Print 19 comment(s) - last by someguy123.. on May 1 at 5:28 PM

CEO jettisons Time Warner's cable unit

In an effort to better situate its struggling cable unit, Time Warner CEO Jeff Bewkes announced that Time Warner Cable will be spun off into a separate company.

“We've decided that a complete structural separation of Time Warner Cable, under the right circumstances, is in the best interests of both companies' shareholders,” said Bewkes. “We're working hard on an agreement with Time Warner Cable, which we expect to finalize soon.”

CNN Money reports that the Time Warner will execute the spinoff of its cable unit by giving its 84% stake in the cable unit to shareholders.

Some analysts predicted a cable divestment by Time Warner, due to its stakeholders’ desire to simply its “sprawling corporate structure.” Last year, the media conglomerate offered 16% of the company up for sale in an IPO, which analysts valued at $5.5 billion.

With Time Warner’s share price sagging at 2003 levels – it had a brief spike at the beginning of 2007 – Bewkes is faced with a tough burden, manifesting as three separate tasks: figuring out what to with Time Warner Cable is one of them, along with jumpstarting the company’s AOL unit and improving its entertainment businesses. In the recent past, analyst murmurs predicted that the company would look to sell off its AOL unit completely – despite Time Warner’s statements to the contrary.

In any case, a decision to jettison Time Warner Cable is only the latest in a series of corporate restructures, which include a substantial $116 million reorganization of New Line Cinema. 

Time Warner Cable is the United States’ second largest ISP, trailing only behind Comcast. Aside from a minor spat with Verizon over its characterizations of Verizon’s FiOS service, the cable giant has largely avoided the public spotlight – unlike its larger competitor, which is continually finding itself in a wrestling match with critics, the FCC, and the ISP industry as a whole.

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The day has come...
By daftrok on 5/1/2008 12:21:21 AM , Rating: 2
With the 700 MHz now open (after the analog over the air TV signals disappear) and with DirecTV putting out more satellites, we've reached a point where we can get our TV, phone and internet completely wirelessly. Technically we have this now (what with 3G, cellphones, and DirecTV/dish) but when the 700 MHz spectrum opens up and Verizon brings out competitively fast internet, we can finally get rid of the ol' copper cables.

RE: The day has come...
By bunnyfubbles on 5/1/2008 12:32:48 AM , Rating: 2
Copper yes, but I don't want to be completely wireless...BRING ON THE FIBER!

RE: The day has come...
By daftrok on 5/1/2008 12:38:16 AM , Rating: 4
Fiber would be awesome...if they have a cost effective way of replacing the copper wires with fiber wires. I mean, it would be great if cable companies just used the copper lines for internet and then TV can be done with satellites. That way we can get super fast internet connections via copper without having to share the data stream with TV AND we still get HDTV via satellite. I think that would be a great compromise and we won't have to spend billions on replacing copper lines with fiber.

RE: The day has come...
By amanojaku on 5/1/2008 1:50:57 AM , Rating: 2
Fibrt optics would be awesome, but the cables are the cheapest thing about fiber. The biggest improvement would be lower latencies, but that's not worth the cost of the upgrade for consumers. Coaxial cables aren't short on bandwidth, either. The "broad" in broadband means multiple frequencies. Each TV channel, phone line, and inbound/outbound stream uses a different electromagnetic frequency for simultaneous access.

The problem with cable internet is that it's a shared medium like old school non-switched Ethernet. Everyone in the neighborhood is on the same "physical" loop. Cable architecture was designed to send the same signals to everyone, so this private Internet thing is completely against its architecture. We should be happy it works as well as it does!

RE: The day has come...
By rudy on 5/1/2008 6:44:35 AM , Rating: 3
You do not game.
Wireless is ok for surfing the web but your old TV channels never were considered a valid substitute for Cable TV but rather a cheaper alternative. And currently internet is the same. A hard wire is always going to be more consistent and faster then wireless which has so much interference. I just hope the average consumer will not ruin it for the people wanting a really good internet connection.

RE: The day has come...
By daftrok on 5/1/2008 1:18:54 PM , Rating: 2
Wireless works fine for me when I play Battlefield 2 and Halo PC. Unless you're hosting I see no reason why wireless won't suffice. Also I have an average speed of 5-6 Mbps (0.5 - 0.625 MB/s) which isn't bad at all and something well within the grasp of 700 MHz.

RE: The day has come...
By someguy123 on 5/1/2008 5:28:34 PM , Rating: 2
down/up speed has nothing to do with ping. Data is constantly resent during downloads, but in gaming data is only sent when the user sends or receives another users commands, so high ping or loss of packets can cause large delays and lag. Wireless internet for gaming depends on what you're looking for. Are you fine with high interpolation, or do you want the most accurate data? Most people don't care and as long as the game feels smooth they'll play, but there are quite a few of us that like to have low ping and low/no interpolation.

RE: The day has come...
By 325hhee on 5/1/2008 9:49:43 AM , Rating: 2
Now in NYC there's fiber through out the city, but what's the advantage if it goes back into copper wiring? I only know of one building that's going to be true fiber to fiber connection with out copper wires, because I'm watching the renovation and they're redoing all the wires, phone lines and power cables.

