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Technology Stocks : WorldGate Communications, Inc. (WGAT)
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To: Benny Baga who wrote (476)10/30/2000 12:11:01 PM
From: Benny Baga  Read Replies (1) of 589
 
"The phone companies have led the world by putting all the smart technology in their central offices and putting a dumb box at the home. We call that dumb box a telephone. It works the same everywhere, and everyone understands how to use it. If you have five of them, it's because you like the convenience of having them in every room because they all do the same thing. The last thing cable should want to do is keep upgrading, replacing, maintaining and changing technology in the homes of tens of millions of customers."

cablevisionmagazine.com

"When you add video streaming to the equation, broadband cable blows away satellites, the telcos, the wireless providers, the DSL people. It blows away every other alternative, because it's the only architecture that can offer individualized bandwidth in enormous quantity on the forward path.
....
Cable has made the huge mistake of asking Silicon Valley to come in and tell it how to run a business that it's very good at running itself. The PC people want all the power in the advanced digital set-top, where they can get a big hunk of the revenue. Cable is giving up a whole lot more than it should give up if it lets that happen. Cable owns the headend, and that's where control of interactivity belongs.

One thing's for sure: The endgame isn't replacing boxes in the home every time we get a wonderful new chip with wonderful new applications. The PC model simply can't make sense for cable customers."

Benny
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