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Cable Industry Needs to Spend Heavily on Upgrades

Posted by Zonk on Fri Aug 18, 2006 10:42 PM
from the think-of-the-children dept.
BlueCup writes "A report from the cable industry's research arm suggests that Cable-television operators require another round of multibillion-dollar network upgrades to keep up with rivals in the fast-growing high-speed Internet hookup business. The conclusions underscore the challenges posed by the rapid growth of broadband video from YouTube and Google, and the looming threat of a planned $20 billion rollout of high-capacity fiber lines by U.S. phone giant Verizon Communications Inc."
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  • Certainly True in Canada (Score:5, Insightful)

    by lkypnk (978898) on Friday August 18 2006, @10:49PM (#15938772)
    My ISP, Rogers Communications has all sorts of bandwidth shaping and usage restrictions in place. This is, from what I've read, apparently so they can have the bandwidth available for their VoIP and on-demand streaming TV services.

    They need to get their act together or they'll start to lose customers. They have a 60 GB/month usage limit. What good is a 8 Mbit/s line when you can hit your bandwidth cap in a single day?
  • ...at the best prices too! (Score:4, Insightful)

    by Jah-Wren Ryel (80510) on Friday August 18 2006, @10:53PM (#15938789)
    "A report from the cable industry's research arm suggests that Cable-television operators require another round of multibillion-dollar network upgrades to keep up with rivals in the fast-growing high-speed Internet hookup business.

    Do you hear that?

    It's the sound of tens of thousands of dollars in new bribes starting the march to Congress to make sure that our taxes pay for these upgrades while the cablecos continue to act as if they own the infrastructure.

    Why just tens of thousands? Congress is notoriously cheap [opensecrets.org] the best government money can buy at the best prices too!
  • If you can't beat 'em (Score:1, Insightful)

    by Anonymous Coward on Friday August 18 2006, @10:56PM (#15938808)
    join 'em.

    Come on cable companies...ditch the coax and go fiber. Make the infrastructure interoperable.

    Is there really any reason for them to stick with coax? Other than grandfathering themselves in...
  • by martinbogo (468553) on Friday August 18 2006, @10:58PM (#15938814)
    (http://www.igotu.com/ | Last Journal: Tuesday November 19 2002, @04:32PM)
    Remember when cablemodems were first rolled out? About one megabit speed, when everyone else was on 56k dialup, and we sat and watched and waited for the cable companies to roll out. ISDN was king, and DSL was something hard to get.

    Now? Cablemodem access is pretty much everywhere, and download speeds are pretty decent in general. DSL and Cable both have offerings in the 4-6mbit range, and now there is something else to look forward to...

    Fiber. Downtown San Francisco has some of that Verizon fiber available in limited areas, and the access download speeds get into the 60-100mbit range. Let me say that again, since I'm sure a lot of people are going to say "he said WHAT?"

    100 megabits. downlink. speed.

    Yes, there are still some non-sensical "can't host a server" issues. Yes, uplink speeds are artificially asymmetrical (~60mb down, about 1mbit up. Still an improvement over cablemodem service speeds.) It's part of an experimental rollout, and hard to get installed. So was DSL, once.

    HDTV, phone, internet access, 'digital radio', and more on a single line, all for around $100/month, at least for now.

    Cable companies have something to worry about. Definately.

    • Lucky you. In Central Florida (and from what I've heard most of Florida and most of Georgia), cable modem is 5MB/sec down, .5 up for the cheap rate.

      Nobody gets even close to that on DSL. In my area, we can get .5MB down, .1 up and the phone company told us that was remarkably good (of course they advertize it as capable of doing more).

      Cable really doesn't have much to worry about. It's a lot easier to upgrade and repair cable networks than it is to upgrade and repair fiber, and cable lines can actually handle 100MB from the number of houses they're doing now without much problem.

      The issue is that they've got all those pesky analog cable TV channels on there wasting space.

      They're slowly phasing out all of the old, nondigital cable boxes and moving everyone over to digital. Once that's done, they'll be far ahead of fiber in terms of getting that last mile in place, and they'll be able to match the speeds fiber is currently offering.

