& cplSiteName &

Mediacom Adds $30M to '08 Capex

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
2/26/2008
50%
50%

Mediacom Communications Corp. execs say 2008 will be a “peak year” for capex spending as they outlined plans for an aggressive digital simulcast rollout, some limited all-digital migrations, and a foray into switched digital video (SDV). Most of those moves, announced Tuesday, are aimed to help Mediacom prepare for the February 2009 broadcast TV digital transition and to free up space for a wider selection of high-definition television (HDTV) programming.

The company expects to increase its capex spending this year by about $30 million to an expected range of $255 million to $265 million. That will represent about 19 percent of revenues in 2008, versus 18 percent last year.

Despite that increase, “we expect a positive swing of $18 million in free cash flow in relation to 2007,” company chairman and CEO Rocco Commisso said Tuesday.

Revving up digital
Mediacom plans to deploy digital simulcast to 50 percent of its systems by year-end, up from about 25 percent today. In addition to offering the entire programming lineup in a cleaner digital format, the company believes this will allow it to serve more customers with less expensive all-digital set-tops.

Mediacom also plans to introduce SDV in three markets in 2008, a move that should enable it to re-tag valuable spectrum for HD services. The MSO did not identify which markets are targeted for SDV, but the technique is already favored by Cablevision Systems Corp. (NYSE: CVC) and Time Warner Cable Inc. (NYSE: TWC). Cox Communications Inc. and Charter Communications Inc. have also started to deploy it. Comcast Corp. (Nasdaq: CMCSA, CMCSK), meanwhile, has said it expects to deploy SDV to 15 percent of its footprint this year. (See Comcast Spreads the Love , Charter Charts First SDV Course , and Cox Flips BigBand's DV Switch .)

Although between 80 percent to 90 percent of of Mediacom’s systems are built out to at least 750 MHz, the MSO is taking some steps to make its 550 MHz systems and some smaller properties more competitive through bandwidth upgrades or all-digital migrations.

“The side benefit of this is it will help us expedite the delivery of more HD channels to those systems [and offer] a more competitive product,” said John Pascarelli, Mediacom’s EVP of operations.

Commisso outlined a plan to offer 25 high-definition channels for free to entry-level digital customers. He reiterated that the total HD menu will rise to about 40 linear channels when premium hi-def networks and other programming services are added in.

He also stressed that Mediacom wants to avoid playing the “tonnage game in HD,” referring to a competitive stance being taken by DirecTV Group Inc. (NYSE: DTV), which presently offers about 90 “national” channels in HD.

Instead, Mediacom will push the availability of the most popular hi-def nets and expand its selection of HD-VOD titles. “We’re focused on putting on what people are watching in HD rather than trying to get out there and sell tonnage,” Commisso said.

More love for Docsis 3.0
Mediacom also changed its stance a bit when it comes to Docsis 3.0, a new CableLabs platform that promises to push speeds beyond 100 Mbit/s.

Although it talked about taking a “back seat” on the technology during its earnings call last August, Pascarelli noted that the MSO plans to start a Docsis 3.0 lab test this year while it monitors some live trials going on at CableLabs. (See Mediacom Takes 'Back Seat' on Docsis 3.0 .)

Mediacom also began testing of a “Powerboost” product last month that doubles speeds when capacity is available on the network. Cox and Comcast are among MSOs that already offer that capability.

But not all of the MSO's cable modem strategies revolve around faster speeds. Mediacom is relaunching a “lite” cable modem tier for $19.95 in the first quarter. Mediacom hopes the product will allow it to steal away some share from DSL providers and complement its existing 15 Mbit/, 10 Mbit/, and 8 Mbit/s (downstream) speed tiers.

— Jeff Baumgartner, Site Editor, Cable Digital News




Interested in learning more on this topic? Then come to Docsis 3.0 Strategies: From Product Development to Service Deployment, a conference that will take a comprehensive look at the cable industry's plans to roll out its next-generation architecture around the world. To be staged in Denver, March 19, admission is free for attendees meeting our prequalification criteria. For more information, or to register, click here.


(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Huawei Video Resource Center
Huawei Will Accelerate the Spread of the Video Business

2|27|17   |     |   (0) comments


What is the future of the booming video business? What changes will happen to the video industry chain in the future? Hunter Hu, VP of Huawei Video Product Line, shares his viewpoints and explains how Huawei can be an enabler and accelerate the spread of the video business.
LRTV Huawei Video Resource Center
Frost & Sullivan's Jonas Zelba on Going Beyond Connectivity

2|27|17   |     |   (0) comments


Telecom operators across the globe are trying to understand what can they offer beyond connectivity. Operators are already introducing new and innovative services but they are faced with challenges due to unclear business models. Jonas highlights that no one operator can offer all the services itself. Operators in the Middle East should look within their ecosystem ...
LRTV Huawei Video Resource Center
IDC's Paul Black on Cloudification

2|27|17   |     |   (0) comments


Paul Black from IDC shares his insights on how cloudification is expected to combile all aspects of digital transformation.
LRTV Huawei Video Resource Center
Industry Expert Michael Howard Talks About Cloud Native

2|27|17   |     |   (0) comments


Cloud Native is a really nice term and a lot of people are using it. But most of them have their own definition of what Cloud Native means. Michael Howard offers his take on the terminology.
LRTV Custom TV
4.5G Evolution: Peter Zhou on Advanced MIMO Technologies & 5G Business Prep

2|25|17   |     |   (0) comments


In the process of service transformation, operators need to catch three major opportunities and start deploying in 4.5G networks, such as video, household broadband access and digital transformation of vertical industries. 5G is coming. Operators don't need to wait for it to happen but should progressively deploy 4.5G networks by introducing 5G-oriented ...
LRTV Custom TV
What WTTX Can Deliver

2|23|17   |     |   (0) comments


Mohamed Madkour explains the benefits of WTTX while Dimitris Mavrakis discusses the challenges of delivering home broadband access.
LRTV Custom TV
Huawei on Mobile Broadband

2|23|17   |     |   (0) comments


Mohamed Madkour shares his vision on MBB for the next three years.
LRTV Custom TV
Analysys Mason Talks About the Future of Digital Operations

2|23|17   |     |   (0) comments


The future of digital operations has three key aspects: 1. Highly automated operations for both service and network; 2. Highly converged BSS/OSS for business and resources; 3. Highly merged management and control for real-time cloud native operations.
LRTV Interviews
Software Trends in the Telecom Sector

2|23|17   |   03:40   |   (0) comments


Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
LRTV Custom TV
Huawei's Pre-MWC Analyst Briefing 2017 Highlights

2|22|17   |     |   (0) comments


Huawei shares its vision for this year's MWC.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
Sarah Thomas, Director, Women in Comms, 2/21/2017
Broadband Has a Problem on the Pole
Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
Verizon to Start Fixed 5G Customer Trials in April
Dan Jones, Mobile Editor, 2/22/2017
Cloud Rains on HPE Earnings
Mitch Wagner, Editor, Enterprise Cloud, 2/24/2017
Verizon Fixed 5G Tests to Top 3Gbit/s?
Dan Jones, Mobile Editor, 2/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.