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VOD Ads?
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COMCAST DECISION COULD IMPACT COMPETITION 24
SMART HOME
CLIENT/SERVER COMES HOME 28
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contents
G L O B A L . B R O A D B A N D . E X C E L L E N C E . V O L 2 7 N O . 0 5 M AY 2 0 1 0
Show me the money!
16 Dynamic
VOD Ads Advance
The trials are over, and deployment has begun.
features columns
Broadband
Time flies when you're having fun,
and Ron Hranac takes a walk down
memory lane as he celebrates his
25th year as a contributor to CT.
14
news and
opinion
Publisher's Letter 6
CT Reports 8
FCC Chair Talks Spectrum at NAB 8
Comcast Hosts 3D Golf Parties 8
Cablecos Lag In Customer Ratings 10
Fiber Spending On The Rise 11
TA Buys Into Aurora Networks 11
20 Is HD Now The New SD? Developers Get Fast-Track HDTV Tool 11
HD is here, and everyone is competing for a piece of the subscriber pie. The new
challenge for MSOs? Making sure their customers know how to program their new HDTVs
with the high-def channel lineups. reference
Business/Classifieds 29
Advertiser Access 29
departments
24 Marketplace 26 Optical Outlook 28 Smart Home
Comcast wins its P2P case, but the decision ROADMs are beginning to replace SONET CE vendors, chip makers and video providers
will benefit the competition as well. when it comes to creating new bandwidth, are bringing client/server architectures to
with the promise of saving money. the home via RVU and CEA-2014.
© 2010 by Access Intelligence, LLC. All rights reserved. Contents may not be reproduced without permission. Communications Technology™ (ISSN 0884-2272) is published monthly by Access Intelligence, LLC,
4 Choke Cherry Road, Second Floor, Rockville, MD 20850, USA. Editorial: (301) 354-1795. Sales: (301) 354-1785. May 2010, Volume 27, Number 05. Periodicals postage paid at Rockville, MD, and ad-
ditional mailing offices. POSTMASTER: Send address changes to Communications Technology, P.O. Box 3230, Northbrook, IL 60065-3230. Change of address two to eight weeks notice requested. Send to the
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may2010 3
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Associate Editor, Linda Hardesty 720-570-5129
Communications Technology
Senior Technology Editor, Ronald J. Hranac
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12539 CT Texterity ThirdPg Ad.in1 1 10/3/07 11:40:21 AM
ct reports To subscribe to CT’s Reports, visit our Web site at www.cable360.net/subscribe/
8 may2010
> New Innovative
DOCSIS® 3.0
Testing
10 may2010
ct reports Plant the
Seed for
Professional
Fiber Spending On The Rise Growth with
Hundreds of small independent telcos, and stimulus funds.
Jones/NCTI
broadband service providers, mu- While a large portion of the FTTH Jones/NCTI announces a new
nicipalities and cable TV operators have deployment thus far has been due Associate of Applied Science
brought gigabit-enabled, all-fiber service to Verizon's $23 billion investment degree program. Students can
to a total of more than 1.4 million North in overbuilding its wireline service build a degree in the broadband
American homes - about a quarter of all in many areas, the report noted that and telecommunications
fiber to the home (FTTH) connections FTTH is being deployed by more than industries while taking courses
on the continent - according to a report 750 North American service providers, from a choice of three industry-
from the Fiber-to-the-Home Council. most of those being small, independent specific tracks:
The study, conducted by RVA Market telephone companies that are replacing
Research, found that all-fiber networks their copper lines with end-to-end fiber
Broadband Technology
Customer Care
now are now to 16 percent of homes in to help ensure their future competitive-
Telecommunications
North America, with 5.8 million homes ness as broadband providers.
now receiving TV, high-speed Internet Further, the study found that more Classes may be completed
and/or phone service via these networks. than 65 percent of small independent through online and independent
Mike Render, president of RVA LLC telcos that have not upgraded to FTTH study options, giving you a
and author of the study, said there are said they would “very likely” do so in versatile accredited degree that
many reasons independent telcos are the future, with another 11 percent demonstrates both job-specific
flocking to FTTH, including the need to saying they were “somewhat likely.” expertise and general business
replace aging copper lines, the oppor- More than 85 percent of those that have knowledge. And it’s the fast
tunity to include video in their service deployed FTTH said they would be add- track to professional growth.
offerings and, in some cases, the avail- ing more direct fiber connections going
ability of rural broadband loan programs forward.
