Yesterday, there was a lot of talk about the Wall Street Journal article about Cable Labs admonishing its own industry and telling them that fiber will eat their lunch. There was some serious back pedaling by Cable Labs accompanied by heated denials by the cable industry executives. A day later, the Associated Press reports that WSJ might have misinterpreted the report.
… according to sources that have read it that asked not to be identified … the report indicates that .. at some point the cost to efficiently maintain hybrid-fiber coax does become more expensive than deploying fiber-to-the-home, that point only comes when the node size the number of coax-connected homes served by a fiber node falls below 125 homes.
At present, cable operators typically design nodes to serve 500 homes…. the report is more even-handed, indicating that cable technology will be able to keep pace with competitors at least for the next three years…..
This is pretty much the assessment of some of the experts we talked to as well said. More on that to follow, when I post about my chat with Hossein Eslambolchi, former CTO of AT&T, who has written a new book, 2020 Vision: Business Transformation Through Technology Innovation.
One thought on “Cablelabs Report, Not A Big Deal?”
I believe the situation for cable operators is even more dire than the WSJ represents. More and more video content is unicast (as opposed to multicast) in nature (nPVR; VOD; internet TV; YouTube, etal). This is happening even faster than George Gilder would have guessed. Delivering these unicast video streams over a physical topology tuned for broadcast television, while technically possible in the early stages, will eventually break the network. The AP bit (pretty amateurishly) attempts to back up the cable guys but actually further builds the case that they’re in trouble. If 125-home node sizes are needed within three years (which is likely), the cable guys better start ripping up their networks today.