Day two of The Cable Show was a little more focused on the technology side of the industry with the Society of Cable Telecommunications Engineers’ panels getting into full swing and the show floor getting its first full day of exercise.

At a show devoid of big splash announcements, the emphasis appears to be more on larger trends that are more evolution than revolution. Among the highlights:

• Broadband Nation, an exhibit within the exhibit hall, provides several good examples of how cable operators can monetize the broadband pipe. It’s nice to see the cable industry finally comprehending the idea that just providing a fat data pipe into the home doesn’t necessarily mean having a differentiated product. Broadband Nation spells it out in simple terms with e-health, distance learning and digital media Anywhere demonstrations.
• The stimulus bill that is providing more than $7 billion to expand broadband in the U.S. is getting a different reception depending on the MSO. Brian Roberts, CEO of Comcast, has been quoted as saying the company won’t be applying for any stimulus money, a thought backed up by other Comcast executives I spoke with today. Several smaller operators and the lobbying group behind them, the American Cable Association, however say the bill will be a significant help and is a key element to the industry’s expansion.
• Upstream capacity is a looming issue, according to many vendors. Arris is claiming a breakthrough in being able to bond multiple upstream channels per the DOCSIS 3.0 specification and a customer in Japan. But several other vendors including Motorola say the issue is a bit more complex than simply gluing together existing bands. Expect the issue to start rearing its head and cause cable operators pain in about a year as HD camcorders becoming a mainstream consumer product.
• Network-based PVR is the elephant in the room. At a panel of four leading technologists–Cablevision SVP Jim Blackley, Time Warner CTO Mike LaJoie, Rogers CSO Michael Lee and Comcast CTO Tony Werner, The silence was deafening–moderator Jim Chiddix asked if Cablevision wins its Supreme Court case and is allowed to provide NPVR would other follow suit. The silence was deafening.
• Bit capping also is a divisive issue. At the same panel, Lee talked through the process Rogers used to implement bit caps without causing 99% of its users to squaw. LaJoie, whose company has been testing the concept in Texas, was on board with the idea of tying consumer’s broadband bills to usage while Werner was interested but not announcing anything. Blackley, noting that the company compete with Verizon’s FiOS and AT&T’s U-Verse products, came down squarely against the idea saying, “we don’t want to give consumers more to think about.”
• Blackley also had the quote of the day. Speaking of bit caps and not wanting to complicate the issue for consumers, he said, “we think [broadband] is a pretty powerful drug and we want people to consume more of it.”