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[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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