Summary
1. Even part of the title, “The Moment of Truth” seems to suggest more of a PR piece. 2. According to the report, “Fixed operators, especially alternative operators, should consider the acquisition of cable infrastructure, if feasible, as opposed to deploying a fiber access network.” 3. If coaxial is such a great investment, why are the MSOs giving so much attention to fiber to the home?
Analysis
There is no discussion in the report about the huge operational savings with fiber to the home. And while FTTH is much more expensive on a first-cost basis, there is no acknowledgment of Verizon cross-subsidizing its effort with its fiber to the business operation. While the point is made that vast amounts of government funding is becoming available around the world for broadband build-outs, why would coax be chosen over optics given the virtually unlimited potential of fiber? Also, although the study talks about “Comcast [seeing] the greatest increase in broadband subscribers...among operators in the U.S in 2008,” there is no mention of the fact that the MSOs are losing cable TV subscribers to FTTH.
For several years, CATV companies will be able to take advantage of their coaxial investment, and stay relatively close to the capabilities of FTTH. However, the emphasis on leveraging these older networks to the degree suggested in the report appears to raise serious doubts about its objectivity.
It is true that the “success of any technology depends on the timeliness of new services to take advantage of abundant bandwidth.” In previous years, coaxial was the right choice. However, in today’s world, the correct selection is fiber.