      It might cost more, but if I was a betting man, I'd bet more on cable being reliable and maintained over fiber. cable isn't a prototype. We know it works, and we know the network can handle it. Only the switches and the policies need to be changed. Despite the cost of that, I'm pretty sure its still cheaper than all that has to be done to make fiber a reality.
      [ Parent ]
      • Re:Not to say that cable is dead ... but ... by Dance_Dance_Karnov (Score:1) Saturday August 19 2006, @12:24AM
      • by Ex-MislTech (557759) on Saturday August 19 2006, @12:59AM (#15939153)
        What you may not know is the cable modems are aerial fiber hanging below the power lines,
        and run to a neighborhood hybrid fiber coax router that breaks it out to coax for 500
        to 1,000 users typically.

        The cable companies already deployed a lot of fiber just for digital cable.

        [ Parent ]
      • Re:Not to say that cable is dead ... but ... by OmnipotentEntity (Score:2) Saturday August 19 2006, @01:39AM
      • Pleeze. (Score:4, Informative)

        by SeaFox (739806) on Saturday August 19 2006, @02:46AM (#15939418)
        Nobody gets even close to that on DSL. In my area, we can get .5MB down, .1 up and the phone company told us that was remarkably good (of course they advertize it as capable of doing more).

        Of course the phone company told you it was good. They're the freak'n provider. What were you expecting "Oh, Mr. Johnson, that's really slow. We're providing some really crappy service aren't we?" they don't want to be held to any kind of standard for service, so they aren't going to agree with any notion there's a problem if you'll go with their answers.

        Cable really doesn't have much to worry about....

        The issue is that they've got all those pesky analog cable TV channels on there wasting space.

        They're slowly phasing out all of the old, nondigital cable boxes and moving everyone over to digital. Once that's done, they'll be far ahead of fiber in terms of getting that last mile in place, and they'll be able to match the speeds fiber is currently offering.

        And they'll be able to start charging everyone per TV for their services. Which is why they really want to get rid of analog cable. They're like Ma Bell in the 50's wanting to charge you per phone in your house regardless of how many actual phone lines you have. The only reason that was undone was the availablity of wiring for do-it-yourself extensions and the analog nature of the PSTN making it hard to track how many phones a person had.

        Plus, the external converter has the added bonus of making it hard to do automated VCR recordings of shows while you're away from home (hello, DVR rental fee!).

        Why does nobody recognise digital cable for what it is; an excuse to roll back fair use and home recording rights, and find another way to nickel and dime the consumer?

        Until there's legislation passed removing the encryption from cable (so makers of stand alone DVR's and VCR's can integrate digital tuners in their products) or requiring cablecos to provide as many boxes as a customer needs free of charge this will continue.

        [ Parent ]
        • Re:Pleeze. by sponga (Score:1) Saturday August 19 2006, @10:50AM
          • Re:Pleeze. by SeaFox (Score:2) Saturday August 19 2006, @02:07PM
            • Re:Pleeze. by sponga (Score:1) Saturday August 19 2006, @04:13PM
        • Re:Pleeze. by SeaFox (Score:2) Saturday August 19 2006, @02:04PM
        • 1 reply beneath your current threshold.
      • Re:Not to say that cable is dead ... but ... by Derosian (Score:1) Saturday August 19 2006, @03:01AM
      • Re:Not to say that cable is dead ... but ... by rshimizu12 (Score:1) Saturday August 19 2006, @12:11PM
      • 1 reply beneath your current threshold.
    • Re:Not to say that cable is dead ... but ... by mrcolj (Score:1) Friday August 18 2006, @11:30PM
    • Re:Not to say that cable is dead ... but ... by radish (Score:2) Friday August 18 2006, @11:35PM
    • 4 replies beneath your current threshold.
  • After this: (http://yro.slashdot.org/article.pl?sid=06/08/18/1 333217), let's see how things work out.
    The telecoms may be looking at a bleak future ($$$) after some lawsuits, and who knows what legislation (if any- but I expect telecom's lobbyists to go into overtime over this one)
    may transpire.

    If nothing else, it will be VERY interesting in the forseeable near-future. Hopefully we won't have to lube up and bend over 'cause of these two things.

