Four Trends that Are Driving the Digital Media Industry

1. Sales of UHD TVs will surprise even the most optimistic forecasts because they are now priced for the mass market. As a result, broadband-delivered 4K content will begin blipping upwards in 2015 for the first time at broadband companies. That’s even though there is very little 4K content available — it is probably less than one-tenth of all content that’s available to consumers.

2. Telcos are beginning to deploy next-generation DSL broadband technologies such as VDSL2 vectoring, G.fast and other FTTdp (distribution points) that, they hope, will help them compete against cablecos’ faster DOCSIS technology — and, unlike all-fiber networks, at prices telcos can justify. Cablecos are raising the hurdle for telcos by offering faster speeds at little of no increase in monthly rates.

3. The declines that are already well underway in the monthly rates for mobile phones and tablets will begin impacting the bottom lines of cellcos — down — and content owners — up.

4. Pay TV companies will accelerate their efforts at offering a) 4K content and b) OTT services. Sports may prove to be a differentiator compared to OTT services.

 

Words Matter

      We use the terms telco and cableco rather than carrier to specifically differentiate them and their very different broadband technologies.

 

      We once called for them both to be called “digital service providers” but the differences in their broadband and pay TV technologies are too great for that:

 

      – Cableco: entirely with fiber-to-a-neighborhood node (FTTN) and copper wire (coax) from node to home

 

      – Telcos: mostly with copper-wired based DSL broadband and transitioning to some type of fiber to a node (FTTN) in the neighborhood and from there to the home over existing copper telephone wires. They are technologies such as VDSL2 vectoring, G.fast or FTTdp (distribution point) for the existing copper wire connection to the residence.

Then there are two types of FTTH service providers:
– Telcos that have built all FTTH networks in all or some of their footprint such as Verizon, which has FTTH in 70% of it footprint
– Fibercos: (a new term) that have built FTTH from the ground up such as Google Fiber or local utilities.

Comments? Email charles@onlinereporter.com

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