The cable industry has evolved from a primarily one way broadcast mode to a two way Internet based services network. The capability to broadcast, complemented by communications capability provides for a far more interesting infrastructure.
The digital headend is the brain of broadband technology. It is the collection point for the applications required to deliver advanced services such as video-on-demand, interactive television, high-speed Internet access, and telephony.
Customers pay for cable infrastructure. People that want services and pay for them, drive demand for network infrastructure and equipment. Demand for products depends on capital spending by providers of cable services, satellite services, and other communications services for constructing, rebuilding or upgrading their communications systems.
Demand for broadband access has increased in response to the growth of the Internet. Broadband supports widespread use of the World Wide Web for communicating and accessing information. Rapid growth in the number of Internet users and the demand for high-speed, high-volume interactive services has created opportunity for cable companies to expand the usefulness of the cable communication networks.
High-speed Internet access is available at home primarily through cable network infrastructure. Continuing consolidation within the cable industry worldwide means a small number of operators own a majority of cable television systems and account for a significant portion of the capital spending made by cable television system operators.
The headend of a television video signal distribution system is the core of the cable system infrastructure. The headend is the central location where the multi-channel signal is initially received, converted, and allocated to specific channels for analog distribution. Signals are transmitted in encrypted form or digitized and compressed form.
Cable headend markets at $2.9 billion in 2005 are anticipated to reach $10.3 billion by 2011. Market growth is fueled by worldwide demand for headend equipment worldwide. The demand for broadband can be met by cable infrastructure.
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