If
you are a subscriber to broadband cable services, it is likely that your
subscription is dramatically different than it was years ago. The basic cable
TV of yesteryear has significantly evolved because of the many new and emerging
services offered today over cable, including:
- Broadcast
and Cloud-based Video
- High-speed
internet
- Over-the-top
(OTT) services
- Wi-Fi
hot spot connectivity
- Internet
of Things (IoT)
Broadband
cable providers are also known as multiple system operators (MSOs) because of the multiple
local systems they operate. MSOs and individual operators continue to provide
content to residential subscribers, but have also branched out and enhanced
their data delivery networks to support different customers. So, what does the
future hold for MSOs? They understand and recognize new potential revenue
streams and will continue to keep customers (residential and business)
connected with an ever-evolving hybrid fiber-coax (HFC) network.
Business Services
MSOs will
continue to expand in the business services arena. Growth in residential video
and data is challenging because of slow housing starts and competitive providers
(i.e., OTT, satellite provides and telcos). To grow, MSOs continue to bolster
their networks by deploying fiber to serve businesses with symmetrical services.
Traditionally,
MSOs have served small businesses like home offices and strip malls. With their
continued fiber push (fiber-to-the-building and fiber-to-the-premises) and the
evolution of their networks, they will look to target medium to larger
business.
Improved Residential
Services
One MSO
recently claimed that over the past 15 years, they increased data speeds 14 times.
This need for speed is because of increased bandwidth demands put upon MSO
networks by their subscribers. Speeds have increased and some MSOs are already
offering gigabit tiers of service. If
you don’t have access to these speeds yet, there are a couple reasons you
shouldn’t worry. First, the upgrades are
coming. Second, you shouldn’t worry
because in most cases, the subscriber need for speed is actually quite a bit
lower than the available peak network speed, even today. The vast majority of subscribers do not
require top tier speeds, and likely will not in the near future. That doesn’t
mean speeds do not need to improve. MSOs will continue to experience increasing
upstream demand from subscribers, because of technologies like the IoT. Facetime
and streaming security footage to a device is putting the upstream demand on
notice. MSOs will likely meet this demand by deploying DOCSIS 3.1, providing gigabit
downstream and hundreds of megabits upstream currently. As more technology is
deployed into the network with DOCSIS 3.1 and Full-Duplex DOCSIS, we should see
the first deployment of 5-10 gigabit symmetrical services in just a few years.
MSOs will also
continue to subdivide optical nodes to serve fewer homes with better services. This
approach necessitates pushing fiber deeper into the network, and allows the
removal of active devices and amplifiers to a home. Node splitting will provide
higher data speeds and reduce distortion, thus increasing the quality of
service to the residential customers.
Wi-Fi
“Cord cutting” is a symptom of our mobile society and a cause of declining revenues for MSOs. One way they will look to retain subscribers
is deploying more Wi-Fi hotspots throughout their footprint. How many times
have you traveled looking for a free Wi-Fi connection? Now, you can connect to
an MSO’s Wi-Fi hotspot as long as you are already a customer. All you have to
do is check an app on your smartphone or tablet and find the nearest Wi-Fi
hotspot. While continuing to connect subscribers to their Wi-Fi networks, MSOs will
also look to deploy small cell or 5G radios into their networks. HFC networks
are ideally suited to provide mobility backhaul and power for an additional
revenue stream.
Evolve the HFC Network
MSOs
have deployed millions of miles of coax in their networks, and are capable of
matching services and speeds with fiber using HFC architecture. While many see
the benefits to deploying fiber-to-the-home, HFC remains a reliable and cost
effective option. Yes, MSOs will deploy more fiber in a greenfield area;
however, MSOs have the capacity to meet customers’ needs for quite a while with
HFC in brownfield areas. Strategic upgrades that push fiber deeper toward the
subscriber will enable the MSO community to operate competitive and cost
effective networks for years to come, all the while setting the table for an
easy and eventual transition to FTTx when you, the subscriber, demand it.
