[CAnet - news] Entertainment bypass of cable and telco networks

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[Some excerpts from Telecommunications Magazine. Thanks to Jere Retzer for
this pointer -- BSA]

http://telecommagazine.com/Americas/article.asp?HH_ID=AR_1633

"Entertainment bypass," in which consumer electronics and content companies
team to provide video services over the Internet, is fast becoming a serious
threat to telcos that are sinking megabucks into transport networks in
efforts to deliver services to the home.

The latest strong evidence of this came as a deal between Starz
Entertainment Group, Microsoft and Sony Connect to create a service that
allows consumers to download movies to their PCs, certain mobile devices and
their TVs.

The mounting fear, which has existed for decades among telcos, is their
becoming relegated to bandwidth providers, and little else.

It calls into question their ability to provide anything beyond bandwidth
and managed services, which raises questions as to their long-term viability
as businesses. Sure, Intel and Starz will need tons of bandwidth, but will
they be buying anything else?

And what of cable companies? They're threatened as much if not more, as
there's general, widespread consumer disdain for cable's near monopoly
bundles strategies. Competition from the likes of Intel or anyone using the
Internet as delivery would be welcomed by customers with open arms.


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those  of the CANARIE board or management.
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