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Cable MSOs Add Capacity with Node Splits

Cable operators have traditionally regarded node-splitting -- the addition of more capacity to existing cable network nodes -- with fear and loathing. Now, according to ABI Research, some of them may have to bite the bullet. But for those providers offering advanced services such as high-definition TV, there are rewards as well.

Some cable operators, following demand, have built out their networks piecemeal, without much regard for the long-term capacity of the nodes which form an integral part of the cable plant. The result: in some neighborhoods -- particularly in North America and Western Europe, where the strong growth phase of cable networks is over -- nodes are unevenly distributed relative to population. That in turn means some customers are getting better service than others.

"Cable companies want to distribute nodes -- each serving a number of households -- as evenly as possible throughout their networks, so that there are similar numbers of homes being supported on each node," says vice president and research director Stan Schatt.

"But for some operators, the imbalances are approaching ridiculous levels. Node balancing is both expensive and labor-intensive, however, and many operators have procrastinated, hoping for some way out of this bind. ABI Research believes the time is approaching when many of them will realize that they have no alternative."

A new ABI Research study forecasts that by 2012, node shipments will grow to 9,200 in North America. Worldwide, demand is expected to peak at 163,000 in 2010 and then taper off to 142,000 in 2012.

"These operators are in a position of having to spend a good deal of money on node balancing," adds Schatt, "but for those offering advanced services, it will facilitate expansion of high-definition channels and other bandwidth-hungry technologies."

I believe that with less emphasis being placed on the viewing of traditional linear TV channels, all pay-TV service providers will need to adapt their forward-looking definition of capacity planning to incorporate increased video on demand (VoD) applications.

As an example, if subscribers hardly ever view a particular program live, then delivery to their DVR could be timed to coincide with when the distribution network has less capacity demands. The intelligent assignment of available bandwidth would therefore help to alleviate capacity constraints. Perhaps there are network enhancements, as alternatives to node splits, that can automate the scheduled and dynamic assignment of available distribution network resources.

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