan, who has vowed to fight Duesseldorf University's decision to strip her of her doctorate in the courts.

SPD head Sigmar Gabriel said in an interview in the Welt am Sonntag weekly that he valued Schavan as an "honest and competent" minister and he was "extremely sorry" to see her go but he believed it was the right decision.

The media was full of praise for the manner of Schavan's departure, perceived as dignified, and for the way she appeared to put her party and Merkel ahead of her personal ambition.

Addressing her leader and friend as "dear Angela", Schavan said the accusations that she cheated affected her "deeply" and said her priorities had always been "first my country, then my party and then me personally".

Merkel has already survived zu Guttenberg's more damaging resignation; the loss of another defence minister over controversial comments on Afghanistan; and the departure of party ally Christian Wulff as president over a home loan scandal.

Several media reports said the loss of Schavan would not inflict too much damage on Merkel, even in the run-up to elections on September 22.

"Merkel can distinguish between the demands of her office and of friendship. The office demanded a quick, concise decision. Friendship demanded glowing words. She offered... both," said the Berlin-based Tagesspiegel daily.

"That makes Merkel unassailable in this case because no-one could have done it better," added the paper.

The left-leaning Sueddeutsche Zeitung said the resignation "will not harm Merkel".

"Until now, no resignation has been seen by the people as due to her own political failings. There were always individual reasons. That is the art that Merkel has mastered. Everything bounces off her," noted the paper.

"In this case, that is completely right."

The chancellor moved quickly to mitigate the fallout, immediately appointing the 61-year-old Johanna Wanka, a mathematician with wide experience in education, as the new minister.

But the influential Die Zeit weekly noted that things were getting "lonely" around Merkel, as she loses yet another ally from her own conservative ranks amid a loveless relationship with her coalition partner, the Free Democrats.

"With Schavan's resignation, Merkel loses a further faithful ally. There aren't many people around her that can help her," said the paper.

"Like (former chancellor Helmut) Kohl at the end of his long chancellorship, she's standing almost completely on her own. There's hardly anyone left from her Praetorian guard."

- AFP/al

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