What type of device allows cable operators to deploy an All Digital Network cost-effectively?

The Digital Converter Terminal is instrumental for cable operators transitioning to an All Digital Network because it facilitates the conversion of digital signals into formats that can be understood by legacy analog devices. This conversion is crucial in helping cable operators to efficiently manage bandwidth and enhance service delivery while minimizing infrastructure costs.

With an All Digital Network, the Digital Converter Terminal enables operators to harness the benefits of digital broadcasting, including higher video quality, more channel offerings, and improved data services. These terminals are cost-effective solutions that allow for a streamlined process in deploying digital content to viewers, thereby promoting operational efficiency and customer satisfaction.

In contrast, other devices listed like the Interactive Digital Set-Top Box, Compressor Tool, and Digital Video Recorder serve different functions within the broader operational ecosystem of cable services. The Interactive Digital Set-Top Box is specifically designed for customer interaction and programming access rather than network deployment. The Compressor Tool is used for signal processing rather than for distributing digital signals, and the Digital Video Recorder focuses on recording and playback functionalities. Thus, the Digital Converter Terminal stands out as the most suitable device for cost-effective deployment in an All Digital Network.