FEATURE STORY
Expo Engineering Conference: Delivering Simple, Economically Savvy Services

Editor's Note: Missed SCTE's (http://www.scte.org) Cable-Tec Expo earlier this month? Made it to Orlando, but just couldn't hit every session, booth and social event? Don't worry. We'll review Expo's highlights over the next few weeks in "CT's Pipeline," and you can read the complete Expo wrap-up in the July issue of "Communications Technology." So, let's kick it off with some engineering conference highlights.

"A few people here look a lot grayer than they did last year," Michael Willner, CEO and president of Insight Communications, quipped at SCTE's Cable-Tec Expo 2001's Engineering Conference. And judging from the insights that he and other top execs shared during the CEO panel, there'll be more silvered brows at next year's show as the engineering community drives even more services to the customer.

Willner pointed out that while there's been a lot of talk this year about spending slowdowns, he didn't see that happening at Insight. "You could have fooled me," he said. He's buying just as swiftly as last year, but by 2002, he expects his dollars to go into a maintenance-spending mode.

Easy Does It -- "Integration is the process that takes the longest time," Willner pointed out. Ops must ensure that applications are "all playing in one sandbox together" before rollout, and they need to work closely with their software vendors as they do so. Another imperative is that no matter how complicated the network is, subs must find your services easy to use.

Subs require intuitive interfaces and instant gratification with advanced services, Scientific-Atlanta's (http://www.sciatl.com) H. Allen Ecker said. Liberty Digital's (http://www.libertydigital.com) Lee Masters agreed that everything must prove simple to the sub, and bulletproof. Test your services thoroughly, even if it means you'll have to deploy later, he stressed.

"The economics have to work or nobody is going to do anything," Willner pointed out. If a service requires a higher end box, operators will deploy it only when customers are willing to pay. S-A's Ecker predicted that ops will need several levels of set-tops to serve the needs of many different levels of customers, and Masters hailed the power of a device that does only one thing and does it well.

The VOD Agenda --Video lies at the core of this industry, and that's a big reason why VOD is high on MSOs' to-do lists. Trials show that customers are excited about VOD and willing to buy. Plus, the service differentiates you from satellite competitors, Ecker said. Willner pointed out that VOD is more than just taking business from the video rental industry. VOD will actually expand the market because it makes a movie buy so easy for customers. That translates into more money for Hollywood, and, therefore, more economic pressure for the movie industry to release its wares to the VOD market. "You can't stop technology," Masters added. "If consumers want it, they will have it."

A Bigger Revolution -- The Telecommunications Revolution that we're experiencing will have more of an effect than the Industrial Revolution did, Willner believes. And the technology won't be "either/or," but rather "both." While the power of IP has the industry buzzing, that doesn't mean everything will go IP, Ecker predicted. For example, IP video streaming will be a powerful option for delivering video, but that doesn't mean MPEG will completely go away.

Where's the Revenue? "I have yet to place an order for an advanced set-top box," Chris Bowick, CTO of Cox Cable Communications said at the engineering conference's CTO panel. That's not to say he isn't looking at them. Bowick's concern? "What's the business case?"

While chief engineers of other MSOs such as Charter Communications, have apparently answered that question, Bowick is not alone in trying to leverage set-tops already deployed.

"None of us should underestimate the power of the embedded base," Greg Braden, CTO of AT&T Broadband, said. Fifteen years after telephones became available to the consumer at retail outlets, for example, revenue from rented phones exceeded $1 billion, he noted.

Capital Expenditures Remain High -- It's not that these CTOs are unwilling to make capital expenditures. "We're spending as much this year as we spent last year," Braden said, reports to the contrary notwithstanding. Bowick noted his spending is dropping marginally this year, from $2.1 to $2.0 billion.

The point of these efforts remains plant upgrades. Cox is aiming to get up to 93 percent of its plant upgraded to 750 MHz or higher by the end of 2002. Braden said it would take AT&T longer to get into that range, but that's the goal nonetheless.

Those upgrades enable high-speed data services whose growth continues to point upward. "I don't see it stopping -- or anytime soon," Bowick said. AT&T sees no immediate slowdown, either, and for good reason. "It is a better price/value equation than anything DSL," Braden said.

One concern is the tricky business of installing service tiers to monetize heavy usage, Bowick said.

Dialing for Dollars -- Telephony also appears to be a good bet. Braden expects to see positive cash flow in 2002. Both Cox and AT&T are using circuit-switched technology. "Because we can," Braden says.

As to whether cable's future lies with IP, Bowick says it's likely, just not within the five-to-seven year timeframe that some predict. Reverting to theme, Bowick said this about IP telephony: "We're not going to strand capital."

