Making the Choice - Satellite Or Cable TV?

With the move to Digital TV, right around theon this list. Satellite companies will gladly provide
corner, many are making a decision regardingthe same combinations to their customers, though
upgrading their TV service. The question now isthey must usually partner up with communications
what. Satellite or Cable. We here at Digital Landingcarriers for Internet and telephone services. You
try and answer some common question forcan get a true "triple play" from cable companies
those ready to make the leapsuch as Time Warner or Cox, for example. If you
Q: What is satellite TV service? How much does itturn to Dish Network or DirecTV for triple play, a
cost?company such as AT&T or Sprint/Nextel is
Satellite TV service gets its TV signals fromalso likely to be involved in delivering those
satellites in geosynchronous orbit. Because theyservices to you.
stay in the same position relative to the earth'sQ: Do satellite or cable providers require service
surface at all times, once a satellite antennacontracts or commitments?
(usually, a dish of some kind) is properly aimed, itSometimes. Satellite companies require
can be left as-is thereafter. Satellite signals arecommitments, and cable companies sometimes
broadcast from a ground station to multipledo. If you are simply signing up for cable TV, you
satellites, which then broadcast those signals backmost likely will not need to sign a contract. But if
to the earth across huge expanses of territory.you bundle another service into the deal, such as
Anybody with a satellite dish (the antenna), plusphone or Internet hookup, then the company will
the proper signal processing gear (a set-top boxlikely have you sign a contract.However, even for
of some kind, usually called a satellite receiver, issatellite where a commitment is required, you can
required for each TV set on which you want tooften talk your way out of contractual
watch the provider's programming) that can "see"commitments if you can make a substantial case
a satellite can pick up the signal. A single antennathat you're not getting the services you paid for,
can feed multiple satellite receivers, but a physicalor you have legitimate reasons to be profoundly
cable is routed from the antenna to each receiverdissatisfied with those services.
(inside the house, both cable and satellite TVQ: What happens to the provider equipment when
require cables for each TV set).you cancel your service?
Satellite providers control access to theirGenerally, you will be held responsible for the safe
networks by including special encryption andreturn of equipment in situations where the
encoding in their signals, and tightly controlling theprovider has furnished you with set-top boxes,
equipment that can read and play back thoseremote controls, and so forth that it owns and
signals, to prevent unauthorized users from tuningyou do not. That usually means you must return
in and obtaining free TV service.the equipment to them yourself, or pay for a
Satellite TV service costs vary, primarilyservice call to have their field service personnel
according to the channels that subscribers elect tocome and pick the equipment up at your house.
pay for. That said, both DirecTV and DishOtherwise, you will receive a bill from the provider
Network (the two primary satellite providers infor that equipment, and it generally includes
North America) offer basic packages for $20 toenough zeroes to command serious attention and
$25 per month. Add-on options for HDTV, sportsswift action (Author's note: I moved recently and
channels, movie channels, and so forth usuallyhad to return the equipment from the old house,
cost anywhere from $8 to $25 per month eachalthough I stayed with the same provider. Thirty
(or come in season-long subscriptions for sportsdays after the move, a bill for $700 for a digital
such as NFL football, NBA basketball and so forth).and an analog set-top box and remotes showed
Lots of bundles are available in the $30 to $55 aup, and spurred immediate action to avoid
month range, but it's easy to spend $100 apotential credit problems that might have
month or more on satellite TV services, especiallyotherwise resulted).
if you like sports or movies, or both.Q: How does service availability differ for cable
Dish Network offers equipment to subscribers atand satellite? What effects does this have on my
no charge, including DVR (digital video recording)TV signal?
or HDTV (high-definition television) receivers.The biggest difference between cable and satellite
DirecTV charges $99 for SDTV DVR receivers,is availability. Cable is available only in
and $299 for HDTV DVR receivers (check forneighborhoods where the provider can run a cable
rebates).into your home. Satellite is available anywhere you
Q: What is cable TV service? How much does itcan put an antenna that can "see" one of the
cost?satellite provider's satellites in orbit (this does
Cable TV service basically entails running a physicalrequire a line of sight to that satellite). In most
broadband cable into your household, usually somemetro areas, cable is a viable option and worth
kind of high-bandwidth coaxial cable (though somecomparing to satellite. In most rural areas, satellite
fiber-optic-based offerings are starting to becomeis the only option, because cable isn't available.
available in some markets). Cable TV companiesWhether you set up your satellite dish in an urban,
operate various types of broadcast equipmentsuburban or rural setting, a clear line of site to the
that essentially combine hundreds of analog andsatellite from the dish is an absolute must. In
digital TV channels into a single cable that can besome cases, trees or other buildings may partially
decoded and interpreted when passed into theobscure that line of sight, and will have a negative
right kind of set-top box. Cable companieseffect on signal quality. That can be particularly
monitor the hardware attached to their networksvexing when the weather gets bad, and high
very closely, and permit only devices with knownwinds move trees into the line of sight when
physical hardware addresses to access theirthey're not ordinarily a problem. Be sure to get
signals. Though you can buy your own cablethe dish situated with the clearest possible line of
equipment in some markets, you can't use thatsight to the satellite, to minimize the effects of
equipment until the provider reads its hardwareweather or obstructions, occasional or otherwise.
