You need satilites to do this..............
BW1048 DEC 05,1996 5:01 PACIFIC 08:01 EASTERN
( BW)(COWLES/SIMBA/WIRLSS-CBLE) Digital Wireless Cable will reach
over four million subscribers by 2001
Business Editors
STAMFORD, Conn.--(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.
--30--gd/ny*
CONTACT: Mike DeMuro, (714) 557-8800
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