Smaller Cable Operators Begin Rolling Out HD DTAs
LAKE BUENA VISTA, Fla. -- Cable operators are starting to introduce small digital terminal adapters (DTAs) that can bring HD TV channels to analog subscribers’ homes, almost two years after the FCC approved the use of HD-DTAs with integrated security and navigation functions. BendBroadband, a small Oregon cable provider, is one of the operators leading the way, rolling out a new “universal” HD-DTA from Evolution Digital that can work on the digital video platforms of both Motorola Mobility and Cisco. Evolution and Motorola Mobility have emerged as the two winners of a request-for-proposal (RFP) from the National Cable Television Cooperative (NCTC) to produce both standard-definition and HD-DTAs for small and mid-sized operators seeking to convert systems to all-digital video.
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Evolution disclosed the BendBroadband HD-DTA rollout at this week’s Independent Show. The vendor said the operator will be the first cable provider to deploy Evolution’s HD universal DTAs (uDTAs) in the U.S. BendBroadband, one of the first cable operators in the U.S. to go all-digital, said it will offer the small HD uDTA set-top boxes to bulk hospitality accounts, such as hotels. BendBroadband will supply its customers with self-install kits.
The devices are based on RF remote control technology, so the set-tops can be hidden away from view. They're expected to cost less than $50 apiece. “It’s encouraging to see how the cost of technology has decreased through new providers like Evolution Digital entering the cable space,” said Mark Hobbs, director of marketing for BendBroadband. “This device will give us a low-cost advantage when marketing our services to bulk accounts.” Evolution noted that its HD uDTA is nearly as small as a smartphone and costs about one-fifth the price of HD set-tops two years ago.
Industry analysts expect other cable operators to follow BendBroadband, as cable operators switch their remaining analog subscribers to digital and offer more HD programming. Comcast began testing HD-DTAs in its cable systems last year, with the goal of starting them commercially. The BendBroadband move also comes after Washington Post Co.’s CableOne gained FCC approval to try out the first HD-DTAs in a small Tennessee cable system in 2009. Since then, Comcast has deployed more than 20 million standard-definition DTAs in its markets throughout the country as part of its Project Cavalry program. Many other larger and smaller cable providers have followed suit by deploying DTAs to at least some degree, including Time Warner Cable, Charter Communications, Mediacom and Suddenlink.
NCTC officials said at the show they've awarded RFPs to Evolution and Motorola for the manufacture of both SD and HD-DTAs for the organization’s 900 members, which serve 26 million total cable subscribers. NCTC CEO Rich Fickle said the initial RFPs cover a six-month period with the co-op, which negotiates bulk programming and equipment deals for smaller and mid-sized cable operators. While NCTC members can still buy DTAs from any equipment supplier they choose, the deal gives the members access to special low pricing from Motorola Mobility and Evolution on the devices. Fickle said the NCTC negotiated the pricing on the Motorola Mobility and Evolution DTAs so independent cable providers can buy the devices for the same prices that some larger operators already get. SD DTAs generally now sell for less than $35 per device, and vendors have said the HD versions are expected to sell for less than $50 apiece as production volumes start ramping up.
NCTC will re-evaluate its DTA selections once the initial six-month period runs out near the end of the year, Fickle said. At that time, industry observers believe that other major DTA suppliers, including Pace, Technicolor and Huawei Technologies, may try to crack the smaller-operator market as well by striking their own deals with NCTC. Fickle said the DTA RFP is part of NCTC’s new strategy to help members gain more favorable pricing on technologies and equipment for advanced services, including multi-screen video. He said NCTC has started evaluating hybrid QAM (quadrature amplitude modulation)/Internet Protocol video gateway models.