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SP360: Service Provider

phone jackEven in the current economy, the number of broadband subscribers continues to increase. Recent reports suggest that even in the current macroeconomic environments, consumers are unwilling to give up their broadband connections. Verizon now has a total of 1.9M subs for their FiOS service, Comcast at 24.6M subs, Time Warner at 8.6Msubs.Think about it -- would you be willing to go back to a modem connection? Shoot me now because my level of expectation is so high that I can’t wait an hour for a powerpoint presentation. And a funny video sent to me by a friend? (This is one of my favorites…). That would take me offline for the afternoon if I were modem-tied. Rather, I’m a broadband-o-phile all the way, and, chances are, if you’re reading this post, you are too.Fortunately, this broadband connection is increasingly being used for IPTV as well -- for example -- AT&T added 264,000 TV users in their recent quarter. Just like with broadband, people aren’t going to sacrifice on their viewing. Perhaps they will drive less or go to a fine dining restaurant not as frequently, but TV? That’s sacred territory for so many of us, so much so that it is embedded in our culture. I don’t want to watch the Superbowl or the World Cricket championship in standard definition when I’ve experienced it before in high definition.Why is this interesting? For a number of reasons. All this high speed access is putting load on the networks -- validating not just our Zettabyte report, but also our business. No question the economy will affect us all some way or another, but I believe more confidently than ever that Cisco is uniquely positioned in the industry and will say that I, along with all of the other engineers and Cisco employees, are committed to deliver the best for our service provider customers and shareholders who stand to capitalize on this trend. But taking off my Cisco hat, I’m a consumer too. This trend of not just broadband penetration, but the proliferation of high-speed broadband, and not just video but really, good, impactful high-definition video makes me realize the promise of what’s to come throughout all aspects of our Connected Lives is getting ever closer. Vision is turning into reality, regardless of the economy -- and it’s great to be a part of, no matter which hat we may be wearing.

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