Cable companies may need to spend up to $60B to upgrade their last-mile architecture to be able to compete with the telcos' fiber.

[David Farber <dave () farber net>]

Begin forwarded message:

From: Jim Innes <innesj () watinc net>
Date: August 31, 2006 4:49:57 PM EDT
To: dave () farber net
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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