Rollbacks sure to slow down network upgrades.

Multichannel News, February, 1994 by Ellis, Leslie

The Bell Atlantic Corp.-Tele-Communications Inc. merger will not be the only casualty of the Federal Communications Commission's second round of rate rollbacks, a number of MSOs, manufacturers and legal experts said last week. The regulatory hit on cable's cash flow, they said, will magnify the need to build advanced networks, while at the same time taking away the cash to do the job -- owned and borrowed -- from all but the biggest operators.

Even top MSOs said spending on network upgrades will certainly slow. Several suggested that the rollbacks will force an accelerated interest in digital compression deployment -- an interim solution to limited network capacity downstream to customers until fiber can do the job both ways. Some predicted that cable...

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