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Technology Stocks : Zenith - One and Only

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To: james m dickerson who wrote (4276)1/29/1998 11:23:00 PM
From: Scott Lerner   of 6570
 
Check this out....

HDTV is broadcast with a bandwidth of 20 MBPS. This is 600 times faster than your modem. The HDTV picture, during peak bandwidth use, only uses 17-18 MBPS. This leaves 2-3 MBPS free for an accompanying data stream. This is what Intel/Microsoft are excited about. They want to converge the PC's and TV's, taking advantage of this BIG side "channel" to create a whole new era of interactivity. Imagine watching a football game and being able to receive a data feed of stats on a side bar. I guess there would probably be a way to make it two way interactive as well.

The big question is...How many different technologies are currently available that can transmit this HDTV signal (20MBPS) to millions of TV's and PC's?

1)Cable Modems
2)Satellite
3)VSB Terrestrial Broadcasting

Cable modems are a pipe dream. The majority of America does not have a high capacity fiber-optic infrastructure needed for effective cable modem implementation. In addition, the cable network is like ethernet. The more users online the less bandwidth available. Some real serious infrastructure upgrading will be neccessary to facilitate 20MPBS bandwidth for everyone. Currently most cable modems don't touch the required speed anyway and are also limited to limited bandwidth on their network trunk. Sometimes, they are no faster than ISDN during peak hours!

Satellite is a possibility. However, many people can't receive the signal because they do not have line of sight to the satellite. Many things could block your view, a tree, another house, a building, etc... Also the initial hardware cost is prohibitive for many. All in all, not the solution for the masses.

VSB is the answer. It is here now. It is sponsored by the government (they gave away the airwaves for free in exchange for the promise of HDTV). The FCC says it MUST be used for all terrestrial digital broadcasting. You only need an antenna to receive it. You will only need an easily installable Intel/Zenith PC card to demodulate. This is huge. We have not thoroughly discussed the competative issues at hand here. I thought long and hard and feel stronger than ever about ZE being the "missing link". Did you realize that a DTV transmitter broadcasting a VSB signal at only 5% power can be received and viewed 65 miles away?!!! The range increase is incredible. This means that the initial stations broadcasting in 1998 will reach 10's of millions of more people than we thought about at first. The signal will reach deep into the rural areas. Think about it. I read this in the fall issue of Home Theater tonight. On a side note, the same issue had an unbelievable review of the Inteq 35 inch set. They loved it. They couldn't believe it was a Zenith. This is required reading for all. They say "this is not your parent's Zenith". They said it compared, as good as or better than the Proton, Toshiba, and Sony high-end models.

Please try to constructively shoot holes in my logic,

Scott
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