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."
"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."
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