U.S. Cable TV operators historically have preferred operating on owned facilities. But changes in their markets and services now require a wider range of infrastructure platforms. Sky, owned by Comcast, has relied on wholesale agreements to supply fixed network internet access in the United Kingdom.
But reports indicate Sky is considering investing in Virgin Media’s fiber to home network. Two elements of the plan are historically unusual, by cable precedents. First, the idea that Virgin Media might allow a direct rival to own part of its infrastructure is unusual. Second, the idea that Sky might consider becoming such an investor--again in a rival network--is new.
But cable operators now find themselves in a mix of situations. By definition, their traditional fixed networks do not support mobile service, so mobile virtual network operator agreements are necessary, at least for the moment.
In the United Kingdom, Comcast owns a satellite distribution network, but no terrestrial network, a historically anomalous state. Also, both Virgin and Comcast now face market demand for a switch from hybrid fiber coax to all-fiber distribution networks. Since the advent of fiber to home, cable executives and their suppliers have worked tirelessly to prove that hybrid fiber coax has the ability to support bandwidth growth far into the future.
The switch to FTTH, perhaps partly for reasons other than cost and capability, is a switch.
So many changes are coming. Where operators have used a coaxial cable platform exclusively, then migrated to hybrid fiber coax, business requirements require addition of MVNO operation on leased facilities, leased fixed network access, joint ownership of facilities and perhaps a switch from HFC to FTTH as well, in some cases.
Those are big changes in approach.
No comments:
Post a Comment