Internet Access Wars: Cable TV and Telcos in a Game of Technology

Cable television broadcasting companies are investing in integrated services digital network (ISDN) services, partnering with advanced cable modems to offer faster and more reliable internet access. AT&T and other cable companies predict that ISDN will become more marketable as consumers seek faster services. Meanwhile, cable TV companies are rushing to offer an alternative to ISDN, operating on their own networks. The outcome of this technological battle is unclear, with both telcos and cable TV companies fighting for control of internet access.

Key Takeaways:

• AT&T Director of Subscriber Services Nancy Puttcomer predicts that ISDN will be the eventual winning platform in the internet access wars, citing four factors: availability, reliability, price, and the ability to interconnect with other high-speed services.
• Cable TV executives admit that overtaking ISDN in the residential market is a challenging task but are attempting to do so, with several trials of cable modems and experience operating two-way networks abroad.
• Joseph Baylock of The Gartner Group, Inc. is skeptical of the cable modem effort, citing "round-robin decision making" in the cable TV industry.
• The cable TV industry is betting that consumers will continue to "trade up" for higher and higher access speeds, making cable modems a potentially viable option.
• Both cable modems and ISDN are expected to be successful technologies, with manufacturers like Motorola supplying equipment for both systems.

Statistics:

• ISDN is available in most areas of the country.
• ISDN prices are a "known commodity," despite being high in some places.
• Cable modems transmit data at speeds several times faster than ISDN lines.
• AT&T has concluded several deals to supply cable modems to large cable TV companies, which intend to lease them to their customers.
• Motorola is one of the leading suppliers of ISDN access equipment.

Sources:

• Nancy Puttcomer, Director Subscriber Services, AT&T Network Systems
• Joseph Baylock, Vice President, The Gartner Group, Inc.
• Western Cable Show
• AT&T
• Motorola, Inc.