Associate’s
Degree
Tech
Masteratio Bachelor’s
n
Devs Enter
Degree
Aurora Gets
Certific
may2010 11
broadband By Ron Hranac, Senior Technology Editor
2010
1985
A Quarter Century
of Words
This issue marks 25 years since I started writing for divide systems into smaller service areas. This was
Communications Technology—my first article ap- done using multichannel point-to-multipoint signal
peared in May 1985. transmission in the local distribution service portion
Back then, Paul Levine was publisher, Toni Barnett of the 12.7-13.2 GHz CARS (cable television relay
was editor, and Wayne Lasley—the guy who con- service) microwave band.
vinced me to start writing for CT—was managing What eventually came to be known as hybrid fiber/
editor. It had been just two months since Paul wrote coax (HFC) using AM transmission over fiber was
of celebrating the magazine’s first anniversary. still a few years away, although FM video transmis-
sion was used in some supertrunk applications. The
Way before Nirvana outside plant architectures of the mid-1980s were
What were cable’s hot topics in 1985? SCTE, ampli- variations of all-coax tree-and-branch.
tude modulated link (AML) microwave, dabbling in
FM video transmission over fiber, addressable con- Sweeps and leaks
verters, preventive maintenance, new signal leakage Preventive maintenance was an important part of
rules, and ever-expanding system bandwidth are a the technical arsenal in the mid ’80s. In particu-
few that come to mind. lar, cable operators were paying more attention to
SCTE, at the time known as the Society of Cable system sweeping. Remember the sweep gear from
Television Engineers (the name wouldn’t change to Avantek and Wavetek? When it was used, there
Society of Cable Telecommunications Engineers until were no surprises: As outside plant was swept and
1995), introduced its the various gremlins
Satellite Tele-Seminar that caused frequency
program the previous ”Sweeping and response problems were
year, and the first train-
ing seminar was trans-
leakage control fixed, picture quality
improved and service
mitted on Galaxy I’s seemed to be made calls went down!
transponder 3 Tuesday, for each other.“ There was an
February 19, 1985. increasing emphasis on
That first Satellite getting signal leakage
Tele-Seminar featured then SCTE At-Large Director under control, largely in anticipation of the FCC’s
Richard Covell, and was titled “dBs and dBmVs.” pending new rules. The Commission had issued
Richard’s seminar was recorded at the University of a Second Report and Order in Docket 21006, and
Denver by Jones Intercable and the SCTE’s Rocky upcoming requirements included much of what’s on
Mountain Meeting Group. the books today.
The Society’s Technical Tuition Assistance Pro- Some of the new regulations about to descend
gram was authorized by Board of Directors in 1985, upon cable operators mandated quarterly monitoring
and initially funded by matching donations from of the entire system, fixing leaks within a reasonable
Rex Porter and National Cable Television Institute. period of time, leakage performance verification prior
The BCT/E certification program was officially intro- to the carriage of signals and an annual “snapshot” of
duced at that year’s third annual Cable-Tec Expo in leakage performance in the form of something called
Washington, D.C., and the first exam was Category cumulative leakage index.
IV “Distribution Systems.” SCTE’s Interval was a (The latter reminds me of one of my pet terminol-
small beige booklet included with each issue of CT. ogy peeves, right up there with dB versus dBmV:
Hughes AML microwave equipment was still wide- One does not measure CLI or fix CLI. That is, CLI
ly used in many cable networks, helping operators is not the same thing as signal leakage. Rather, CLI
break up those long trunk amplifier cascades and is a number that represents the severity of leakage at
14 may2010
a given point in time, and must be cal- one on new FCC rules pertaining to an Instead of using AML microwave to
culated after leakage measurements are 18 GHz allocation for CARS microwave, divide our systems into smaller service
performed. OK, off the soapbox.) one on system sweeping, and one on areas, AM fiber technology does that.
Like system sweeping, fixing leaks equipment reliability prediction. Signal leakage and ingress are more
almost always resulted in improved pic- My first article, titled “Getting the important than ever, although preventive
ture quality and fewer service calls, but most out of your bench sweep,” appeared maintenance and system sweeping don’t
also made it easier to sweep the plant. in the system economy category of the always get the attention they should.
