I posted this in the other thread before I noticed the double-OP.
Your local broadband provider provides only the “metropolitan area network” or MAN. This would let you talk to your neighbor, the guy down the street, or a business half-way across town, but it won’t let you get to the Internet. That’s what Excite@Home does: they provide the “wide area network” (WAN) connection that lets you get onto the Internet as a whole. Excite@Home owns (well, actually, leases, from AT&T) the network connectivity that lets cable modem users get anywhere on the world.
What is needed to be an Internet service provider is (a) some means for your customers to connect to you, (b) some means for you to connect to the rest of the Internet, and © a router to connect these two systems together. (Other things, such as email servers, are generally also used, but these are not absolutely fundamental to the basic function of providing network access.)
In the case of a dialup service provider, (a) is a modem rack and a lot of phone lines, (b) is a high-cap data connection, usually either a high-cap copper or optical fiber line directly to one of the large data backbone providers like WorldCom, Sprint, Qwest, or AT&T, and © is a device known as a “router”. The ISP’s routers concentrate the data from all its relatively low-speed user connections onto its high speed connections, and sort out the data coming back from those high speed connections for distribution to users.
In the case of a cable modem provider, the only thing that changes is the telephone-based network is replaced by the cable network. Instead of a modem rack and phone lines, the ISP installs what is called a “cable modem termination system” (CMTS) like the Cisco uBR7200. These devices pull the data packets off the cable the same way a telephone modem pulls them off a phone line. (A CMTS is basically a lot of cable modems smashed into one box.) Once the packets get to the ISP, they get treated the same way.
Excite@Home provided the routers and the high-speed data connections to each participating cable company (as well as some other services, like email and news). The cable companies merely provided the cable modem network. So, what the cable companies left in the lurch by Excite@Home have to do is obtain their own routers and their own high speed connections. For some, like AT&T, this is trivial: AT&T already owns a huge high-speed network and can easily repurpose or buy the necessary equipment. Others, like Cox, have to make arrangements with other companies to get the high-speed network access.