Cable's Business Rationale for Residential Broadband

Later sections in this chapter consider some of the business challenges and disincentives to cable's transition to RBB. The obstacles will be easier to understand after discussions regarding technical aspects of the upgraded system. Understanding the incentives, however, is pretty straightforward.

First, there is a defensive aspect to cable's motivation for transitioning to RBB. RBB service is a necessary defensive measure against the threat of direct broadcast satellite and new telco services. In particular, DBS has signed more than 9 million subscribers, threatening cable's customer base for premium pay channel service.

Defensive measures aside, extending the capabilities of cable TV networks ...

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