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Cable Broadband Subs to Pass TV Subs in 2015
The cable industry's broadband subscribers should pass the total number of cable industry TV customers sometime during 2015, according to debt rating agency Moody’s Investor’s Service. The cable industry in the States currently lays claim to around 50 million broadband and 50 million TV subscribers, with high programming costs meaning that broadband subscribers make them significantly more money. As TV revenues decline (and companies consolidate), you can be fairly certain there will be a continued push toward usage caps and overages, even if the industry has found them particularly tough to justify on fixed line networks where consumer prices are already high and the costs to provide bandwidth continue to drop.

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Zenit_IIfx
The system is the solution
Premium Member
join:2012-05-07
Purcellville, VA
·Comcast XFINITY

3 recommendations

Zenit_IIfx

Premium Member

Problems, many problems resulting in more problems

To me, the core issue is a lack of competition. Cable Broadband, at least in a majority of the USA, is rapidly becoming the only viable choice for high-speed broadband with modern-ish technologies.

(This is also causing a massive rift where rural and semi-rural communities are getting left in the dust with regards to broadband services. Areas with no Cable MSO, or small independent Cable MSOs don't have that great service. I wont go over this now.)

Since a majority of ILEC's sat on their hands throughout the 90's and 2000's, and only selectively upgraded their footprints, Cable has been given a massive position of power.

Yes, there is VZ FIOS, AT&T U-Verse, and other products. FIOS is not anywhere near 50% of VZ's footprint, U-Verse is straining to keep up with DOCSIS3. These products that can compete with Cable are not as common as needed.

The problem with the ILEC's (esp the Bells) is not that they failed to realize what was done, or lacked the money to build out modern services. They stole from the American people! $200 billion and all we got was a very marginal build out of modern services. Instead, they built cell networks with money meant for the wired side of the house.

»www.ntia.doc.gov/legacy/ ··· 61BF.pdf

This leaves many homes and businesses left with Cable as their only real choice, unless they can make due with 3mbit or so from the telephone company.

Without competition, the Cable MSO's can largely do as they please. They know this. Who are you going to run to when they put in place tighter caps? Not cellular - their caps are smaller. Either make due with obsolete ADSL or pay up, or in some cases only pay up.

At least for me, at my current address, I have the "Choice" of 3mbit ADSL2 from Verizon, or up to 150mbit from Comcast. Comcast has us by the neck. VZ's service has dropped off of a cliff under the McAdam administration - they are allowing the copper plant to slide and its not good. The only hope is that this town is franchised to get FIOS, and the CO has the equipment and serves outside subdivisions. But VZ will probably not build even if I can get the local government to step up (trying to do so right now - they agreed its a problem to let Comcast have a monopoly).

So, to put it short - TL;DR - Cable can do as it pleases as competition is minimal. Where will you go? Exactly.