Sweeping and leakage control seemed to magazine’s departments. Other categories Where would we be without cable
be made for each other. under departments included preventive modems and high-speed data? Analog
maintenance, tech tips (this was different TV channels are on the way out, being
Converters, amps than the “Tech Book” series that Bruce replaced by standard and high-def digital
As system RF bandwidths expanded, Catter and I coauthored later) and con- video. And who would’ve thought in
more channels were added to fill the struction techniques. Bob Luff and Ike 1985 that today’s largest cable companies
spectrum. The availability of new satel- Blonder were regular columnists. would also be counted among the largest
lite programming continued—remem- telephone companies?
ber, it was only 10 years earlier that Big changes A lot has changed in cable since the
HBO’s first satellite transmission had Fast forward to 2010. We don’t use the mid-Eighties, nearly all for the better.
occurred—and conditional access tech- term "converter" anymore; those boxes I’m truly grateful to have had a forum in
nology was front and center. in customers’ homes are called set-tops. Communications Technology during the
In the 1980s, addressable converters Perhaps the folks at SA were prescient? past quarter of a century.
were available from some companies that Modern digital set-top features and
are still around today, though the names functionality are a far cry from that of Ron Hranac is a technical leader, broadband
have changed. For instance, Jerrold be- their addressable converter predecessors. network engineering, for Cisco and senior tech-
came General Instrument, Next Level, Long ago state-of-the-art systems were nology editor for Communications Technology.
back to General Instrument, and fi- 450 MHz; today, 1002 MHz is the norm. Reach him at rhanac@aol.com.
nally Motorola; Scientific-Atlanta, which
called its converters “set-top terminals,”
is now Cisco. But do you remember ad-
dressable boxes from the likes of Mag-
navox, Sprucer, Tocom and Zenith?
Looking at the display ads in a copy
of the May 1985 CT, it’s interesting to
see which vendors are still here today,
which ones merged with or were ac-
quired by others and which ones are no
more.
Wegener Communications has a full-
page ad on the inside front cover, and
Eagle Comtronics is on the next page. Both
companies are still part of today’s industry.
Eagle’s ad promoted its 500 MHz taps,
which were pretty much state-of-the-art,
considering that typical cable system
upper frequency limits topped out at
330, 400, 440 or 450 MHz. There were
still a bunch of 220, 270 and 300 MHz
systems in operation, which were target
markets for bandwidth expansion: The
Jerrold Division of General Instrument
was advertising 330 MHz drop-in mod-
ules for its Starline 20 SJ series ampli-
fiers.
The May issue included three feature
articles about outside plant powering,
may2010 15
DY N A M I C
VOD
Ads Advance
Th e sh ift from
to deploymenway
(finally) under
trial
t is
The technology
gives something
to operators, advertisers,
programmers and subscribers.
by Linda Hardesty Now it’s becoming a business equation.
C
omcast has issued no for- That was six months ago. Momentum years later, that headline may fit today’s re-
mal announcement, but looks to be building. alities. The timing of the Comcast initiative,
the MSO appears to be “Use of the word ‘trial’ in the cable in- at any rate, looks fortuitous.
expanding its dynamic dustry is new to me,” said Troiano. “I’d say As it rolls out dynamic VOD advertis-
video-on-demand (VOD) it’s a deal, rolling across Comcast markets ing capability, Comcast has also joined
advertising capability beyond an initial as we speak.” with seven other operators and a group
trial and across its larger footprint. In The idea of combining VOD with tar- of movie studios to launch a $30 million
October, Comcast and advanced advertising geted ads has been around for many years marketing campaign,promoting VOD. The
technology company BlackArrow said they along with high expectations. “VOD Ads three-month ad campaign, developed in
were trialing dynamic VOD advertising in Ready To Take Off”—that was a MediaPost- conjunction with the Cable & Telecom-
Comcast’s Jacksonville, FL, system. News headline from August 30, 2002. Eight munications Association for Marketing
16 may2010
(CTAM), is titled “The Video Store Just Montana markets of Billings, Bozeman, In 2009, Cox Media and NBC Universal
Moved In.” Helena and Missoula. The operator inte- conduced a test, inserting different adver-
At a time when more folks are watching grated products from ARRIS, Avail-TVN tisements into two of NBC’s programs of-
online video, the CTAM campaign hopes and BlackArrow. fered the day after initial airing. The trial was
to show consumers that VOD is more con- In the past, VOD programming could conducted in Cox’s Phoenix, AZ, system.
venient than going out to a video store and only accommodate static VOD ads that During the test, up to four ads in a
more comfortable than watching streaming were baked into an asset. The advertiser program were refreshed several times per
video at a computer. had to provide the ad 45-90 days in advance week, including ads at the beginning of the
Participants in the marketing campaign of its play to give the programmer time to program as well as ads within the program,
include Armstrong, Bend Broadband, Bright embed the ad asset into the program. known as interior breaks.
