(EMAILWIRE.COM, November 18, 2004 ) CEDAR KNOLLS, NJ -- The cable operators are engaged in a two-front war with the telcos and with the satellite industry. Satellite providers - DISH and DirecTV - have been adding subscribers rapidly while cable's core product, basic cable TV, is declining.

"The cable industry has for some time not been participating in the growth of the multi-channel distribution market," said Allan Tumolillo, COO of Probe Financial Associates. "The initiative has passed to the satellite providers who now have more subscribers combined than Comcast has."

"While cable continues to show positive results in cable broadband it is severely challenged by the telcos who are relentless in fiber deployments and DSL pricing" said Tumolillo. "Telco capex spending and satellite growth presents a very difficult challenge to the cable industry which wil force it to make strategic alliances in VoIP and mobile."

Recent initiatives by the bigger operators in allying with AT&T for its VoIP product, CallVantage, and with Sprint PCS for a cellular resale play may be the best options for the cable operaors. Cable cannot outspend the telcos, so it must outthink the telcos.

PFA's new report, "DISH and DirecTV vs. Cable" assesses the strategy options for the cable industry in its two-front war with the telcos and satellite providers.
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To obtain more information on Probe Financial Associates and its products, contact Karen Verrinder or visit PFA on the web at www.probefin.com.

Contact:
Karen Verrinder
Tel. 973.734.0109, ext. 227
E-mail: mailto:kverrind@probegrp.com

Contact Information:
Probe Research, Inc.
Joseph Nchor
Tel:
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