Comment on Cable TV Limiting Internet Video | Jeff Kagan Tech Analyst

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Jeff Kagan

Industry Analyst

     

Cable television companies like Comcast, Time Warner and Cox have rolled out high speed Internet service to customers as one of their services. They come at this from the perspective that it is one of their services and they should make decisions how it should be developed and marketed. They think that they should be able to use this as a way to build their cable TV business.

This frame of reference is similar to AT&T Wi-Fi services. They make this service available in Starbucks, Barnes & Noble, McDonalds and thousands of locations across the USA. The do this to build the AT&T brand. They do this to make it easier for customers to choose AT&T over a competitor.

There is valid reason behind this and thousands of other similar moves by other companies.

However high speed Internet from cable television is now under the radar of the US Government. Is this cable television view of this service the right view?

The US Government has to make a fundamental decision as to how to classify high speed Internet.

Either it is a necessary generic highway that enables and encourages growth from other companies and technologies and improves the industry.

Or it is strictly a company owned and company controlled service that is used for competitive reasons.

I think the answer is simple, today anyway.

Since customers find a very limited number of places to get high speed Internet, and this is such an important service to both customers and the marketplace, the decision will be that this is a needed national resource to encourage other companies, technologies, growth and innovation.

If that is the case then high speed Internet access will have to be thought of as a completely separate service that customers can buy without having to buy anything else from the company. And they can use this to access competing services like telephone and television and movies over the net.

Cable television will not like this and will push back, hard, but this is the only path that makes sense right now. If we get to a point where Internet access is available from a wide variety of places then that could change.

Today we only have high speed access from the local telephone company and the local cable television company. Customers can buy access through their wireless company as well, but that is not as fast and cannot serve as many devices.

Wireless Internet access actually makes so much sense. Imagine having a device in your house, that communicates with the nearest wireless tower, and you can connect all your devices to. Sounds perfect. Oh, no, wait, the spectrum shortage. That’s right. We can’t do that because wireless carriers are choking with usage from all the Apps on our wireless phones and tablet computers.

So we are stuck for now anyway. High speed Internet can be profitable, but cannot be used to give the cable companies a competitive advantage. Not yet. Not until there are more choices.

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Please attribute to Jeff Kagan, Tech Industry Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Industry Analystwww.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
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Phone 770-579-5810 Email jeff@jeffKAGAN.com

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