From: giand@opencon.com (Deepak S. Gianchandani)
Subject: Re: The death of the Video Store?
Followup-To: misc.invest
Summary: They will be laying fiber anyway
Organization: OpenCon Systems, Inc.
Distribution: usa
Date: Tue, 10 Nov 1992 15:58:11 GMT

In article <1992Nov4.234828.7595@venice.sedd.trw.com> tjio@venice.sedd.trw.com (Lee Tjio) writes:
>In article <2380@gandalf.intel.com> chedley@carthago.intel.com (CHEDLEY_AOURIRI) writes:
>>In article <1992Nov04.042224.121391@watson.ibm.com>, yozzo@watson.ibm.com (Ralph Yozzo) writes:
>>|> I recently read about Bell Atlantic providing movies over the
>>|> existing telephone wire.
>>|> 
>>|> Does this news sound the death knell for the "Age of the Video Store"?
>>|> 
>>Technically, yes.
>>The corner video store will soon be replaced by remote downloading of 
>>programs and movies over phone lines over fiber. There is still the
>>regulatory business problem: which type of company (phone company or cable company)
>>will be allowed to tap this business.
>
>The initial investment of running fiber optic cables, providing fiber
>optics transceivers to the homes, and replacing the existing twisted
>pair/coaxial and other associated communication equipment is tremendous.
>I personally don't expect to see this happening this decade.  When or
>if they finally provide this service, can they compete with video rental
>stores, i.e. $0.99-$3.99 per movie?  We will have to wait and see ...
>
>Lee 

	Mr. Lee, technology is changing, you bring up the fact of
laying Fiber optic cables, etc. these things will have to be done by
the phone companies anyway, they are looking to make money on it.
Remember in 1994 FCC will pick the High Density TV system, which is
currently under test evaluation.  Whether they pick a digital or 
an anolog system, the Bandwidth required is much greater than the 
current NTSC-TV system.  Furthermore, the phone companies (and the
cable companies) will be providing high speed lines to homes for 
Networking reason ( connecting homes with advance telemarketing 
(buying things from home), including high speed fax, modems, etc.) 
this will be done by the end of this decade, year 2000.  
The phone companies already have plans 
for this, what they want is make a bigger profit.  They will
make money on it whether they provide the TV stuff or not.  The TV
stuff will be just additional money.

	One more note: they don't have to lay fiber into your house,
the coax system has enough bandwidth from your point to a box in your
area, from there it can go/and come fiber.  Note this what is done
with your phone lines, you have a line, which is then put on a high
speed line (multiplexed on to it (T1 rate, or higher T3 or fiber OC3)
and then sent to your destiantion, whether its local in your community
or International (if its a satellite hop then even higher than a T3
or OC3 rate (T1 = 1.544 Megabits, T3 = 28 * T1, etc.)).

		      Fiber
		       |
		       |     (= Current Coax)
 	==========================================.........
	||	||	||	||
	||	||	||	||
	House	House	House	House ....
	  1	  2	  3	  4   ....


-- 
____________________   .    .   __         .       | Deepak S. Gianchandani
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     .      ||       /_____/  NCC_1701  __/ .  . . | 
.       .   ||      /--/--._________.----/   .     | To Boldly Go Where 
Newsgroups: misc.invest