Cable lines are connected to virtually everyone’s home across the nation. Residential Internet and online usage has managed to grow tremendously despite slow speeds available through the existing dial-up telephone modem connections, usually limited to 33,600 bps or less [19]. This growth has enabled and caused a substantial increase of "Surfing the World Wide Web." The current technology (telephone modem connection) causes the users a "click-and-wait" experience due to narrow bandwidth. The growing frustrations of the existing online users are demanding higher-speed connections.

Local telephone companies currently offer residential integrated service digital network (ISDN) services that provide connection speeds up to 128,000 bps. These companies are looking to digital subscriber line technologies (DSL) which can provide downstream speeds reaching 6,000,000 bps or more [19]. Other alternatives include fast downstream data connections from direct broadcast satellite (DBS), wireless cable providers, and high-speed cable modems.

More than 103 million homes in North America are passed by broadband coaxial cable and more than 73.1 million homes are current cable television subscribers [19]. The lines are an added value that can provide a potential powerful platform with high-speed data access to the home and small office home office (SOHO) business according to the cable companies [3].

The cable industry has now added an option to the line that runs to your home and SOHO business (for audio/video output) to include the ability of input/output for data transmission for computer usage including Internet access. However, one-way cable television systems must be upgraded into modern two-way networks to support advanced communications services, a technically complex and capital-intensive project [19].

Cable modems would appear to outperform the leading competition in the form of data communications to the home and SOHO business. The purpose of this study is to analyze usage of cable modems from the perspective of home usage and usage in a SOHO business setting.

In today's technologically advanced society, the need for Internet access is growing on a daily basis. The majority of the current users use the current method to connect to the Internet by the usage of an Internet Service Provider (ISP). Although the current method of using an ISP is sufficient to the average user, more advanced users are requesting a method that will enable them to work more efficient. A more efficient manner of connecting to the Internet would be the cable modem. The following paragraphs will compare these methods of Internet access: ISP and cable modem.

Consumers request the need for Internet service with unlimited usage of hours of online Internet access available at one low cost [17]. Internet Service Providers (ISP) are primarily concerned with getting a subscriber company or home subscriber physically hooked up to the Internet via analog modem. The ISP may provide for additional hardware acquisition and maintenance but is unlikely to provide programming services. ISPs may be the local or long-distance Phone Company or may be a business entirely independent of established Phone Companies. ISPs are most concerned with the infrastructure required to provide Internet access for subscriber companies and home subscribers [10]. The low cost for an ISP can be $19.99, which enables you to do everything possible, within computer and user limitations [17].

Internet Service Providers require the computer to connect to the Internet by the use of a hardware device called a modem. A modem is a data communications device, which sends and receives analog or digital transactions [10]. An ISP however may not be maximizing the capabilities of the client's modem. If a modem can run at 33,600 bps, and the connection speed rate reads "28,800 bps," it's not using the modem's full potential [16]. The reason may be that the modem on the other end is slower than the one in the client's computer, or that noisy phone lines are reducing the connection speed.

Some of the ISPs do not have the most current standards for the maximum transfer of data. The industry maximum transfer rate for modem transmission over a normal telephone line is at 56,000 bps [16]. If this is the case then the two modems (the ISPs and the users) are "speaking a different language" and will transfer data at a much slower pace, sometimes as slow as 28,800 bps [16]. This problem is a minor one that can be corrected, but sometimes the only process and proper manner of correcting this problem is by obtaining a different ISP. Signals that are sent to the ISP have a top speed of 33,600 bps. The return signal should come through at 56,000 bps (if a 56K modem is installed), but the fastest download speed that was reached during a study as 43,600 bps [2]. This is not bad, but it is far from 56,000 bps. The maximum transfer rate also relies upon that of a digital connection between that of the local Phone Company and that of the ISP.

ISPs have different characteristics that are weighed on a scale that determines which options are more important than others are. The features examined are email, web-page space, content, support, and extras. The percentage breakdown for these features is shown in Figure 1.

Setting a start page for a client's personal browser is often requested by Net vets, but less-experienced Web hounds appreciate proprietary content from an ISP, not to mention well-organized links to all the rest on the Internet [24]. Choosing an ISP that is user friendly for those Web newbies, the best ISPs for content are Microsoft Network and America Online [23]. Such proprietary content should be up-to-date, easy to search, and presented in uncluttered design [24].

