NEWS
Digital Wireless Cable will reach over four million subscribers by 2001
STAMFORD, CONN. (Dec. 5) BUSINESS WIRE -Dec. 5, 1996--There will be over four million digital wireless cable subscribers in the United
States by 2001, according to a new report, Wireless Cable, 1997, published by Cowles/Simba Information. As competition heats up in both the
U.S. and international television markets, wireless cable will emerge as a compelling alternative to wired cable and Direct Broadcast Satellite
(DBS) in the markets it serves.
"Starting in 1997, digital wireless cable growth will be driven primarily by three RBOC's and three major independents," said Mike DeMuro,
editor of Wireless Cable, 1997. "We project that these companies will launch or convert six major markets to digital per year." The first markets
will be the Los Angeles/Orange County area, led by PacBell, and the Boston and Norfolk areas, led by a merged Bell Atlantic and Nynex.
Digital television is superior to analog television for several reasons. Digital technology allows the transmission of up to 200 channels,
compared to the current average of approximately 60 analog channels. The additional capacity allows programs to broaden their programming
line-up, deliver expanded pay per view offerings in a near video on demand format, and include non-traditional services such as digital music
and interactive program guides.
The wired cable industry continues to struggle with its own digital launches, plagued by technology delays and prolonged standards debates.
Currently, less than 1% of cable subscribers have digital. DBS has experienced great success on the digital front, with projections for 1996
reaching nearly four million subscribers.
"While digital wireless cable will not be as ubiquitous as DBS, in the markets that it serves it will have a competitive advantage and strong
potential for success," says DeMuro. Wireless cable has several advantages over DBS, the most significant being its ability to deliver
programming from local broadcast affiliates, such as local news.
Wireless cable will see its strongest growth in international markets. "The oversees markets, particularly Asia, Latin America and Eastern
Europe, will see significant growth in wireless cable subscribers and systems," DeMuro said. Cowles/Simba projects that in these three markets,
total subscribers will grow from 3.5 million in 1996 to 13.0 million in 2000. However, we believe these markets will continue to be predominantly
analog. "The economics and market environment abroad do not make digital launches or conversions attractive in the near term."
Cowles/Simba Information (http://www.simbanet.com) is a leading provider of news, analysis and market research reports on the media and
information industry. Cowles/Simba Information is a unit of Cowles Business Media in Stamford, CT.
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CONTACT: Mike DeMuro, (714) 557-8800
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