A new report suggests that cable providers have more than enough capacity currently to compete with telco fiber systems. The report states that reclaiming analog TV spectrum, splitting fiber nodes, and most importantly by employing switched broadcast video (SBV) techniques, MSOs will have enough headroom for broadband services, HDTV and VOD. As we've noted Time Warner Cable has improved their capacity by 50% in switched digital video trials. From the report:

"Each analog channel consumes 6 MHz of capacity (or roughly 1/125th of the total capacity of an upgraded cable plant). Re-claiming that channel slot frees up enough capacity to launch 2½ more channels in HDTV (each of which consumes about 2.4 MHz), or ten more digital channels (each of which consumes about 0.6 MHz), another ten QAMs, each capable of delivering an additional VOD stream, or another doubling of broadband [Internet] capacity (which today operates out of a single 6 MHz channel slot)."

This optimistic report is in contrast to a CableLabs report from August that suggested another round of multi-billion dollar upgrades might be in order, and that MSOs might be better off just running fiber to the home. There was also a report earlier this month that stated HD demand would put the cable industry's back against the wall.