Comcast To Expand Wideband, 'All-Digital' Rollouts
Expects to Bring DOCSIS 3.0 to More Than 65% of Footprint in 2009
By Todd Spangler -- Multichannel News, 2/18/2009 11:52:37 AM
While Comcast expects total capital expenditures to be lower in 2009 than last year, the MSO plans to spend $400 million to $500 million deploying DOCSIS 3.0 to more than 65% of its footprint and freeing up spectrum with analog-reclamation projects in more markets.
The operator currently offers high-speed Internet services with up to 50-Mbps downloads to some 15 million premises, in about 30% of its footprint.
Comcast chief operating officer Steve Burke on the operator's fourth-quarter earnings call Wednesday hinted that the MSO may be offering 100-Mbps services at some point.
"Speed really matters in this business, particularly when you see more video on the Internet, YouTube and other applications that get better with more speed," Burke said, noting that Comcast's goal is to get all broadband subscribers to a minimum level of 12-Mbps service, and "offer 50 or 100 meg in as many places as possible."
The upgrades to DOCSIS 3.0 represent a "replacement of spending we would normally incur for DOCSIS 2.0," Burke said.
Comcast's basic video subscribers fell by a net 233,000, but Burke claimed the availability of video content on the Internet was not driving large numbers of customers to cut the cable TV cord.
On the analog-reclamation front, Comcast has seen positive results in its initial Portland, Ore., market, according to Burke. With these projects, the operator distributes low-cost digital-to-analog adapters to basic subs that are not interested in upgrading to digital cable; Comcast is then able to eliminate the transmission of 50-60 analog channels, freeing up space for DOCSIS 3.0, high-definition channels or other purposes.
Comcast is currently in the process of introducing DTAs in three additional markets, according to Burke: Seattle, San Francisco and Philadelphia.
In Portland, the MSO has seen a higher percentage of people doing self-installs than anticipated, though Burke added with the DTA projects "there's a real cost" and that "in the year you do it it's not necessarily accretive." Benefits start to accrue later with operational efficiencies, reduction of cable theft and the introduction of new services.
"By 2009 and into 2010, we will recapture much of our analog bandwidth," Comcast CEO Brian Roberts told investors on the earnings call.
-- Mike Farrell contributed to this article.
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