A new study by CableLabs warns that to compete effectively with phone companies, cable operators may need another round of expensive upgrades, according to a Wall Street Journal story.
If they are to compete in the fast-growing high speed Internet business, cable operators may need to invest billions more in upgrading their plant, according to a page one story to today’s the Wall Street Journal. The problem is that, with more video running on the Web and more consumers signing up for high speed access, cable operators may need to devote additional bandwidth to their high speed services, or give ground to companies like Verizon, which is laying fiber all the way to the home.
The report, which Journal reporters reviewed, says it may be less expensive for cable companies to emulate Verizon and lay fiber to the home, rather than try to optimize their networks by switching from a blend of analog and digital services to all digital. Top engineers at both Time Warner and Comcast disputed the report, saying their networks are ready to handle the demands of the the increasingly video-rich Internet.
Leading cable operators own CableLabs and sit on its board, yet CableLabs doesn’t have access to complete information about some companies’ networks.