    *dons tinfoil hat and backs into corner with "trapped rat mentality" due to recent happenings*
  • by dontbflat (994444) on Friday August 18 2006, @10:59PM (#15938820)
    (http://www.dontbflat.com/)
    like fiber. Verizon is doing fiber. Why cant the cable companies. They already send the data through a fiber cable to the main cable box for the block, whats an extra few hundred feet. (I know this because in Henderson, NV Cox has done this to the neighboorhoods). It may not be done for every city, but there is no reason it cant be. To answer a post above, Satelite is not the answer. Its costly, bandwidth limiting, and has a long delay. I would never get satelite internet and if cable went that route, they would have less internet customers. Imagine playing CS at 500ms pings. ew...dialup all over again.... Fiber is the way to go. Just run some DWDM fiber [fiber-optics.info] and life will be good.
  • yay verizon (Score:2)

    by liquidpele (663430) on Friday August 18 2006, @11:01PM (#15938823)
    (http://sitetheory.com/ | Last Journal: Friday October 24 2003, @10:59AM)
    Anyone but the Bells or Comcast.... please!!
    • Re:yay verizon by antonlacon (Score:3) Friday August 18 2006, @11:59PM
  • by MeatFlap3 (741121) on Friday August 18 2006, @11:01PM (#15938825)
    What has happened to the thousands of miles of "dark fiber" that some claim is going to waste?

    -r

  • by pair-a-noyd (594371) on Friday August 18 2006, @11:03PM (#15938829)
    What pisses me off is I'm paying $45 a month for Road Runner PLUS a $10 a month penalty for not subscribing to cable TV. So after adding taxes, my RR bill is $57 a month. That's BS..
    And they keep flooding my snailmail box with flyers trying to get me to sign up for digital TV, voip and RR for the low, low price of $120 a month + taxes, so figure $130 a month. No thanks. Don't want it or need it.
    I just want internet only. I have a cell phone and TV sucks.

    As for RR here, the speed is decent, it's stable and dependable and they've never jacked me around like SBC did on DSL. I'll do without before I ever do business with SBC so I'm stuck with RR..

    I wouldn't mind paying what I pay if they would up the speed. I hear some places in the US are getting 3x to 4x the speed I get for half the price. WTF??? Bump up our speed or cut our bills you cheap bastards!

  • Net neutrality? (Score:4, Insightful)

    by whoever57 (658626) on Friday August 18 2006, @11:07PM (#15938845)
    (Last Journal: Thursday September 30 2004, @01:33AM)
    Translation of the original article:

    "Industry controlled 'research' group claims big bills to be paid for infrastucture that video-streaming websites will push out. WEe need to be able to charge Google and other to 'prioritise' their traffic or we won't have enough money. Net Neutrality is therefore a bad thing"
  • by The Vulture (248871) on Friday August 18 2006, @11:11PM (#15938859)
    (http://www.vulturesnest.net/)
    The cable operators, for the longest time, have been stagnant, as they never had any competition. They have the local monopoly, and the phone companies could never offer traditional cable television. When DOCSIS cable modems came out, it was a new form of competition - something that was standards based.

    Now, the main threat to cable operators is alternative forms of television - satellite and IPTV. The satellite operators don't have to pay the cable operators to broadcast their signals, and the phone companies are also monopolies that are rapidly expanding - FIOS, VDSL - techologies that can deliver more video bandwidth than cable, and still have room left over for lots of data.

    In an attempt to try to beat the phone companies to the triple play (television, data, phone), the cable companies sank a lot of money into proprietary digital television systems (Motorola and Scientific Atlanta). The telephone companies have been researching alternate systems, and I figure that they'll be able to beat the cable companies based on cost alone.

    Right now, the cable companies are trying to convert to digital cable as quickly as they can - for every analog channel that they move off to digital, they can put in between 5-10 analog channels. This space can then be redeployed for cable modems/EMTAs (for data and phone usage). But, there's a downside to this - every new digital subscriber costs the cable company hundreds of dollars in the form of an expensive PVR (a proprietary PVR that cannot be swapped out because of the proprietary encryption). So, they're screwed either way.

    -- Joe
    • 1 reply beneath your current threshold.
  • Why is it... (Score:5, Interesting)

    by abscissa (136568) on Friday August 18 2006, @11:26PM (#15938909)
    Why is it, that cable companies couldn't just roll out fibre cables to the home? Apologies that I am so naieve. I know it would be a huge investment, but wouldn't it basically cover ever future technology etc. in one? Is the cost that prohibitive? Whatever technology they can dream up within the next 20 years (and beyond) they can transmit over fiber. I mean how long have we had coax?
    • Re:Why is it... by nick.ian.k (Score:1) Friday August 18 2006, @11:53PM
    • 1 reply beneath your current threshold.
  • come on.. (Score:2)

