And then if you look at it mathematically that the services that they are providing aren't even going to pay for the infrastructure bill they will have a problem. Chambers thinks it is located in the last several feet to the home - his, to be specific. At his own house in the Silicon Valley he had to tear up part of the street to install a T-1 line because neither cable nor DSL technology had the reach to deliver broadband to him. Then I think about how they make money, because if they don't make money, they are not going to provision out with the speed that you want. That's why I keep coming back to services and how do you get the revenues so that they can generate the money in the capital markets or through the cash flow.
Survival plays into that equation.
While much is made of the competition from DSL providers, Chambers thinks cable operators don't see cable modem rollouts as vital to their survival. They are all moving OK but not as fast as many people including myself would love to see them move. Meanwhile, the capital markets have been slamming broadband players in recent months. Chambers thinks investors are now demanding more of a reasoned approach, balancing potential growth with a fair assurance of profitability. Cisco wants to enter, while others are companies Cisco may look at buying outright, Chambers says.