Cable industry stays optimistic in spite of economy

Comcast CEO Brian Roberts, Clearwire Chairman Craig McCaw, Suddenlink Communications CEO Jerald Kent, Cox Communications President Patrick Esser, and former FCC Chairman Kennard talk about the cable industry at the Cable Show in Washington, D.C.

(Credit: Stephanie Condon/ CNET Networks)

WASHINGTON--Many industries have come to Washington this year to repentantly seek government protection from a brutal economy. This week, though, the cable industry brought the 2009 Cable Show to the capital to defiantly show off its optimistic outlook for the future--a future, they say, best brought to bear by private sector innovation rather than government regulation.

"It is impossible for any of us to think about our customers or our businesses without also thinking about today's economic and financial backdrop," said Kyle McSlarrow, the CEO of the National Cable and Telecommunications Association, the organization that hosts the Cable Show. "Fortunately, we have every reason to believe that our industry will continue to be resilient and grow. And I would go further...and say that we have a central role to play in our economic recovery as well."

The cable industry gained 7 million net customers in 2008 and this year will invest $14 billion in network upgrades and expansions. As its continues to adopt new technologies and develop new business models, the cable industry should attempt to ensure it is allowed to grow unfettered, McSlarrow said.

"We should tread cautiously before assuming that traditional regulatory responses apply in a marketplace that is experimenting, growing, and changing before our eyes," he said.

Congressman Eric Cantor (R-Va.), who has been praised for his understanding of the tech industry, said the cable industry has showed how innovation can lead to economic growth. He said the industry should take a stand against political moves to restrain innovation.

"There is consensus here in Washington (that) we have to do something to turn this economy around," Cantor said. "Much of the discussion focuses on putting in regulations that are allegedly needed. I hope your message here can counter that."

"The advent of broadband and cable and all variants of telecommunications is the next great economic development that will rival electrification of rural America."

--U.S. Commerce Secretary Gary Locke

"I believe it's not regulation that preserves what America is about," he continued. "It is much more about entrepreneurialism and investment and innovation, and they occur best when we have functioning free markets."

Comcast CEO Brian Roberts acknowledged the industry faces many uncertainties, such as how to offer content online without crippling cable television. Yet those uncertainties offer as many opportunities as dilemmas, he said.

"I don't think we should put our head in the sand," he said. "We should allow customers to get video wherever they want. We have to have really thoughtful conversations with our partners in content and make it a win-win outcome for customers and programmers, and I think we can do that."

He said Comcast has to take certain steps to ensure its future success, such as continuing to expand its DOCSIS 3.0 wideband service and offering content in different formats.

"Everything changes in an all-digital world, and if we have the fastest Internet and an unlimited appetite to take some risks, I think we're going to have a fabulous future," he said.

One highlight of the Cable Show is the "broadband nation" exhibit, which shows what the near future may look like with the widespread adoption of broadband through cable.

Commerce Secretary Gary Locke officially opened the exhibit, noting that the telecommunications industry may pull the country out of the recession, just as rural electrification helped end the Great Depression.

"The advent of broadband and cable and all variants of telecommunications is the next great economic development that will rival electrification of rural America," he said. "When we think about the opportunity of broadband, I don't think any of us really understand the full potential of this technology."

[Pete Bardo]

Commerce Secretary Gary Locke must be joking to equate cable/broadband expansion to rural electrification. At least rural electrification provided something that people really need--power. That power could be used to run machines that would actually generate revenue.

All the cable companies provide is entertainment. That's it. That's all. It is not a necessity. Sure, investing that much money in infrastructure will provide some jobs for Americans--a probably a lot more jobs for people in other countries. But it's not really providing an essential service. How that is going to bring us out of this "recession" is a mystery to me.

Technology is great, it's grand, it's innovative. Some of it actually provides useful tools. Cable provides entertainment. Now if they could cut my monthly bill in half while investing in all this new stuff, then I might be convinced that they're helping. Until then, they're just grabbing as much money as possible--just like Wall Street bankers, brokers and thieves.

[dbraddy]

"I believe it's not regulation that preserves what America is about" - Republican Eric Cantor.

Uh, excuse me. But I believe the consensus is that a little more regulation in the right places might have prevented the global economic meltdown we are currently experiencing. Cantor and his party haven't had a new idea in 28 years since Ronald Reagan came up with deregulation and tax cuts for the rich which set the stage for this centurial disaster.

[CBSTV]

I have little use for any form of television that requires me to pay to watch it. Over-the-air broadcast television and high-speed Internet are sufficient.

[mnaskman]

We should be in shock at the comments coming out of the mouths of these cable industry leaders, claiming that government intervention will only impede innovation within the industry. Do they really thinks us that naive? Do they really think we all suffer from Attention Deficit Disorder? Is this not the same industry that has fought like a mongoose to avoid implementing every innovation since the discovery of color television? Is this not the same industry that just fought (unsuccessfully) the governments mandate to go all digital? A mandate that which was supposed to happen this year, but has been postponed (allegedly due to the economy) because not every cable provider was ready after 5 years of knowing it was coming. Is this not the same industry that was given free money to provide a cable connection to every home in America and then sat back and claimed they owned those connections and that no one else could use those connection (which generated 30 years of stagnant innovation in the industry because there was no chance of competition). Is this the same industry that spent billions of dollars lining the pockets of congress to prevent Satellite TV from encroaching on their territory and after having lost that battle, spent an equal amount trying to get congress to pass legislation protecting their monopoly on internet access? In fact, if it were not for 50 years of government intervention (despite billions in bribes), the cable industry will still be providing us all with ?the best13 channels money can buy?. No thank you cable industry ? we have seen what you do when you have free reign.

[Renegade Knight]

"When we think about the opportunity of broadband, I don't think any of us really understand the full potential of this technology."

Oh, I think you do becaus you are putting data caps in now to further restrict broadband to force people to pay more later when they hit caps when the full potential of internet is realized.

I also enjoyed the quotes on the electrification of rural america. That happened because power was a regulated monopoly and the government said "this will happen or we will pull the plug." There is no incentive for cable (which isn't a regulated monopoly) to actually serve remote customers.

My own ISP which is a cable company has blocked access to ports, blocked my ougoing emails with filters, dropped services, and added data caps. I get less for my money than ever before.

[BtmnHatesRbn]

Amen. Same. Right now, the my cable ISP is blaming Microsoft for my 360 no going out, and Microsoft is blaming them. I know it's the cable company because when I directly plug my 360 into the cable modem, the same ports are blocked.

Strangely, Wii, PSP, DS, and PS3 all have no problems. Cahoots there?

[BtmnHatesRbn]

Cable sucks right now. Same shows over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over...

[Stefaninafla]

I'm trying to convince my mother to get rid of the cable. It's a useless waste of money as far as I am concerned.