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Technology Stocks : Advanced Fibre (AFCI) ** IPO
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To: Vegas who wrote (1930)3/5/1999 2:20:00 PM
From: bevman  Read Replies (1) of 3299
 
Yes, it's true that should numerous (and I don't know how many) households in a neighborhood all attempt to access cable modem bandwidth simultaneously, then a significant degradation of speed could easily result.

In addition, the cable companies' costs for upgrading their systems, all the way from the head end/central office to the neighborhood, are very substantial. And this is in addition to the cost of the cable modem. It's not at all clear that a successful business model is possible under reasonable assumptions of % household subscriptions, added fees, etc.

Finally, if the politicians ever decide to "require" that equal access be provided to areas not inhabited by rich folks who can afford the new services, then all bets would be off and you'd never see widespread build-out of cable modem capability. Don't know what the risks are here, but this was a concern a few years ago when I was close to this area.

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