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Comcast (CMCSA) Rolls Out DOCSIS 3.1 for Trial in Nashville
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Comcast Corp. (CMCSA - Free Report) has initiated a consumer trial of its DOCSIS 3.1 supported advanced Gigabit Internet service in Nashville. The cable behemoth had started rolling the service out in Atlanta in March this year. The company is offering the service to interested customers for a 36-month period at $70 per month. Upgrading to the new DOCSIS 3.1 will allow Comcast to compete effectively against AT&T Inc.’s (T - Free Report) ongoing Fiber-to-the-Home (FTTH) program.
DOCSIS 3.1 versus DOCSIS 3.0
DOCSIS (Data Over Cable Service Interface Specification) is a communications protocol that allows cable multi service operators (MSOs) to provide high-speed broadband connections. This technology was specifically designed to be the cable TV industry’s answer to high-speed wireless and fiber-based wireline networks of telecom operators. The currently available DOCSIS 3.0 technology has helped cable TV operators compete in the race for the fastest Internet speed available in the market.
The DOCSIS 3.1 standard is an improved formulation of the existing DOCSIS 3.0. Theoretically, while DOCSIS 3.0 supports 152 Mbps download and 108 Mbps upload speeds, DOCSIS 3.1 offers as high as 10 Gbps downstream and up to 1 Gbps upstream network capabilities. Additionally, DOCSIS 3.1 comes with several operational benefits. The technology is also backward compatible, allowing the present hybrid fiber-coaxial cable lines to allow such high Internet speed by simply switching to a DOCSIS 3.1 compatible modem. Although FTTH has the advantage of providing unlimited bandwidth, backward compatibility is a major advantage of DOCSIS 3.1, which allows cable MSOs like Comcast to provide high-speed Gigabit broadband to customers, without having to incur additional digging or other cable laying costs, unlike FTTH providers. This is sure to boost margins for the company.
The Bottom Line
Recently, increased cord cutting has put pressure on the pay TV industry, leaving them looking for alternatives for revenue generation. Broadband Internet has now become a key focus area for the cable MSOs like Comcast. It is a no-brainer that a high speed and stable broadband connection will help in customer retention and provide a host of other Internet-based services such as Internet TV which is vital for future growth. However, Comcast will face competition from its peers like CenturyLink Inc. and wireless service providers like Verizon Communications Inc. (VZ - Free Report) who have already begun trials of a 5G network.
Comcast currently carries a Zacks Rank #3 (Hold)
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Comcast (CMCSA) Rolls Out DOCSIS 3.1 for Trial in Nashville
Comcast Corp. (CMCSA - Free Report) has initiated a consumer trial of its DOCSIS 3.1 supported advanced Gigabit Internet service in Nashville. The cable behemoth had started rolling the service out in Atlanta in March this year. The company is offering the service to interested customers for a 36-month period at $70 per month. Upgrading to the new DOCSIS 3.1 will allow Comcast to compete effectively against AT&T Inc.’s (T - Free Report) ongoing Fiber-to-the-Home (FTTH) program.
DOCSIS 3.1 versus DOCSIS 3.0
DOCSIS (Data Over Cable Service Interface Specification) is a communications protocol that allows cable multi service operators (MSOs) to provide high-speed broadband connections. This technology was specifically designed to be the cable TV industry’s answer to high-speed wireless and fiber-based wireline networks of telecom operators. The currently available DOCSIS 3.0 technology has helped cable TV operators compete in the race for the fastest Internet speed available in the market.
The DOCSIS 3.1 standard is an improved formulation of the existing DOCSIS 3.0. Theoretically, while DOCSIS 3.0 supports 152 Mbps download and 108 Mbps upload speeds, DOCSIS 3.1 offers as high as 10 Gbps downstream and up to 1 Gbps upstream network capabilities. Additionally, DOCSIS 3.1 comes with several operational benefits. The technology is also backward compatible, allowing the present hybrid fiber-coaxial cable lines to allow such high Internet speed by simply switching to a DOCSIS 3.1 compatible modem. Although FTTH has the advantage of providing unlimited bandwidth, backward compatibility is a major advantage of DOCSIS 3.1, which allows cable MSOs like Comcast to provide high-speed Gigabit broadband to customers, without having to incur additional digging or other cable laying costs, unlike FTTH providers. This is sure to boost margins for the company.
The Bottom Line
Recently, increased cord cutting has put pressure on the pay TV industry, leaving them looking for alternatives for revenue generation. Broadband Internet has now become a key focus area for the cable MSOs like Comcast. It is a no-brainer that a high speed and stable broadband connection will help in customer retention and provide a host of other Internet-based services such as Internet TV which is vital for future growth. However, Comcast will face competition from its peers like CenturyLink Inc. and wireless service providers like Verizon Communications Inc. (VZ - Free Report) who have already begun trials of a 5G network.
Comcast currently carries a Zacks Rank #3 (Hold)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>