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story category Is Cable in Denial?
Critics: show rhetoric might not match reality
(old news - 12:07PM Monday Apr 17 2006)
tags: competition · business · cable
Reuters proclaims that a "a fragile but carefully cultivated suspension of reality permeated the air," at the cable industry's annual trade-show last wek in Atlanta. IP Democracy takes a similar jab:
"The U.S. cable industry has nothing to fear from anybody. Its plant is inherently broadband and interactive — no need for the exhorbitantly expensive upgrades that the inherently narrowband telcos must implement.

Cable systems can roll out any combination of new services in a heartbeat, crushing competition in the process. Satellite competitors don’t have a terrestrial network capable of offering voice and high-speed data.

VOD will trump anything the Internet can offer in terms of on-demand video programming. The government can’t justify a la carte or net neutrality or uneven franchising obligations.

If you attended the National Cable & Telecommunications Association convention last week, and didn’t know anything else about the broader communications marketplace, you’d believe all this. Apparently, cable operators do believe all of this.
Facing challenges from TelcoTV and Internet video, is the cable industry justifiably confident, hopelessly in denial, or fully aware and simply trying to calm investors?

Related:
  1. Verizon Won't 'Slavishly Satisfy' You With 100 Mbps FiOS
  2. WSJ Thinks Verizon Could Buy DirecTV
  3. Who Knew? Home-Rolled Fiber Lowers Cable Rates
  4. Cable Industry: Shucks, Guess Nobody Wants CableCARDs
  5. Insider: Time Warner DOCSIS 3.0 Hits Upstate NY Soon
  6. Insight To Launch 30 Mbps Service
  7. A La Carte Cable Antitrust Suit Dismissed
  8. Comcast Internet Video Launching Before Year End
Forums » Is Cable in Denial?
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Post a:
bamabrad

join:2006-01-27
Port Orange, FL

Bailout?

Is our government going to bail these "head in the sand" businesses like they did when the auto industry thought the same way in the 70s? the auto industry
deepblackmag

join:2004-12-27
00000

Re: Bailout?

...And the airline industry.... And now the entertainment and telecom industries... And in 5 years the newspapers and radio... It will go on and on because over the last half century the government has been bought up in whole by businesses. Its hard to find one thing they do these days without the nods from the money men. The whole system needs to be replaced soon.
JSRoman
Premium
join:2005-03-10
Callahan, FL

Re: Bailout?

I'm sorry but both the above post have absolutely nothing to do with topic. Bailing out auto industry? Name an american car company that the US government has bailed out?

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Burlington, MA

Re: Bailout?

umm.. Chrysler comes to mind.
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: Bailout?

BINGO!!!

Will GM be next?
JSRoman
Premium
join:2005-03-10
Callahan, FL

Re: Bailout?

said by moonpuppy See Profile :

BINGO!!!

Will GM be next?
You talking about GM, the healthcare company right?
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: Bailout?

Only if my next car comes from an HMO.

cableties
Premium
join:2005-01-27

Re: Bailout?

Do I get a trunkload of Viagra with that new car?
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: Bailout?

I better.
JSRoman
Premium
join:2005-03-10
Callahan, FL

Chrysler and ?. The previous poster made it seemed like the entire american auto industry was bailed out by government.

Bailout or loan?

"In desperation, the Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1 billion in loan guarantees to avoid bankruptcy. At the same time, Lee Iacocca, a former Ford executive, was brought in to take the position of CEO, and proved a capable public spokesman for the firm. A somewhat reluctant Congress passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, a market where Chrysler brands are still important, Chrysler avoided bankruptcy and slowly fought its way back. By the early 1980s, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well."

--
"Give me your tired, your poor,Your huddled masses yearning to breathe free,The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tost to me,

I lift my lamp beside the golden door!"

wcweaver
Premium
join:2002-02-22
Fort Myers, FL
clubs:
·Future Nine Corpor..
·Comcast
·Embarq

Re: Bailout?

We are already bailing out most of them anyway and a lot more with ERISA or the Employee Retirement Income Security Act. The government (meaning us} is responsilble for their pension plans.

