Out of Broadband Week: Self Install
By FRED DAWSON March 20, 2000
Cable-modem technology is gaining new
traction in the marketplace with the
introduction of the first standards-based units
with plug-and-play functionality, as well as new
deals supporting retail distribution of Thomson
Consumer Electronics modems at Circuit City
Stores Inc. locations in several cities.
In its latest round of Data Over Cable Service
Interface Specification certifications, Cable
Television Laboratories Inc. endorsed three
vendors' products that come with
universal-serial-bus connectivity built in. This
means the modems can be plugged into recent
vintage PCs without requiring installation of
Ethernet cards.
Certification of the USB-enabled modems
signals that the industry has moved to a new
plateau where installations will go much faster
and smoother than before, Comcast Corp.
president Brian Roberts said.
"Sales of USB-equipped PCs are booming," he
said. "These breakthroughs on cable-modem
USB technology culminate years of close
cooperation with the PC industry and are
critically important to our industry as we
establish our leadership in high-speed Internet
services."
Even before the USB modems become
available, Comcast is working closely with
Thomson and Circuit City in support of retail
distribution of DOCSIS modems in Baltimore,
Indianapolis and Fort Wayne, Ind.
Together with similar initiatives involving
MediaOne Group Inc. in Atlanta; Richmond,
Va.; and the Boston suburbs, the Thomson
and Circuit City linkups represent significant
progress in efforts to overcome long-standing
barriers to retail distribution of cable modems,
said Carl Bruhn, general manager for
Thomson's RCA Broadband Cable. But, he
added, there's still a long way to go.
"The big question in retail is the issue of
residuals, and there's still no general
agreement there," Bruhn said in reference to
retailers' demand for a share of ongoing
revenues from cable-data services.
Instead of predicting "DOCSIS modems under
the Christmas tree," Thomson recognizes that
retail distribution on a vast scale will require
hard work at the local level on the part of
MSOs and vendors.
The selling point to retailers is the power of
broadband connectivity to drive sales volume
well beyond the initial purchase of the cable
modem.
"We believe we can put a convincing story
together working market by market with MSOs
to show retailers that they can attract more
business from people who have broadband
connectivity to the home," Bruhn said. He
noted that consumer demand for connectivity
of stereo components to broadband Internet
links for downloading music in MP3 format is
one obvious example of how retailers can
benefit.
Thomson's previously certified RCA cable
modems are selling for anywhere from $199 to
$249, depending on rebates and other terms
that are worked out at the local level.
While its newly certified USB units and other
modems are designed to meet DOCSIS 1.1
requirements once 1.1 certification is put into
play at CableLabs, the company doesn't
expect the retail price to go up, noted Tony
Watters, marketing manager for the RCA
Broadband unit.
"We'll be happy if we can get current prices,
given the way the price spiral goes in this
competitive environment," he said.
CableLabs also certified USB-enabled DOCSIS
modems produced by Arris Interactive LLC and
Motorola Inc., as well as new DOCSIS models
from Askey Computer Corp., Com21 Inc.,
Dassault Systems S.A., Terayon
Communication Systems Inc., 3Com Corp.,
Toshiba America Consumer Products and
TurboComm Technology Inc.
Motorola's modem also comes with a
HomePNA (Home Phoneline Networking
Alliance) port, making the first time a DOCSIS
modem with connectivity to this home
local-area-network platform has been certified.
HomePNA carries signals at up to 10 megabits
per second over twisted-pair telephone wiring
in the home.
With virtually every PC sold in the past three
years equipped with USB, a vast base of users
will be able to purchase the new DOCSIS
modems and plug them in without requiring
cable technicians to install Ethernet
network-interface cards.
"We're expecting several more USB
submissions," CableLabs vice president of
broadband services and technology David
Bukovinsky said.
Retail distribution should get a further boost
once the cable industry's "Service Locator"
initiative, spearheaded by CableLabs, is under
way, Bukovinsky noted. "There's a big fear
factor for vendors and retailers, as well as
MSOs, that people will buy cable modems only
to find that they can't get service on their
block," he said.
The Service Locator system, to be
administered by an outside party, will allow
users to go online at home or at points of sale
to learn immediately whether they can get
cable-data service. The database will be
secured to prevent misuse of information
provided by MSOs about service availability.
Sources said the initiative is slated to begin in
April, if not sooner, starting with distribution of
information to PC buyers through PC OEMs
(original-equipment manufacturers) when
those buyers come to the OEMs' online sites.
Later, the information will be made available
via kiosks at retail outlets.
Thomson's latest compilation of analysts'
projections for cable-modem sales shows that
the consensus calls for about 2.6 million new
units being sold this year. The accelerated
installation pace made possible by USB should
pump up the volume higher, Bruhn said.
Retail distribution's importance over time is still
a matter of debate within vendor and MSO
circles, though, due to new thinking about the
role of the DOCSIS platform in cable
communications.
Even though Arris was among the first vendors
to be certified with a USB-enabled modem, the
company expects that MSOs will still want to
supply modems as part of a DOCSIS gateway
for all data-based services, including voice,
into the home, president and chief operating
officer Oscar Rodriguez said. |
