[opendtv] News: Cable CTOs/ All-Digital Shift Will Be Gradual

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 17 May 2004 08:21:45 -0400

CTOs/ All-Digital Shift Will Be Gradual - CE,=20
Broadcasters Will Help Set the Transition's Pace,=20
Cable Execs say

May 13, 2004 12:00am
Source: Reed Business Information - US

  Multichannel News: New Orleans-- Cable's top=20
engineers agreed the shift to an all-digital=20
network is inevitable, but at the National Show=20
last week, they debated how soon the transition=20
would happen -- and the form such a network might=20
take.

  "Over the next the next half a decade or so, it=20
has to happen," said Comcast Corp. chief=20
technology officer David Fellows, who said cable=20
operators will need the bandwidth for HDTV, VOD=20
and to deliver higher bitrates to the home.

Cox Communications Inc. senior vice president of=20
engineering and CTO Chris Bowick agreed. "The key=20
word is migration," Bowick noted. "You have to=20
define all-digital.

  "Is it all digital-products or an all-digital=20
network? Do we eliminate analog programming or do=20
we have a subset for foreseeable future?"

Bowick seemed to come down on the side of a=20
gradual migration. "We have a strong=20
additional-outlet strategy," he noted.

  A slow timeframe also seemed likely to Time=20
Warner Cable CTO Michael LaJoie. "We will have=20
all digital devices and all digital tiering as we=20
migrate toward an all-digital network," he said.

  The consumer-electronics industry is a key=20
factor here, LaJoie added. "When do they stop=20
selling analog TV sets? When do the broadcasters=20
go to all-digital broadcast?"

  Those two issues will affect the timing of cable's DTV transition, he said=
=2E

LaJoie pointed out that the all digital=20
transition began 15 years ago, with new digital=20
networks and the launch of digital=20
direct-broadcast satellite platforms.

"When I talk all-digital, all services will be=20
available in digital format," Fellows said. "It=20
doesn't mean there is no analog signal present.=20
Analog may stay on for some time."

DBS companies have made digital signals a marketing issue, Bowick said.

  "There is the perception that digital is better," he said.

  But digital will have other benefits. "You could=20
see some significant cost savings as a result of=20
this," Bowick added. "Operationally, as we move=20
to digital, we have found advantages in operating=20
equipment and providing stronger service."

Cable's top engineers also surveyed the current=20
and future new-services landscape. Noting that=20
digital video recorders have enjoyed a quick=20
uptake rate, LaJoie predicted the natural=20
extension would be multiroom DVRs, "something=20
people will like quite a bit."

Looking ahead, LaJoie talked about portable video=20
players. "It's going to be a pretty compelling=20
product" once the digital rights-management=20
issues have been sorted out, he said.

  "The key will be making this all seamless to the=20
customer," said Bowick, listing new features like=20
customer caller ID on the TV and voicemail via=20
high-speed email, and vice versa.

Some cable operators have begun tiering=20
high-speed data services. Cox offers a 128=20
kilobit upstream and downstream service, along=20
with its 3 megabits down and 256 kilobits=20
upstream, plus a 4 megabit downstream and 384=20
kilobits upstream.

"It's technically not really difficult to do," Bowick said.

Cannibalization was a concern, but Bowick said=20
Cox has seen about the same number of customers=20
going to the lower tier as those who chose the=20
higher speed. "There is not a lot of migration,"=20
he said. "We use the low end tier as a save tool=20
and that's worked out very well."

<<Multichannel News -- 05/10/04, p. 41>>

<< Copyright =A92004 Reed Business Information - US >>

 
 
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