What competition, if any, is there for cable modems once the cable company and the ISP decide what equipment to support?
In other words, the growth here might be just a matter of the customer adoption rate. In my neighborhood, I have only one choice for cable modem access. I couldn't buy a MOT or TERN modem even if I wanted to.
As I understand it, and someone please correct me if I'm wrong, many MSOs and ISPs have old head-end equipment that isn't compatible with newer and in most cases proprietary technology. And until DOCSIS products ship, most companies are tied to whatever technology they currently use, no matter how inferior the products. Which explains why there's so little competition in any given region.
True, the "homes passed" number gives you the market potential, but the numbers do change as more fiber is installed.
Cable is targeting the residential market and fixed wireless the small and medium business market, and based on what was said at the wireless show and Robertson Stephens Conference last week, telcos are waking up to the fact they're losing business at a rather alarming rate.
As for the competition beginning at the ISP, that will change the minute DOCSIS products ship. I believe some are shipping now with the provisio they'll become backward compatible as soon as the standard is set.
Regards,
Pat |
