TELEPHONE COMPANY ENTRY INTO CABLE-TELEVISION - AN EVALUATION

Even if all legal entry barriers were eliminated, telephone companies would face dim prospects for competing with cable television operators in the transport of video services, at least during this decade. This situation arises because the economic characteristics of fibre-based integrated broadband networks of interest to telephone companies are n ot promising. Unless the demand for switched video is strong, househol ds will continue to be served separately by cable television networks and by switched narrowband networks during the 1990s.