19/01/2012 01:17
mintek.com
Is CPE Repair a Thing of the Past?
Old Cable Warehouse CPE
I
t is not difficult to be overwhelmed by all the new
technology being developed. After all, advances Management
in cable and telecommunication technology
have made content available in living room game For old time cable customers, our cable box was only
consoles, changed if it stopped working or needed constant
smartphones, tablets and personal computers. repair. Cable technicians would come to your house
and usually switch out problem CPE. CPE was then
transported back to the cable warehouse, tested,
repaired and tested again and then returned into
service.
Cable warehouses have a section dedicated to the
testing and repair of CPE. For smaller cable MSOs
this function might be outsourced and has enabled
the CPE repair businesses to thrive. In either case,
CPE repair is a significant portion of the cable MSO
operating budget enabling.
In the past when CPE such as a particular set-top
box was discontinued it would be exchanged for a
newer model on a technicians visit. However, if the
The rapidly changing technology is bound to force model was still active the CPE would be sent to the
cable MSOs to fundamentally alter their business repair area of the cable facility.
operations models when it comes to customer pre-
mise equipment (CPE) repairs. This is because cable New Cable Warehouse CPE
http://www.mintek.com/blog/cpe-management/cpe-repair-past/
MSOs have traditionally had a significant portion Management
of their cable warehouse management and annual
budgets dedicated to CPE repair. Now, switching out CPE is more common now as
subscribers have demanded HD ready set-top boxes
A change will occur because new technology be- to view content. However, changes in content deli-
comes obsolete almost as soon if not before it even very systems such as a Xbox gaming console or iPad
hits the market. It does not seem logical that cable combined with technology advances (HD) result in
MSOs continue to repair obsolete technology. fewer CPE units needing repair.
As a result, cable MSOs will soon find out that it is no
longer economically viable to repair CPE and that
like a Smartphone or PC it is easier to just replace
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19/01/2012 01:17
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Is CPE Repair a Thing of the Past?
them. How will cable MSOs and outsourced repair CPE Warehouse Management that
vendors react? Some possible solutions are: Won’t Change
• Cable MSO will increase the percentage of A change in CPE repairs will not affect core business
repair work outsourced to 3rd party ven- operations as long as cable MSOs continue to supply
dors. This is good news (albeit short-term) CPE to subscribers. This means that for the fore-
for 3rd party vendors. Outside vendors will seeable future cable warehouse management should
ultimately have to adjust their business mo- still be focused on:
dels as CPE repair work will not be a growth
area. • Improving warehouse logistics through the
• Resources previously spent on CPE repair use of a cable hub and spoke distribution
can be used to increase the technical le- system.
vels of field staff. This is necessary as field • Managing 3rd party vendors or contractor
technicians and sales people will require to ensure quality service as well as reduce
additional training to keep pace with subs- CPE theft.
criber’s needs and home/business configu- • Improving cable warehouse management
rations. through the use of automated systems and
• Cable warehouse management replaces serialized reconciliations.
repair areas with a greater variety of CPE
to reflect different subscriber demands. In No one knows for sure which technology will ar-
other words, cable MSOs will need to carry rive next and which product will be dominant in
CPE stock other than their traditional set-top the marketplace. The future of CPE management
boxes. is certainly up in the air. What we do know is that
• CPE disposal methods will increase in im- change is coming and the best cable MSOs will be
portance. Cable MSOs will need to adjust to prepared.
developing electronic disposal guidelines
and developing regulation. This will open How do you think set-top technology will impact
opportunity for 3rd party vendors to re- cable MSO operations? If you liked this article you
place repair based operations. may also enjoy reading:
http://www.mintek.com/blog/cpe-management/cpe-repair-past/
It is not just cable warehouse operations that will be Cable Capital Budgeting, Cable CPE, Cable Ware-
affected. In order to execute a successful change the house Management
budget process will also need to be adjusted. New
CPE will need to be purchased more often setting Did you like Is CPE Repair a Thing of the
the stage for a significant change in capital expen- Past??
ditures and the way in which CPE is depreciated.
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In addition, new CPE naturally attracts theft. Anti- stuff for you:
theft measures such as serialized reconciliations
and vendor oversight will need to be improved. • It’s how we prove that it’s worth blogging to
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serious time.
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Is CPE Repair a Thing of the Past?
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Other Articles Written by stuart smith
Stuart Smith is Mintek’s InBound Marketing Specia-
list. He works hard at creating compelling content
to keep Mintek’s customers and prospects informed
with relevant information.
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