House Networks, Cablevision Systems, “Now, at Comcast and Bresnan, we have “We started to realize VOD was a compet-
Comcast, Cox Communications, Insight a clean asset,” said Troiano. The TV show is itive differentiator for cable operators,” said
Communications and Time Warner Cable, sent independent of creative assets and the Porter. “VOD brings the convenience and
along with studio partners: 20th Cen- ads are inserted at time of play. control of the Internet. VOD also preserves
tury Fox, Focus Features, Lionsgate, Rogue, “It’s akin to how things work on the the economics of the TV ecosystem.”
Sony Pictures 7" x 4-3/4" Summit En-
Entertainment, Internet,” he said. Porter wouldn’t name systems, but indi-
tertainment, Universal Pictures and Warner cated a corporate commitment. “Through
Bros. Entertainment. Cox Advances, too 2010, we’re going to be rolling out dynamic
The marketing push should give opera- Comcast and Bresnan aren’t the only ones ad insertion one market at a time, and en-
tors a boost in their pay-per-view revenue. pinning hopes on dynamic VOD advertis- gaging one network at a time,” he said.
And dynamic VOD advertising holds the ing. The U.K.-based Virgin Media (see page The process involves installation of ad
promise of increased ad revenues as well. xx) is rolling out the technology in 2010, as insertion equipment and making it work
Apart from Comcast, other operators is Cox Communications. with different components, playout gear,
are working on dynamic VOD advertis- “We’ve already done true dynamic ad reporting gear and back office systems.
ing.In the first three months of 2010, insertion,” said David Porter, VP of adver- “It’s not a quick, simple process,” Por-
Bresnan Communications conducted a tising product development for Cox Media, ter said. “We’ve got about 18-20 different
dynamic 0457FA
VOD RGBadvertising trial in its
0310_CommTech_Ad_PRINT.pdf the advertising
4/1/10 services
9:59:37 AM division of Cox. unique headends.”
CM
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CMY
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may2010 17
Virgin Media Layers Dynamic Ads
Video-on-demand (VOD) often provides cable operators with an Look for that revenue to change, and not just from more bumper ads.
important competitive edge. Yet VOD solutions and the market Adding dynamic ad insertion to the VOD infrastructure introduces
dynamics can be complex. Many of today’s subscribers, for instance, both opportunity and complexity. This is particularly true for VOD
expect nearly unlimited programming, enabled with trick-play control and advertising that goes beyond simple associative bumper ads to a
deliverable to multiple devices. more sophisticated system.
Operators count on VOD to improve customer satisfaction. With dynamic The road map for these technologies have subscriber, ad and content
VOD ad solutions in play, they are looking to generate new advertising profiles being used by the operator’s advertising management system to
opportunities and revenue streams. How realistic are these expectations? select the ads inserted based on the interests of the viewer, the content of
the ad, the context of the viewing and the focus of the show.
From trial to live Virgin’s current advertising relies upon associations between content of
U.K.-based cable operator Virgin Media has the real-world experience to shows and ads, and the viewer’s context. Their production experience is
answer that question. In October 2008, Virgin initiated a trial using ad inser- affirming that a system doesn’t need to be complex to provide a surprising
tion technology from SeaChange. The operator concluded the 100,000-cus- amount of value to operators, advertisers and subscribers.
tomer trial last year. Among its results were significant increases in brand Operators, advertisers and subscribers are seeing real process improve-
and product awareness, ad awareness, and ad campaign effectiveness. ments from dynamic VOD advertising. Unbundling the ad from the content
A year later, Virgin began rolling out this feature across its footprint, which gives operators flexibility while reducing the duration and complexity of the
includes 3.7 million digital cable subscribers. That deployment is continuing ad placement and reporting cycle. Single-copy ads liberate advertisers from
throughout 2010. ad insertion duties, ads are quickly and easily modified, and reporting is
Here’s what the solution does today. Each time a subscriber starts a more useful. Viewers value and respond to ads that carry relevance.
VOD session, the system creates a playlist and determines which ads, if Everyone likes what’s going on. “The technology is here,” noted
any, are appropriate and then dynamically rewrites that playlist and delivers Broughton. “It’s been here for several years. The issue is in the value chain:
it in real time. Are the operators, broadcasters, and advertisers ready?”
