Cable TV System Operators Speak Out, But Questions Remain About the Digital Future

While many cable TV systems serving large metropolitan areas offer advanced video, data, and voice service over their cable TV lines, that's not the case in small towns and rural areas. In fact, according to the latest report by Cahners In-Stat Group, most cable operators in small to medium-sized markets will not offer comparable services until well into the future. The recent report's findings are unique in that the survey of 42 US cable television system operators focused on the operators' strategic plans to gear up for new digital cable TV services. ""The survey results identify that many cable TV subscribers living in smaller markets won't see advanced services for at least another year,"" said Mike Paxton, Senior Analyst of Cahners In-Stat's Converging Markets & Technology Group. ""This trend could give cable TV's competitors a chance to poach cable subscribers who might be tired of waiting for broadband services."" Gerry Kaufhold, Principal Analyst commented that, ""Our research shows that all 42 respondents are planning to increase the bandwidth of their cable TV systems. However, only a few have definite plans to actually deploy advanced digital cable services in the upcoming 24 months. Most are planning to add more premium movie channels, and hold back on cable modems and telephone service."" The In-Stat research also shows:- Cable TV systems operators are increasing the number of 6MHz channels they offer to subscribers. By the end of 2000, 80 percent of the operators surveyed will have more than 70 channels available on their systems. - While consumer demand for high-speed Internet access is increasing rapidly, half of the systems operators surveyed still had no plans to offer cable modem services through the end of the year 2000. - In-Stat believes that cable telephony services will take even longer to roll out than cable modem services. By year's end 2001, only five of the 42 systems operators surveyed planned to offer telephone services over their cable TV infrastructure. The report, ""Cable System Survey: The Outlook For Digital Cable Services,"" MB0004DC, presents channel allocation strategies for analog and digital video, cable modem and cable telephony services. The report also describes fiber optic installation and upgrade plans over the next two years, defines how the operators are situated for the advent of OpenCable and includes operator plans for carrying high definition television (HDTV). It also provides equipment usage defined by supplier and model. For more information, phone Matt Woods at 617 630 2139, mwoods@instat.com or visit http://www.instat.com/catalog/cat-dt.htm.About Cahners In-Stat Group Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.