Citizen Journalism

Posts Tagged ‘Pay television’

Why Murdoch’s media is gunning for your NBN

In Kieran Cummings, NBN, News Limited, Telecommunications on February 27, 2013 at 1:09 PM
Kim Williams, ex Foxtel and now CEO News Limited.

Kim Williams, ex Foxtel and now CEO at News Limited.

By Kieran Cummings (@sortius)
February 27th, 2013

It seems a day doesn’t go by where articles are being posted to News Limited (Murdoch) websites with nothing but negative spin for the NBN. Most, if not all, are founded on poorly constructed arguments that ignore technology & the reality. They all seem to point to one solution: anything the Coalition are saying they’ll deploy.

While this does reek of patent bias amongst Murdoch’s Australian arm, I feel this goes a little deeper than just wanting a Coalition government, but a fear of becoming obsolete in the age of IPTV (Internet Protocol Television).

While FTTN (Fibre to the Node) can offer basic IPTV, it cannot offer multi-set full HD broadcasting as FTTH/P (Fibre to the Home/Premises) can. With this in mind, it doesn’t take long before it’s apparent the likes of Comcast & Time-Warner in the US, are bleeding subscribers or seeing a slowdown in subscriber uptake due to internet streaming services such as Netflix or Amazon’s Prime service.

While we haven’t seen a drop in subscribers here in Australia, there has been a slowdown in subscriber uptake that is sending a message direct to News Limited/Fox: kill off any advancements in broadband speeds before it kills off your business model.

WHAT MAKES FTTN BETTER FOR PAY TV PROVIDERS

One thing to remember is that the main differences between FTTN & FTTH are, speed, service area, & reliability, with FTTN failing on all three. These differences can mean someone can happily use an IPTV service, or you are relegated to stuttering pixelated video. The one (& only so far) pure IPTV example I can give in Australia is FetchTV, with others like Quickflix not quite making their mark due to limited outdated content.

FTTN, which a large portion of Australia already relies upon, can be of many flavours, but the generally accepted limit is VDSL2+ up to 1km, VDSL2 up to 2km, & ADSL2(+)/ADSL1 after that. Looking at these numbers, even if VDSL2+ is used, a large portion of Australia will not be able to stream more than one channel to one TV comfortably in HD. Some will not be able to receive HD video at all, having to opt for 1.5Mbps “lite” services offered by IPTV providers.

sdtv-vs-hdtv-vs-4k-uhdtv-graph2-706px-a (1)

With this in mind, we can see that opting for slower, less reliable, with a smaller service area for higher speeds, broadband benefits satellite & cable TV (pay TV) providers by limiting customers’ ability to utilise lower cost IPTV services. Don’t get me wrong, Foxtel are dabbling with IPTV with massively crippled plans that are far more expensive in dollars-per-channel than their set-top-box contract locked services.

Essentially FTTN offers a moderate speed boost to allow for slightly faster speeds, but not so fast as to make pay TV obsolete. This benefits pay TV providers, but not customers or content producers, leaving a monopoly in place to reap the rewards of archaic infrastructure that’s way past its used by date. Read the rest of this entry »