“Determining which ads are appropriate involves ad-related and content-
related information plus context: the time of day, where the subscriber lives, Market, not technology
and – in the future – more information on the subscribers past viewing and How these advertisements will be sold remains a work in progress.
purchasing behaviors,” said Malcolm Stanley, SeaChange director of adver- “In a manner of speaking, baby steps are required on the part of the
tising product management. operators and the advertisers who want reach the consumers,” Stanley said.
The system reports back on all ad impressions and subscriber viewing The market is feeling its way toward the value propositions that will enable
activities: how long they viewed the ad, fast-forwarding or skipping the ad. billion-dollar revenue streams. “This isn’t a technology issue; this is a real
While strong VOD usage rates indicate happy subscribers (For 4Q09, market issue. The players must agree on the market proposition before they
Virgin reported 35 views per user per month) increased ad revenues should can enable the revenue streams to reach that volume,” observed Stanley.
make the operator happier. For operators, advertisers are the crux. “When you discuss with advertis-
One key is leveraging existing assets. “At this point, the advertising spots ers what they want today, they are looking for the accountability, efficiency
are placed around approximately 30 series that are a part of Virgin’s VOD and velocity that you see more often in Internet environments than televi-
inventory,” explained Richard Broughton, Senior Analyst at Screen Digest. sion environments,” says Stanley. “Virgin Media’s dynamic advertising
“Virgin’s VOD usage today is dominated by free content: catch-up viewing brings a lot of that accountability and that efficiency to the television
and archive materials. Pay-per-view films are less than five percent of the on- experience and the on-demand aspect of AdPulse provides the real-time
demand views, but provide most of the operator’s VOD revenue.” velocity that advertisers enjoy in Internet environments.”
For the Phoenix test, Avail-TVN, advertiser to target a specific network for much finer targeting into its VOD advertis-
SeaChange International and Texscan VOD ads. For instance, a garden shop might ing such as geographics and demographics.
NT collaborated to support the end- want to place ads on HGTV on demand Once dynamic VOD technology is in-
to-end workflow required for dynam- programming, or a hospital may want to stalled and tested and ads are being sold on
ic ad insertion. Porter said Cox used buy VOD ads on Discovery Health. a regular basis, the technology may offer the
SeaChange’s AdPulse product, but “I’m not “Nine out of 10 AdPulse buys are in- opportunity to target ads based on specific
suggesting that’s the one and only,” he said. corporated in the overall campaign,” said shows and viewer behavior, as well.
“The goal here is to use open standards.” Misty Jensen, general sales manager with “We’re not doing that right now,” said
Sunflower Broadband. Porter. “Let’s get insertion gear deployed to
Sunflower links ads, nets “Sunflower is using targeting that ad- all our markets first.”
Sunflower Broadband in Lawrence, KS, uses vertisers are very familiar with,” said Cox’s
SeaChange’s AdPulse product to do pre- Porter. “That’s a good way to start. But it is Linda Hardesty is associate editor of Commu-
and post-roll VOD ads for local avails. by no means the end game.” nications Technology. Reach her at lhardesty@
At this point, Sunflower just allows an He said Cox eventually wants to bring accessintel.com.
18 may2010
©2010 Cisco Systems, Inc. All Rights Reserved.
Learn more about Cisco’s new video over DOCSIS® 3.0 solution
and the new DOCSIS 3.0 line cards, which enable the largest to
smallest operators and everyone in between to deliver a realm
of consumer video experiences over a single infrastructure.
By George Lawton
T
here is no doubt HD is the future of TV. HD is a away any time soon; and the transition is further complicated by
key driver for new premium revenues and a hook consumer challenges in figuring out how to make the channel
for high-end subscribers, it’s becoming standard lineup work on their new digital HDTVs.
in free-to-air TV broadcasts and the number of As Katz noted, “Legacy considerations in cable networks will
HDTV-enabled households is rapidly growing. mean that, for some time, operators will need to simulcast SD
“Yes, we see a migration from SD to HD similar to the transi- side by side with HD, in MPEG-2, with a longer-term transition
tion from broadcasting in black and white to color,” said Gil to MPEG-4.”
