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Cable Industry Needs to Spend Heavily on Upgrades

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."

30 of 126 comments (clear)

  1. Certainly True in Canada by lkypnk · · Score: 5, Insightful

    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?

    1. Re:Certainly True in Canada by nxtw · · Score: 2, Insightful

      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.


      That's a lie. From what I understand a docsis channel can trasnmit 27 mbit/sec., which is plenty of voice calls. With an average of 100-500 customers on each HFC node, they'd be hard pressed to fill up just one channel worth of voice calls -- basically, if every single customer on that node had the voice service and a few hundred used the phone at the same time, they might have a problem.

      I wonder how popular on-demand really is - I can't ever say that I've watched a show on-demand; just a few music videos. I'd think the use of the on-demand channels is mostly limited to a) those that have digital cable but not the DVR, b) those that actually want to watch the limited content available, and c) those who aren't frustrated by the confusing interface.
      During those times when I do actually watch something on demand, it usually ends up failing 1/10 times -- worse if something happens to degrade my signal.

      Anyway, since it seems that most digital cable channels have low bandwidth allocations (and on-demand probably uses even less bandwidth), I'd say that they use no more than 2 mbits/second on each on demand stream, and probably less. If they can really achieve ~38mbit/sec on a QAM256 channel, they can probably do at least 15 on demand streams per channel. The nature of on-demand doesn't really lead to lots of people watching it at the same time... ...so I suspect they're using those two services as convenient excuses to not provide unlimited service.
    2. Re:Certainly True in Canada by Anonymous Coward · · Score: 2, Informative

      Actually, it isn't a lie. Please stick to topics you know about.

      I worked for Time Warner for a number of years, ending a little over a year ago when I went into my own venture. TW was getting the technical details of rolling out their voice offerings to this area (Chicago/Milwaukee) and put some fairly horrible limits on home res services (how about advert'ing a 5mbit line on commercials/mail/etc.. then setting the QOS at 2mbit max..) It's pathetic.. It's a loophole that they say "up to -whatever number here-mbit connection!!!" when they make sure (at least in this area) that 90% can't get it.. I would be willing to bet that based on their limit claims (geographical distance, number of modems on the node pulling at once, etc) that the tactics may very well be illegal.
      I currently have the 5mbit service, running at a steady 400kb during any time of the day. I like 4 miles outside the Milwaukee city limits.
      Want to tell me it's a lie that they cap the lines?

    3. Re:Certainly True in Canada by elzurawka · · Score: 2, Informative

      If you have a 60 gig cap, then your speed should only be 5Mbit. For an extra 4 dollars for modem rental, you can get a 6Mbit line, and a 100 Gig cap. Still not too good, but i think its worth 4 dollars.

      I have also heard from a friend on the inside that they will start to charge you for every gig you go over your limit starting in the next few months. You wont get cut off, or slowed down, you will just notice a big increase in your bill the following month. Im not 100% sure about this, but my friend who works in their business office told me this, so i think its true.

      Other then that rogers is crap. Slow durring the day, traffic shapping, and slow speeds.

      Altho i also heard that they will be offering a 12 Mbit connection for 100CND$ a month, but you still have a 100GB cap. I can do 200 Gigs at 6Mbit, why do i need more speed if i can only use it for a week, and then have to pay through the nose per GB?

      --
      -EL
    4. Re:Certainly True in Canada by aevan · · Score: 2, Insightful

      I could be wrong, but I THINK the 'lie' referenced here is needing that bandwith for the VOIP, not the fact of the traffic is being shaped. The necessity of that shaping is the questionable part ("the lie").

  2. ...at the best prices too! by Jah-Wren+Ryel · · Score: 3, Insightful

    "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 the best government money can buy at the best prices too!

    --
    When information is power, privacy is freedom.
    1. Re:...at the best prices too! by Tablizer · · Score: 2, Interesting

      Do you hear that? It's the sound of tens of thousands of dollars in new bribes starting the march to Congress....while the cablecos continue to act as if they own the infrastructure.

      Don't worry, it is somewhat kept in check by deep-pocket Telco's who want to keep the Cablers down to get a peice of the media pie. Think of it like Hitler and Mousolini being on different sides.......on second thought, don't.

    2. Re:...at the best prices too! by GreggBz · · Score: 2, Insightful

      Cable companies subsides are a fairly new thing, and far fewer than phone company subsidies. Most Cable Companies worked pretty hard to build their own plant, and indead own their infrastructure. The government had more prerogative to ensure the development phone and power companies, not MTV and HBO companies.
      Perhaps you are thinking of Verizon, MCI and Bell South.

      And remember, it's now the Cable Companies that compete with the phone companies as their networks and products begin to overlap.

  3. Not to say that cable is dead ... but ... by martinbogo · · Score: 5, Informative

    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.

    --
    "Don't worry about the problems you have in mathematics, I assure you mine are much greater." - Einstein c.1919
    1. Re:Not to say that cable is dead ... but ... by fireboy1919 · · Score: 4, Interesting

      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.