DannyZ
Gentoo Fanboy
Premium
join:2003-01-29
Erie, PA
Um Chrysler?

SuperJoker

join:2005-11-21
Yermo, CA
·Verizon Online DSL
·Verizon west (ex G..

said by JSRoman See Profile :

I'm sorry but both the above post have absolutely nothing to do with topic. Bailing out auto industry? Name an American car company that the US government has bailed out?
American Motors Corp. wasn't bailed out, When they asked for the same type of help that Chrysler got from Congress, Congress said no.
--
Joker1: 2-285 cpu @ 3.25GHz[H8DCE]v1.01, Bios 9/14/05 soon
Joker2: 1-165 cpu @ 2.65GHz[MS-6702E]v1.0, Bios 9.3
Joker3: 1-270 cpu @ 2.40GHz[K8N-DL]v1.03, Bios 1007
(10.10GHz crunchin 4 SETI w/the PC Perspective Killer Frogs)
bamabrad

join:2006-01-27
Port Orange, FL
Sorry if I confused you-But I meant the "head in the sand" phrase to be the main point.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
sadly that is true, GM is spending more on health care for their retired then they are to build cars.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

TechieZero
Tools Are Using Me
Premium
join:2002-01-25
Wesley Chapel, FL

Bah...

If Cable dies on the vine (or Pole LOL), someone will buy them up and make it competitive.

It used to be you got a great bang for your buck with cable. Now with fiber in my area, cable is a joke. Cable sat on its laurels and now will pay.
--
Do you own/manage a barn with lesson horses? Go here! »www.otsysinc.com/EquiSense.htm
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Bah...

When phone becomes serious about deploying fiber to their entire service areas, then I would care about fiber. Since fiber's rollout will be slow and long to come, it's not a threat to any other service including both cable and satellite.

Even when they do pick a city to roll out, they are only doing so in spotty launches anyway.

Slow deployments can be bad as well. It gives your competition time to bolster it's hold in a market.
JSRoman
Premium
join:2005-03-10
Callahan, FL

Read both articles and..................

Both seem to answer their own questions.

"Cable systems can roll out any combination of new services in a heartbeat, crushing competition in the process. Satellite competitors don’t have a terrestrial network capable of offering voice and high-speed data."

"Innovate, innovate, innovate. The telcos may have all the buzz with IPTV (Internet Protocol Television) technology, but cable can put actual products on the market in the short term. Video-on-demand needs to get better content from TV programmers who seem to be more interested in striking deals with Apple and Yahoo! If Cablevision's proposed networked digital video recorder passes legal muster, DVR adoption will skyrocket. And don't forget the cable operators' joint deal with Sprint to add wireless to the bundle -- delays are expected, but such a product can't come to market fast enough."

A LA CArte is not a cable problem, it is a programmer problem. Does anyone actually think cable is going to lose money if ALC is offered?
--
"Give me your tired, your poor,Your huddled masses yearning to breathe free,The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tost to me,

I lift my lamp beside the golden door!"

sherman10570

join:2000-10-15
Pleasantville, NY
·Verizon FIOS

Re: Read both articles and..................

Cable could care less if A la carte is offered - they will always require a minimum subscription level for basic service. Cablevision has already moved all digital in some areas. This means they also get the set top rental fee. A la carte is a joke to keep the consumer groups happy about rising basic cable rates.

- Sherman

Morac

join:2001-08-30
Riverside, NJ
·Comcast

They'll get a wake up call soon.

I've found my cable company refuses to acknowledge certain problems let alone fix them. Talking to someone at the local office is impossible and no one at the offical support number knows anything. Basically their strategy seems to be if they ignore problems long enough they'll go away or at least the people complaining will stop complaining since there is no place else for them to go.