Katz, senior director of Cable Solutions and Strategy at Har- HDTV excitement has been building
monic Inc. “I would anticipate that most of the channel lineup since its first public broadcast in North
will be HD in about two years time.” Carolina in 1996. Initially, it almost
In many ways, HD is not standard, and here’s why: The FCC was a gimmick until the early 2000s,
still considers even the most basic set-top box with HD support when the Digital Video Broadcasting
to be a smart box requiring expensive encryption; most so-called group formally adopted HDTV
HD households still have plenty of SD TVs that are not going standards. Once the standards
20 may2010
were in place, over-the-air TV broadcast- twice the resolution of 1080i (interlaced), a ‘basic’ functions, then these boxes could
ers were supposed to make the transition which only refreshes every other line -- but be deployed into the network to support
to digital in 2005, but they dragged their this is the case only if the consumer has the low-cost HD services,” said Smith.
feet all the way to 2009, when analog TV right TV. At the moment, the only other Massillon Cable has been one of the
officially shut down. way to get genuine 1080p video is through pioneers in transitioning from analog to
This lag gave HDTVs a chance to come Blu-ray discs or special IPTV set-top boxes. digital; and it was one of the first cable
down in price, thus driving consumer On the other hand, higher quality isn’t operators to get a waiver for digital SD
adoption for the new format. Cable opera- not a sure bet over variety when it comes set-tops, which allowed it to reclaim
tors, satellite providers and such telcos as to consumer decision-making. Just look at bandwidth for adding another 70 HD
Verizon and AT&T have begun competing the explosion of the iPod and the growth in channels. However, the cableco was sur-
to expand their HD service line-ups, real- the market for lower-quality MP3 music at prised to discover how many of its cus-
izing it can be a competitive differentiator the expense of higher-quality CD music. As tomers still were clinging to analog TVs.
to attract high-end customers likely to a result of this transition, industry research As such, Massillon needed to distribute
spend more on high-tier channel line-ups has found that the market for all music has some 100,000 digital adaptors to its
and on-demand services. shrunk from $14.6 billion in 1999 to $9.2 47,000 video customers.
According to ABI analyst Michael In- billion in 2008, CD sales are contributing a Bob Gessner, president of Massillon,
ouye, “The market has moved toward HD smaller and smaller share. said even customers with new digital TVs
for North American cable in general.” He had been watching analog because they
estimated that around 7 million of the 19 Nothing’s ‘Standard’ Yet didn’t know how to program their new
million cable boxes that shipped last year A big part of the debate over what consti- sets to receive digital broadcasts. When
supported North American HDTV. tutes a standard is the Federal Communica- their new TVs first were installed, cus-
tion Commission’s definition of “advanced” tomers saw a larger picture that looked
Who’s Outdoing Whom? and “basic” set-top boxes. Currently, the nicer than the picture on their existing
At first, there was considerable hype FCC considers any set-top box that pro- 20-year-old TVs. They thought to con-
around which provider had more HD vides HD service to be an “advanced” duct a channel scan because the analog C
services, and providers would one-up each set-top box, requiring a separable security video was already there on the screen.
M
other by expanding their line-ups. “But it is based on the CableCARD standard. So, when Massillon finally cut all ana-
less of a differentiator now,” Inouye noted. While this “standard” was intended to log services, a lot of digital TVs went Y
All of the major video providers now top help drive down the cost of consumer dark. “That took us off guard because we CM
or nearly top 100 HD channels, accord- equipment, it actually has had the op- did not realize that so many people were MY
ing to the AV Sciences Forum, which has posite effect, said Brent Smith, president watching analog channels on their digital
CY
been tracking the competition for some of Evolution Digital, who explained that, TVs,” Gessner said.
time (for more information, go to http:// for a variety of technical and marketing CMY
php?t=1058081). Verizon leads the pack per box to get CableCARD-enabled set- There is no doubt HD will become the
with 165, followed by AT&T (160), Time tops compared with between $30 and new SD, but the transition will be a
Warner (150), Comcast (138), Dish (123), $40 for a basic SD digital box. bumpy one, forcing operators to mull
Cox (90) and DirecTV (88). “The FCC has been on the fence as over many options. In the complicated
With limited channel line-ups, opera- to whether HD is an advanced or basic calculus of cable profits, they must bal-
tors are finding other ways to out-HD each service,” said Smith. “When the FCC ance the technical tradeoffs in offering
other. The cable and telco terrestrial provid- wrote these definitions, HD was seen more channels, more video-on-demand
ers are promising thousands of HD choices as a unique advanced feature. Now that and higher quality with keeping the lives
on demand, which they can offer thanks to broadcasters have converted to HD, it is of their “basic” customers simple.