    by skydude_20 (307538) on Friday August 18 2006, @11:30PM (#15938916)
    (Last Journal: Friday May 23 2003, @04:03PM)
    come on.. just buy into level3 or other that have already done the pure fiber/ip networks...
    • Re:come on.. by ffejie (Score:2) Sunday August 20 2006, @11:49PM
  • Depends on your ISP (Score:4, Interesting)

    by Coopjust (872796) on Friday August 18 2006, @11:34PM (#15938929)
    I'm lucky enough to be served by Cablevision, who has dumped a ton of money in their infrastructure. Sites like Youtube, Google Video, etc. are no problem when you have 15mbps down and 2mbps up (With overhead, etc. it's realistically 13.5 down and 1.5 up to internet, behind a router). It's expensive ($55 a month) but extremely reliable and an excellent service.

    One of the reasons I stick with them is they don't traffic shape. They occasionally cap 24/7 bittorrent users (if a user on your node complains). But they don't limit the download and upload ports.

    While it took a long time for me to get cable, I think its worth it- Cablevision's network seems future proofed (well, as much as you can be)
  • No it doesn't (Score:3, Informative)

    Ars Technica already has posted a follow-up to the original [arstechnica.com] story that says [arstechnica.com] this isn't actually needed.
  • Looming threat? (Score:1)

    by LuminaireX (949185) on Friday August 18 2006, @11:57PM (#15938995)
    "Looming threat" to you. Godsend to the rest of us. Sink or swim, dudes
  • Multi-unit Dwelling Too Hard? (Score:2, Interesting)

    by BikeRacer (810473) on Saturday August 19 2006, @01:53AM (#15939289)
    Does anyone know why, with all the billions Verizon is spending, apartment buildings are "too difficult" for FIOS deployment at this time? I don't know that I want to switch away from my trusty cable modem, but I'd like the competition to spur higher upstream speeds from my cable provider.
  • Fiber is'nt enough (Score:1)

    by Danathar (267989) on Saturday August 19 2006, @05:51AM (#15939805)
    (Last Journal: Sunday August 20 2006, @09:16PM)
    Just having fiber is NOT enough. Both Verizon and the Cable Companies face the same problem. That no matter what type of infrastructure you have, in many cases the limiting factor is your Upstream connection to the level 2 or 1 ISP. Theoretically Docsis 1.0 cable modems can do 38 Mb/s downstream and 10Mb/s upstream and have been around for YEARS. I don't know of a single cable operator that sells those rates to their residential customers. The latest version of DOCIS allows for a theoretical 160mb/s down and 120mb/s up (except for some European companies).

    Sure, in some heavily populated areas the shared coax along the road is satuated. In many others like mine we don't have this problem either because the cable company laid fiber to the pedestal at the bottom of the driveway or the density of cable modem users isn't there.
  • by MaksimS (930702) on Saturday August 19 2006, @08:44AM (#15940238)
    IMHO, CATV operators' investment in FTTH (Fiber-To-The-Home) and similar fiber optic based technologies is not that mindboggingly huge as someone might think. Every (sane) CATV operator already placed an extra empty conduit along the trenched route to you home. It's left there on purpose, for future use. Later on, when they need to fill it with a new cable - they use a technique known as "jetting" http://en.wikipedia.org/wiki/Jetting/ [wikipedia.org].

    The overall price of hardware that supports fiber optic transmission is considerably small when compared to amount of money a CATV provider needs to invest when routing a completely new network. They can't just dig around (your house, appartment block, a street or a highway). They need approvals, and I mean many approvals. Certain approvals cost a lot of money. Some cities won't even let them dig - they'll rather rent them city-owned (or national Telco-owned) undeground conduits.
  • Up (Score:2)

    by God of Lemmings (455435) on Saturday August 19 2006, @01:04PM (#15941218)
    I'm *still* waiting for cable internet after 9 years....
    and DSL....

    They don't so much need upgrades as to get off of their asses
    and finish the last mile.

    The bastards provide digital cable, but are too cheap to
    finish the transition to broadband internet.