That mentality will have to change real fast when competition becomes readily available.
--

The Comcast Disney Avatar has been retired.

odreian615

join:2006-01-18
Chicago, IL

Comcast will just buy all the other cablcecos

and most of the volp's to fight off the other duopoly ATT (all this happens in 10 years )

DaveNJ
No Fear

join:1999-09-01
New Jersey

Re: Comcast will just buy all the other cablcecos

Actually i agree, i can see comcast and cablevision merging.
majortom1981

join:2004-08-26
Lindenhurst, NY

Re: Comcast will just buy all the other cablcecos

Comcast would not be the one to by cablevision.

it would either be Time Warner or I could see Verizon putting ina bid for them.

Remember cablevision has one of the better networks out of all the cable companies.

They are the ones who can actually compete with verizons fios. There network can handle it. Its the people running it that cant handle the service lol.

Verizon would love to get there hands on the fiber parts of cablevisions network. That could potentially save them a lot of money in their fios rollout

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
clubs:

1 edit

Articles Fail to Mention "Protection"

The cable company, at least in my area, has municipality-provided protection from Telco deployment. If Telcos can't deploy, the threat to cable's monopoly power is greatly diminished.

This might be cable's most valuable asset of all.
kaila

join:2000-10-11
Lincolnshire, IL
clubs:

what are you waiting for?

"...Cable systems can roll out any combination of new services in a heartbeat, crushing competition in the process..."

So, too cheap and lazy to roll out these fabulous subscriber-pleasing services now?
disc

join:2005-12-31
Raleigh, NC

What are we waiting for?

Of course, we all have such great confidence in the ILECs that we're going to move our market investments into them, right?
jsouth
Jsouth

join:2000-12-12
Wichita, KS

Re: what are you waiting for?

You don't show your hand early in a poker game do you?
--
BTK is guilty!!!!
gromm

join:2005-08-22
Vancouver, BC
So, too cheap and lazy to roll out these fabulous subscriber-pleasing services now?
Why would you please subscribers, when you can rape them instead? It's not like they can go somewhere else...
liquidnw

join:2005-06-05
Bronx, NY

said by kaila See Profile :

"...Cable systems can roll out any combination of new services in a heartbeat, crushing competition in the process..."

So, too cheap and lazy to roll out these fabulous subscriber-pleasing services now?
I find that the biggest joke in the entire article. Cable companies are always talking about the great services they call offer. Lets see it please. The comcast ceo constantly talks about 100mb speed cable can offer meanwhile there still stuck at 5-8 meg in most areas. Having the capability and actually doing it are 2 different things. Stop all the talk, I see telcos actually offering more HD more eVOD and faster speeds what are cable companies doing?
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Re: what are you waiting for?

Gotta remember that (1) they have no heart and (2) if they did it would be beating at a one per decade rate.
--
Toolmaster of La Grange.

Topmounter
Sent By Grocery Clerks

join:2001-02-20
Evergreen, CO
·Cox HSI


Stop all the talk, I see telcos actually offering more HD more eVOD and faster speeds what are cable companies doing?


I've seen some press releases... if that's what you mean.

Is there a real TelcoTV deployment yet where a major cableco hasn't been able to counter with a competitive offering?

...and "real" does not mean "press release".
liquidnw

join:2005-06-05
Bronx, NY

Re: what are you waiting for?

said by Topmounter See Profile :


Stop all the talk, I see telcos actually offering more HD more eVOD and faster speeds what are cable companies doing?


I've seen some press releases... if that's what you mean.

Is there a real TelcoTV deployment yet where a major cableco hasn't been able to counter with a competitive offering?

...and "real" does not mean "press release".
Last time I checked in the places where FIOS is deployed they have 30/5 and 15/2 speeds available, they have more SD, HD as well as VOD available. You are talking about them not deploying fast enough for you tastes. I can see the telcos deploying this I don't see cable companies doing the same. Yes they are slow in getting it rolled out in more places but if anyone is guilty of constant press releases in cable companies. Every time FIOS speaks of something they are already doing here comes a cable company to claim they "can" do the same with little effort. Talk is cheap lets see you offer more HD more VOD and the faster net speeds.

whoneedsabailout

@verizon.net

Profitable.

