Cable Tech

Cable Bandwidth Dilemma Looms at SCTE

DENVER -- Cable-Tec Expo -- Cable TV bandwidth conservation and expansion will easily be the biggest items on the agenda when the Society of Cable Telecommunications Engineers (SCTE) opens its annual Cable-Tec Expo confab in Denver today.

Although the industry barely dodged a bullet earlier this week when Federal Communications Commission (FCC) chairman Kevin Martin abruptly withdrew his bid to impose digital multicast must-carry obligations on cable operators, the pressure is still mounting on MSOs to save and boost bandwidth capacity, according to industry analysts. As both satellite TV providers and the telcos roll out more advanced digital video services, analysts expect cable engineers to devise more methods to keep up.

In particular, cable operators are under increasing pressure to deliver more high-definition TV (HDTV) programming to subscribers. With high-def sets now in close to 20 million U.S. homes and that number growing by at least 1 million each month, HD is on the verge of becoming a mainstream service, much like color TV in the early 1960s.

"HD is really important," says Patti Reali, a senior analyst with the Gartner Group. "Satellite wants to be the gold standard for HD."

Read the whole story at Cable Digital News.

Cable CTOs Say OCAP Set-Tops Are Coming By Alan Breznick DENVER – Cable-Tec Expo – Nearly five years after CableLabs wrote the first technical specifications for digital cable set-top boxes and TV sets that would enable them to run on any cable system, the cable industry is finally ready to start selling that gear.

Six of the nation's largest MSOs -- Comcast, Time Warner Cable, Charter Communications, Cox Communications, Cablevision Systems, and Advance/Newhouse Communications -- are now upgrading their cable system headends to support digital TV gear equipped with the critical OpenCable Application Platform (OCAP) middleware. They aim to deploy the OCAP software in at least a dozen markets, including such major metro areas as New York, Philadelphia, Boston, Denver, and Indianapolis, by the end of the year.

Critics charge that the MSO deployment plans sound more like token offerings to appease federal regulators, who have been pressing the cable industry to support interoperable equipment that consumers can buy at retail stores. They contend that cable operators have been dragging their feet on the issue for years because they fear competition to their leased set-top business model.

Speaking at the Society of Cable Telecommunications Engineers' Cable-Tec Expo confab here, two top cable engineers insisted that the industry is now committed to making OCAP work. Despite a load of technical headaches, they said their companies are moving ahead with their rollout schedules.

David Fellows, executive vice president and CTO of Comcast, reiterated that MSO's intention to launch OCAP in an industry-leading four regions by the end of the year, including its Boston, Denver, northern New Jersey, and hometown Philadelphia markets. He said Comcast is working with Panasonic, from which the MSO ordered at least 250,000 OCAP-equipped set-tops with high-definition (HD) and digital video recording (DVR) capabilities earlier this year, on the rollout plans.

Marwan Fawaz, outgoing CTO of Adelphia Communications and incoming CTO of Charter Communications, confirmed Charter's goal to get two markets ready for OCAP gear by year-end. Although he declined to name the markets, he said one launch will occur on a cable system with Motorola plant and electronics equipment and the other on a cable system supported by Scientific-Atlanta gear.

"One manufacturer is more ready than the other," said Fawaz, declining to say which vendor is better prepared. "I lose sleep worrying about it."

At least one top consumer electronics engineer thinks cable operators urgently need OCAP-enabled equipment to compete against DirecTV and EchoStar, as well as such other national players as the big RBOCs.

"Without OCAP, the cable industry would be at a severe competitive disadvantage," said Paul Liao, CTO of Panasonic Corp. of North America. "From a competitive perspective, I don't see how you can't do OCAP as quickly as possible… If you don't have OCAP, it's going to be your competitors who do that."

Some TV programming suppliers say a wholehearted cable commitment to OCAP could make a big difference for them as well. With OCAP-enabled TV sets and set-tops, content suppliers and applications providers can write just one piece of software to run the same fare on most cable systems.

"OCAP does matter to us," saidVincent Roberts, executive vice president of worldwide technology and operations for Disney/ABC Television Group. "We deliver to multiple consumer devices. That's a real challenge for us."

A number of consumer electronics manufacturers want to see OCAP swiftly deployed, too. In fact, three large electronics makers -- Panasonic, LG Electronics, and Samsung Electronics -- have already committed to building the OpenCable two-way digital TV sets that would use the software.

"From Panasonic's perspective, OCAP is an absolutely critical and essential step," Liao says. "There's only one thing that will make it better-- get it deployed."

Ironically, the cable industry is moving to make its digital set-tops more retail-friendly for consumers at the same time that the more retail-oriented satellite TV industry is adopting the traditional cable model of leasing gear to customers.

For example, DirecTV carried out a major shift in its hardware strategy in March, instituting a new leasing program that pays commissions to dealers for renting, not selling, satellite converters to customers. In the past, DirecTV always subsidized the cost of set-top box sales to subscribers.

— Alan Breznick, Site Editor, Cable Digital News

COMMENTS Add Comment
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spelurker 12/5/2012 | 3:50:42 AM
re: Cable Bandwidth Dilemma Looms at SCTE > Let's say that a TV station chooses to use Internet as a main delivery system.
> Delivery will cost according to my calculations $5/month (i assumed 60 hours
> of watching at 100KB/s)

100Kbps is a really poor quality broadcast. A normal digitised NTSC transmission takes ~3Mbps with common techniques (~2Mbps with better compression). HDTV requires several times that.

(I don't know where you get the $5/mo number, but if it has anything to do with bit rate, the math will blow your cost above that of the cable co)
There are several factors which go into the cost of cable TV. One is the cost of programming -- sure, if you watch only weird art film channels, the cost is cheap, but some of the programming is quite expensive, so if anyone wants to watch the World Cup, or ESPN, the cost is huge, and this gets divided among the entire customer base. Also, you need to pay for the network that delivers it. Millions of miles of cable delivered to millions of homes, with all the cost of building it and maintaining it, with all the servers and routers and encoders. This does NOT go into iTunes prices or Google prices. But you still pay it somehow in your internet service.

Think about this by comparison -- it costs $40/month for telephone service from the phone companies. Where does this cost come from? It comes from maintaining the phone network. And their network is MUCH simpler and cheaper than the cable TV network. Could we be paying less for the same quality service -- sure, but there are limits to how far that goes. Sure, for telephony you could use a 3rd-party VoIP service for pennies. But you end up with reliability which is worse than cell phone, and you still need to pay the $40/month for high-speed internet service. The same thing goes for internet video.
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