Study: cable operators face stark choices in quest for more bandwidth
Posted by Dennis Sellers 
Oct 7, 2008 at 2:00am
Faced with growing competition in their core pay-TV business, cable operators worldwide are distracted by the all-digital transition regulatory deadlines imposed upon them by governing bodies, the available options for upgrading their network bandwidth, and the slow migration to an IP-based network for greater interactivity, according to ABI Research.
Moving to 1GHz networks is often the recommended alternative for network and bandwidth upgrading, but comes at a hefty first-year cost. The other alternatives have yearly capital and operational costs that are prohibitive over time.
“The cable sector has all these and other business transformation initiatives to contend with as they also juggle customer satisfaction, retention, and addressable advertising models that don’t invade privacy,” says ABI Research principal analyst Robert Clark. “What is also occurring in Europe is a slow but steady consolidation of cable operators. Many predicted that would also hold true in the US, but that has not been the case.”
Cable operators are mainly pursuing three avenues in their quest for greater bandwidth, although not all simultaneously, says ABI Research. The first is reclaiming bandwidth via the analog-to-digital switchover now taking place in many countries. The second, Switched Digital Video, that is expected to ramp up once the switchover is complete, brings channel-sharing benefits to downstream transmissions.
The third, and considered the ultimate, option recommended by top-tier suppliers is a complete upgrade to 1 GHz networks. Cable operators are being very selective right now about how and where to invest in their networks and capabilities, while considering network-based and premises equipment-based (centralized and distributed) alternatives.
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Contributor
Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
