Growing demand may lead to negative press, quicker cable network upgrades

Commentary Broadband Netherlands 26 AUG 2009
Growing demand may lead to negative press, quicker cable network upgrades

Dutch cable operator UPC has confirmed that it's restricting non-HTTP traffic for its broadband customers between noon and midnight. According to the company, the traffic management affects around 1 percent of subscribers who are mainly active with file-sharing via news groups and torrent sites. UPC is hoping the intervention will help improve the internet experience of the other 99 percent of its customers. However, this may have commercial implications for the cable operator.

Just as its Fiber Power broadband services are becoming successful, the cable operator is risking a stream of negative press. Like most other broadband services, Fiber Power is marketed with the maximum download speeds highlighted, even though the actual available bandwidth can be (much) lower. To date, the cable-based service was known for achieving good speeds in line with advertised maximums. This was shown recently in a report from Telecompaper and internet measurement group iPing in December. However, with the traffic management policy UPC may be putting this commerical reputation at risk.

Another question is whether the company's network infrastructure can meet the range in bandwidth demand from customers. Telecompaper's recent research brief on the future of cable broadband highlighted the cable operators' choice for an evolutionary network upgrade, rather than a radical departure towards FTTx. Operators like UPC have chosen for a gradual upgrade of network capacity, using a range of technologies, such as EuroDocsis 3.0, node splits, SDV (switched digital video), etc. Given the legacy investments in cable networks, this is understable. They defend the strategy, saying they can keep up with the growth in demand for bandwidth. That UPC opts for traffic management puts this 'evolutionary' upgrade strategy into question.

The coming months will show what UPC's Docsis 3.0 service is truly capable of in terms of bandwidth. If the gap between advertised and experienced download speeds widens further, UPC may be forced to look further than Eurodocsis 3.0. The company will then need to accelerate the use of other techniques, such as node splits.

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