Home Networking -- "Let's face it, our customers are doing it today," Bowick said. "How we make a business case out of it is another question."

Personal Video Recorders (PVRs) -- Here Bowick echoed concerns over disk drive failure of fellow panelist Coleman Sisson, president of Liberate Technologies (http://www.liberate.com) and computer industry veteran. "The last thing we want to do is run significant truck rolls," Bowick said.

The New "Rocket Science" -- Sisson, whose middleware platform is vying for space in digital set-tops, admitted his perception of the cable industry has shifted. "I'm pretty humbled by how complex these systems are," he said.

That complexity is increasing. Braden said open access, for instance, turns the plant into a "multi-dimensional conundrum," which may require more "rocket scientists" than cable operators have traditionally included on their payrolls.

ENGINEERING NEWS
Letters to the Editor: Cable vs. DSL

In the May 8 issue of Pipeline,we reported on a survey from Interactive Products and Services Group of Taylor Nelson Sofres Intersearch in which more than 1,000 adults were polled about broadband data services. Of those that hadn't subscribed, 22% said cable modem and DSL services were too expensive, and 15% said the services were not available in their area. Following are letters to the editor addressing the question, "Which is more important in the cable vs. DSL battle: cost or quick availability?"

"This is my experience from a consumer's point of view. In the year 2000, I was an employee of a wholly owned subsidiary of SBC Communications, and used Ameritech.net as my ISP. I wanted a higher speed service than my 56 K modem, so I checked out both cable and DSL, but neither was available in my area. Since Ameritech.net is phasing out its operations and moving customers to Prodigy, I jumped on a direct mail flyer from Time Warner Cable for its Road Runner service.

"I sent TWC an e-mail inquiry with all of my customer information last Tuesday. When I called them this Tuesday, I couldn't get through the automated attendant voice system, so I left a message to change my daytime phone number, which came up as a fat-fingered number on my confirmation. I then sent another e-mail inquiry Wednesday afternoon. To date, I've not received any reply from TWC's marketing group.

"When I called Ameritech to cancel my second modem telephone line, the CSR told me that I was now in range of a DSL server, and my voice and data services could run over the same line. The cost for cable modem service would be $40 on top of my basic cable service with a litany of ancillary charges to get the installation equipment and services. The cost for DSL would be $50 on top of my local phone service with a $50 service commencement charge (which includes everything). Today, I'll order the DSL service. Although not good, it does offer some customer service."

Keith Bond

"When cost is comparable, speed of installation is key. DSL can take many weeks just to get the installer to the sub. When I was making the decision, the MSO's Web site claimed it was 'coming soon,' and the DSL provider said it would be four to eight weeks for install. I called the MSO to clarify when 'soon' would be, and found out it was already in my neighborhood. When I asked for static addressing (a requirement to access my work networks via security access points), the CSR advised, 'No problem.' He inquired if I had any other questions, and when I replied 'no,' he quickly asked if he could sign me up. I asked the 'how soon' question, and he said, 'How about Thursday?' (That was three days from when I made the call.). 'Sign me up!' was my response, and I'm still a customer today.

"The data service was the driving factor in getting cable connected to my home. But the pricing for the other services was not competitive at that time with the DBS pricing. While cable offered a few extra services that DBS could not, I wasn't interested in them. I don't need nine HBO channels. I don't want to be glued to my couch, so enticing programming is not going to attract me. But now that the data network is extended to my home, adding VoIP and other network services may be your best inroad to my wallet."

David K. Z. Harris
Certainty Solutions Inc.

"I'm a DBS subscriber, a former cable modem user and now a DSL user. I think we underestimate the broadband consumer. We pay for premium service and we expect to get what we pay for. I would be stupid to make my decision on a $10/month cost delta when I am paying around $600/year for a service. I want it there all the time, and I want prompt resolution of my problems. $120 will not change my life. No service for a week could.

"If we learn nothing from cable telephony, we should learn this: a cheap phone solution is worthless the first time I need to use it and it's not there. I, along with the vast majority of consumers, just want good reliable service. We are not slaves to a few spare pennies. If those are the customers, you want -- have at it! My condolences and best wishes in the future. I will not play that game."

Wendell Beaubian
Arris Interactive

"Not as a telecommunications professional, but just from listening to my friends and neighbors: availability is the factor for those who already have Internet access, especially a high-speed data service at work or school. For those who have not had any access, price would be a driving factor."

Kenny Murray
Project Manager for the Silicon Valley and Monterey Bay
Advanced Optical Network Engineering
AT&T Broadband

"Pipeline" welcomes letters to the editor at . Submissions may be edited for style or length.