address and enables it to work with their signals.Q: How do high-definition TV (HDTV) offerings
As with satellite TV, a set-top box is generallyfrom satellite and cable providers compare? Who's
required for each TV set on which you want togot the edge?
watch cable TV signals, and a physical cableFor both types of providers, you must usually
hook-up for each such box is also required. Mostobtain HD-capable set-top boxes to permit you to
cable providers also have to ensure that individualview HDTV signals in the first place. This will
hook-ups are "digital ready" before they canusually add to your recurring monthly equipment
accommodate digital set-top boxes and HDTVcosts (cable or satellite) or equivalent purchase
signals.costs (satellite). Then, you must sign up for one
Basic cable TV costs are generally in the sameor more HDTV packages so you will have some
league as basic satellite TV costs--again $20 toHD programming to watch. From both types of
$25 a month--but cable TV providers are subjectproviders, you can sign up for various types of
to local fees and taxes (satellite providers areHD programming (basic HDTV package, HD
not), and you must generally rent set-top boxesmovies, HD sports, on-demand or pay-per-view
from cable providers for anywhere from $3 aHD programming). Generally, most cable stations
month per device (more for those with digital,top out on HD channels somewhere between 80
HDTV or DVR capabilities). In general, the cableand 120 stations; both major satellite providers
company not only controls but also owns theoffer 140 HD stations or more. Note that these
equipment you use to watch their programming.stations are split among various channel packages,
So, basic cable generally costs anywhere from $5so there will be extra fees to obtain most or all
to $10 a month more than satellite for similarof them). Therefore, satellite has the HD edge
service, plus $3 a month and up for each set-topright now.
box you have installed. You can omit the set-topQ: How does installation compare for cable versus
boxes on the additional TVs, but you will probablysatellite?
not be able to receive all the cable channels youWhen it comes to cable, installation generally
pay for on those sets.comes as part of initial account set-up. The cable
Q: How do the costs for cable and satellite TVcompany generally sends an installer out to make
service compare?sure the cable is hooked up and working properly
Most experts generally rule the cost equationat all outlets when you establish your account.
slightly in favor of satellite, even when you haveGenerally, there is no extra charge for that
to buy the equipment you use to receive (andservice. You can return to a local cable provider
sometimes, to record) TV, be it standardoffice to swap out equipment after the initial
television or HDTV. That's because the costs ofset-up.
renting cable equipment generally exceed thoseSatellite can be a different matter. Though most
for buying satellite equipment over time, andaccount set-ups have an option for professional
because the regular monthly fees and taxes thatinstallation, charges can be associated with that
get tacked onto cable TV charges also add to theservice. Still, it is strongly recommended to have
overall cost. That confers only a slight edge,antennas, cables and set-top boxes professionally
however, and shouldn't be the only factorinstalled, charges or not. Sometimes, satellite
involved in your selection.providers waive installation fees as part of
Q: How do costs of equipment purchase comparepromotional campaigns, or in return for
to rental costs?longer-term account commitments. Check the
When satellite providers offer equipment at noterms and conditions carefully, and ask about
charge, they generally require at least a one-yearinstallation and set-up as part of your overall
subscription commitment or a contract of similarbackground research before making any account
duration. When they charge for the equipment, itcommitments. If anything, installation is even more
usually costs anywhere from $49 for a basicimportant for satellite than for cable; proper
standard TV set-top box, to as much as $299antenna positioning and aiming is key to obtaining
for a set-top box that can record HDTV signals.the best possible signal.
Cable operators generally charge $3 per set-topQ: How do service and support compare for
box per month ($36 a year) for basic standardsatellite vs. cable? Which of the two experiences
TV devices, and up to $10 a month ($120 permore outages?
year) for set-top boxes that can record HDTVAccording to JD Power and Associates, satellite
signals. If you stay with either provider longercustomers consistently rank both major satellite
than two or three years, the satellite serviceproviders as among the best of all companies
costs come out somewhat lower than the cablewhen it comes to service and support. Cable
service costs because you'll typically pay off thatproviders fare worse, typically receiving grades in
equipment somewhere in the second or third yearthe fair to poor range from the majority of
of ownership, as compared with cable TV costs.customers. Also, cable operators report outage
But such equipment generally needs to berates of 3 percent nationwide, while satellite
replaced every five to seven years (if not moreproviders report outage rates of less than 1
often for real equipment aficionados), sopercent. Most experts agree that satellite beats
equipment costs do continue to factor into thecable when it comes to customer support and
overall burden for either type of service.service and in terms of overall uptime and
Q: What kinds of equipment are required for cableavailability.
service? For satellite service?Q: Does digital TV matter more for cable or
For both services, each TV set on which yousatellite service?
