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Home > Communications > Satellite > Systems
U.S. Cable: New Strategies for a Competitive World
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| Published Date:
April 2008
Published By:
TelecomView
Page Count:
65
Order Code:
R650-12
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The U.S. cable companies have been facing strong competition from two satellite TV companies. This competition has held the number of cable TV subscribers flat at around 65 million for the last several years.
In spite of this, the cable companies have continued to grow largely by increasing customer spending with new services such as digital TV, video on demand, cable broadband data, and cable telephony.
Now the cable companies are facing a powerful new set of competitors. The major U.S. Telcos such as AT&T and Verizon introduced IPTV services that are bringing new technologies and services to the market.
The cable competition has significant technical advantages. The satellite TV companies provide more broadcast channels than the cable systems and more HD channels, in particular. The Telco’s IPTV services can provide an unlimited number of broadcast channels and their IP architectures provide them with superior capabilities for two-way interactive services.
The report identifies strategies that the U.S. cable companies can use to address this strong new competition. It discusses strategies that improve the technical performance of the cable networks and give cable companies the additional capacity that they will need to offer new services and to expand and enhance existing services.
The report surveys the following technologies that can improve the capacity and efficiency of their networks:
- Analog reclamation, which converts the analog customers to digital.
- Increasing spectrum, which increases the capacity of the networks.
- Switched digital video, which provides for capacity sharing.
- Node splitting, which improves the performance of cable broadband data and video on demand services.
- MPEG4, which also increases the capacity of the network.
Deploying these technologies will provide additional capacity that can be used to expand and extend HD and video on demand, as well as to significantly increase the speed of cable broadband data services.
The report discusses strategies for improving cable broadband data services and cable telephony service. It exposes the opportunities created by the improved performance that DOCSIS 3.0 brings.
The report examines how cable companies can focus their efforts to provide business services. It identifies the kinds of business that are prime candidates for business services and how to approach them.
The report details the options that the cable companies have for entering the wireless telephony business. It describes how the Telcos are likely to leverage their wireless business to put the cable companies at a disadvantage.
It examines three basic strategies in detail:
- Reselling mobile services by becoming a Mobile Virtual Network Operator (MVNO) that rents capacity from an existing wireless carrier.
- Acquiring an existing network operator in order to jump start a wireless business line.
- Building out a wireless network from scratch.
The report identifies different ways to approach each of these strategies and looks at how to combine them in order to meet both short term and long term objectives.
In addition of core strategic activities, the report explains that cable companies have to conduct specific initiatives to improve their back office systems, to prepare for IPv6 and to retool their approach to wireless backhaul.
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