Cable and HDTV..........................................
tvbroadcast.com
Cable's March To Digital
By Debra Kaufman
(May 24, 1999) Cable operators continue their march into the digital age, upgrading their infrastructure and offering a variety of digital services, from Internet access, to multiplexing and telephony.
Now that HD broadcasting has become a reality, they are also faced with the choices and challenges related to passing HD broadcast signals. Television Broadcast checked in with cablecasters to assess their progress and their stance on passing HD broadcast signals. By all accounts, cable companies are ready to pass local broadcasters' HDTV signals to their customers, once a demand exists--without a government mandate.
In fact, Time Warner Cable is already passing the HD signals of WCBS and HBO in New York, says vice president Mike Luftman, who reports plans to carry the high definition (HD) signal of any other CBS O&O and the intent to make new HD deals with other broadcasters.
"We think HD is a good product and should succeed on its own merits in the marketplace, not as a result of our being forced to carry it," explained Luftman. "It's CBS's decision as to whether they want to use the additional digital bandwidth for HD or for multicasting. We're agnostic. We happen to like HD, and our decision with CBS allows us to carry either their multicast or their HD signal."
Time Warner is also well into its digital infrastructure upgrade, anticipated to be 85 percent complete by the end of this year and totally complete by the end of 2000. Since a fall debut, field trials for digital services are well underway, with 1,000 Scientific Atlanta Explorer 2000 set-top boxes currently in Austin, TX, and other SA boxes in Columbus, OH and other, undisclosed locations.
"Scaling up as you add boxes is an issue," admitted Luftman. "We're dealing with issues that one encounters when you roll out new technology that is software dependent. We're solving those and are getting ready to scale up, with a broad rollout in the summer."
In addition, Time Warner continues to grow its RoadRunner high-speed online operation, currently at 100,000 customers (200,000 including MediaOne), and is preparing to implement a joint telephony venture with AT&T.
Is sports the killer app for HDTV? Cablevision Systems Corp., which owns the New York Knicks and Rangers (as well as Radio City Music Hall and Nobody Beats The Wiz consumer electronics stores), is heavily testing that premise at its own Madison Square Gardens--whose MSG Network is transmitting Knicks and Rangers home games in HD.
A Cablevision spokesperson reports that Yankees and New York Mets games will also be transmitted in HD this season, with the NHL Devils, Islanders, New Jersey Nets and WNBA's New York Liberty added next year. Regarding HD broadcast signals, Cablevision affirms its "strong commitment to HD" and "an intention to carry them when they become available."
Pursuant to that plan, Cablevision, with 3.4 million subscribers primarily in the Boston, Cleveland, and New York areas, is working on upgrading 90 percent of the New York plant to 550 MHz, 77-channel capable by the end of this year--with a similar standard for its other markets. With 77 channel capability, Cablevision's "feeling and philosophy is that there's no need to rush digital boxes into the field."
Its Internet service, called Optimum Online, has been marketed to 502,000 customers in Connecticut and Long Island, and currently counts 11,217 subscribers.
For its part, TeleCommunications, Inc., (TCI) is in the midst of what LaRae Marsik, company vice president, characterizes as "a very aggressive three-year upgrade program."
With a total of 26 percent of homes currently two-way capable, Marsik reports that 42 percent of TCI-passed homes are in the 550 to 750 MHz range, 24 percent are 450 MHz, and 34 percent (often in rural areas) are less than 450 MHz.
"Where we're headed is, by the end of the year 2000, to have 85 to 90 percent two-way capable and 75 percent of the plant in the 550 to 860 MHz range, and about 25 percent at 450 MHz and zero at less than 450 MHz," she said.
Digital programming from TCI is currently available to more than 97 percent of its headends; in a 12-month launch period, 1.2 million have subscribed, out of a total subscriber base of 11 million customers in 30 states. According to Marsik, subscribers have General Instrument DCT 1000 or DCT 1200 boxes, depending on when they signed up.
The most common offerings is a 3-pack which, with a 12:1 compression ratio, provides a total of 36 digital channels. Since September, said Marsik, "systems have been able to customize and expand their digital offerings based on available local needs."