want to watch provider programming requires aBecause satellite TV is all digital, and cable can
set-top box of some kind, which may or may notdeliver both digital and analog TV across its
include any or all of the following: analog TV signalsbroadband infrastructure, you might say that
(satellite is all-digital, so this applies only to cable),digital TV matters more for satellite. Also, FCC
digital TV signals, HDTV signals, plus digital videorequirements that all broadcast signals be digital by
recording for standard TV (less expensive, moreFebruary 9, 2009, don't apply to cable because
hours of TV recording per device) and HDTVcable signals aren't broadcast over the air in a
(more expensive, less hours of TV recording perconventional sense. Most cable companies are
device). Note that all HDTV programming is digital,converting aggressively anyway because of the
and an increasing number of standard televisionhigher quality and easier manageability of digital as
channels are also digital; the FCC mandates that allopposed to analog technologies. Because HD is
U.S. TV broadcasts will be digital by February 9,digital by definition and most of the growth and
2009.innovation is occurring in this area, the
Q: What are the primary differences betweenmarketplace is driving cable companies to be as
cable and satellite TV services?capable and competitive in digital programming as
That's tough to say, because the hundreds ofthe satellite companies.
cable TV providers that exist all have somewhatQ: How does local channel access compare for
different offerings, and because even thesatellite versus cable?
offerings from the two primary satellite providersNormally, cable companies make arrangements
also differ substantially. Conventional wisdom iswith all local broadcast television stations to carry
that satellite TV offers more and better for-a-feetheir signals on cable wherever they offer cable
sports and entertainment packages, and aservices to their customers. Local access on
broader selection of HDTV channels, while cablesatellite varies to a great extent, so that you can
TV offers more and better local stations (theyexpect access to local channels in most
will often rebroadcast all of the OTA channels in ametropolitan areas, but station availability in rural
viewing area on cable, and usually operate one orareas will depend on what stations are active in
more stations of their own including news,the broadcast area, and whether or not the
weather, and public access programming).satellite company has made arrangements to pick
Look closely at the stations included in theirup and include the signal feed from those stations
packages, and weigh the importance of thein the satellite feed available through your antenna.
availability of local channels when choosingOften, local channel access will be same for both
between the two offerings.systems; in some cases, cable may carry more
Q: How many channels are typical for cableor all of the local channels, whereas satellite may
offerings? For satellite offerings?carry only a few or some of those same
Basic satellite offerings typically include 40 to 50channels.
channels, and premium offerings usually includeQ: What does it cost to add sets for cable TV
140 to as many as 250 channels. Cable offeringsservice? For satellite TV service?
typically include at least 20 basic channels, andMost cable TV service offerings add an additional
another 50-60 standard channels, with as manycharge for each set-top box you use, and
as 200-300 more channels available in family,additional costs apply for digital signals (including for
lifestyle, news and entertainment bundles, plusHDTV channels) and for DVR capability. Costs
additional channels for HDTV, movies, sports andstart at $3 a month or so for set-top boxes, and
more.go up as you add features and digital support.
Q: What offerings differentiate cable and satelliteMost satellite TV service offerings include up to
services? What kinds of advantages result onfour hook-ups in the basic service cost. Often,
each side?that's because you must purchase your own
Satellite usually takes the edge when it comes toset-top boxes and/or DVRs (see question #2).
entertainment (movies, live concert simulcasts,Q: What if I want to use a digital video recorder
and special programming) and sports (especiallywith cable service? With satellite service?
for "season pass" offerings for all games in sportsGenerally, you can either rent a DVR from your
such as football, basketball, hockey and NASCAR).cable provider or purchase a standard or HDTV
Cable takes the edge in on-demand programmingDVR from a third-party company such as TiVo.
because the providers' equipment infrastructurePurchasing can be expensive: Standard TV TiVo
makes it easy to deliver rebroadcast of free andmodels start at approximately $300 and HDTV
for-a-fee programming on demand, and to delivermodels at roughly $800 and also come with
pay-per-view services for movies and othermonthly service commitments.
premium programming.With satellite service, you can often buy your
Q: What kinds of bundled services are availableown DVR right from the provider instead of going
from cable providers? Satellite providers? Whoto a third party. Third-party offerings such as
else gets involved?TiVo are also available at the same prices as their
When it comes to channel lineups, both satellitecable counterparts. Given the relatively high cost
and cable providers apparently compete on theof such equipment, it's often less costly to rent
same playing field. Both offer all kinds of familyrather than buy in this case.
channels, lifestyle channels, sport channels, newsQ: Overall, which type of service has the edge:
channels, movie channels and HDTV packages.cable or satellite?
Generally, cable takes the edge on local channelBecause of more and better HDTV offerings,
offerings and on-demand services, and satellitemore sports and interesting entertainment
takes the edge on sports and movie packages,offerings, and a better record for service and
as well as for high-ticket pay-per-view andsupport, most experts give an edge to satellite
entertainment offerings.over cable. But for those to whom "triple-play"
These days, both cable and satellite providerspackages (TV, phone, and Internet service) are
offer bundles of a different kind as well. Cableappealing, or for whom access to local channels or
companies invented the so-called "triple play"on-demand services is important, cable pulls ahead
terminology, wherein they deliver television,of satellite. Both will certainly do the job, and
telephone and Internet access to households on aneither has an absolute edge over the other.
single bill, usually at a discount from individual items