The ISP should offer toll-free telephone help around the clock for technical support. Technical representatives should be on call around the clock, not just during business hours, or you'll be stranded without a friendly voice when you need it the most [23]. The ISP should only have a troubled client on hold for mere seconds, and provide a way to ask less-pressing questions via e-mail [23,24].

A bargain ISP should give their clients at least a couple of megabytes of space; more is better [23]. If there is a need for digital elbowroom for a personal Web page, an ISP client needs to find out how much room is available through their ISP. The ISP provider should also provide a client space with that of publishing tools or links to shareware applications that will enable a client to create a Web page [23,24]. SpryNet and MindSpring both give their clients 5 megabytes of spaces, but America Online takes the prize by doubling that to 10 megabytes [23].

The last features that an ISP should contain are the extras that come with their service. Some of the following questions could be asked concerning an ISP:

• Does it support a buddy list (and provide the software)?
• Does it sponsor well-organized and well-attended chat sessions?
• How up-to-date is the software that the ISP gives the client?
• How fast is the connection?
• Is the phone call just a local call away?

Broadening its e-commerce offerings, IBM is slated to announce that it will add a version of its e-commerce software to ISPs and Web hosting services [5]. This service will allow home and SOHO business to conduct businesses through their ISP. The software, due to ship in December 1998, is designed so a Web storefront can be created in 20 minutes http://st0.yahoo.com/vw/ad.html. For ISPs, the offering includes management tools for billing, administration, and aspects of running a commerce service provider operation [5].

In the United States, the Telecommunications Act of 1996 freed telephone companies to deliver video programming and cable companies to provide phone service. But even though the Act opened up competition, the $100 billion telephone industry still has some big advantages over the cable industry when it comes to moving into the new markets.

If the telecommunication industry has it their way, ADSL (asymmetrical digital subscriber lines) will provide the strongest competition for cable modems. ADSL uses filters to split the existing phone line into three separate frequency channels. The first channel carries the traditional analog telephone signal and makes sure your phone keeps working. The second channel allows information to be uploaded, at speeds up to 800,000 bps [18]. The third and final channel allows for the downloading of information, at speeds up to 8,000,000 bps [1]. The drawback with this communication market is that special equipment is needed at each subscriber's home [1,22], which adds a per-user cost that's significant compared to cable television Net access [1]. Another drawback is that the further your are from the phone company center, the connection speeds slow down accordingly [22]. The obvious advantage however, is that the infrastructure is already in place [22].

This service method is actually a large and growing business, which is cutting into the cable companies' markets by broadcasting multi-channel television programming to homes equipped with special antennas [1]. A dish is placed on the user's roof to receive the information. This information is passed down through the coaxial cable to a special modem that converts the signal into data your computer understands. This process works for downloading; however, talking back to the cable provider still requires a standard analog telephone line [1]. The industry is working to establish a wireless upstream path, but a viable solution is at least two years away.

A satellite-based, high-speed Internet service called DirecPC, is available through Hughes Network Systems. This service is very expensive and only includes the basic software and hardware requirements [1]. A user not only receives a monthly reoccurring charge, but also a per megabyte of information charge for each download from the satellite.

The fastest Internet access for home users, without having to install a T1 line, is through an ISDN (Integrated Services Digital Network). This is the fastest available, only if your phone company offers this service [22]. The speed is possible due to the digital transmission of information rather than that of analog [18]. The advantage is that the advanced phone lines provide connections that are five times faster than the best modem. But, the technology is not cheap, it's usually a few hundred dollars to install and activate [22]. Another advantage is that ISDN lines can also carry voice and data simultaneously, which means you can be online and on the phone at the same time [18].

There has been a lot of hype over the cable modem. Cable giants like TCI, which has now partnered with @Home, have been launching field trials around the country. The same cables that deliver PAY-TV can give users Net connections hundreds of times faster than today's standard modems by usage of an ISP. But, critics say that the infrastructure necessary to make such access a reality is still a long way away. Every neighborhood would have to have servers that could handle the combined loads of the Internet and cable programming -- otherwise, the only great connection you would have would be at 3 a.m. [22]. The reason for this "great connection" is due primarily to the advanced programming and hardware equipment that would enable this technology to work properly.

To deliver data services over a cable network, one television channel (in the 50 - 750 megahertz range) is typically allocated for downstream traffic to homes and another channel (in the 5 - 42 megahertz range) is used to carry upstream signals. A cable modem head-end system communicates through these channels with cable modems located in the subscriber homes to create a virtual local area network (LAN) connection. Most cable modems are external devices that connect to a personal computer (PC) through a standard 10 Base-T Ethernet card and twisted-pair wiring [19].

Cable modems are unbelievably fast: up to 30,000,000 bps, which makes them nearly 1,000 times faster than the average analog modem - 33,600 bps [2]. The problems with cable modems are geography and wiring; the only way you'll get fast cable access is if your cable company offers it, and it will only work well if your neighborhood is wired with special fiber-optic cabling. The cities and states that the service is available are shown in Table 1, with detailed descriptions of service in both Appendix A and Appendix B.

At the National Cable Television Association trade show in Atlanta, Georgia, companies such as Intel, Sony Electronics, and 3Com (U.S. Robotics), are detailing plans for producing a new generation of easy-to-use cable modems. These companies are hoping to promote Internet access via cable modems by making them easier to use than today's standard dial-up modems -- one key factor in eventually enabling the industry wide goal of letting consumers purchase cable modems at retail stores [9].

Since last year, leading cable equipment vendors have been working on making cable modems and equipment used by ISPs compliant with the DOCSIS (Data Over Cable Service Interface Specifications) industry specification. This standardization effort is being headed up by CableLabs, a cable industry consortium [9]. Once certified, DOCSIS - compliant modems could be purchased by consumers and used with any service provider's equipment. At the moment, some stores in limited areas of the United States carry cable modems for sale, but generally they can be used only with an ISP in that region. The modems could download data at up to 42,000,000 bps and send data back out to networks at up to 10,000,000 bps, a much higher rate compared to the maximum 53,000 bps download speeds possible with dial-up modems [9]. Sony mass production is slated for fall of 1998 [9].

Cable modems download data via the same type of cable that hooks into a TV, at much faster speeds than traditional modems. 3Com is shipping some of the first cable modems based on industry standards for interoperability to Tele-Communications Incorporated subsidiary TCI.Net. 3Com becomes one of the first vendors to ship these interoperable modems, also referred to as DOCSIS modems. Since last year, leading cable equipment vendors have been working on making cable modems and equipment used by ISPs compliant with the DOCSIS industry specification [8]. Once certified, DOCSIS - compliant modems could be purchased by consumers and used with any service provider's equipment. At the moment, some stores in limited areas of the United States carry cable modems for sale, but generally they can be used only with an ISP in that region [8].

Cable modem services allow for a wide range of advantages for on-line subscribers. With cable modem service a user never has to wait to get connected to their server again, because they are always connected. With cable modems, a user doesn't have to tie up a phone line; this makes the user and the user's phone more productive. There are no complicated paths to follows to connect to the internet, all the user is required to do is turn on the computer and that automatically connects the user. With the advanced amount of bandwidth, a user can quickly view complex animation, movie clips, and sound [12].

To gather information on cable modems detailed research was collected and gathered. The research included three phases: 1) several phone interviews were conducted with companies, 2) computer database searches were conducted, and 3) Internet browsing and searches was conducted.

In the first phase of the study of cable modems, phone interviews were conducted. The phone interviews were with representatives from Cable Brazil, Inc., Time Warner Cable, GTE Americast, and @Home. This first phase was conducted to see what was being done in the local area and in the nation concerning development of cable modem usage.

Local. During the phone interview with Time Warner Cable they informed me that the area of Terre Haute, Indiana would not be receiving the service of Internet through the usage of the Time Warner Cable lines for another two years at a minimum. However, Cable Brazil, Inc. expressed to me during the phone interview that implementation of cable modems will be available at the beginning of January 1999. This cable modem service will enable a user for home or SOHO business to connect to the Internet by way of either an analog phone line or a cable line. The uploading of information to the computer will be through the analog line, while the downloading of information will be through the cable line [3].

National. With a phone conversation with GTE Americast, they acknowledged me that only two states, Florida and California, currently have the service available. They expressed that the use and success rates for those states were very high [11]. The rest of the information that was available concerning the service was available via website. The last phone interview conducted was with @Home. Once reached, they, too, indicated high success rates and that the majority of the information needed is available via website.

The next phase of the project for cable modems was conducted at the library of Indiana State University, Terre Haute, Indiana. The information that was current and available at the library was available via Internet. This phase was ended after review of out-of-date data was gathered, and the acknowledgement that all of the "up-to-date" data was available via Internet.

The last phase was that concerning Internet browsing on the subject of cable modems. Also, the leading cable modem companies were reviewed. This process enabled the project to have a wide range of inputs from current sources. Many of the websites viewed ranged from personal web pages to those of web pages of companies that offer the service. The Internet enabled this project to become a well-rounded and thorough investigation on the cable modem industry and to see what is being done and implemented concerning the usage of cable modems in the home and SOHO businesses.

After thorough research and interviews, an in-depth discovery of the technological aspects concerning cable modems was unveiled. The cable modem access network operates at Layer 1 (physical) and Layer 2 (media access control / logical link control) of the Open System Interconnect (OSI) Reference Model. Thus Layer 3 (network) protocols, such as Internet provider (IP) traffic, can be seamlessly delivered over the cable modem platform to end users [19].

A single downstream 6-megahertz television channel may support up to 27,000,000 bps of downstream data throughput from the cable head-end using 64 quadrature amplitude modulation (QAM) transmission technology. Speeds can be boosted to 36,000,000 bps using 256 QAM. Upstream channels may deliver 500,000 bps to 10,000,000 bps from homes using 16 QAM or quadrature phase shift key (QPSK) modulation techniques, depending on the amount of spectrum allocated for service. This upstream and downstream bandwidth is shared by the active data subscribers connected to a given cable network segment, typically 500 to 5,000 homes on a modern hybrid fiber / coax (HFC) network. An individual cable modem subscriber may experience access speeds from 500,000 bps to 1,000,000 bps or more, depending on the network architecture and traffic load, blazing performance compared to dial-up alternatives [19].

To get into the high-speed Internet services business, cable operators must do more than simply install cable modem gear. Rather, they must build a sophisticated end-to-end IP networking infrastructure in each community they serve that is robust enough to support tens of thousands of data subscribers. That includes items like Internet backbone connectivity, routers, servers, network management tools, as well as security and billings systems. In essence, cable operators are faced with the task of building some of the world's largest "Intranets," a serious engineering and operations challenge [19]. The recommended computer equipment needed for cable modem usage and access is shown in Table 2 (IBM compatible) and Table 3 (Macintosh).

Most cable modem systems rely on a shared access platform, much like an office LAN. Because cable modem subscribers share available bandwidth during their sessions, there are concerns that cable modem users will see poor performance as the number of subscribers increases on the network. Common sense dictates that 200 cable data subscribers sharing a 27,000,000 bps connection would each get only about 135,000 bps of throughput, virtually the same speed as a 128,000 bps ISDN connection, but this is not true [19].

Unlike circuit-switched telephone networks where a caller is allocated a dedicated connection, cable modem users do not occupy a fixed amount of bandwidth during their online session. Instead, they share the network with other active users and use the network's resources only when they actually send or receive data in quick bursts. So instead of 200 cable online users each being allocated 150,000 bps, they are able to grab all the bandwidth available during the millisecond they need to download their data packets, up to many megabits per second [19].

If congestion does begin to occur due to high usage, cable operators have the flexibility to allocate additional bandwidth for data services. A cable operator can simply allocate an additional 6-megahertz video channel for high-speed data, doubling the downstream bandwidth available to users. Another option for adding bandwidth is to subdivide the physical cable network by running fiber-optics lines deeper into neighborhoods. This reduces the number of homes served by each network segment, and thus increases the amount of bandwidth available to end-users.

However, that while cable modems can receive data at speeds up to 30,000,000 bps, the user personal computer itself is limited by its Ethernet interface, which theoretically reads data at 10,000,000 bps but is usually much slower. Also, the cable network may slow down considerably if lots of people are logged on or if the Cable Company's connection to the Internet is bogged down for some reason [15]. The speeds of cable modems and competitors are located in Diagram 1.

Not every cable access systems works the same way, but the networks are supposed to be set up similar to Diagram 3.

 
Source: "How Cable Access Works, " CNET, Copyright 1995-1998.
http://www.cnet.com/Content/Features/Techno/Cablemodems/ss02.html

The Cable Company acts as its own ISP. It establishes a connection with the Net through a router, which receives data over a 1,500,000 bps T1 line or 45,000,000 bps T3 line leased from the local Telephone Company. The router links to the head-end controller via fast Ethernet, at rates up to 100,000,000 bps. Data travels over the Net in small chucks called IP packets. These must be converted into signals that can be transmitted, like television broadcasts, over coaxial cable.

Head-End Controller. The head-end receives television signals via satellite and local broadcast and converts them to signals that can be sent over coaxial cable to subscribers. The subscriber's television tuner, or cable box, coverts the signal back to a video image. Coaxial cable service occupies the 40-megahertz to 550-megahertz portion of the spectrum [14]. This frequency is split into 6-megahertz bands, where each band corresponds to one of approximately 60 television channels. To deliver digital data, the head-end controller modulates the IP packets, encodes them as a digital signal, and broadcasts the signal down the cable on an unused channel.

Generally, the head-end controller acts as a traffic cop, using a special control channel. The head-end controller tells each subscriber's cable modem when it can transmit, on which frequency band, and for how long. When the cable modem starts up, it scans all its assigned channels to locate the control channel, which can be identified by its unique header signal.

Hybrid Fiber-Coax. Cable television's "tree and branch" architecture makes it hard to provide a signal of consistent quality along the cable. Every time the cable signal is split, it becomes weaker. Companies can use amplifiers to boost signal strength, but then often introduce noise than can cause errors. To address this problem, some cable companies are upgrading their systems to include fiber-optic lines as well as coaxial cable.

Because each television channel occupies a 6-megahertz frequency band, a cable system with 400-megahertz of downstream bandwidth can carry the equivalent of 60 analog television channels. On the other hand, a hybrid fiber-coax system with 700-megahertz of downstream bandwidth has the capacity for 110 channels [14].

Optical fiber is more reliable than coaxial cable and increases the number of available channels. Hybrid fiber-coax cable service occupies the 40-megahertz to 750-megahertz portion of the spectrum; coaxial cable only covers the 40-megahertz to 550-megahertz of the spectrum [23]. Optical fiber can also transmit signals over much longer distances before requiring amplification. But upgrading to fiber-optic lines is quite costly. This is why only select cable operators use hybrid fiber-coax. Many still use regular coaxial cable throughout the network.

Laser Transmitter / Receiver. To send the data over the hybrid fiber-coax network, laser transmitters convert 6-megahertz signals sent from the head-end into optical signals [14]. At the edge of a neighborhood, a laser receiver reconverts the signals so they can again be transmitted over coaxial cable, which goes into each individual house.

Cable Splitter. Cable's bandwidth is wide enough to let subscribers watch television and maintain a Net connection. A splitter in each subscriber's home sends one cable to the television set and another cable to the computer's cable modem.

Cable Box. Subscribers receive their cable television service through a combination tuner / descrambler box. Although today's "cable-ready" televisions can receive cable transmissions without the box, they can't unscramble pay channels such as HBO.

Cable Modem. The cable modem demodulates the incoming signal and translates it back into IP packets the computer can understand. The cable modem also sends data upstream to the Internet through the cable system, on a 5-megahertz to 40-megahertz band [14]. Since all subscribers share this relatively narrow band, the cable modem must be able to transmit data on any 2-megahertz channels allocated on the upstream band [14]. The head-end controller instructs the cable modem when to send data upstream and which channel to use. Until the industry adopts standards, the same manufacturer must make the head-end controller and the cable modem in each system most likely.

Personal Computer. The cable modem communicates with the subscriber's computer through 10 Base-T Ethernet. The actual connection generally uses standard RJ-45 cable, just like the cable used in the local area networks, but subscribers must have Ethernet interface cards installed.

Leading companies in the United States and Canada have formed separate business ventures to address key technical, operation, content, and marketing challenges associated with the wide-scale deployment to cable internet services: @Home and The Road Runner Group.

Additionally, a number of third-party integrators and Internet service providers are serving the date-over-cable market, including Convergence.com Corp., HSA Corp., Internet Ventures Inc., ISP Channel, and Online System Services Inc. Traditional integrators from the enterprise networking and telecom sectors are also providing cable solutions, including Digital Equipment Corp. and Toshiba America Inc [4].

