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Residential Broadband: Group A

This document summarizes the US residential broadband market. It discusses the key technologies of DSL and cable, as well as emerging technologies like WiFi, WiMax, and broadband over powerlines. It outlines the major players like Comcast, Verizon, and AT&T that offer broadband through cable or DSL networks. The document also analyzes market trends, competition between providers, regulatory policies, and concludes that while cable has a current advantage, the market will continue to involve competition between multiple broadband access technologies.

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Paulomario Remuzgo
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71 views16 pages

Residential Broadband: Group A

This document summarizes the US residential broadband market. It discusses the key technologies of DSL and cable, as well as emerging technologies like WiFi, WiMax, and broadband over powerlines. It outlines the major players like Comcast, Verizon, and AT&T that offer broadband through cable or DSL networks. The document also analyzes market trends, competition between providers, regulatory policies, and concludes that while cable has a current advantage, the market will continue to involve competition between multiple broadband access technologies.

Uploaded by

Paulomario Remuzgo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Residential Broadband

Group A

John Chuang
Tushar Dani
Ilin Tsai
Ilya Bagrak
Alexandra Fedyukova
Residential Broadband
Introduction
Market and competition
Technology
Economics
Policy and regulation
Conclusion
What is Residential Broadband
Technologies that provide a high-bandwidth
connection to the Internet for residential consumers
Replacement for the now fading residential dial-up
technology
Entirely new online experience
Watching a video stream,
Downloading music in seconds,
Video and voice chats
Real-time gaming
This presentation is limited to US residential
Broadband market
Growth and Penetration
Fast growth, 11% increase per year
Reached more than 50% penetration already across internet households
Several competing broadband service providers
Telephone companies, wireless carriers, cable TV service providers and
satellite providers

Players
DSL
SBC
Verizon
Bellsouth
Quest
Cable
Comcast
Time Warner Brothers
Cox
Charter
Cablevision

New technologies:
Wi-Fi (Google cloud in San Francisco, hot spots)
Satellite Signals
Wi-Max
BPL (broadband over power lines)

Market segments & Prices: 1
Competition for Broadband subscribers is bifurcating
Low end emphasizing price
High end emphasizing speed
DSL companies primarily target low price segment
Started penetrating into high end market, Verizons FiOS (15 mbps)
Cable companies have elected to stay exclusively at
the high end
Bundling as a way to reduce churn rate & attract new
customers
Triple and even quadruple play
Market segments & Prices: 2
DSL Technology
Limited distance to central office (CO)
Dedicated line from CO to home
Asymmetric flow
Typical speeds up to 1.5Mbits/s downstream
Cable Technology
Shared lines to the nearest splitter
Generally higher speeds
Reaches more households since distance limitation is
removed
Typical offering 4Mbits/s
Last Mile advantage
Future Technology
WiMax
Metropolitan Area Networks (MANs)
3-5 miles range, no direct line of sight required
2Mbits/s practical limit
Can use existing cell towers
Broadband over Power Lines (BPL)
More pervasive infrastructure, but requires extra equipment
Up to 2.7Mbits/s
Superimposing analog signal over AC
Small deployments in operation (e.g. Manassas, Virginia
10MBits/s for $30.00 a month)

Broadband as a
Commodity.
Some people have 3 to 4
providers to buy from
Tend to buy bundled
services
Switching costs are low,
unless annual contracts
Large number of
equipment suppliers are
available
e.g. Nortel, Lucent, Cisco,
Nokia etc.
Limited companies
actually own network lines,
and heavily depend on
network owners

TV, Music
Newspapers
Telephone etc

Broadband over power lines
Wi-Fi free internet (Google)
Municipal utility internet
Wi-Max
Cable and DSL Co.
cut-throat competition
Trend to provide a bundle
of services
Cable companies
converging from video to
telephony
- Cox, Comcast
Telecom companies
converging from telephony
to video
- SBC, Bellsouth, AOL
New entrants

Suppliers
Buyers
Substitutes
Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)
Porter's Five Forces Model
Policy and Regulation
Existing situation
US is 16th in the world in broadband penetration
(ITU 2005 report)
Why is US so far behind?
monopolistic structure, entrenched management, and
political power of incumbents
failure of effective policy and regulation for broadband
industry (e.g. ,FCC regulation on spectrum allocation policy)
Legislative tug-of-war
Preserving Innovation in Telecom Act of 2005
Community Broadband Act of 2005
Policy and Regulation
Need for national broadband strategy
Continue to encourage highly successful open access
model in Japan
competitors may use existing residential telephone
infrastructure for a modest fee
competition and innovation cheap, high-speed broadband
access
Regulations for emerging technologies
FCC: better allocation of wireless spectrum
Municipal WiFi usage
Mixture of legislative, regulatory, and investment
initiatives
Conclusion
Market & Players
Broadband will replace dial-up
The Battle is still pretty much between Cable and DSL companies
Technology
New technologies such as BPL, Wi-Max, Satellite are emerging, but
are not great threat to existing Cable & DSL
Economics
Bundling as a way to keep existing and attract new customers
Segments based on Price and Speed
Regulation
Need for national broadband strategy, open access, economic
incentives

Conclusion
Cable companies have advantage due to their
infrastructure and quadruple play

They will be top player in coming years

No winner take all conditions, Cable companies, DSL
companies, and new technologies will co-exists
Thank you
Clap & Questions

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