Cogeco 2011 Annual Report Download - page 10

Management’s Discussion and Analysis (MD&A) COGECO CABLE INC. 2011 9
Cable networks
Canada
The Corporation provides its residential and business customers cable, data and telecommunication services in Canada through state-of-the-
art fibre optic and two-way broadband distribution networks. It is Cogeco Cable’s general policy to fully own its distribution networks, head-ends
and data centres as well as its transmission equipment and access facilities. As at August 31, 2011, Digital Television, VOD and Telephony
services were available to approximately 99%, 97% and 93% of homes passed, respectively, and approximately 97% of homes passed were
served by a two-way cable plant.
Cogeco Cable’s inter-city optical fibre network extends over 10,779 kilometres and includes 111,227 kilometres of optical fibre. Cogeco Cable
has deployed optical fibre to nodes serving clusters of typically 1,000 or less homes passed, with multiple fibres per node in most cases, which
allows the Corporation to rapidly extend the capacity of the fibre plant to clusters of 500 homes or less if and when necessary. This process,
known as “Node Splitting”, leads to further improvement in the quality and reliability while increasing in the capacity of two-way services such
as HSI, VOD and Telephony.
Cogeco Cable currently uses DOCSIS 1.1, DOCSIS 2.0 and DOCSIS 3.0 standards within its IP platform. The DOCSIS standard includes
numerous features including the prioritization of packets to ensure a continuous transmission and quality. This prioritization is important for
services that need to be transmitted in real time, such as those of the Telephony service. In addition, when required, DOCSIS 2.0 and
DOCSIS 3.0 features can be activated to achieve increased speed and capacity in the return path by using advanced modulation or features
that can allow the use of portions of the spectrum that are not otherwise usable. This gives Cogeco Cable a flexible and expandable platform
for providing other products like symmetrical services, which are particularly well suited for commercial customer applications. The DOCSIS 3.0
standard, while still compatible with the earlier versions, makes it possible to further increase IP transmission speeds up to 160 Mbps and
beyond. Cogeco Cable upgraded most of its headends to DOCSIS 3.0 and is in the process of a gradual deployment of DOCSIS 3.0 customer
premise equipment.
Cogeco Cable has implemented an infrastructure with 550 MHz and 750 MHz capacity, depending on the cable system and customer needs.
The infrastructure with 550 MHz capacity allows for the transmission of up to 80 analogue channels and the 750 MHz infrastructure allows for
the transmission of up to 110 analogue channels. For reference purposes, each analogue channel (representing 6 MHz of bandwidth), with the
current compression, multiplexing and modulation technologies used by the Corporation, allows for the transmission of up to 15 standard
definition digital television signals, or of up to 3 HD signals.
Cogeco Cable is in the process of deploying the Switched Digital Video (“SDV”) technology and the Digital Terminal Adapter (“DTA”)
technology in its systems where and when bandwidth capacity is required. SDV technology allows the Corporation to selectively broadcast only
the Digital Television channels that are currently being viewed by customers, effectively allowing the Corporation to offer a greater selection of
digital channels, and is used particularly for low viewership content and channels. DTA technology converts Digital Television signals to
analogue signals in the viewer’s home through a device installed on the television set. Deployment of this technology allows for a broader use
of Digital Television service and for the further conversion of analogue channel capacity and is expected to be completed by the end of
fiscal 2012 in most of Cogeco Cable’s markets.
Cogeco Cable is deploying the Fibre to the Home (“FTTH”) technology in new residential subdivision developments which meet specific criteria
of size, proximity to the existing plant and service penetration rate. The FTTH topology selected is Radio Frequency Over Glass (“RFoG”). The
primary benefit of RFoG is the ability to leverage existing Cable Modem Termination Systems (“CMTS”), cable modem investments and back-
office systems, all while maintaining service continuity with existing video, VoIP, and preparing for higher speed Internet services.
In addition, Cogeco Data Services LP (“CDS”) operates a 665 kilometre fibre optic network that extends throughout the Greater Toronto Area.
The multiple facilities based infrastructure (Ethernet, Dense Wave Division Multiplexing (“DWDM”) and Multiprotocol Label Switching (“MPLS”))
connects over 680 commercial buildings within the city and enables high bandwidth services. With the recent acquisitions of Quiettouch and
MTO, the CDS fibre optic network now extends to 2,250 km in the Greater Toronto Area and in the Greater Montreal Area, and connects over
1,075 commercial buildings within these two areas.
Portugal
Cabovisão provides its cable services through state-of-the-art 750 MHz broadband distribution networks. Cabovisão fully owns its distribution
networks, head-ends and drops. HSI service is offered to 100% of homes passed and served by a two-way cable plant. Telephony service is
also offered to 100% of homes passed, with standard based embedded Multimedia Terminal Adapters (“e-MTA”). Cabovisão currently uses
class-5 circuit switches and class-5 advanced softswitches.
Cabovisão’s intercity fibre optic network extends over 3,414 kilometres and includes approximately 232,000 kilometres of optical fibre.
Cabovisão has deployed optical fibre to nodes serving clusters of typically 1,200 homes passed, with many fibres per node in most cases,
which allows Cabovisão to further extend the fibre plant to smaller clusters of 500 homes rapidly with relative ease if and when necessary.
Node splitting leads to further improvements in the quality and reliability of the network and services and allows for increasing the capacity of
two-way services, such as HSI, VOD and Telephony.
Cabovisão currently uses DOCSIS 1.1, DOCSIS 2.0 and DOCSIS 3.0 standards within its IP platform. DOCSIS 3.0 has been deployed in all
major centres and expansion to all homes will continue in the coming years, providing up to 160 Mbps for HSI service.