Because it is 37 months away, the February 2009 deadline for broadcasters to transmit all their signals in digits can make cable’s migration to all-digital systems seem like a task that operators can put off for another year.
However, beginning to shift to all-digital this year will be a winning strategy in those that follow. Digital video compression conserves bandwidth and allows cable operators to expand their linear channel lineups.
The additional capacity may also be used to offer video-on-demand, high-speed Internet and other emerging technology applications, which boost cable’s completive edge.
For larger cable systems with greater channel capacity, the migration can be phased in. You can simulcast channels analog channels in digital form to digital households, while analog households continue to receive the same channels in analog transmissions.
Some cable systems, particularly those with more limited channel capacity, may choose to implement a full digital conversion. This has the advantage of allowing the bandwidth used for analog transmissions to be reclaimed, but it also has the disadvantage of requiring every TV to have a digital set-top box.
One of the most compelling reasons for examining our all-digital readiness is the latest data concerning high-definition television. This includes the most recent market survey results, including one issued last month by Panasonic Corp., which said that 26% of U.S. households are expected to own an HDTV set by the end of this year.
To win the battle for HDTV households, cable systems need to offer a competitive lineup of local and national channels, and converting analog to digital can provide the necessary bandwidth. Each analog channel equates to as many as 12 standard-definition channels or up to three high-definition channels. In fact, some operators working with the Comcast Media Center have found that converting a 550 MHz system to all-digital yields efficiencies equivalent to an upgrade to 860 MHz in less time and at less cost than a physical plant upgrade.
Recent developments in set-top box technology announced at last week’s Consumer Electronics Show in Las Vegas will also help to lower the cost of making the move to a all-digital systems.
These include lower cost set-tops and two-way TVs that work like set-tops, using CableCards (see CES coverage; Spotlight, page 13).
One of the most important reasons for adding all-digital to any system’s 2006 technology agenda is to allow sufficient time for planning and executing the best approach.
For example, cable operators have the choice of encoding all of the analog content locally, using a centralized service for encoding all of the content, or employing a hybrid approach, where they utilize some of the digital video content and back office management services offered by national services while encoding (or re-encoding) and managing certain content at the local headend.
The all-digital future will be here soon. The time to start planning for it is now.
