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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

« Lawmakers Ponder Promise Of Web Video | Main | Court Backs Comcast In Dispute With NFL »

Wideband Takes Its Place In The Web Race

By David Hatch

(Friday, May 11) Step aside digital subscriber lines, Wi-Fi and Wi-Max. It's time to make room for cable's newest weapon in the war for high-speed Internet customers: channel-bonding, aka wideband.

At the cable industry's annual conclave in Las Vegas this week, Comcast Chairman Brian Roberts unveiled the new technology, which promises to revolutionize cable-modem service with substantially faster downloads.

To prove the point, he downloaded all 32 volumes of the Encyclopedia Britannica, along with Merriam-Webster's visual dictionary, in less than four minutes. With today's cable modems, it would have taken three hours and 12 minutes.

The technology -- spearheaded by Cable Labs, the industry's nonprofit research arm -- is intended to blunt the ambitious Internet plans of AT&T and Verizon Communications as they enter the pay television space and offer speedy Web connections through their Lightspeed and Fios services.

Several companies, including Arris, Motorola and Scientific-Atlanta, showcased wideband modems at the Cable Show. But Roberts reportedly told journalists that deployment still could be nearly two years away. And cable industry sources privately acknowledge that the new technology would intensify capacity problems for operators, even forcing some to drop a few cable channels to accommodate wideband.

That is because channel-bonding requires multiple programming slots to create a larger bandwidth pipe for data delivery. The more channels it uses, the faster the Internet connection it can offer. Sources at CableLabs, however, downplayed the capacity concern, explaining that cable's increased reliance on digitized video eases such constraints.

"Cable sees that faster broadband is inevitable, and if they don't offer it, the telcos will," said Paul Gallant, vice president and senior media analyst at the Stanford Washington Research Group. But he cautioned that quicker broadband connections could be a double-edged sword. "Down the road it's possible that video delivered through faster broadband could become a threat to cable's core video business," he said.

Another analyst said there is speculation that Roberts was signaling to Wall Street that cable can compete with the Bells' offerings. Fios is available at speeds of up to 50 megabits per second, faster than today's cable modems but slower than wideband.

During the final general session at the Cable Show on Wednesday, Cox Communications President Patrick Esser marveled at how the business has changed since he entered it in 1979, when providers offered just a dozen channels. With wideband, he said, cable systems will provide 100 megabits per second or more of high-speed Internet bandwidth into homes, compared with the three to six megabits per second available today.

"We'll be the only one able to do that," he said.

George Bodenheimer, the president of ESPN and co-chairman of Disney Media Networks, said the success of wideband lies within its ability to let customers do more things on the Internet.

"Customers don't care about 100 megabits," he said. "It's what they can do with those 100 megabits."

Michael Fries, president of Liberty Global, which operates advanced broadband networks in 16 countries, noted that download speeds of that level already are common in Japan.


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