Compton launches first high-definition PVR, and looks to VoIP, wireless technology

Utica ON-based Compton Communications is the first cableco in Canada to introduce a digital set-top box that integrates personal video recorder (PVR) and high-definition television (HDTV) capabilities. Compton controller and marketing manager Travis Campbell tells Canadian Communications Reports that the cableco, which serves 4,800 customers in Uxbridge and Port Perry ON, went with the HD version of Motorola Inc.’s PVR because it is the only option available for small cable operators. "Motorola hasn’t developed a standard PVR. They choose to go right to the integrated box, for whatever reason," he says. "That’s the only thing out there right now. Motorola was developing a standard-definition PVR but I think they stopped. The PVR isn’t that much more expensive than a high-definition box. It’s surprisingly reasonable. So Motorola probably just decided to do the whole thing at once. I don’t think that the cost savings would have been there to do just a standard-definition PVR." Compton, which has about 300 digital cable subscribers, launched the integrated PVR and HD box on November 12, but so far only a "handful" of customers have purchased it, Campbell notes. It sells for $599.95 and rents for $19.95 a month, with a discounted price of $14.95 a month for customers subscribing to the cableco’s TrueChoice Platinum all-inclusive package. The integrated PVR and HD box, the Motorola DCT6208, contains an 80-gigabyte hard drive that allows recording of up to 60 hours of programming. It can record analog and digital signals, whether they are HD or not. Campbell points out that the main reason that Compton needs to provide a PVR option is to remain competitive with satellite TV operator Bell ExpressVu LP, which was the first distributor in Canada to introduce the new technology in August 2001 (CCR, Aug. 15/01). "It’s something that we’ve wanted for a long time to be able to compete with ExpressVu. They’ve had their’s out for some time now and some customers have asked for it," he notes. "I wouldn’t say a lot of customers are asking for it. I know that the market is fairly limited right now, but it is probably only going to grow." Ian MacLean, VP of Montreal-based Media Experts iTV lab, is predicting that 50% of Canadian TV households will have a PVR by 2007 or 2008 (CCR, June 5/03). To remain competitive with its satellite TV competitors Bell ExpressVu and Star Choice Communications Inc., Compton is looking to yet more offerings. It has applied for a video-on-demand licence, so that it can provide something that satellite TV distributors haven’t been able to offer yet due to technological restrictions. "It’s a competitive advantage that satellite can’t offer and the way that the costs of streams (the servers and technology that have to be put in place to deliver the on-demand content) have been dropping, it’s not all that unreasonable anymore," he says. "Still, if it’s a strict dollars and sense type of question, it might not make the most sense. But it’s for customer retention." The small cableco is also investigating the possibility of introducing Voice over Internet Protocol (VoIP) and expanding its Internet access service area by using wireless technology. Campbell says that he and one other employee are now testing VoIP phones on what he says is the pathway to offering customers a second line of telephone service. Although Compton hasn’t decided on a supplier for the VoIP service, Campbell says that things look promising. "The quality is virtually indistinguishable from a regular phone. It’s been pretty solid," he says. He also tells CCR that Compton is testing residential wireless Internet outside its wired network. Specifically, the cableco is looking at providing wireless Internet service to the Scugog area of Port Perry. If successful, it would add another 200 to 400 potential high-speed wireless customers to Compton’s existing base. Persona Communications Inc. currently provides cable service in the Scugog area, but it doesn’t offer a high-speed Internet option because its cable plant there hasn’t been rebuilt, Campbell says. "It’s across the lake and it’s something that we could feed pretty easily from the ends of our cable plant," he says. Campbell says that experiments so far with testing a window-mounted antenna have not been impressive. Another option is to place a one-foot-by-one-foot antenna on the wall, and then run cable through the wall. Comptom is working with Capella Wireless, and hopes to have the wireless Internet system commercially available by early spring. Although a small cableco, Campbell says that Compton is trying to embrace the latest technologies to remain competitive. "It is (a financial drain to introduce these new services) but when you’re faced with competition, you either compete or die. And we’re choosing to compete, so you have to put the money out there to do these things."

Compton launches first high-definition PVR, and looks to VoIP, wireless technology

News | 11/28/2003 5:00 am EST

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