Nyah Nyah, My Broadband Network's Better Than Yours

from the not-done-spending-yet dept

Cable companies have been telling shareholders for some time that their broadband networks are robust enough that they'll be able to hold down capital expenditures, while telcos have worried investors with the billions they're shelling out to lay fiber up and down the country. But a new internal report from the cable industry warns that it too may have to make major network upgrades to match what the telcos are now doing. Of course, the cable industry is already in full spin mode, arguing that the report was purely speculative, and that it will be able to compete with its existing infrastructure. But there may be something of an Intel vs. AMD dynamic going on. Both companies would love to slow down on R&D, and you could argue that most people rarely use their processors anywhere close to full capacity. Yet neither side can afford to be perceived as trailing the other, in terms of performance. When it comes to their competitors, the cable companies might claim that the speeds afforded by fiber aren't necessary and won't add much to performance, but that's not the point of this arms race. Neither side wants to have the less-advanced network, or be seen as being behind. The broadband providers keep insisting that there is plenty of competition in their industry; maybe that's more true than they realize.
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  1. identicon
    Anonymous Coward, 17 Aug 2006 @ 11:05am

    I for one would enjoy a 100mb+ fiber connection to my home for less than $30, much like other net saavy countries enjoy. More competition is what is needed.

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