Now the regular joes, we'll never see that since the apt we rent, are going to have cheap landlords, who would refuse the upgrade, due to costs.

And Time Warner sucks, I can't wait till Albany OKs verizon to have fios in NYC. TWC has the monopoly and there's no negotiating their fees, like the opportunity people outside the city gets. TWC not only charges, they have crap for HDTV, local, sports, which I can give a crap about, and 1 premium cable station. Sucks that if I want to watch Showtime, I only get one channel, and it's not even Showtime on Demand. Soon, I'll no longer be a slave to TWC, unless, that blind retard of a Gov vetos it, wouldn't surprise me one bit, that AH, voted yes on internet tax, and now he's trying to make up for it by saying no to gas taxes, like that'd really effect the prices at the pump. Most analysts even stated, that wouldn't affect pump prices enough to justify it, it'll go back into the gas station owner's pockets.

RE: The day has come...
By emarston on 5/1/2008 10:57:32 AM , Rating: 2
While all fiber is best(and insanely expensive), fiber to the building isn't horrible. I happen to have FIOS, but the fiber only goes to the house (outside). It still goes to copper once it gets inside. So depending on how it's implemented in the building it may not be too bad. Really all you would need is a fiber line to each floor and switch to copper there maybe less depending on the distance of the runs.

RE: The day has come...
By Etsp on 5/1/2008 10:57:35 AM , Rating: 2
Now in NYC there's fiber through out the city, but what's the advantage if it goes back into copper wiring?
What copper wires are you referring to? If you are talking about the wiring internal to the building, there isn't really a disadvantage to going from fiber(outside) to copper(inside) depending on the size of the building.

Fiber's biggest strengths are its somewhat lower latency, and its almost complete indifference to electromagnetic interference, and its extremely low amount of signal loss. These advantages really don't make much difference in distances of less than 50m on a single cable, and for much further distances on a switched network.

It can have some benefit as far as bandwidth is concerned, but a Copper network would be more than fast enough to saturate most internet connections. Also, for shorter lengths of copper, there is almost no benefit at all to going to fiber.

Smart Move for TW
By mac2j on 5/1/2008 1:38:36 AM , Rating: 2
This is a really smart move for Time Warner.

I am one of the many unfortunate New Yorkers who has no alternative to Time Warner Cable.

BUT as soon as FIOS and Direct-TV are available Time Warner Cable is going to sink like a rock -- a building down the street just allowed its tenants to get Direct-TV and ALL BUT 3 units switched to Direct-TV.

Their internet service is pricey but ok however their cable service - especially their lousy, compressed, almost-no-channels HD service is pathetic.

CNN HD...not available.
SciFI HD..not available.
FOX HD.... FOX... 480P and sometimes, rarely 720P.... we have like 1 station at 1080i, its horrible.

RE: Smart Move for TW
By Darthvoy on 5/1/2008 5:33:54 AM , Rating: 2
I would advise against going with directv. I had one of the worst experiences with them than with any other company. You should read some of their BBB complaints.

RE: Smart Move for TW
By Durrr on 5/1/2008 6:23:13 AM , Rating: 2
I haven't had a problem yet, been with them for nearly 2 years now.

RE: Smart Move for TW
By FITCamaro on 5/1/2008 6:31:00 AM , Rating: 2
I have a shitty local cable company. We have almost no HD channels as well. Why you'd want CNN HD I don't know but I'd love to have SciFi HD.

RE: Smart Move for TW
By Misty Dingos on 5/1/2008 7:34:18 AM , Rating: 2
Come on man that is easy. Hillary Clinton sound bites in HD! Who would not go for that?

Oh god I just threw up in my mouth.

RE: Smart Move for TW
By AmbroseAthan on 5/1/2008 10:53:27 AM , Rating: 2
Its all coming:

I am also a TimeWarner user in Manhattan, and I was annoyed by the HD at first (two years ago) but it has gotten alot better, and with these newer channels coming down the line soon, I am thrilled!

And TimeWarner's DVR service is the best I have ever used, besides for Tivo. Include in the "Start Over" feature, which is coming soon, and we have even more DVR power.

Also, I do not check all of the time, but I am almost always on 720p or 1080i signals to both of my HDTV's while on an HD channel (Fox included).

RE: Smart Move for TW
By Staples on 5/1/2008 12:30:17 PM , Rating: 2
I am a fan of TWC. They offer great service in San Antonio and have always done so.

As far as CNN HD, we get it and there is very very little HD ever on that channel. I think TWC could have easily gone with another channel that actually has HD content.

Just dont touch my Internets
By kattanna on 5/1/2008 10:16:22 AM , Rating: 2
honestly dont care what they do with themselves.. just leave my 10Mb down, 1Mb up internet alone and working.. unless you want to make it faster!

when im downloading and i see im getting between 1100-1200KB/s it always brings a tear to my eye.

RE: Just dont touch my Internets
By kattanna on 5/1/2008 10:17:33 AM , Rating: 2
oh yeah.. i dont use them for TV, for that i have dish. only internet and phone service.

was a happy day when i was able to tell AT&T where they could go

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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