The accelerating adoption of data-intensive services such as high-definition
television and multiplayer gaming will lead to a "bandwidth crunch" that will
force cable operators to upgrade their digital networks, experts warned today.
A number of options are available, according to a new study from
ABI
Research which estimates that the total revenue from this market is expected
to exceed $24bn in 2012.
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"The looming bandwidth crunch, which is more pronounced in the US due to its
deeper penetration of digital cable, will present different problems to
different operators, and each will need to find its own bandwidth upgrade
formula," said ABI Research principal broadband analyst Michael Arden.
The severity of the crunch will depend on factors such as the speed at which
HDTV is adopted in particular markets, and the extent to which cable operators
add extra HDTV channels.
ABI's report suggests that the available technology solutions are ranked
along on a 'you get what you pay for' range.
Some approaches, such as rate shaping and switched digital video, are
relatively inexpensive but do not deliver very much in the way of increased
capacity.
Others, such as a fibre-to-the-home, are "outrageously expensive" but can
provide all the bandwidth most operators will ever need.
"When designing an upgrade strategy operators should consider how much
competition they face in their markets," said Arden.
"Where there is significant IPTV competition, the need to grow capacity is
more urgent because IPTV automatically comes with greater bandwidth
capabilities.
"Markets with high sales of HDTV sets and substantial numbers of digital
cable subscribers may also justify a greater investment in capacity upgrades."
In practice, network upgrades will naturally start in the major urban cen
tres and gradually spread to less densely populated regions, according to the
study.
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