ABI Research Finds Cable Companies Looking to IP to Enable "Triple Play"

Cable television operators like Time Warner in the US and NTL in the UK are moving to install `next generation network architecture` (NGNA) based on IP (Internet Protocol) technologies.

Oyster Bay, NY - April 7, 2005 - The large cable operators - - especially in North America - - are migrating. Faced with a mounting threat from telcos offering the iconic "triple play" of voice, data and video services, cable television operators like Time Warner in the US and NTL in the UK are moving to install "next generation network architecture" (NGNA) based on IP (Internet Protocol) technologies.

A new study from ABI Research - - "Worldwide CATV Infrastructure Market" - - examines this migration, the new services it will enable, and the new revenue streams that it will bring to cable operators.

A key component, says Michael Arden, the firm's principal analyst of broadband and residential entertainment technologies, is the DOCSIS Set -Top Gateway, which incorporates a broadband modem allowing high -speed delivery of video and other rich content through an IP connection rather than by the conventional cable. "That allows for easier and more interactive delivery of certain services," says Arden. "Video -on -demand will be the first, but later the architecture will permit additional, interactive services: Voice over IP, wireless, on -demand music channels, network -based personal video recording, HDTV, messaging, gaming and more."

Using switched -video technology, it also allows the cable company to know which channel a customer is requesting. That means more efficient use of bandwidth, but will also provide the cable operator with detailed knowledge of users' consumption patterns for marketing and advertising.

Telcos are already starting to offer such packages with their broadband and triple -play offerings, and, says Arden, the cable companies are desperate to catch up before their rivals gain an irreversible lead.

This shift in network architecture isn't proceeding in the same way everywhere. Cable market penetration and size, the age of networks, and broadband alternatives all play roles outside North America.

The "Worldwide CATV Infrastructure Market" study examines various aspects of CATV economics, including subscriber growth, industry revenue sources, industry concentration trends, and competitive pressures.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call 516.624.2500.

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