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Comcast Ramps Up The Bandwidth
Operator reclaiming bandwidth through various technologies...
by Karl Bode Thursday 04-Oct-2007 tags: Video · competition · business · bandwidth · cable
We've been talking to Comcast this week about their DOCSIS 3.0 upgrades, and they're not offering any new detail not released during their investor presentation from last May. All we know is that DOCSIS 3.0 is in internal trials this year, and should see a 2008 launch in select markets. Users in those
Click for full size
markets will see faster speeds, but the company isn't saying (and potentially haven't decided) what those speeds will be.

Comcast's CTO Tony Werner this week said Comcast will be able to reclaim 240 MHz of spectrum by using switched digital video and a new video compression scheme. The scheme (MPEG-4?), which they'll roll out next year, should improve bandwidth efficiency on Comcast's network by 50% -- they claim without a drop in image quality.

Switched Digital Video (SDV) also conserves bandwidth by holding unwatched TV channels at the edge router instead of pumping them all to your set-top.

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eric87m

join:2003-12-07
Princeton, NJ

H.264

new video compression scheme = MPEG4?

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: H.264

Hmm.. I wonder if the picture will start looking more like DirecTv's
--
Canada = Hollywood North
Emiya

join:2006-03-30
Southington, OH
Even mpeg-4 asp (ie. XviD & DivX) would be able to reduce the bitrate significantly over mpeg-2 without losing quality. It would probably be easier and cheaper to implement over AVC (h.264).

mix

join:2002-03-19
Utica, MI
From the article, the new compression scheme "will work with the MSO's massive base of MPEG-2 set-tops". So can it be MPEG4? Or is it variable bit rate encoding or something?

cypherstream
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Reading, PA
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Reviews:
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Re: H.264

I can only imagine it would be really creative variable bit rate statistical multiplexing.

They can put the real expensive high end loop encoder systems in the headend that do all the heavy lifting, while the stb's out in the field act as the dumb client.

It can't be too complicated to decode because the horsepower in the Motorola STB's are practically zilch. Have you ever used one of those DVR's? Try scrolling or changing channels too fast, the dang thing freezes up for 20 seconds and then it plays catch up with itself.

mix

join:2002-03-19
Utica, MI

Re: H.264

Yes, I have a DVR, and it freezes all the time... I don't know if its terrible programming or like you say a very limited hardware set.

tiger72
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1 edit

Speed + Caps

I guarantee that even after Docsis 3 is rolled out, they'll merely offer up to 25mbps speeds at a fraction of the cost of the current 6mbps speeds, unless in FIOS competitive areas. Why? Significantly more profit. Comcast *never* does anything without thinking profit 1st, marketing 2nd, and somewhere towards the bottom is customer satisfaction.

Let's not forget that higher speeds mean customers hit those hidden caps quicker!
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en102
Canadian, eh?

join:2001-01-26
Valencia, CA

1 edit

Re: Speed + Caps

Just because it saves them money, it doesn't mean it will save you money. I agree that this will be primarily targeted at FiOS areas. The cost savings is in bandwidth... that doesn't mean that Cablelabs will give away Docsis3.0 for free, and that implementing SDV doesn't cost anything to deploy either.
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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
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USA
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said by tiger72:

Comcast *never* does anything without thinking profit 1st
A business that doesn't think about profit doesn't stay in business.
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LeftOfSanity
People Suck.

join:2005-11-06
Felton, DE

Re: Speed + Caps

said by Romney2012:

said by tiger72:

Comcast *never* does anything without thinking profit 1st
A business that doesn't think about profit doesn't stay in business.
Agreed. Let's be honest, as a consumer yea I want everything cheaper. Gas, my electric company just raised their rates 59% after a six year rate freeze. Id like my car insurance to drop, my media bills to drop. Of course, who wouldn't.

But they are a business. If you were CEO what would you do?
BosstonesOwn

join:2002-12-15
Everett, MA
Reviews:
·Comcast

Re: Speed + Caps

Put customer satisfaction first then profits second.

It made home depot and others huge profits before they went all stock holder.
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en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Speed + Caps

Not if you're the only business in town...

Basically, businesses will charge as much as they can to make maximum profit (short term, long term, etc).
There's product sales people to 'push' the product (sure its nice if customers 'want it', but when there's few choices, people will accept whats there, and TV has almost become a utility).

