Keeping costs in check: as consumer broadband expectations grow, managing network upgrades is critical

Telecommunications Americas, July-August, 2004 by Mary Shacklett

In the face of these infrastructure upgrades, both cable and telco operators have some inherent challenges with which they must contend. The main challenge is in maintaining sufficient signal strength along all the delivery channels so that high-band-width capability gets to the customer.

"One solution to this problem is to make each loop shorter," says Fausch. "In fact, many operators are using DLCs (digital loop carriers) or remote DSLAMs to achieve exactly this. These DLCs can be deployed in box-like chassis along roadsides to housing developments and other dense service areas. They are attached to the central network with fiber, with copper pairs providing the final connection to the individual homes and businesses. DSL can work quite effectively in this type of environment, because the shortened loops deliver the high-speed bandwidth." For telco operators, upgrading chipsets along high-traffic communications conduits can also make the difference. Cable operators have the additional option of upgrading existing amplifiers with "drop-in" upgrades that can use existing 450-MHz and 550-MHz amplifiers and increase the forward bandwidth to 500 MHz or 625 MHz.

Meeting the Challenge

Corporate budgets in 2004 remain challenged, and there isn't a cable or telco operator manager who isn't being asked for an ROI computation when he submits capital equipment requests. This doesn't change the fact that both consumers and businesses are demanding more from broadband services. To respond to demand, cable and telco operators are considering options to upgrade facilities so they can keep pace in advancing markets. Some of these capital equipment upgrade strategies include combinations of buying new equipment and reengineering older equipment that can still do the job if it is appropriately embellished.

Another option for many operators is to look for partnership options. "Independent operators don't have the scale of larger operators," says the NTCA's Arnason. "Many times they choose to do what they've done for years--share the costs of network infrastructure expansion with other operators."

Regardless of approach, every operator must evaluate where first to deploy upgrade dollars, since each market is unique. The strength of a particular market can determine whether the operator opts to pursue a total equipment rebuild or a remanufacture of capability as the broadband service continues to grow along a more moderate upgrade path.

Internal support for new technologies is also an important consideration. Extending the life of existing equipment through chipset upgrades or shortened loops can help companies sustain existing knowledge investments in their technicians as they determine deployment strategies for the newer technologies of the future.

Finally, cable and telco operators must also master the communications challenge of presenting newly available broadband services where their customers can understand--and subscribe to--the new service offerings. "Explaining these new service offerings and technologies to customers is a central challenge to operators right now," says Brian Dietz. "The technologies and how they work can be complicated, and many people are intimidated by technology. Sales come when customers understand how broadband works and what it can do for them."