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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (7883)	8/4/2000 6:00:34 PM
From: Mkilloran	Read Replies (1) \| Respond to of 12823

mikem54321..,""" I'm just trying to figure out what is going to be generating revenues for the cableco equipment suppliers this year and into next. IMVHO, it's just a switch from analog to digital(all it's variations) for now.""" One key point on digital cable broadcast is the ability to target advertisments to the individual settop box. The simple example is that you and I are watching the same TV show and I see one commercial and you see another. All based on customer profile and demographics. Enhanced TV advertisment with selection within the commercial are also intended to target specific product lines with in the same ad...example a General motors ad you can select minivan,sportscar,economy,or SUV as selections with your remote control. The end result is that advertisers will pay a preimum to target their ads to the right customers for the right product and get feedbback reporting next day. This service can generate extra dollars for the MSO's as well as the key service providers. Motorola which has their equiptment in 90% of the MSO's headend and ACTV providing the software and reporting services in the USA . Also Motorola/ACTV partnered with OPTV for this service overseas. Backend web hosting for reporting provided by AT&T and enhanced content in ads supplied thry Liberty Livewire. All pulled together by John Malone. Other advantages toi digital cable will include T-Commerce purchase products with a few clicks on your remote.. Buy the latest fad on the Home Shopping Network to buying a cd,book, etc Enhanced internet content blended in with self help shows, home repair, cooking, game shows,etc. Sports programs with internet stats on your team or favoriate player. Even pick your camera angle 50 yard line view , 3rd base , home plate, etc while viewing sports programs. Motorola installing 6 million settop boxes in y2000. Time Warner installing 35,000 settop boxes a week now and target of 45,000 set top boxes a week in y2001 vs 15,000 cable PC modems a week. Movies on demand, more Pay Per View specials,etc Digital cable is much more than just receiving more TV stations. MSO's motive is to generate more revenue per household from targeted ads, t-commerce fees, enhanced programming, online betting (overseas), movies on demand, PPV specials new forms of media (video magazines,etc)

To: MikeM54321 who wrote (7883)	8/4/2000 6:35:15 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 12823

Hi Mike, Let me take your points slightly out of order, just to set my intentions straight. "... as a here and now type investor, I'm just trying to figure out what is going to be generating revenues for the cableco equipment suppliers this year and into next. IMVHO, it's just a switch from analog to digital(all it's variations) for now." During the near- to intermediate- term I'd be inclined to agree with you fully. I wasn't trying to sway anyone's investment position here. That's not the intent of this board, anyway. Instead, I was looking out over the horizon to see what was headed our way during the next wave. "Also, if the current analog/digtal STB rollouts remains as STRONG as seemingly being reported, then we just added another multi-billion dollar legacy level that would have to be dealt with too." Certainly, and that has never bothered the MSOs before, and I don't see it bothering them now, except for some of the relativele newer and enlightened ones. By introducing an upstream content wholesaler who would supply multiple distribution SPs (MSOs and ILECs alike) with program and other forms of content, one does not necessarily compromise the STB and DSL models, respectively. What changes is the actual point of origin and the associated economics of presenting digitized content from the head end or central office, since they have offloaded the expense and administrative liabilities to a third party. Economies of scale are thereby realized that could extend into an all IP (or ATM supporting IP, eventually) framework, but the first iteration could be entirely consistent with today's digital video schemes, only the point of origin changes, with new "pass-through" features introduced into the access providers' platforms for both CM and DSL. Think of a high capacity link substitution, whereby instead of the video server being mounted in the head end, it's mounted in a remote SP location (e.g., the server farm that Blockbuster <or its outsourced provider> is using. The MSOs are already doing this, to a certain extent, by aggregating a dozen or more head ends within a locale or region into a cluster, with primary content distribution to all of them (along with other administrative tasks) being supported by an upstream master node. "And one practical reason against it-- The cost of a STB with a built-in DOCSIS cable modem is quite prohibitive at this point in time..." Not sure where you're coming from with that one, since I didn't state that a cable modem should be incorporated in the STB. Perhaps you are referring to my IP suggestion? I think that this is already planned under the DOCSIS regimen, if I'm not mistaken, but not necessarily as a substitute for the CM. Maybe someone else can expand on IP to the STB. If I'm not mistaken it's to support a kind of intranet-based content delivery, a la @Home's private IP backbone at some point, although other MSOs are free to use this model too. You mention the possibility of dual modems, one for STB and one for Internet access. I think that this is what we are going to see. The IP capabilities of the STB appear to be limited in scope, from what I have read (although I may have misinterpreted the intent) to the "intranet" venue, while the CM does the "Internet." Corrections on that last point are welcome.