Satisfaction ratings typically come into play when its something like a CO-OP, or there's competition (DirecTv has high satisfaction ratings, as all it does is TV, and has to do a GOOD job of it).
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Sunburn

join:2000-10-05
Denver, CO
said by LeftOfSanity:

said by Romney2012:

said by tiger72:

Comcast *never* does anything without thinking profit 1st
A business that doesn't think about profit doesn't stay in business.
Agreed. Let's be honest, as a consumer yea I want everything cheaper. Gas, my electric company just raised their rates 59% after a six year rate freeze. Id like my car insurance to drop, my media bills to drop. Of course, who wouldn't.

But they are a business. If you were CEO what would you do?
If I was CEO I would continue to rape each and every one of you consumer whores until ye bungholes turned to dust! Then I would take my money and laugh as I invest it in a strategy to target your children, and your children's children for more of the same. If you didn't like it I would take my money to congress and pass bipartisan laws which will force you to submit. You and all generations after you would be enslaved to a bondage of my choosing. You are born unto this world for one reason only. Rebels and law breakers will be dealt with swiftly via black boots and the barrel of a gun.

Your life truly is worth nothing compared to the all mighty dollar! Now get back to work...I think you have some bills to pay and a debt you will never satisfy.

tiger72
SexaT duorP
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I'm not naive. However, a business can prioritize serving the customer well while making a profit all at once. Verizon's FIOS comes to mind...
priller

join:2000-10-20
Gainesville, VA

Deployable Where Needed


"Deployable Where Needed" is a key point of the slide.

In other words where there is FiOS competition????

LeftOfSanity
People Suck.

join:2005-11-06
Felton, DE

Re: Deployable Where Needed

said by priller:

"Deployable Where Needed" is a key point of the slide.

In other words where there is FiOS competition????
Or maybe in areas where congestion is high, so they could send out less of "the letter".

Nahh.. that would make to much sense.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by priller:

"Deployable Where Needed" is a key point of the slide.

In other words where there is FiOS competition????
BINGO!
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jc100

join:2002-04-10

Here's an Idea

Comcast should give all their customers 100mbit and disconnect them the minute they reach their imaginary cap.... Or, they could cut the ridiculous crap. Why the heck does anyone want faster speeds, when they are restricted with its usage. That's like offering a kid a candy bar, then making him or her run ten miles afterwards.
Ahrenl

join:2004-10-26
North Andover, MA

Re: Here's an Idea

The cap is there to reduce congestion, in overly congested nodes. If there is more bandwidth, there is less congestion, thus less need for the cap; which is dynamic.

But please... bitch away...
jc100

join:2002-04-10

Re: Here's an Idea

Ahr,

LOL so you'd think. The sad truth is that more bandwidth means more customers to add. IE, back to overselling the lines and capping people in no time. DO you ACTUALLY expect these upgrades to simply go to existing customers and no one else. HAH.
Ahrenl

join:2004-10-26
North Andover, MA

Re: Here's an Idea

I guess they could remove and combine nodes to accomplish this.. seems like a pretty dumb thing to do though. Adding user in a different geographic area shouldn't effect your node.

sherman06810

join:2000-10-15
Danbury, CT
Reviews:
·Comcast

New revenue source...

By only sending the channels that are needed, Comcast could potentially wipe out the Neilson ratings system. Hello Mr. TV Network, would you like to know exactly how many people are watching your channels and for how long?

I can't wait to see how bad the numbers are on the dozens of useless cable channels, like the soaps channel or oxygen.

- Sherman

swintec
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Alfred, ME
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Re: New revenue source...

said by sherman06810:

By only sending the channels that are needed, Comcast could potentially wipe out the Neilson ratings system. Hello Mr. TV Network, would you like to know exactly how many people are watching your channels and for how long?
You dont think this can be done already with the current STB's?
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sherman06810

join:2000-10-15
Danbury, CT

Re: New revenue source...

I don't know one way or the other. To me, the new technology implies that this would be easier to track.

- Sherman
DMS1

join:2005-04-06
Carrollton, TX
said by sherman06810:

By only sending the channels that are needed, Comcast could potentially wipe out the Neilson ratings system.
How? If an STB is tuned to a channel then that channel will be sent out. If no STBs on a node are, then it won't, but no one will know because by definition no one is trying to watch it. I don't see how this differs from now.

sherman06810

join:2000-10-15
Danbury, CT
Reviews:
·Comcast

Re: New revenue source...

From what I understand about current digital cable deployments, all channels are sent to every STB (whether they are watched or not).

SDV only sends the channels that are needed at any given time. I'm assuming the data mining potential on this type of setup would be easier to implement.

- Sherman

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Difference in cost?

Does anyone notice they are stating it's roughly twice as much per subscriber to offer 16 times the bandwidth?

If it's really only twice as much to offer 100Mbps vs 6Mbps then the MSOs are greedier than I thought.

