The other day, I was talking to an individual who was a trainer for the local cable company. As you probably know the people that install cable services really need to know a lot to do the job, and it takes training, and a period of apprenticeship to ensure quality and success for the technician. My acquaintance noted that since his cable company no longer has a monopoly, and there is some new competition in town that many of the technician in his company have been recruited by the other.
Still, every company has different systems, and the installations go slightly differently. Often these technicians are independent contractors, and they go work for the other company for a while, quit, and come back. This provides the first cable company with good competitive intelligence, and it’s much easier to rehire someone who’s already been trained, then the costly training and probationary period to get them going if they were new.
Some might say that the cable industry has certainly had a good run here the United States, and most of that is due to special treatment, barriers to entry, and good friends in government that have streamlined the laws in their favor. Still, there is competition from cellular phone networks, and Internet TV type services. Right now they can’t really compete due to bandwidth issues, but in the future they will be able to send more information faster, they will solve those problems. Therefore many consumers are un-hooking, they are cutting the cable line so to speak.
Still, overall the cable companies do have a better price and they have been bundling services such as providing Internet service through the cable, telephone service, and also TV. If you have one of those, then chances are you might opt for the bundled service, which might even include Wi-Fi in your own home. Indeed, my acquaintance and I also discussed what Google was doing in Topeka, Kansas with the extremely fast Internet service which could also provide voice communication, TV, and the fastest Internet on the planet.
Will that be able to compete with the future of 4G or even 5G wireless? Each technology competes on its own merits, and for price. Every new technology is disruptive, but the cable companies have a good thing going, and they seem to claim that they are somewhat recession proof. If someone has lost their job and they are spending a lot of time at home they watch more TV. When people have jobs and good income they order the premium service with more expensive bundled services with all the channels. Either way the cable company makes money, or so they say.
Many industry analysts believe that cable TV companies are somewhat recession proof, but nothing is guaranteed as technology rapidly increases and there is so much disruption in the high-tech world of communication – who knows – only time will tell. Indeed I hope you will please consider all this and think on it.
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