Cable TV operators aren't ready to surrender the lead position in the broadband speed race without a fight.
Cable modem services overtook dial-up phone lines as the fastest Internet hookups a few years ago. Even after phone companies upgraded to digital subscriber line services, or DSL, cable operators maintained a speed edge.
Now, Verizon Communications (NYSE:VZ - News) has shaken things up by building a speedy fiber-optic network in some residential areas. This network, called FiOS, will reach 3 million U.S. homes by year-end, says Verizon, the No. 1 U.S. phone company.
Verizon's FiOS service offers download speeds in three tiers: 5 megabits per second, 15 mbps and 30 mbps. Most cable broadband services top out around 4 to 8 mbps. (See related story, this page.)
But cable operators are scrambling to match the FiOS sweet spot: the 15 mbps service that targets speed hungry consumers.
Two cable firms -- Adelphia and privately held Cox Communications -- are boosting their cable modem services to FiOS-like speeds in some markets where Verizon sells FiOS. The cable industry's big boys -- Comcast and Time Warner -- might not be far behind, analysts say.
Long-range, cable operators plan on leapfrogging Verizon's FiOS with broadband services that top 50 mbps -- even if it's currently unclear how consumers would use those speeds.
At Adelphia, the strategy is clear: It prefers to boost speeds rather than cut prices for broadband services.
"It makes sure we're competitive in the marketplace, that we're providing the customer an even playing field with respect to speed," said Carl Leuschner, Adelphia's director of Internet Services.
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Cable modem services overtook dial-up phone lines as the fastest Internet hookups a few years ago. Even after phone companies upgraded to digital subscriber line services, or DSL, cable operators maintained a speed edge.
Now, Verizon Communications (NYSE:VZ - News) has shaken things up by building a speedy fiber-optic network in some residential areas. This network, called FiOS, will reach 3 million U.S. homes by year-end, says Verizon, the No. 1 U.S. phone company.
Verizon's FiOS service offers download speeds in three tiers: 5 megabits per second, 15 mbps and 30 mbps. Most cable broadband services top out around 4 to 8 mbps. (See related story, this page.)
But cable operators are scrambling to match the FiOS sweet spot: the 15 mbps service that targets speed hungry consumers.
Two cable firms -- Adelphia and privately held Cox Communications -- are boosting their cable modem services to FiOS-like speeds in some markets where Verizon sells FiOS. The cable industry's big boys -- Comcast and Time Warner -- might not be far behind, analysts say.
Long-range, cable operators plan on leapfrogging Verizon's FiOS with broadband services that top 50 mbps -- even if it's currently unclear how consumers would use those speeds.
At Adelphia, the strategy is clear: It prefers to boost speeds rather than cut prices for broadband services.
"It makes sure we're competitive in the marketplace, that we're providing the customer an even playing field with respect to speed," said Carl Leuschner, Adelphia's director of Internet Services.
Entire Article