      --
      Mod me down and I will become more powerful than you can possibly imagine!
    2. Re:Not to say that cable is dead ... but ... by Ex-MislTech · · Score: 3, Informative

      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.

      --
      google "32 trillion offshore needs IRS attention"
  4. If only there was something faster..... by dontbflat · · Score: 5, Interesting

    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 and life will be good.

    1. Re:If only there was something faster..... by Nutria · · Score: 2, Informative
      They already send the data through a fiber cable to the main cable box for the block, whats an extra few hundred feet

      Because there are 20-200 houses for every neighborhood fiber-cable router. It would cost a lot of money to run fiber to every house, which would probably include replacing all the boxes on the side of everyone's houses.

      --
      "I don't know, therefore Aliens" Wafflebox1
  5. They need to upgrade and drop prices! by pair-a-noyd · · Score: 3, Funny

    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!

  6. Net neutrality? by whoever57 · · Score: 3, Insightful

    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"

    --
    The real "Libtards" are the Libertarians!
  7. They're already upgrading in a sense... by The+Vulture · · Score: 5, Interesting

    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. Re:They're already upgrading in a sense... by Eponymous+Coward · · Score: 2, Informative
      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.

      You know what scares the crap out of the cable companies? As they race to score a triple play, they are finding that once fast data is there, the other two parts of the triple play are far from a sure thing. Digital tv and phone service are just more data.

      Earlier this year, Comcast had a triple play going with my family. We had cable modem, digital tv and their phone service. Well, their phone service was unreliable as hell and we were unluck enough to get bad phone hardware from them, twice. So, we switched to Vonage and it has worked very well. About a month later the introductory offer wore off on the internet and tv and the +$100 Comcast bill and the shitty dvr made me look around for something different. I now have Dish and fairly happy with it (the dvr still sucks-- if they were going to infringe on Tivo's patents, they should have done a lot better job of it).

      The last thing any of the cable (or phone) companies want, is to be commodity suppliers. Thus their fear of net neutrality regulations.

  8. They are. by Ungrounded+Lightning · · Score: 4, Interesting

    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.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:They are. by rshimizu12 · · Score: 2, Insightful

      This is really great for consumers. The cable companies are now forced to compete against the telco's. I predicted awhile back that IPTV is going to be a catalyst for greater competition and more bandwidth. Now Rupert Murdoch 's Direct TV is going to compete by deploying Wimax over satellite to deliver IPTV. So we will probably see reduced rates for TV.

  9. Re:True by kaiser423 · · Score: 2, Insightful

    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?

  10. Why is it... by abscissa · · Score: 4, Interesting

    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?

  11. Depends on your ISP by Coopjust · · Score: 3, Interesting

    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)

    1. Re:Depends on your ISP by moosesocks · · Score: 2, Interesting

      Don't be too sure. Just because the network's future-proofed doesn't mean that the company is

      Cablevision's had some *huge* financial troubles --- mainly as a result of dumping so much money into their infrastructure. During one of their financial crises, they completely pulled out of my town in the middle of one of their massive upgrades, leaving the people there high and dry with a fractured network that no sane company would want to buy.

      (Un)fortunately for the town, an insane company purchased the network, devised a hodgepodge method to link the old stuff with the new stuff, and then screwed their customers with terrible service. They've the fourth cable franchise in 12 years for the town. 2 have gone bankrupt, and the other (cablevision) pulled out due to financial troubles.

      And it's not because their rates were low. They were much higher than normal cable rates should be. Cable companies have a reputation for being poorly run, offering awful customer service, and sucking in general.

      I've been happyily on DSL, (and more recently fibre) internet and satelitte TV for several years. It's a godsend compared to the troubles that my neighbors go through. It costs less, my service is more reliable, and is generally superior to cable in every way possible. I also like the idea of supporting capitalism and free-competition.

      --
      -- If you try to fail and succeed, which have you done? - Uli's moose
  12. No it doesn't by Rufus211 · · Score: 2, Informative

    Ars Technica already has posted a follow-up to the original story that says this isn't actually needed.

  13. Re:yay verizon by antonlacon · · Score: 3, Insightful

    Because Verizon isn't a renamed Bell Atlantic?

  14. Re:True by omeomi · · Score: 2, Insightful

    Why do they need satellites?

    Because they're so big and bloated that it would be almost weird for them not to have a number of moons?

    That's a good question, though. You can already get satellite internet if you really want it, but it's expensive, relatively slow, and has high latency, given the distance of the satellite. Why would anybody who has other high-speed options actually want satellite internet?

  15. Multi-unit Dwelling Too Hard? by BikeRacer · · Score: 2, Interesting

    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.

  16. Pleeze. by SeaFox · · Score: 3, Informative
    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.

  17. Re:True by Afrosheen · · Score: 3, Informative

    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. ;)