Cable TV Holds Broadband Lead

Cable TV networks will hold their lead as the most common broadband Internet access technology until federal regulations on competing DSL are lifted, a key DSL service provider said at a SuperComm 2002 debate.

Without lifting regulations that force the providers that own phone lines to lease them to competitors, these providers won't have the financial incentive to expand DSL availability, says Christophe Rice, senior vice president of planning and engineering for SBC Communications

Rice's remarks came during Network World's Broadband Showdown at SuperComm 2002 on Wednesday. The panel included representatives of AT&T Broadband cable modem service, WorldCom's fixed-wireless service, and Rice, representing DSL providers.

What's the DSL Holdup?

Network World President and Editorial Director John Gallant asked why the push by SBC and other regional Bell operating companies to install DSL has slowed now that competitive data carriers that offered DSL have folded.

Rice again blamed regulations and noted that demand was still good for DSL, but because of regulations, SBC couldn't afford to make the network investments needed to expand coverage further.

AT&T Broadband's Kevin Casey, executive vice president of operations, said cable providers face equally mettlesome regulations from local officials but are doing well, and DSL providers should stop complaining. "They have to get over that," Casey said.

Rice acknowledged that though SBC did have some DSL installation problems they have been addressed.

IP Voce Solutions

Rice said SBC is looking at IP voice as a way to offer multiple phone lines to DSL customers, but they will probably want a primary circuit-switched channel on the same wire so phone service doesn't fail when the power goes out. Circuit-switched phones are powered over the phone line.

Casey said his company plans eventually to offer voice services based on IP, as it has trialed in Boulder, Colorado. The company sells phone service over cable in 15 markets now using circuit-switched technology.

But he said AT&T may dabble in selling cable access to small businesses, but that is not its focus. "Our number one priority is winning and keeping residential cutomers," he said.

What About Wireless?

Representing fixed wireless was Joe Brooks, vice president of sales and marketing development for WorldCom. He says his company will roll out next-generation fixed wireless technology by year-end.

The new technology won't rely on a clear line-of-site between sending nd receiving antennas, and won't require a technician to install it, making provisioning easier and cheaper. Eventually the company will run voice over IP on the connections, he said. He would not say what the company's strategy will be after it merges with fellow cable provider ComCast.

But he did say AT&T is considering tiered services so customers pay more for faster access, and to enhance its customer portal.

Brooks would not comment about the future of WorldCom's fixed wireless service in light of the company's layoffs and restructuring.

He said usefulness of fixed wireless today is limited because customer antennas must have a clear line of sight to the broadcasting antenna and installation requires an expensive installation. These factors make it too restrictive and expensive for widespread residential use. And even with businesses, it is best used in combination with DSL and other wired access technologies, Brooks said.

All the providers agreed there would be no killer application that will lift the demand for broadband, but rather a collection of them such as interactive gaming, video streaming, and IP VPNs.

Rice said SBC may resort to bundling packages of satellite TV, regular phones and DSL service as a way to compete with cable providers that offer voice, entertainment, and Internet access over the same wire.