December 01, 2003
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For Immediate Release June 11, 2001
Contact: David Beckwith and Eric Thomas, NCTA, 312/791-6631


REMARKS OF ROBERT SACHS, NCTA PRESIDENT AND CEO
AT CABLE 2001
WE'RE MAKING BROADBAND HAPPEN


Chicago, Illinois
June 11, 2001

Good morning.

I’m delighted to welcome you to Cable 2001 and to Chicago.

And what better place for us to hold an NCTA Convention? Chicago is famous for its conventions. The two national political parties have held theirs here no less than 25 times. No American city comes close to this record.

Like political conventions, NCTA conventions have seen a great deal of change over the years. And so has our industry.

I remember attending my first NCTA convention when I was a young congressional staffer. It was 1977 in this very City. Then, if you can believe it, the entire NCTA convention fit into the Chicago Hilton. And the cable industry only had about 12 million subscribers.

Never did I imagine the growth and change that lay ahead for this industry or that I one day would be privileged to head NCTA.

Cable 2001 is a milestone for our industry. As Jerry told you, it marks the 50th annual NCTA convention.

For those who are curious, NCTA’s first convention was in Pottsville, Pennsylvania --- one of the first communities anywhere to have cable. On June 9th, 1952, Pottsville hosted 60 entrepreneurs who were the founding members of the National Community TV Association, as we were known back then.

Over the next 15 years it became apparent that cable systems had the potential to do more, a lot more, than just retransmit local TV stations. So in 1967 we changed our name to National Cable Television Association.

Now here we are, in 2001, and as you can see from the display, we’ve changed our name once again to keep pace with the expanding scope of this industry.

So welcome to the 50th Annual NCTA Convention and first convention of the National Cable & Telecommunications Association.

Cable TV is still our core business and will remain so for the foreseeable future. In fact, the word "cable" is so established that it has become synonymous with quality TV.

But now we’ve augmented our quality programming with digital technology. And our industry is at the forefront of broadband deployment. In the process, we’ve become a 48 billion-dollar industry, with a future even brighter than its past. We’ve come a long way from Pottsville.

As cable enters the 21st Century, we’re an industry that is continually expanding what we deliver to consumers.

Nowhere is that more obvious than in our deployment of broadband technology. In addition to 80 channels of analog video, we’re providing consumers with dozens of new digital video networks; movies on demand; interactive enhancements; high speed Internet; and cable telephony.

As the theme of this convention attests, cable is making broadband happen! Without the cable industry, consumer broadband services would still be an enticing vision without a market or a delivery system.

We've made the word "broadband" part of consumers’ vocabulary. And we’re taking the lead in making it part of their lives.

Over the past five years our industry has invested nearly $50 billion to upgrade more than three-quarters of a million miles of plant with fiber optics. And we’re putting expanded bandwidth and digital technology to work for consumers.

More than 12 million consumers have now signed up for digital cable services. And cable companies are installing more than 135,000 new digital customers every week!

Cable modem service is now available to nearly 60 million U.S. households. That’s right. Sixty million. Over five million of them have opted to take our high speed Internet service. And 70,000 more are signing up every week.

Not surprisingly the success of cable modems lit a fire under the regional Bell companies. The Bells had DSL technology available for more than a decade. But only when cable launched affordable high speed Internet service, did the Bells begin to deploy it. The result of cable’s investment? Fierce competition and rapid growth in this critical sector of our economy.

So yes, we’re making broadband happen! And not just for a select set of zip codes. We don’t intend to leave rural America and under-served urban neighborhoods stranded on the wrong side of the digital divide.

We’re deploying broadband in small towns like Chillicothe, Illinois; Thief River Falls, Minnesota; Gauley Bridge, West Virginia; and Warner, South Dakota.

Often under-served big-city neighborhoods are also getting broadband. AT&T is serving such neighborhoods right here in Chicago.

AOL Time Warner is doing the same in New York, just like Adelphia in Los Angeles, Cox in New Orleans and Comcast in Philadelphia.

In these and many other urban centers, cable is not only deploying broadband; we’re reaching out to communities to help them exploit this powerful tool.

Cable in the Classroom is delivering on our industry’s commitment to provide free high-speed Internet to schools and libraries. But high speed Internet alone won’t get the job done. So Cable in the Classroom is taking the lead in teaching children, parents and teachers how to find and properly use the treasures on the Internet.

That’s an accomplishment we should be proud of!

We should be equally proud of the quality and variety that our industry has brought to TV programming. To be sure: programming is still the heart and soul of our business!

We’ve evolved from a conduit for other people’s programs to a rich source of original programs.

The quality and variety of cable programming is the best evidence of how far our industry has come as an institution in American life.

And the partnership between cable programmers and operators that changed the face of television is again poised to enrich TV viewing using interactive technology.

Of course, any industry that touches as many lives as we do will always be affected by public policy.

And that’s something we should always keep in mind.

But the good news is that cable is one industry where the 1996 Telecommunications Act has produced real consumer benefits. Rate deregulation has enabled us to invest billions in new technology, new programming and customer care, bringing competitive choices to consumers.

And that’s pretty much what Congress intended.

We’re not only competing with DBS for every subscription television viewer, we’re competing vigorously with phone, wireless and satellite companies to provide consumers high-speed data.

And cable companies are the only facilities-based competitors to the regional Bell monopolies in residential markets. Despite all the obstacles, we now serve more than one million residential phone customers. And Internet protocol telephony promises an even more efficient means to deliver voice over cable.

Our biggest challenge is to deploy advanced services as rapidly as consumers’ demand. This is not a bad problem to have. And if we deliver quality services, at reasonable prices, and provide responsive customer care, then I believe public policy makers will not encumber our ability to compete.

In my view, most public policy makers understand that cable is very different than it was a decade ago. And most understand that we face strong competition in every facet of our business. As importantly, there is a growing recognition that our industry is the leader in making broadband happen.

I know everyone here shares my pride in how far our industry has come, and where we’re going. Our future is even brighter than our past!

And all of you are the reason why.

Thank you! And have a great show!

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