Regional Holding Companies Shift Towards Hybrid Fiber-Coax Networks

Strategic Insights -

In a significant development, regional holding companies (RHCs) are increasingly moving towards employing hybrid fiber-coax networks to offer broadband services. Following our last update, BellSouth has joined Ameritech, Bell Atlantic, Nynex, and Pacific Bell in plans to deploy fiber-coax networking. This trend has sparked interest among vendors, with several partnerships and acquisitions emerging. The RHCs are awaiting regulatory approval from the FCC to build these networks, with at least three approvals expected within the next three months.

Key Takeaways:

  • BellSouth, Ameritech, Bell Atlantic, Nynex, and Pacific Bell are planning to deploy fiber-coax networking to offer broadband services.
  • Southwestern Bell is opting for a fiber-to-the-curb (FTTC) deployment for a trial in Richardson, Texas, and has no plans to deploy fiber-coax networks.
  • Pacific Bell will delay its splicing schedule by a couple of months for its $16 billion upgrade due to modifications to the network to transport telephony.
  • Winning vendors for various RHC upgrades include AT&T Network Systems, General Instrument, Broadband Technologies, ADC Telecommunications, American Lightwave Systems, and Scientific-Atlanta.
  • The partnership between AT&T and BBT has fueled speculation about a potential acquisition by AT&T of BBT.
  • Ameritech has partnered with Reliance Comm/Tec and Scientific-Atlanta for its fibercoax upgrade.
  • U S West has sealed a deal to invest more than $300 million to buy Wometco and Georgia Cable Television.
  • All seven RHCs are waiting for regulatory approval from the FCC for their 214 video dialtone (VDT) applications.

Statistics:

  • Pacific Bell's $16 billion upgrade will be delayed by a couple of months.
  • The upgrade involves modifications to transport telephony.
  • AT&T and BBT have grabbed business opportunities for Bell Atlantic and Southwestern Bell's FTTC upgrade.
  • BBT's deal with BellSouth is valued at some $100 million.
  • Reliance Comm/Tec's deal with BellSouth is valued at some $100 million.
  • Ameritech will invest over $100 million with Reliance Comm/Tec for the power networking gear.
  • U S West will invest more than $300 million to buy Wometco and Georgia Cable Television.

Sources:

  • BellSouth: Not specified
  • Ameritech: Not specified
  • Bell Atlantic: Not specified
  • Nynex: Not specified
  • Pacific Bell: Not specified
  • Southwestern Bell: Not specified
  • AT&T Network Systems: Not specified
  • General Instrument: Not specified
  • Broadband Technologies (BBT): Not specified
  • ADC Telecommunications: Not specified
  • American Lightwave Systems: Not specified
  • Scientific-Atlanta: Not specified
  • Reliance Comm/Tec: Not specified
  • U S West: Not specified