KaTel will take over the air frequencies, and coaxial/fiber lines. In doing so, they will provide three tiers of TV services. These tiers will be similar to what one might pay a cable company, but since KaTel is a government owned business, there are no stockholders to please in keeping television prices high.
The first tier will be the free network television stations. In the US as an example, this will include ABC, CBS, NBS, and PBS as some examples. In locations where fiber optic is already laid, these stations will be moved to the land based connection – therefore eliminating the need for over the air frequencies. This will give everyone near equal access to these stations, and in locations where there is no fiber optic, the station will air over the air until fiber is laid in that location.
The second tier will be cable channels where TV commercials play in the intermission of TV shows. These channels will be charged a fair nominal price – keeping rates affordable. In addition, KaTel will charge a nominal fee to these companies for airing their channel. They will expect to make their money from TV commercials.
The third tier will be premium television networks such as Cinemax, HBO, and SHOtime. Katel will charge the customer for these channels, and will split the profits with the respective company.
In all instances, there will be no need for a cable box as the IP address will be used to define subscription levels. This will mean one less thing the customer will have to rent, or KaTel has to manage.