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Telecom Business

The Converts - Telcos Turn to TV-over-DSL for Salvation

May 31, 2001

"We are seeing large cable companies moving aggressively into telephony," says Michael Greeson, a senior analyst at Parks Associates. "Even the medium-size multiservice operations are moving into cable telephony. Telcos really don't have much of a choice other than to offer new services such as video."

...."This is a rough time to be telling your investors that you will be spending millions of dollars on your network for which you will not see any return for four to five years," says Greeson.

Satellite companies are not the only providers with which a telco could partner. In light of AT&T's recent purchase of Northpoint's assets and the AOL/Time Warner deal, Greeson says he wouldn't be surprised to see a telco joining forces with a cable company.

"We are seeing these once very rigidly demarcated business models blending into each other," he says. "It is certainly possible and likely that you will see new types of telcos that provide services on cable, DSL, fiber, and satellite - superproviders if you will."

From the article "The Converts - Telcos Turn to TV-over-DSL for Salvation," by Robert Vosper.

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