local servers in their headends that transmit hard to see how they could classify HD as As Ludovich Milin, manager of Cable
individual feeds to a consumer’s home. an advanced product.” Product Marketing at BigBand Networks,
However, satellite providers can’t keep up The commission has granted a few explained, “The implications of contin-
with these extensive lineups because their waivers for digital HD set-tops on a sys- ued growth in HD and rollouts of 3D
bandwidth is shared nationwide (compared tem-by-system basis, but this is both time- will require greater focus on digital video
with a cable headend’s smaller footprint). consuming and expensive, especially for networking/video processing technologies,
Consequently, they have adopted a differ- smaller operators. Today, equipment ven- which can cost-effectively accommodate
ent strategy to offer higher-quality 1080p dors are trying to get FCC exemptions these bandwidth intensive services and en-
HD on demand for a few premium movies. for basic HD-equipment that would allow sure high-quality video experiences. Fur-
These are delivered in the wee hours of the any operator to provide basic service with ther developments for HD rate-shaping and
night to special satellite set-top boxes with integrated conditional access security. In HD ad splicing also will be needed.”
digital video recorders (DVRs). June 2009, Evolution Digital submitted
In theory, 1080p (progressive) refreshes another waiver request for low-cost HD- George Lawton is a frequent CT contributor.
each line every cycle in order to provide boxes. “If the FCC decides to qualify HD as Reach him at glawton@gmail.com.
22 may2010
FaultLine
TM
www.trilithic.com 800.344.2412
Marketplace
Comcast 1, FCC 0
Politicians and regulatory officials alike blocking BitTorrent traffic as part of if we are to remain globally competitive
are pondering how next to approach net- network management, adding “video in our communications abilities.”
work neutrality following the recent U.S. distribution poses a particular competitive Waldron and her partner Christopher
Court of Appeals for the District of Co- threat to Comcast’s video-on-demand Campbell directed the submission of a
lumbia Circuit decision that ruled in favor (VOD) service.”In fact, the FCC included second-round BTOP application for the
of Comcast by reversing a 2008 Federal this statement in its Comcast P2P order: Florida community colleges, independent
Communications Commission order that “…If cable companies such as Comcast colleges and universities, and Florida
barred the operator from interfering with are barred from inhibiting consumer Public Broadcasting stations. Their clients
its customers’ use of peer-to-peer (P2P) access to high-definition on-line video requested $103 million to interconnect
networking applications, including video content, then…consumers with cable these institutions onto a high-speed
downloads. This order could have far- modem service will have available a backbone network to enhance education
reaching ramifications when it comes to source of video programming (much statewide as well as to stimulate job
competition, not only for bandwidth but of it free) that could rapidly become growth and economic development.
for customers. an alternative to cable television. The
In a written statement attributed to competition provided by this alternative What to do?
Sena Fitzmaurice, vice president /Gov- should result in downward pressure According to Jeffrey S. Silva, senior
ernment Communications, Comcast said, on cable television prices, which have policy director/Telecommunications,
“We are gratified by the Court’s decision increased rapidly in recent years.” The Media and Technology at Washington,
today to vacate the previous FCC’s order. three-judge panel disagreed. D.C.-based Medley Global Advisors LLC,
Our primary goal was always to clear our there are two options the FCC and “pro-
net neutrality Democratic lawmakers”
could entertain.
There is some question One involves the FCC reclassify-
regarding the words “open” ing broadband from a lightly regulated
information service to a regulation-heavy
and “vibrant” when it comes common-carrier regime; this battle has
to who really will prosper played out in the wireless and wireline
from broadband services in telecom industries. Such a prospect has
prompted Verizon and AT&T to counter
the long and short term. that Congress should step in to update
the 1996 Telecom Act, Silva said. Another
name and reputation. We have always Winners and losers alternative is standalone net-neutrality
been focused on serving our customers However, even with what looks like a legislation, though the chances of mov-
and delivering the quality open-Internet ruling that errs on the side of “let the ing a bill this year appear slim.
experience consumers want. Comcast marketplace decide,” to some, the 36- “While the Appeals Court decision is
remains committed to the FCC’s existing page opinion crafted by Circuit Judge a blow to the FCC, it should be noted
open Internet principles, and we will David S. Tatel bolsters the biggest that neither legal clarity nor regulatory
continue to work constructively with this broadband players – i.e., Comcast, AT&T uncertainty implicated by the Comcast
FCC as it determines how best to in- and Verizon – perhaps at the expense ruling are necessarily absolute,” Silva
crease broadband adoption and preserve of smaller players or new entrants that said. “Legal decisions are based on fact-
an open and vibrant Internet.” may be entering the field as a result of specific issues presented to the court.
