With all the talk about VOIP and telecom TV these days, it has got me thinking about how big of a "pipe" the carriers need to deliver the growing vareity of IP-based services into the homes of consumers. At the present time, the general thinking is they will need 20 to 25Mbps to deliver data, voice and basic television service. The issue/challenge is down the road this requirement to easily climb as HDTV and other services come into play. If this materializes, a bigger pipe will be needed.
Verizon and SBC are already ahead of the curve with plans to spend US$8-billion to extend fiber to 21 million homes within the next three years. Verizon, for example, figures it will be able to provide as 30Mbps to deliver multiple-HDTV channels, according to research done by Kona Shio of Conscius Capital.
In Canada, meanwhile, Bell Canada insists it will be able to deliver HDTV by using fiber to the node as opposed to fiber to the curb. This approach seems to be a challenge unless last-mile technology improves down the road. I think one of the reasons Bell is loathe to talk about fiber to the curb is it would mean a significant capital investment, which goes against the grain of Sabia's cost-control mandate. Before Bell can commit itself to such an expensive program, it will likely need to prune its costs even more as it scrambles to adjust to the realities of the IP world.