http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2
Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.
This article claims that cable incumbents need not fear telcoms taking over the TV market via internet TV anytime soon. Although cable operators will have to increase investment to match telcom's broadband packages.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.
Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.
Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.
Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.
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