There is some question regarding the broadband stimulus cash. A different set of circumstances can
words “open” and “vibrant” when it Katherine Waldron, CEO of Waldron yield a different legal outcome. More-
comes to who really will prosper from and Associates, an IT and telecom con- over, laws can change and regulatory
broadband services in the long and short sulting company focused on broadband formulations can be altered to achieve
term. projects, said, "With the ability of the a desired result if there is political will
In its original order, the FCC said major providers to freely discriminate, for change. Few things are ever final in
it was promoting video competition now more than ever we need to ensure official Washington.”
by determining Comcast had violated that true competition exists and that
its Internet open-access principles by there are multiple viable multiple players – Debra Baker
24 may2010
Optical Outlook
26 may2010
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16630
may2010 29
16630 CT Reports ad_half.indd 1 10/26/09 4:59:41 PM
Reality Check By Jim Farmer
Does 1 Gbps
Make Sense?
So Shaw has announced a fiber-to-the-home (FTTH) rights to really fast connectivity. We just got back
network and is preparing to test 1 Gbps service. from a meeting with an overseas telco who is also
That’s a hundred times what most cable subscribers a big cable operator. He is offering gigabit service
have now, and 10 times what anyone else has pub- via FTTH for the advertising value. And let’s face it:
licly announced so far as we know. (Let’s leave aside There is a speed race going on—DOCSIS 3.0 is in the
Google’s plan to announce by year’s end a community middle of it, despite the fact that it is still an order of
in which to test 1 Gbps service.) magnitude slower than FTTH.
Does this kind of speed make sense?
Absolutely, it makes sense. With FTTH—both Farmer’s Law
EPON and GPON—you can do it easily. Absolutely, it makes sense. It supports Farmer’s law.
For years, I have been trying, without the first shred
Or maybe not of success, to establish my place in history and to gain
It makes no sense at all. You cannot download that fame and fortune with Farmer’s Law: “No matter how
fast to a computer. much bandwidth you provide, some clown is going to
Several years ago, we were developing a demo for come along with an application that demands more.”
a customer’s board of directors to show them the Gigabit connectivity gets you way, way out in front of
beauty of FTTH data speeds. A big frustration was this important law. (Now, if I could just get anyone else
trying to move data to see its importance!)
into and out of a com-
puter consistently at
No matter how much Bottom line
more than a few tens bandwidth you pro- So what is the bottom line
of Mbps.
Absolutely, it makes
vide, some clown is to this two-headed analy-
sis? A gigabit per second
sense. Homes have going to come along is probably is more than
networks with many with an application any one subscriber can
computers and other use today.
data appliances. that demands more. Think back to the wan-
It makes no sense ing years of the last cen-
at all. It does you no good to deliver that kind of tury—scarcely more than a decade ago—when we
speed in the last mile if you have slower connec- were using dial-up Internet at around 50 kbps. Then
tions to the Internet backbone, and we understand they came out with first-generation cable modem
that gigabit connections are still pretty expensive, service at 1.5 Mbps. That was a 30-fold increase in
though coming down. speed, and today we regard that as slow.
Absolutely, it makes sense. If you have several busi- Compare 1,000 Mbps FTTH to today’s 10 Mbps
nesses with multiple locations on your network, you (YMMV*) DOCSIS, a 100-times increase. It should
can accommodate them—for a slight additional fee, give you many years respite from needing to increase
of course. And if you cache data or video on your speed again. And the fiber is using an infinitesimal
network, you can download it without burning your portion of its capacity.
Internet connection cost. Already, the IEEE has amended its standard to incor-
It makes no sense at all. There are few businesses porate 10 Gbps, and the ITU is well-into the process,
with that kind of continuous data need that will be both using the same network you would build today.
willing to pay said “slight additional fee.” And even
streaming HDTV, the highest bandwidth hog of them *Your mileage may vary
all, only burns about 8 Mbps in MPEG-4. Jim Farmer was co-founder and CTO of Wave7 Optics, which
Absolutely, it makes sense. It gives Shaw bragging Enablence Networks acquired in 2008.
30 may2010
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17481