Anyone know if that number includes transit costs and such?
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nweibley

join:2004-12-21
Gainesville, FL

Re: Difference in cost?

I wouldn't underestimate the greediness of the MSOs.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: Difference in cost?

said by nweibley:

I wouldn't underestimate the greediness of the MSOs.
Comcast profit margins are less than businesses in many other industries. In fact, they are barely high enough to get people to invest in their stock. People who constantly whine about greed haven't the faintest notion about how business works or a capitalist economy works. They mostly dream of some socialist utopia promised by Karl Marx in his published works. And we all saw how that utopia worked in practice - see Russia, North Korea, Cuba, etc.
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matrix3D

join:2006-09-27
Middletown, CT

Re: Difference in cost?

They never fully applied Marx's principles. There has never been a true, 100% Communist country. And there are also countless countries that have tried capitalism and failed miserably. Capitalism can also be blamed for the current healthcare crisis facing this country -- what did we expect would happen when profit is placed ahead of a person's health?

chanur
Premium
join:2001-02-26
Colorado Springs, CO

Re: Difference in cost?

said by matrix3D:

They never fully applied Marx's principles. There has never been a true, 100% Communist country. And there are also countless countries that have tried capitalism and failed miserably. Capitalism can also be blamed for the current healthcare crisis facing this country -- what did we expect would happen when profit is placed ahead of a person's health?
There has never been a true, 100% Communist country. ...and there never will be. Human nature will never allow for it. For all it's faults, capitalism fits humans natural competitiveness far better, and even if you suck at that game the living quality of those who don't do well still ride the coattails of the overall success.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS

Re: Difference in cost?

Has there ever been a 100% pure capitalist society? Ours certainly isn't.

said by chanur:

said by matrix3D:

They never fully applied Marx's principles. There has never been a true, 100% Communist country. And there are also countless countries that have tried capitalism and failed miserably. Capitalism can also be blamed for the current healthcare crisis facing this country -- what did we expect would happen when profit is placed ahead of a person's health?
There has never been a true, 100% Communist country. ...and there never will be. Human nature will never allow for it. For all it's faults, capitalism fits humans natural competitiveness far better, and even if you suck at that game the living quality of those who don't do well still ride the coattails of the overall success.
Ahrenl

join:2004-10-26
North Andover, MA
Laugh.. their profit margin is as much smoke and mirrors and as Exxon's. It's closer to 40-60%, though we'll never really know for sure.
Sunburn

join:2000-10-05
Denver, CO

1 edit
said by Romney2012:

said by nweibley:

I wouldn't underestimate the greediness of the MSOs.
Comcast profit margins are less than businesses in many other industries. In fact, they are barely high enough to get people to invest in their stock. People who constantly whine about greed haven't the faintest notion about how business works or a capitalist economy works. They mostly dream of some socialist utopia promised by Karl Marx in his published works. And we all saw how that utopia worked in practice - see Russia, North Korea, Cuba, etc.
Just don't forget...As the Golden Age of renewed capitalism in the USA fades, we the people will continue to get the shorter end of the stick...and the stick will get shorter and shorter as the age continues it's cycle to the next. There is nothing you can do about it (marx bs etc...).

You need to study the cycles of civilization and the accompanying signs of change to understand much more. Capitalism has been around since the beginning of consciousness; we did not invent it here in the USA.

SandShark
Long may you run
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All I can say is I'm glad to see my monthly $50 $60 $70 $80 $90 $100 going to something worthwhile.
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kaila

join:2000-10-11
Lincolnshire, IL
Not true. »finance.aol.com/quotes/comcast-c···amentals

Gross margins are well over 40%. Not too shabby. It's the salaries and overhead that bring the net down to 10%, which still isn't bad- it's not like they have to penny-pinch.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: Difference in cost?

said by kaila:

Not true. »finance.aol.com/quotes/comcast-c···amentals

Gross margins are well over 40%. Not too shabby. It's the salaries and overhead that bring the net down to 10%, which still isn't bad- it's not like they have to penny-pinch.
Salaries and overhead are still costs. A return of 10% is barely enough to meet the cost of capital. »en.wikipedia.org/wiki/Cost_of_capital

Back before I retired, the railroad I worked for had a cost of capital around 10.5 to 11% and the battle every year was to make a return on capital greater than that. It wasn't easy and it never is for companies with huge underlying infrastructure like railroads, electric companies, telco, cable companies, etc. If Comcast is only making 10% profit margin, then they are barely earning enough to satisfy their debt holders and stockholders.
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Ahrenl

join:2004-10-26
North Andover, MA

Re: Difference in cost?

