New IP Standards Seen Bolstering Cable Regulatory Arguments
CableLabs unveiled standards for IP services -- a move analysts said could bolster the industry’s arguments that its video services shouldn’t be regulated differently from Bell products, including AT&T’s IPTV. The new specifications will let cable operators deliver IP products including VoIP, broadband, wireless services and multimedia transmissions, the cable organization said late Thurs. CableLabs issued 3 statements -- in advance of NCTA’s National Show -- saying products from companies including Cisco and TiVo are compatible with cable gear.
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The requirements position cable to make more use of IP technology, perhaps even with video in the long run, said analysts and consultants we spoke with. “IP technology is a pathway to less regulation for everyone over time,” said Precursor Pres. Scott Cleland. “People are going to IP for cost savings, for efficiency and compatibility.” AT&T has argued to the FCC its fledgling IP-based video service isn’t a cable service and not subject to local franchise approval (CD Feb 15 p7). The company declined to comment Fri.
CableLab’s requirements are part of PacketCable, an 18- month effort to help electronics makers design gear for newer products that are interoperable with a variety of cable systems. Industry executives have said those standards will help cable firms add customers for more lucrative services. “We are nearing a position of being able to provide IP services to a much greater range of consumer devices,” Comcast Strategy Planning Senior Vp Mark Coblitz said in a written statement. Firewall security protection is included in the specifications, which are compatible with IMS. CableLabs said 3 million customers use PacketCable networks for phone service. That number is expected to more than double to 6.5 million by Dec. 31. The standard spells out common methods for signaling, security, ordering and billing for multimedia services (CD Feb 13 p7).
The specifications may have a regulatory upside. “As a legal matter, if IP were treated differently from QAM distribution, and that difference was significant, cable companies could choose to use an IP distribution stream,” said cable consultant Steve Effros, former pres.-Cable & Telecom Assn. QAM is used by cable operators to send video signals. Cable operators are experimenting with switched broadcast video, which saves bandwidth by “switching off” channels that aren’t being watched, said Sanford Bernstein analyst Craig Moffett. That technology will be on display at the National Show, which starts Sun., he wrote in an investor note Fri. Increasing similarities between cable and telco video should prompt services from the industries to be regulated alike, ABI Research analyst Vamsi Sistla said: “The government has to either change the regulations to say ‘we should also include IP-based service’ or treat cable services at par with the traditional telco services.”
Separately, CableLabs recognized set-top box security devices from Advanced Digital Bcst. The products help cable operators download conditional access systems. Cisco’s recently purchased Scientific-Atlanta unit got approval for CableCARD products that let customers record shows from multiple tuners. The cable organization cleared TiVo to make CableCARD PVRs. Officials from Scientific-Atlanta and TiVo weren’t available to comment.
Gemstar-TV Guide is introducing an interactive program guide based on CableLabs’ Open Cable standard at the National Show. The company said the guide is its first that meets the specifications for interactive services to work on a set-top boxes and certain TV sets. A Gemstar statement said the guide is easier to use, with better “graphics and navigation capabilities.”