& cplSiteName &

Cable Fears Congestion, Not Cord-Cutting

Mari Silbey
7/31/2013
50%
50%

Communications service providers (CSPs) are more concerned about the impact that over-the-top (OTT) video traffic will have on the capacity of their networks than the prospect of losing customers to the streaming Web video services, according to the results of a recent multinational survey conducted by Incognito Software Inc..

And the most popular tactics for fighting back against network congestion? Bandwidth caps and fair-use policies.

Incognito surveyed 65 broadband providers from around the globe, mostly cable operators and predominantly from the Europe, Middle East, and Africa (EMEA), Latin American, and North American regions. A whopping 86 percent said they did not view cord cutting as a major threat, but many were concerned about the flood of video on their networks.

While most operators (more than 80 percent) have already upgraded their infrastructure to deal with greater traffic volumes, they are also wielding other weapons in the war against bandwidth overload. In Latin America and North America in particular, operators cited usage caps and fair-use practices -- where speeds are throttled for high-consumption subscribers -- as their methods of choice for dealing with congestion.

Although the Incognito study included a high representation of small and mid-sized operators, the conclusion about bandwidth caps falls in line with recent activity from America's second largest cable provider, Time Warner Cable Inc.. Time Warner is now offering discount incentives to some subscribers if they agree to a plan with a usage cap. (See TWC Rethinks Its Broadband Strategy.)

Meanwhile, in good news for consumers, the Incognito survey did find that many service providers are also considering other options for competing against OTT services in the future. Some will offer premium features such as unlimited streaming to generate new revenue, while others (mainly in Latin America) plan to create their own proprietary OTT offerings.

— Mari Silbey, Special to Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
8/1/2013 | 3:10:42 PM
re: Cable Fears Congestion, Not Cord-Cutting
Bottom line--when the competition gets tough, try squeezing the customers. I agree with Ray below that CSPs will lose subs while OTT traffic will grow.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
7/31/2013 | 3:13:55 PM
re: Cable Fears Congestion, Not Cord-Cutting
Of course, there is the double whammy that the CSPs lose a whole load of subs AND have their networks swamped by OTT traffic... the 'good ol' days' are certainly long gone.,
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telecom Jargonosaurus Part 1: Repeat Offenders
Iain Morris, News Editor, 7/13/2018
AT&T's Stankey Serves Up a Stinker at HBO
Iain Morris, News Editor, 7/10/2018
Broadcom Buys CA – Huh?
Mitch Wagner, Executive Editor, Light Reading, 7/11/2018
Verizon Taps Malady as Acting CTO
Dan Jones, Mobile Editor, 7/12/2018
FCC's Rosenworcel: US 'Falling Behind' on 5G
Iain Morris, News Editor, 7/13/2018
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed