Devious Telco TV or Path to Solid Telco Features?

I’ve been waiting ~ 2 years for an article like “Robin Good” blog’s, IPTV And Home Television Offerings Are Telcos Best Stealth Solution To Bypass Any Net Neutrality Resistance: Wake Up, (hat tip James Enck) to show up in blog/press land. Being chip guy, I’m curious to see how it all plays out for the device that allows this to happen. The device is called a “Residential Gateway” ( RG for short ).

A couple years back I wondered how the Home Router would evolve.

  • Would it remain standalone?
  • Would it be integrated with the modem? (the RG )

There were many pros & cons for each. The biggest con is that RGs are more expensive than modems, and not everyone buys a home router. This solid point should have limited the RGs success. But that is not what has happened. In fact, every major DSL chip vendor only provides an RG version for ADSL2+ speeds, and higher. That means that any DSL-based 3-Play services “modem” will likely be an RG.

Why is this? The answer is that for any service beyond “bits” the telco needs a “router”, or “end-point”, in your house. The best way to do that is to put an RG in everyone’s house. There is no extra box dilemma. The user thinks he’s just getting another modem.

The Future I don’t think that all telco’s are going to be as “nasty” as the example in Robin Good’s case, but they can if they want to. The RG substantially changes the spectre of “what they can implement”. It will be interesting to see what telco’s do with this router in the house. There are lot of good & bad things they could do. Time will tell us what happens.