@Home. http://www.home.net At Home Corp. was founded by MSO Tele-Communications Inc. and venture capital firm Kleiner Perkins Caufield & Byers in May 1995. In June 1996, @Home landed equity investments from MSOs Comcast Corp. and Cox Communications Inc., expanding the service's national footprint. Rogers Cablesystems Ltd., Shaw Communications Inc., Bay Networks Inc., Motorola Inc., and Sun Microsystems Inc. also purchase equity stake in @Home through a private stock placement in April 1997. The company when public in July 1997 (NASDAQ: ATHM) and MSO Cablevision Systems Corp. purchased an equity stake in the venture in October 1997 [4].

Since then, @Home has added many new MSO affiliates, including: Marcus Cable, InterMedia Partners, Century Communications Corp., Insight Communications, Bresnan Communications Company, Lenfest Communications, Jones Intercable, CogecoCable Inc., and Garden State Cable [4].

Through its 15 MSO cable investor partners, @Home's potential footprint now surpasses 53 million homes passed, more than half of all cable homes in North America [4].

To serve its cable system partners, @Home hired more than 300 employees and has created a national high-speed data backbone (with leased capacity from Sprint Corp.), a sophisticated contend caching infrastructure, and operations systems to support broadband Internet service delivery. @Home offers its affiliates a fully-managed high-speed Internet offering, including routers, servers and Internet connectivity, as well as customized client software and aggregate content. Cable system affiliates are responsible for purchasing cable modems and they must pay @Home a percentage of their cable modem subscriber revenue, typically around 35 percent [4].

By June 1998, @ Home's United States cable partners had launched the serve on a limited basis in more than a dozen markets. Comcast, Cox, and TCI are typically charging $40 to $60 per month for a consumer service package than includes unlimited Internet access and cable modem rentals. Installation service is typically $100 - $175, including an Ethernet card, additional cable outlet and personal computer software configuration. Canadian MSOs Rogers and Shaw have deployed cable modem services and began offering @Home to their subscribers in 1998 [4]. The @Home availability through local cable company's and live demonstrations through local cable companies are located in Appendix C [13]. The @Home city and state availability for the @ Home service is located in Appendix D [7].

In an effort to tap into the lucrative corporate market, @Home has formed a business unit dubbed @Work to market high-speed networking solutions to commercial customers. The plan is to leverage @Home's emerging broadband infrastructure to provide high-speed internet connections to corporate LANs, as well as telecommuting solutions to corporate work-at-home employees [4].

The Road Runner Group. Time Warner Cable (North America's second-largest MSO) and Time Inc. New Media formed the Road Runner Group as a separate business unit to spearhead the development and deployment of high-speed cable data services. The fruit of the venture's labors is Road Runner, a broadband content service named after the famous Looney Toons cartoon character [4].

Not surprisingly, The Road Runner Group has leverage a host of Time Warner content for its broadband service, including Time, Money, People, and Sports Illustrated magazines, CNN, and Warner Bros. Studios [4].

In December 1997, Time Warner and MediaOne formed an alliance. The companies are currently in the process of merging their The Road Runner Group and MediaOne Express cable Internet operations. Through June 1998, Time Warner Cable and MediaOne were offering cable modems services to more than 3 million homes and has captured 90,000 subscribers. In June 1998, high-tech heavyweight Microsoft and Compaq added their support to the venture by investing a combined $425 million [4].

This research project was prepared for the reason of discovering other means of Internet access for the home and SOHO businesses. It is a detailed overview of the reasons why a user would want to implement a cable modem over an ordinary Internet service provider.

After review of the findings, it is clear that it is very cost effective to implement the usage of a cable modem not only for the ease of use, but for the primary reason that the speed of the service is tremendously compared to that of an Internet service provider. This study also indicates that it connectivity is not a problem, and that the home or SOHO user will be more efficient in working for pleasure or for business.

I believe that any user, either home or SOHO should implement the usage of a cable modem if their cable provider provides the service. I also believe that in the near future, not only will the prices drop and become very competitive, but also the use and availability of cable modem usage will be increased due to the demand of a larger, yet needed bandwidth.