Broadband Vendors: Singin' in the Rain? Despite reports of reductions in capital expenditures, cable equipment vendors are doing fine, according to Allied Business Intelligence (http://alliedworld.com). AT&T Broadband's capital expenditure freeze has affected various vendors depending on their degree of involvement with the MSO. "However, other MSOs are moving forward with their infrastructure plans," Allied stresses.

"Capital expenditures are scheduled to be reduced in 2001 and 2002, as scheduled upgrades are reported complete. However, there are always further upgrades to be done in order to offer new services; in particular, cable telephony and VOD will require further expense."

"Whereas the outside plant has formerly been the focus, now it is the headends and the subscriber premises. Equipment installation in these areas has lower labor costs relative to equipment costs. Thus, the apparent decline in capital expenditures is not as important to equipment suppliers or to cable services as Wall Street would have you think."

What's your opinion on this topic? Send me an e-mail at .

• Pipeline's sister publication, Communications Technology, will produce three books this fall: Interactive Quarterly, which will focus on VOD, PPV and interactive TV; The DOCSIS Gold Book, which will highlight DOCSIS-approved products; and Broadband Leaders 2001, which will profile the industry's engineering leaders. For details, contact or .

CAREER ENGINEER
Build Your Dream Team

Think that because a lot of dot-coms have dot-bombed and now are dot-gone means you'll have an easier time recruiting your technical team? Think again. The U.S. Department of Employment says that in the next five years, American companies will have 150 million jobs, with 140 million people pursuing them. Will you be one of the managers with too many openings and not enough people?

At the "Building Your Technical Team" workshop at SCTE's (http://www.scte.org) Cable-Tec Expo, Comcast VP of Recruiting and Career Development Beth Arnholt recommended that when you're looking to fill an opening, think of the process the same way you might look at developing VOD or high-speed data. You wouldn't put a lot of man-hours and dollars into developing an advanced service without considering how to maintain it. So, don't risk time and money by recruiting technical people you can't train, she says.

Pam Nobles of Comcast asked, "Have you ever heard this one? 'We can't send anyone to training because the techs are busy repairing installs that were not done right the first time.'" The way to break that cycle is to ask management to consider the cost of not training, Nobles suggested.

SCTE Director of Training Debbie Manoff recommended that you provide new employees with an orientation program when they start. Studies show they'll stay longer. She also says you should develop your team's jobs so they do what they love. Also, watch your behavior, because employees will model it.

NCTI (http://www.ncti.com) VP of Learning and Development Alan Babcock explained what knowledge management (KM) is and how it applies to engineers in management positions. He warned that if you rely on the old-fashioned form of KM -- that person on your team who knows everything -- you risk a lot if he/she leaves or retires.

Watch the SCTE Web site (http://www.scte.org) for tips that "Building Your Technical Team" workshop attendees shared with the panelists.

SCTE ANNOUNCEMENTS
Welcome Your New SCTE Officers

SCTE's Board of Directors announced the election of its officers at the 2001 Cable-Tec Expo Annual Membership Meeting. The new officers, who will serve the Society's membership for the 2001-2002 term, are:

• Chairman: Keith Hayes, BCE, BCT, Gibson Technical Services (Region 9 Director)
• Eastern Vice Chairman: Bob Foote, ANTEC (Region 12 Director)
• Western Vice Chairman: Steve Allen, BCE, Cisco Systems (Region 1 Director)
• Secretary: Wes Burton, BCE, BCT, AT&T Broadband (Region 10 Director)
• Treasurer: William Davis, Communications Supply Group (Region 6 Director)
• Additional Executive Committee Member: Thomas Elliot, CableLabs (Director At-Large)

For more information about the board, visit http://www.scte.org/community/board.html

EAS Names New Chair -- SCTE's Emergency Alert Systems (EAS) Subcommittee named Don Watson -- director, addressable operations engineering for AT&T Broadband's corporate digital engineering department in Englewood, CO -- as its new chair. He replaces Steven Johnson, SCTE board member and Time Warner Cable, Denver, director of engineering and technology, who served as the EAS chair since October 1992. Watson and his subcommittee will work with the FCC, FEMA and other interested parties to ensure an effective EAS at reasonable cost. For more information, visit http://www.scte.org/press/pressRelease.asp?relnum=119, or e-mail Steve Oksala at .

Attending NCTA Cable 2001? -- Visit the SCTE at booth #1041 at NCTA's Cable 2001, June 10-13 at the McCormick Place Convention Center in Chicago. For more on NCTA Cable 2001, check out http://www.cable2001.com/2001.

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