Verizon vs. Comcast

[tw]

Originally Posted by SteveDallas

However, A/V knowledgeable colleagues whom I trust say the Comcast picture is noticeably compressed.

Compressed? The picture is delivered on standards that everyone - Verizon, Comcast, Time Warner, the broadcast stations, TV manufacturers - all meet.

Each channel is transmitted in 6 Mhz - standard video on cable, HD on cable, or HD on the air. What is delivered is defined by numbers such as 720 dpi (i or p). All within the same 6 Mhz envelop.

Comcast has a bandwidth problem. To increase internet speeds means they must take away more 6 Mhz TV channels. And provide both HD and standard TV channels. So Comcast and Time Warner now have a monthly download limit. Exceed that number and they cancel you. I believe Comcast's number might be 6 Tb per month. Time Warner's may be 1 Tbyte.

Their job is to move data bits. That means installing more cables so that less customers share one cable. But that means they cannot build Philadelphia skyscrapers and buy NBC. At $100 per month, well, why could cable companies be profitable at $8 per month? Monopolies (duopolies in many cases) can increase prices until someone complains. Nobody is complaining. There is no competition. So prices keep rising.

Appreciate that the TV industry is entering the third generation. Interactive TV (Hulu, Boxee) are the next wave. Comcast wants to dominate the new marketplace. So Comcast is moving early to entrench themselves before the law recognize their monopolistic practices. The sooner they can create trade practices, the sooner those practices will be grandfathered.

They tried to do this many ways including surcharging Google, subverting internet telephone (Skype) packets, data throttling, and now monopolizing the interactive TV market.