Comcast (CMCSA) has decided to put money into a tech start-up which increases the speed at which data moves across broadband connections. Time Warner (TWX), Cisco (CSCO) and Intel (INTC) have already invested in the firm, BroadLogic, according to Reuters. The news service reports: "The company (BroadLogic) makes two main types of chip-sets, the TeraPIX video processor and Wideband Receiver, which recover bandwidth for cable operators and enhance their platforms, according to Comcast."
If the new technology lives up to its promise, it will add to the arsenal that cable companies have to give fits to AT&T (T) and Verizon (VZ). The two telephone companies are building fiber-to-the-home infrastructures which create ultra-fast internet. The firms hope that their networks will help them deliver HDTV, VOD, broadband, and voice in bundled packages, something cable can do now.
One of the marketing messages from the telecoms is the fiber creates a faster connection than the cable companies can currently offer. But, BroadLogic may help even that playing field.
With landline business dropping as cable VoIP takes customers, AT&T and Verizon have had to look to cellular and, in the future, fiber, to continue their growth.
Comcast & Company may have found a way to undercut one of telecom’s advantages.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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