Cable TV is Getting Better
Cable TV is a system of providing television to
consumers via radio frequency signals transmitted to
televisions through fixed optical fibers or coaxial cables as
opposed to the over-the-air method used in traditional
television broadcasting (via radio waves) in which a television
antenna is required. FM radio programming, high-speed Internet,
telephony, and similar non-television services may also be
provided.
The abbreviation CATV is often used to mean "Cable TV". It
originally stood for Community Antenna Television, from cable
television's origins in 1948: in areas where over-the-air
reception was limited by mountainous terrain, large "community
antennas" were constructed, and cable was run from them to
individual homes.
It is most commonplace in North America, Europe, Australia
and East Asia, though it is present in many other countries,
mainly in South America and the Middle East. Cable TV has had
little success in Africa, as it is not cost-effective to lay
cables in sparsely populated areas. So-called "wireless cable"
or microwave-based systems are used instead.
Consumers may be concerned by how businesses and government
get on. The US cable industry spends millions of dollars
annually on government relationships. Regularly this industry
employs the spouses, sons and daughters of influential mayors,
councilmen, commissioners, and other officials to assure its
continued local monopoly and preferred market allocations, many
of which have been questioned as unethical.
The monopoly on cable television has historically been
enforced by local governments. Cable maintains thousands of
such de facto monopolies. In order to provide service to
individual homes, a cable provider must place its cable wiring
along and across local streets or other rights-of-way. To do
so, the provider must get permission from the local
government(s) that own those streets via rights-of-way
permits.
Operational permission comes in the form of a document
called a local franchise agreement. Most of local government(s)
chose to grant permission to only one company, however,
recently states have developed broader franchising laws to
drive more investment and competition. Changes in the federal
law in 1992 had forced local governments to grant permission to
other companies to provide service, however the U.S. Government
found in 2006 that only 2% of U.S. households had a competitive
choice. In some cases Comcast, with municipal government
approval, had entered into market allocation schemes. By
agreeing to not compete head to head, consumers thus are
perpetually locked into a single monopoly cable provider with
annual price escalations reaching 93% in the past decade.
Customer Surveys
A recent third party survey of citizens found approximately 62%
of the respondents were very dissatisfied (along with another
25% who were dissatisfied) with the cost of cable television
service. A majority of the respondents were satisfied with the
friendliness and courtesy of customer service personnel,
however, approximately 30% of the respondents rated the cable
company's performance as poor. With regard to open-ended
comments, respondents felt that the cost of the cable service
was too high, a need for cable competition existed and the
desire for a basic cable package offering was desired. Although
respondents cited these critical issues, the local monopoly
structure could be considered to preserve the status quo of
poor customer service, limited product choices, no direct
competition and uncontrollable annual cable TV price
increases.
Relief for consumers is being created by state level a multi
jurisdictional franchise and service process that will spur
investment and competition; thus driving economic development
sought by state and local government leaders.
The industry strongly lobbies against federal "family tier"
and "a la carte cable television" bills that would give
consumers the option to purchase individual channels rather
than a broad tier of programming. These anti-consumer issues
continue to garner attention from state governments, Congress
and FCC Chairman Martin.
When the infant BBC Television service was started in 1932,
Rediffusion, which had supplied cable radio services since
1928, started providing "Pipe TV" to its customers who had
difficulties tuning into the weak TV broadcast signal.
[edit] Other cable-based services
Coaxial cables are capable of bi-directional carriage of
signals as well as the transmission of large amounts of data.
Cable television signals use only a portion of the bandwidth
available over coaxial lines. This leaves plenty of space
available for other digital services such as broadband internet
and cable telephony.
Broadband internet is achieved over coaxial cable by using
cable modems to convert the network data into a type of digital
signal that can be transferred over coaxial cable. One problem
with some cable systems is the older amplifiers placed along
the cable routes are unidirectional thus in order to allow for
uploading of data the customer would need to use an analog
telephone modem to provide for the upstream connection. This
limited the upstream speed to 31.2k and prevented the always-on
convenience broadband internet typically provides. Many large
cable systems have upgraded or are upgrading their equipment to
allow for bi-directional signals, thus allowing for greater
upload speed and always-on convenience, though these upgrades
are expensive.
In North America, Australia and Europe many cable operators
have already introduced cable telephone service, which operates
just like existing fixed line operators. This service involves
installing a special telephone interface at the customer's
premises that converts the analog signals from the customer's
in-home wiring into a digital signal, which is then sent on the
local loop (replacing the analog last mile, or POTS) to the
company's switching center, where it is connected to the
PSTN.
The biggest obstacle to cable telephone service is the need
for nearly 100% reliable service for emergency calls. One of
the standards available for digital cable telephony,
PacketCable, seems to be the most promising and able to work
with the Quality of Service demands of traditional analog POTS
service. The biggest advantage to digital cable telephone
service is similar to the advantage of digital cable TV, namely
that data can be compressed, resulting in much less bandwidth
used than a dedicated analog circuit-switched service. Other
advantages include better voice quality and integration to a
VoIP network providing cheap or unlimited nationwide and
international calling. Note that in many cases, digital cable
telephone service is separate from cable modem service being
offered by many cable companies and does not rely on IP traffic
or the Internet.
Beginning in 2004 in the United States, the traditional
cable television providers and traditional telecommunication
companies increasingly compete in providing voice, video and
data services to residences. The combination of TV, telephone
and Internet access is commonly called triple play regardless
of whether CATV or telcos offer it.
Consumer issues
Using a cable service naturally requires that access to a cable
network be installed at the customer location,
laying/maintaining this cable has costs. From the consumers
viewpoint, having a choice of who provides this service may be
deemed desirable, however from a business viewpoint may be
undesirable; as this would require multiple companies investing
in laying many generally identical cables to the same location.
Altogether that could mean greater costs, since there is more
physical cable in existence. Therefore the idea of a natural
monopoly may apply, whereby in most places only one cable
provider is preferable (seemingly for all concerned).
Competition in one place may therefore come in the form of
terrestrial or satellite providers. As with all situations
where competition is in some way limited, there is a potential
for consumers to feel they are unfairly treated by the market.
Market regulators therefore may tend to limit such consumer
concerns by broadening the consumers choice from a single
provider, for instance in expecting them to offer different
priced channel selections, improving service other times (for
instance, by making use of technological progress) and measures
such as providing free-for-all (public) TV.
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