Cable TV Companies Gear Up to Provide Internet Services

Strategic Insights -

Cable TV companies, led by Time Warner, are poised to enter the lucrative Internet service market, leveraging their hybrid-fiber coax (HFC) architecture to provide faster and more reliable connections. This move is part of a broader trend where cable TV companies are upgrading their networks with optical fiber cable to enhance signal quality, increase bandwidth, and improve reliability. The introduction of Internet services is expected to be a bridge to more sophisticated multimedia offerings, with cable TV companies competing to provide high-speed connections to customers.

Key Takeaways:

  • Time Warner is gearing up a trial to provide Internet services to selected customers, utilizing its hybrid-fiber coax (HFC) architecture.
  • Continental Cablevision, Jones Intercable, and TeleCommunications Inc. are also exploring Internet service provision.
  • Cable TV companies are upgrading their networks with optical fiber cable at an unprecedented rate, deploying the equivalent of 163 miles of fiber per hour.
  • Providing Internet capabilities joins other reasons for cable TV companies to justify optical fiber cable installation, including better signal quality, greater bandwidth, and better reliability.
  • Time Warner anticipates providing service across nodes averaging service to 500 homes.
  • CableLabs' Mike Schwartz notes that cable operators are excited about providing data services, including Internet access, Prodigy, and Compuserve, on a higher data rate capability than telephone networks.
  • Time Warner's Mike Luftman sees the company's competitive advantage in providing high-speed Internet services due to its broadband pipe and position as a premier content company in America.

Statistics:

  • 163 miles of fiber deployed per hour by U.S. cable TV companies (FCC).
  • Time Warner anticipates providing service across nodes averaging service to 500 homes.
  • Cable TV companies are upgrading their networks with optical fiber cable at unprecedented rates, driven by demand for high-speed Internet services.

Sources:

  • INTERNET WEEK (no date given)
  • CableLabs (Mike Schwartz), vice president of communications
  • Time Warner (Mike Luftman), corporate communications vice president
  • FCC (no date given)