|| As traditional cable companies have
continued to experience huge debt burdens and decreasing profit margins,
the digital wireless industry has emerged as a viable alternative.
Over the past several years, the wireless cable industry has established
its commercial viability and has captured the attention of the investment
Private and public investors have invested more than a billion dollars
into various analog wireless cable companies over the past three years
alone. Essentially all of these investment dollars have been expended
on the development of analog systems. Although analog wireless technology
has proven successful, its success has been on a relatively limited
basis. And because of its inherent limitations, analog technology
simply does not provide a viable alternative for more competitive
urban markets. Industry experts have recognized that the future of
the wireless cable industry is essentially dependent upon its ability
to convert to digital technology.
"DIGITAL WIRELESS TELEVISION
CONVENTIONAL HARDWIRE CABLE TV SYSTEMS"
This industry is literally at a turning point. The
experts say it must implement digital technology in order to expand
its markets and become commercially viable on a widespread basis.
Many existing analog wireless operators, however, simply do not
have the financial ability to convert, having already expended huge
amounts of capital on analog equipment and, in many instances, having
overpaid for license rights.
As a result, although affordable digital technology is now available,
many analog operators simply do not have the means to obtain it.
These events have created a unique opportunity for a "new" system
operator known as Digital Broadcast Corporation. As a new operator,
not burdened by a huge debt load and antiquated equipment, DBC has
the unique opportunity to establish a market presence in the wireless
cable industry. In this story we take an in-depth look at these
critical developments in this new technology.
Digital Broadcast Corporation is an emerging, multiple systems operator
engaged in the technological development, ownership and operation
of residential wireless television systems. The company is said
to be a leader and innovator of digital wireless connection services,
and is the first in the United States to offer digital compression
technology to residential wireless cable subscribers.
Utilizing a new, state-of-the-art, high-ratio digital compression
system DBC enables a digital wireless operator to "compress" up
to ten broadcast channels over a single broadcast frequency, a feat
that cannot be achieved using "analog" technology.
DBC has targeted several markets for the introduction of digital
compression technology. The company has already introduced the technology
in the Roanoke, Virginia market. ItĂs top execs say they have a
two-pronged approach, acquisition of both license rights and proprietary
technology rights. This has given DBC a substantial head start over
existing and potential competitors in the digital wireless industry.
In addition, Digital Broadcast Corporation says they will be offering
high-speed access to the Internet and corporate Intranet services
for today's telecommuters and business professionals.
They say Subscribers can enjoy download speeds 300 times faster
than conventional telephone modems and 150 times faster than ISDN.
AirCable of Roanoke is DBC's flagship station, as the Company rolls
out a number of stations over the next 3-5 years. DBC also controls
channel lease agreements and options in: Wilmington, NC., Bellingham,
WA., and Flagstaff, AZ., Fresno, CA., has a joint venture agreement
with Omaha, NE., Scranton, PA., and is targeting Mobile, Al., Sarasota,
Fl., Atlantic City, NJ. and others.
In the 1990s, the wireless cable industry began to realize its potential.
Wireless cable has been expanding at an annual subscriber growth
rate of approximately 40%. Industry analysts expect this growth
rate to continue at least through the next decade. The industry
is also positioned to expand into video-on-demand, home shopping
networks, Internet access, telecommunications, and a vast array
of consumer demands. In recent years, various telephone companies
have made major investments into the wireless cable industry. Bell
Atlantic, NYNEX and Pacific Telesis, among others, have acquired
interests in wireless cable systems and licenses.
There are approximately 150 wireless cable systems in the United
States presently operating, and wireless cable served approximately
800,000 customers by the end of 1995. No doubt this figure is increasing
at an exponential rate moving into the new Millenium.
According to Investor's Business Daily, the Internet and Intranet
market will grow from what was a $35 billion industry in 1996 to
an estimated $100 billion by the end of the year 2000. The need
for a much faster method of downloading information and an accelerated
method of sending data upstream is critical and needed.
Although wireless cable has existed for over two decades, only recently
has it proven to be a competitor to conventional cable. The wireless
cable industry was made commercially possible in 1983 when the FCC
made 8 additional Multi-channel Multi-point Distribution Service
channels available by reallocating a portion of the electromagnetic
radio spectrum for such use. In 1985, the FCC made additional channel
licenses available and instituted a lottery to award such licenses
in metropolitan markets.
Digital Broadcast Corporation says itĂs taking a leadership role
in providing new and cutting edge Internet and Intranet technology
to the corporate community, hospital and medical fields including
schools and universities, legal, accounting, graphic arts and printing
industries, not to mention small businesses and home offices.