When it comes to passing HDTV signals, however, TCI's Marsik stated, "That's a work in progress for us." Though TCI has announced its commitment to "carrying certain signals on an experimental basis," Marsik reports that "we do not have any system carrying them currently."
TCI will provide a receiver antenna and technological support for customers with an HD set, says Marsik, but the company is reluctant to "take off a channel for the vast majority of our customers, for a channel that serves a small but growing minority."
"We are dedicated to not being a bottleneck for the small number of TCI customers who may purchase an HDTV set in its early stages," she remarked. "But ultimately, the marketplace should determine how quickly and under what circumstances digital TV or HDTV should become available."
Comcast Cable celebrated its 100,000 digital cable customer in March, says vice president Joe Waz, who also noted that the company is adding 5,000 subscribers a week in Indianapolis, Baltimore, Sacramento, CA, northern New Jersey, southeast Michigan, greater Philadelphia, Orange County, CA, and Huntsville, AL. All systems have General Instrument DCT 1000s and 1200s set-tops.
Newly added markets for their digital service are Chamblee, a suburb of Atlanta, Chesterfield, a suburb of Richmond, VA, and Charleston, SC, which have Scientific Atlanta Explorer 2000 boxes.
With regard to high-speed Internet service, Comcast@home has signed up nearly 75,000 customers thus far, and is adding 1,000 a week in northern New Jersey, Philadelphia, Michigan, Orange County, CA, Sarasota, FL, and Baltimore and Howard counties in Maryland.
Waz revealed Comcast's plans to roll-out its Internet service in three additional markets this year as well as grow the current markets. Pointing out that Thomson and Toshiba cable modems have been certified by CableLabs, Waz believes retail availability will dramatically reduce costs.
"The world we're moving towards is one where, ideally, when you buy your PC, it's equipped with a built-in cable modem," he observed. "The same thing will happen with the retail availability of the digital set-top box. Standardization will help a lot to increase the pace of the roll-out.
With 4.4 million cable customers, one million of which were recently added as a result of the merger with Jones Intercable, Comcast Cable upgraded 83 percent of its network to 550 MHz or better by the end of last year, with 60 percent of the total at 750 MHz or better (two-way).
By focusing on its major clusters first, by the end of 1999, Comcast Cable aims to upgrade 70 percent to 750 MHz or better. Poised to be an 11 million customer operation at the close of a proposed merger with MediaOne, Waz notes that MediaOne is also on target to be at 70 percent upgraded by year's end.
Although Comcast Cable will be capable of passing HD stations, the company is adopting a wait-and-see stance. "We want to see if HDTV is going to prove to be a viable market," said Waz who pointed out that he is not aware of any Comcast trials to pass HD.
"A lot remains to be seen in terms of the price point for HDTV sets, and the commitment--on the part of programmers to put out a significant amount of programming and of broadcasters to go to HDTV. It's not uniform by any means."
Cox Cable upgraded 50 to 60 percent of their network to 750 MHz two-way, by the end of last year, said director of product development Lynne Elander, offering Cox Digital TV to 65,000 customers in the eight markets in which it was available (Orange County, CA; Tucson, AZ; Sierra Vista, AZ; Omaha; New Orleans; Hampton Roads, VA; Providence, RI; Phoenix; and San Diego). Digital set-top boxes in the field are primarily GI DCT 1000s, with a mix of DCT 1200s and 2000s and Scientific Atlanta Explorer 2000s.
Cox@home has been launched in each of the eight markets with Cox Digital TV, and Cox Digital Telephone has debuted in six markets (San Diego, Phoenix, Omaha, Orange County, Connecticut, and Hampton Roads).
According to Elander, Cox Cable is not passing HD stations at this time, principally because none of its systems are in any of the top ten markets already broadcasting HDTV signals. But for customers, for example in Orange County, who think they might be able to pick up an HD signal, Cox will help them to install an A/B switch to pick up the signals off-air.
In describing future plans for passing HD signals, Elander's point of view reflects that held by much of the cable industry. "Because of the price of the sets, it's not much of a consumer product yet," she said. "But as those prices come down and more customers start purchasing HD sets, certainly we want to make sure that we're delivering the best possible video product. But first we need our customers to tell us that it's a product they're interested in."
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