The future of broadband looks very much like cable TV. Here is why

There is a coming clash between the telecommunications firms and the internet giants, but it’s not just about the internet giants buying broadband underlying pipes and access technology. It’s about the way technology is delivered and how to build out business models that take into account the value of content and services when the cost of transporting bits is significantly lower than the cost of transporting atoms.

The underlying enabler of all this -- broadband networks -- provides an excellent case study in how this might play out. Today we are moving from all-you-can-eat broadband to usage-based pricing as service providers try to reign in the demands on their networks, deliver a return on their investments and also compensate for high prices they pay per subscriber for video content. The battle here is exemplified by the likes of Netflix fighting caps implemented by companies including Comcast. But at the Fiber to the Home conference, I saw the battle lines beginning to shift thanks to faster networks and new capabilities. IP networks are about services, which means that a delivery model where services are delivered as different channels becomes a possibility. Soon, software-defined networking will allow providers to build out those channels virtually on their networks and deliver them a la carte or as a bundle. What’s missing is the business model.