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Cable: Technology More Important Than Price

Techstination feature for Friday, April 7, 2006

Cable company versus phone company. How cable plans to compete. Bloomberg Boot Camp, a report on today's technology. The scenario is this….cable companies and phone companies are racing to put together bundles ….to offer you TV, telephone, high speed Internet…and eventually cell phone services. They're making all kinds of deals. Time Warner Cable is among the companies partnering with Sprint to be able to offer wireless. So will it come down to a price war? Time Warner Cable chief executive Glenn Britt…

"I think it's going to be a battle of who can bring the best services to consumers. So there's a notion that everyone's going to jump in and compete only on price. But the reality is there's a huge amount of technology that has been invented that can be applied to this general space, the product lines you mentioned. And we can all use the technology to develop new products and services that will meet real consumer needs. So I think you should expect us over time to be selling different things and packaging them differently and not just all be doing exactly the same thing all the time." Do you think there's going to be a price war? "I think that we will compete, pretty much what I said, I think we're going to compete more on features and services and less on price. There'll be price competition of course."

Time will tell. Among the kinds of features Britt is looking at… caller ID on your TV…and the ability to use your cell phone to schedule recordings on a DVR cable box. Bloomberg Boot Camp, I'm Fred Fishkin.