Cable MSO's real problem

Implications: - Cable MSOs current strategy will buy them some time. - They must plan for a longer term future to compete effectively with Telcos. 

Analysis: It must be noted that the real competition for cable MSOs for bandwidth comes from fiber (and to a smaller extent, fixed terrestrial wireless and satellite) such as Verizon's FiOS. Fiber enables delivery of multiple HD channels and IP based video that standard bearer cable systems will have difficult time in providing. Their solutions are too slow; bandwidth management with clever software can buy some time but if more bandwidth is the requirement to residential customers, they must consider upgrading their infrastructure. DOCSIS 3.0 is a patch solution for now and can buy more time. Naturally, postponing the inevitable will help them improve their cash position and balance sheet and is perfectly understandable. However the clock is ticking and they do need to make plans to improve that infrastructure, be it improved cable performance, locating fewer households under an Edge QAM system or using fiber outright.