Cable leaders ready for Internet lead

Electronic News, Dec 16, 1996 by Cynthia Bournellis

Anaheim, Calif.--The importance of the Internet to the cable television industry was apparent at the Western Cable Television Association trade show last week. "We are poised and ready to lead the field in the next decade," said Frank Intiso, chairman of the California Cable Television Association.

A number of industry leaders demonstrated new products. General Instrument showed its 256 quadrature amplitude modulation digital transmission technology, which is designed to increase channel capacity by 44 percent. As part of the demo, digital signals were received by both a satellite downlink and local video file servers, sent over a hybrid fiber coaxial (HFC) cable network and then processed by a production-grade digital consumer receiver.

Hewlett-Packard made a number of announcements. The company showed its newly optimized QuickBurst cable modem, designed to improve product capability and network management for cable operators. HP will deploy QuickBurst and their Link Routers early next year. HP began testing the product last May for the Home Network. @Home is in the business of connecting personal computer users to the Internet using high-speed cable modems over its proprietary network (EN, Sept. 16). @Home will use QuickBurst to offer videoconferencing, group gaming and other multicasting capabilities.

HP will also work with Com21 to add Com21's ComPORT cable modem to the HP's high-speed link products available with the HP Broadband Internet Delivery System, so that cable operators and telecom service providers can Internet access to the home via PCs. Com21's architecture and protocols support a mixed voice and data environment using asynchronous transfer mode (ATM) as the main transport.

Through its Internet telecom business unit and LANcity cable modem group, Bay Networks released its DataReady Kit hardware and software package a small- to mid-sized cable TV operator needs to offer high-speed data and Internet access services. The kit allows cable operators to link their headend equipment to the Internet to enable subscriber access. Available in January for $9,995, the kit features a hub and router, a cable modem, server and management software and required cables and a rack kit. LANcity also signed an agreement with Cox Communications, Inc. to deploy up to 35,000 LANcity personal cable modems in Phoenix, Ariz., during the first quarter of 1997.

Bell Labs demoed its MediaLink technology, which transmits information from the television to the telephone in order to allow TV viewers to easily respond to broadcast information. For instance, URLs and 1-800 numbers will be recorded by a decoder, such as a screen phone or remote control, which then permits an easy connection to the desired service.

General Instrument demoed its enhanced SURFboard network product, which includes the SURFboard SB1100 external cable modem. The SB1100 connects to an Ethernet card in desktop and laptop computers. Expected to debut during the second quarter of 1997, the SB1100 will be priced at under $400.

AT&T showcased its visual communications technologies and services such as video-on-demand and multi-player game and video telephony. Other demos showed AT&T's GCNS-2000 ATM switch routing telephone and/or cable TV signals to homes and businesses over fiber-optic lines. And LSI Logic demonstrated a new chip for cable modems, set-top boxes and digital broadcast satellites.

In addition to new technologies, a number of new partnerships were announced at the show. General Instrument said it will take a 19.5 percent equity stake in Telegate Ltd. for $4 million. Telegate develops and manufactures HFC-based local access systems that interface and transport public telecommunications services. Both companies will jointly develop technology for international and domestic voice, data and video telephony services. Tom Lynch, GM and VP of GI's Transmission Network Systems business unit, said that the technology should enable broadband operators to generate incremental revenue by offering their customers a wide range of services.

HP and Nokia formed a manufacturing and marketing relationship in which HP will supply Nokia with QuickBurst cable modems and Link Routers that will be marketed and distributed as a Nokia-branded product throughout Europe. The partnership is expected to generate significant Internet business over the next several years in European markets. HP will also work with WorldGate Communications to enable cable operators to integrate HP's Broadband Internet Delivery System with WorldGate's TV On-Line cable service to provide consumer access to the Internet.

Said Gail Hamilton, GM of HP's Telecom Platform division, "This alliance with WorldGate allows HP to extend our high-speed data solutions to the very large installed base of cable TV subscribers and enhances the overall business case for cable operators entering the Internet-access business."