Comcast Corp. (CMCSA) has installed its residential “Extreme” tier DOCSIS 3.0 network in Colorado offering 50 Mbps downstream and 10 Mbps upstream speed for a price of $99.95 per month. The company is aggressively deploying the DOCSIS 3.0 (also called Wideband) technology to upgrade its existing customers to high-speed network. Management predicted that 80% of its residential networks will be upgraded to DOCSIS 3.0 by the end of 2009 and the rest by mid 2010.
With the introduction of the super fast Extreme package, Comcast can now compete head-on with Denver-based Quest Communications International Inc (Q) that provides VDSL-2 services offering a package of 40 Mbps downstream and 20 Mbps upstream speeds for a price of $109.99 per month. Comcast can offer a much cheaper package because implementation of the wideband network has also improved Comcast’s bottom-line. For most of its installations, the company is using denser cable modem termination system blades that reduce downstream port costs by more than 50%. The company has also undertaken a project to reclaim 40 to 50 of its existing analog channels to free up spectrum for DOCSIS 3.0.
As residential VoIP and HDTV services continue to grow, communications service providers are dealing with increased network traffic driven by strong demand for video download and file sharing. This massive requirement for data transport has encouraged cable operators seeking to improve their transport offerings. Furthermore, Cable MSOs are facing fierce competition from telecom service providers. Telecom operators are quickly gaining market share from cable MSOs by offering Mobile TV and other high-speed broadband services to subscribers.
Recently, Comcast launched its first commercial wideband network in the twin cities of Minneapolis and St. Paul offering a downstream speed of 100 Mbps and upstream speeds of 15 Mbps for a price of $369.95 per month. This package is bundled with Microsoft Corp’s (MSFT) Communications Service and Mcafee Inc’s (MFE) PC Security Suite. The company is targeting DOCSIS 3.0 at small and medium size enterprises primarily, a potential market size of $15 billion.
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