Motorola reportedly Expanding Cable Ties

The push to deliver high-speed Internet access, telephone service, interactive games and video-on-demand to American homes by the way of cable lines appeared to gain momentum, amid reports that electronics giant Motorola is close to buying General Instruments Corp., the world’s largest maker of cable boxes. Broadband has becomes mantra throughout the communications world as more data flow through wires and over airwaves, choking communication systems. Technology companies are obsessed with finding new ways to move more data faster as demand grows. Cable, once merely a way to supplement television programming, has evolved into a key focus of such efforts. AT&T Corp., once the nation’s telephone monopoly, has been gobbling up cable franchises as it seeks to sell telephone and Internet service over cable wires. Motorola is still primarily a wireless communications company, gathering most of its revenue from sales of cellular phones and pagers. In recent years, Motorola has struggled to overcome problems in many of its businesses, including its 18 percent investment in the Iridium LLC global satellite telephone company, which is now in bankruptcy. Motorola is the largest producer of cable modems, devices that link cable boxes to the Internet. Motorola has also developed a computer chip that allows cable boxes to handle large amounts of data. With cable boxes headed for stores, analysts expect them to become more sophisticated, turning into the gateway to broadband coming into the home.

My reaction to the article is it’s so amazing that broadband, cable modems, 56K modems, all these terms are popping up with increased frequency these days. Driven by the masses all rushing to the Internet, the industry is doing everything it can in the name of speed. As we’re approaching the millennium, there’s a definitely a transition from the world of modems as we have known for years to the world of broadband connections.

I agreed that most broadband users tend to have a bit more Internet experience, but while that may account for some difference. The reality is that the improvement in the Web experience is enough to entice even the most web-phobic users to do more on-line. A couple years ago, broadband was relatively unknown to consumers, now it is the new, hot topic. But it isn’t going to be easy, limited availability, high prices, and labor intensive installations are slowing adoption. The cost of broadband has two components. First, you have the initial cost, one-time outlay for setting up the connection. Then there is the ongoing monthly fee charged for the life of the service.

According to the textbook, broadband is a local area network, data transfer by means of analog (radio frequency) signals. Broadband cable is more expensive but provides greater capacity. Big pipes are a dream come true for Internet die-hards. Big pipes mean big speed, and big speed opens up the near limitless possibilities for innovative bandwidth-intensive activities. Broadband isn’t a question of ‘if’, it’s a matter of “when”.