Last updated: February 21, 2008 - 1:29am
THINK THE INTERNET WILL REPLACE TV? THINK AGAIN
[SOURCE: Blog Maverick, AUTHOR: Mark Cuban]
[Commentary] Cuban quotes Craig Moffet of Bernstein Research to counter anyone who believes that the Internet as alternative to TV is just around the corner, or will happen this decade for that matter. Moffet recently testified before the Senate Commerce Committee saying, "despite a great deal of arm waving from 'visionaries,' our telecommunications infrastructure is woefully unprepared for widespread delivery of advanced services, especially video, over the Internet. Downloading a single half hour TV show on the web consumes more bandwidth than does receiving 200 emails a day for a full year. Downloading a single high definition movie consumes more bandwidth than does the downloading of 35,000 web pages; itâ€™s the equivalent of downloading 2,300 songs over Appleâ€™s iTunes web site. Todayâ€™s networks simply aren't scaled for that. In a series of recent research reports, The Dumb pipe Paradox, I tried to address the expectation that the telcos are rapidly rushing in to meet this need and to provide competition for cable incumbents. In fact, by their own best estimates, they'll be able to reach no more than 40% or so of American households with fiber over the next seven years. In 60% of the country, there are simply no new networks on the horizon, and the existing infrastructure from the telcos Â DSL running at speeds of just 1.5Mbs or so Â simply won't be adequate to be considered 'broadband' in five years or so."
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