The cable, just like telcom has been a ZERO LOSS business since "DAY ONE"! Its just PERCEPTION that there are actual losses in the industry, or some really bad accounting FRAUD (a-la MCI). They don't need a bailout, just access to each other's markets. Verizon has entered about 6+ more markets than they had at the beginning of their merger to become Verizon, most notably in the mid-west and south USA. The cable industry has been one big country club since its inception, gouging the consumer all the way through while reaping the benefits of LOW taxation and extremely favorable franchise monopoly status. Even with marketshare loss to satellite (not going over 25% at any point, even with two satellite companies vying for those dollars) they still reaped profits.

... against this backdrop,
Exactly who is talking bailiout here??
Yes, telco might eat enough marketshare to inevitably lead to cable consolidation, mostly thanks to the AT&T merger, but this will take 8-12 years to get into fruition, and the majority of that marketshare will be Verizon's not AT&T's. No other telco is that aggressive to get Video franchises or overcome all obstables to market deployment. For all the rhetoric, the very industries these companies represent will blur in the next 8 years, the next timeline to look for is when analogue video dies for broadcast. We will see wireless carriers making big moves on wimax/3rd generation wireless by then (February, 2009).

BillRoland
Premium
join:2001-01-21
Ocala, FL
clubs:
·Cox HSI

Reports of Cable's Death Greatly Exaggerated

If I had just read this fine piece of news here and believed it I'd really think that Cox is in trouble. But since I'm the type that looks at things logically, lets look at this logically.

1. Who's really the innovators in US broadband? Its not telcos. Cable deployed HFC plants years ago. There's fiber at the end of my street, but its not telco fiber, its cableco fiber, and its been there since 2000. Right now I can call up Cox and get analog cable, digital cable, HD Service, High Speed Internet (9/1Mbps for the same price Sprint sells a 5/768Kbps service w/ 2 year contract for), and QoS guaranteed Digital Telephone (with more feature for less money than a line from Sprint). Can you match that in the vast non-FIOS areas from a telco? I'm not a betting man, but I wouldn't bet on it.

2. Emerging DOCSIS spec updates will drastically increase the pipe that's already there, without having to rebuild the plant. Sure, eventually the HFC will give way to a pure fiber network, but there's no need to do it today, if you don't have a need for it until 10 years from now.

3. DSLR users seem to forget they are not a random sample of Americana. 30/5Mbps FIOS internet and ITPV may sound like Mecca to you, but what about Uncle Bob, who likes watching CNN all day and browsing eBay? Is he going to be inclined to turn everything upside down and go for the fiber? Probably not.

4. Its not clear that fiber can be profitable yet. Don't believe me? Why have Verizon's investors been so negative on it? These are the people who have the most to gain from it, and yet their reaction has been luke warm at best, and downright cold to it usually.

I know I will be accused of being a cable fan boy from this post. If that makes you feel all warm and fuzzy, then fine. I'm just a realist. The reality is that I don't think cable is dire straights. Nor, however, do I think they can afford to just sit around and do nothing, and there is no indication they are doing that. What I know is that Verizon and to a lesser extent, AT&T, are shelling out mondo cash for fiber, and we don't really know how many customers they have stolen from cable companies or will in the future. The fact that the numbers aren't really flowing on that stat would indicate that its not much. We do know, though, that cable VoIP is ripping away subscribers from traditional telco POTS at a high rate (I seem to remember Cox has over 45% of landline business from Qwest in Omaha, Nebraska). Landlines finance the telcos. You do the math.
--
"Don't steal. The government hates competition."

See 16 replies to this post

das64

@216.132.x.x

Denial...

For all of those Bitchin about this service or that service, cost too much this, cost too much that...cancel your subscriptions or go back to Bunny Ears and Tin cans and fishing line!

If you think technology and labor doesn't have a cost and the cable/telco's making too much money...read #1 over.

Rob A
Same Old Jets
Premium
join:2005-01-17
Pompton Plains, NJ

Cable will be in denial...

When fios is released nationwide.
Forums » Is Cable in Denial?


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