Bell's IP-TV plans
Bell's move into the television business will take a major step forward next year when it start trials of an Internet-based service aimed at single-family households. During an investment conference today in Toronto, the company came across as ultra-confident as it gets ready to go mano-a-mano against the cablecos. At the heart of Bell's TV strategy is a $1.2-billion investment over the next four years to upgrade it high-speed Internet network in Ontario and Quebec. This will boost the network's speed to 26Mbps. When asked if this is a big enough pipe, BCE executive Eugene Roman said 26Mbps will let Bell deliver one high-definition channel, two standard television channels, high-speed Internet and telephony. He said a high-definition channel can be delivered using 8Mbps of capacity, and it will only shrink as compression technology improves.
Another interesting discussion is Bell's decision to pursue the less expensive fiber to the node (FTTN) strategy rather than following Verizon, et al down the fiber to the home (FTTH). BCE CEO Michael Sabia FTTH makes no economic sense and his company can do everything they need strategically with FTTN. Still, Bell is going to spend nearly $700-million to execute its TV strategy.
