The cable television industry is facing competition from companies using advanced technologies.

The use of microwaves allows programs to be beamed, at low cost, to locations not accessed by cable. This technology, if successful, could eliminate the need for the current high-fixed-cost, physically intrusive cable systems. What information do cable companies need in order to evaluate the potential of microwave TV? What is a limitation associated with estimating demand for microwave TV? Why don't cable companies just wait and see if microwave TV is a success?