[IP] Cable companies may need to spend up to $60B to upgrade their last-mile architecture to be able to compete with the telcos' fiber.
Begin forwarded message:
From: Jim Innes <innesj@xxxxxxxxxx>
Date: August 31, 2006 4:49:57 PM EDT
To: dave@xxxxxxxxxx
Subject: Cable companies may need to spend up to $60B to upgrade
their last-mile architecture to be able to compete with the telcos'
fiber.
Dave, I haven’t found anything more on this, it came from an
Information Gatekeepers, Inc. promo email for a new series of reports.
Last week it was reported that Cable Labs, a privately funded
research arm of the major cable companies, had issued a private
report about cable companies’ last-mile architecture. The report
suggests that cable companies may need to spend up to $60B to upgrade
their last-mile architecture to be able to compete with the telcos’
fiber. Since many of the cable companies have taken the public
position that their major capital upgrades have been completed, this
report has caused a furor – especially from the cable companies’
executives.
In commenting on this to a group of clients, Dr. Polishuk, President
of Information Gatekeepers Inc., noted, “First we want to
disassociate ourselves from the sensationalism attached to the
reporting about this ‘confidential document.’ Much of what has been
reported appears to have come from persons without an understanding
of the industry. We do want to note that, based on information Cable
Labs has released to us, the report appears to take a reasoned, long
term view of the cable companies’ position in last-mile architecture.
It appears that this report continues a long tradition of excellent
service to the cable industry and the public.”
Dr. Polishuk continued, “The architecture of the last-mile is so very
capital intensive and customer sensitive that small errors can result
in major financial and competitive impacts. For these reasons, and
because of the current mishmash of approaches (the three major RBOCs
each is going in a different direction and the cable companies in
another) to the last-mile, any indication of a sea-change in this
area is over-blown. However, make no mistake; there is great change
underway here.
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