Actually it's the mythical SG&A (of which salaries are part) which is way over-inflated. Along with the hyper inflation of the COGS, that give their net margin no meaning.

Comcast moves electronic bits from a content provider to the customer. Their cost of capital is much, much, much less than a railroad. Not to mention they've depreciated everything in sight to keep their net down.
Sunburn

join:2000-10-05
Denver, CO
said by Romney2012:

said by kaila:

Not true. »finance.aol.com/quotes/comcast-c···amentals

Gross margins are well over 40%. Not too shabby. It's the salaries and overhead that bring the net down to 10%, which still isn't bad- it's not like they have to penny-pinch.
Salaries and overhead are still costs. A return of 10% is barely enough to meet the cost of capital. »en.wikipedia.org/wiki/Cost_of_capital

Back before I retired, the railroad I worked for had a cost of capital around 10.5 to 11% and the battle every year was to make a return on capital greater than that. It wasn't easy and it never is for companies with huge underlying infrastructure like railroads, electric companies, telco, cable companies, etc. If Comcast is only making 10% profit margin, then they are barely earning enough to satisfy their debt holders and stockholders.
COST OF CAPITAL? DUDE! I am a Financial Analyst. LISTEN UP> You fail to understand the entire Income Statement.

After Net Sales you have Cost of Goods Sold, Selling General & Administrative , Depreciation Depletion and Amortization, Non Operating Exps and INTEREST EXPENSE -(Cost of capital is accounted for RIGHT HERE in IE!) After that you have a bunch of bull shit (Serious Bullshit I can't emphasize enough) "Special Items" (Non-recurring, write-downs, impairments, extinguishments of debt, accounting changes, restructuring charges, hurricane Katrina costs, etc...) After all that crap you have TAXES.... then you finally get NET INCOME.

And FYI: ALL of the above are reported in BS snow job terms. It has nothing to do with what is actually going on, just hustle yourself up and actual tax return and compare to the BS that they report..

NOW AFTER ALL THAT CRAP THEY CLAIM A....NET PROFIT MARGIN of 10.15% in the prior qtr.

My professional job it to take out all the BS included in every line item and calculate an actual core earning from operations. I am telling you all. It is all a bunch BS when taken at face value for every industrial and utility company I have ever broken down including Rail Roads.

I saw the light and lost my faith.

angel6

@bellsouth.net

20 meg tier????

maybe they will truthfully offer a 20 meg tier.
I'm refering to the imaginary 20 meg tier that "comacast Rick" boasts about here. If he only knew that it's a temporary boost. Oh well. Ce la vi'.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1

Re: 20 meg tier????

said by angel6 :

maybe they will truthfully offer a 20 meg tier.
I'm refering to the imaginary 20 meg tier that "comacast Rick" boasts about here. If he only knew that it's a temporary boost. Oh well. Ce la vi'.
You think he doesn't? I am pretty sure he does
fiberguy
My views are my own.
Premium
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kudos:3
Don't you just love how when someone is actually happy with their service, have nothing to complain about.. that they become a shill, paid mouth piece, or a target for those that are disgruntled or have nothing better to do in their life but be miserable?

Some people have the "perma-boost"... I do..
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MemphisPCGuy
Senior Systems Engineer
Premium
join:2004-05-09
Memphis, TN
Reviews:
·Comcast

All I know is the 12 Hour HD infomercials are finally here

As of the 1st - Comcast Added 3 new HD Channels - TBS, FOOD HD and Home & Garden HD with USA HD coming on the 1st of November.

Now flipping through the 800 channels afterhours is not unlike the seedy side of hell on the SD side Only prettier 16:9. Damnation to bobwhites! Insomniax take me away!
--
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angel7

@bellsouth.net

a real 20 meg tier

Maybe they will some day offer a 20 meg tier like the one comcast "Rick" thinks he has.........
jtorre69

join:2005-12-26
Hollywood, FL

comcast

its crapcastic!!!!!
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: comcast

said by jtorre69:

its crapcastic!!!!!
Wow! Original! Did you come up with that all by your little self?? Take all day to form that thought?? or what?
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livininarizona
Premium
join:2001-08-05
Merced, CA
oh yes it is
tmc8080

join:2004-04-24
Brooklyn, NY

Does it blend?

Will someone FINALLY shove their comcast cablemodem into the
next version of DOES IT BLEND?

Would like to see that sucker go for a whirl..
Same goes for the new motorola AT&T dsl modems!
And the new IPODS, ZUNES, etc, etc.

robosquirrel

@comcast.net

next gen

No modems will be changed. DOCSIS3 will work on existing structure and use the same modem, believe it or not. It will be presented in Jan-Feb. 08, and be commercially available in May 08.

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