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Time Warner Continues SDV Roll-Out

By Zacks Investment Research on September 18, 2009 | More Posts By Zacks Investment Research | Author's Website

Time Warner Cable Inc (TWC) has decided to roll out switched digital video (SDV) in three major markets of Los Angeles , New York City, and Dallas that together account for nearly 6 million subscribers for the company. SDV technology distributes digital video content through cable network in a cost-effective manner so that additional uses can be made using the free bandwidth. The company has chosen BigBand Network Inc (BBND) as the supplier of SDV products. TWC has already deployed the SDV network in more than 20 markets in the U.S. using BigBand’s SDV.

The deployment of SDV will free up bandwidth that can be used by TWC to offer 100 high-definition TV channels (HDTV), HD video-on-demand programs, and DOCSIS 3.0. The company has identified New York City as the target market to launch its first next-generation high-speed DOCSIS 3.0 network. The U.S. cable MSOs are aggressively deploying this technology to counter the threat from large telecom operators like Verizon Wireless (VZ) and AT&T (T). These telecom service providers are in the process of rolling-out the fiber-based network nationwide. The SDV platform can also be utilized by cable MSOs for other applications like IPTV.

Recently, BigBand enhanced its SDV platform with an innovative software solution called Converged Video Exchange (CVEx) that enables cable operators to support IPTV set-tops and other IP-capable displays without disrupting their legacy RF-based video systems. With this, cable operators can deliver both real-time and on-demand video services to IPTV set-top boxes, personal computer, and mobile handsets. The introduction of CVEx helped establish BigBand as a formidable player in the SDV market to the discomfort of large counterparts like Arris Group Inc (ARRS).

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