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An Evolutionary Approach to the Development of Two-Way Cable Technology Communication

While community antenna television (CATV) has continued a pattern of steady growth, the "blue-sky" promises of a cable revolution have yet to be realized. Despite the Federal Communications Commission rule requiring technical capacity for nonvoice return communication, two-way CATV has really not progressed much beyond the experimental stage. A combination of four factors are responsible for the slow development. First is the lack of credibility in the cable industry surrounding two-way CATV, due largely to some early over-zealous speculation and over-selling of the two-way CATV concept before the technology could deliver. Second is the inability of two-way CATV to attract adequate financial resources, creating the familiar "chicken or egg" problem. That is, without the financial support the technology cannot be developed, and without demonstrated technological promise the financial support cannot be generated. Other conditions contributing to the financial problem include the recent recession, high interest rates, and industry overexpansion. Third is restrictive governmental regulation which requires performance levels and services that contribute to higher operating costs and at the same time limits the entertainment fare, which reduces the potential revenue. The profit squeeze would limit interest in developing new services, as well as making the industry less attractive for investment purposes. Fourth are technical problems in the development of two-way CATV such as radio frequency interference and the design of a relatively inexpensive home terminal.