    There should be some kind of law that mandates uniform service
    across all customers of such a utility.
    • Socialism? by /dev/trash (Score:2) Saturday August 19 2006, @09:22PM
      • 1 reply beneath your current threshold.
  • by carl0ski (838038) on Saturday August 19 2006, @07:26PM (#15942326)
    (Last Journal: Thursday February 10 2005, @05:16PM)
    I hear complaints and sooking 60GB allowance isnt enough, compainies limiting speeds to "keep for non Internet purposes"

    Obviously you havent bee to Australia

    Telstra and Optus Australia's two major Telcos also have major dependance of their Cable TV Empire, so purpose limit the quality of Internet available

    Clear statement as low Maximum DSL speeds of 1500kb was implemented to minimise competition to their FoxTel TV

    10GB 8mbit cable approx $40US a month.

    10GB 1.5mbit Adsl approx $30US a month

    billions of dollars were spent rolling out not 1 but 2 competeing cables across Australia forming a duopoly of PAYTV versus the Internet

    It took years of legal battles by smaller ISP to roll out faster technology, ADSL2+ 24mbit

    but based on the money Optus and Telstra spent on their cable networks they arent gonin upgrade in a hurry.
  • Re:True (Score:2)

    by Duhavid (677874) on Friday August 18 2006, @11:09PM (#15938848)
    Why do they need satellites?
    [ Parent ]
    • Re:True by omeomi (Score:3) Saturday August 19 2006, @12:16AM
      • Re:True by Duhavid (Score:2) Saturday August 19 2006, @12:37AM
      • Re:True by MobileTatsu-NJG (Score:2) Saturday August 19 2006, @03:05PM
    • Re:True (Score:4, Informative)

      by Afrosheen (42464) on Saturday August 19 2006, @02:47AM (#15939419)
      They need satellites because, contrary to popular belief, television *broadcasts* from content providers aren't delivered by *magic*. They are sucked down to each local cable branch via satellite dishes. I worked on a buildup of a provider headend before and they had a small satellite farm there just for receiving multiple broadcasts which they planned on sending out via a new fiber network.

        Your local news stations also use satellites to deliver live television broadcasts from various places. For everything else, they use tubes. ;)
      [ Parent ]
      • Re:True by Duhavid (Score:2) Saturday August 19 2006, @12:22PM
        • Re:True by Afrosheen (Score:2) Saturday August 19 2006, @12:46PM
          • Re:True by Duhavid (Score:2) Saturday August 19 2006, @01:08PM
  • They are. (Score:5, Interesting)

    by Ungrounded Lightning (62228) on Friday August 18 2006, @11:11PM (#15938860)
    (Last Journal: Friday November 02, @02:49PM)
    If course, they could also kill two birds with one stone and put cable television on a faster internet.

    They are. In buzzword land it's called "triple play". (Data, VoIP, and IPTV.) "Quadruple play" if you add wireless linkage. The overall phenomenon is "The Convergence" - of all forms of communication into a single packet-switched network.

    And the wireline services will eat cable's lunch if they don't upgrade. The minimum Cable needs to do is fiber-to-the-curb, after which they can use the coax for the last few feet. Meanwhile the copper pair people are doing the same thing (when they don't run a fiber all the way to the house.) With a shorter run (blocks rather than miles) they can push tens of megabits or better down the copper.

    The key is getting enough PRIVATE bandwidth to each house for several video feeds. Then you can switch what gets fed to the house at the curbside router or switch, the central office, or the head end. At that point the settop box or media-center computer becomes a remote control for the distant switching and cable's large-but-shared bandwidth advantage vanishes.

    So within the next year or two, as IPTV with video-on-demand deploys among the wireline carriers, cable has to invest in splitting the neighborhoods fine enough to give everybody their own several video streams worth of dedicated bandwidth. Otherwise they can't deliver a version of the video on demand "killer ap" - and it kills them.
    [ Parent ]
    • Re:They are. by rshimizu12 (Score:2) Saturday August 19 2006, @04:08AM
  • Re:True (Score:3, Insightful)

    by kaiser423 (828989) on Friday August 18 2006, @11:24PM (#15938901)
    Satellite? You want to add half a second minimum of latency to everything that you do?

    Or do you want them to put LEO satellites into orbit and maintain them and launch new ones and have a huge switching network that would cost them nearly as much as just laying new cable with much more headache?
    [ Parent ]
    • Re:True by bucky0 (Score:2) Saturday August 19 2006, @08:39AM
  • by kfg (145172) * on Friday August 18 2006, @11:36PM (#15938936)
    One year later. . .

    Who the hell are you to tell us what we can do with our network?

    KFG
    [ Parent ]
  • 7 replies beneath your current threshold.