Broadband Bytes: March 7-13, 2009

A new study shows that broadband growth is starting to level off while a separate study claims we’re paying as much as $3 per minute for our cell phones. We’re also getting more details of the broadband stimulus package (sparse as they may be), Comcast claims to have more phone customers than Qwest (seriously!), and Google finally takes the wraps off of Grandcentral to rebrand it as Google Voice (phone operators, go ahead and wet yourselves). All that and more in this week’s Broadband Bytes!

  • Broadband is still growing, just not like it used to. With 59% of American households now on better-than-dial-up connections and a sagging economy, the broadband market is looking a lot like the cellphone market in that almost everyone who wants it has it. And how do you get the last little bits of the market? I’ll give you a hint: follow the wireless industry’s lead. They swooped in with cheap plans, pre-paid phones, and multi-line service to make sure that everyone became their customer. ISPs can do wild things like, say, offer WiFi service with fixed broadband plans.
  • How much do you pay per minute for your cellular phone? A recent survey in California says you’re paying an average of $3 per minute for your peak minutes. Even lopping off the top users takes the cost down to anywhere from $0.50 to $1.00 per minute. Granted, this study doesn’t factor in your “free” night, weekend, or in-network minutes, so take it with a grain of salt.
  • The NTIA held a kick-off meeting to discuss the upcoming broadband stimulus package, but they apparently came to the meeting without much in the way of answers. All the same, attendees were reportedly generally pleased with the kick-off and the NTIA would really like to know your opinion. The House is even thinking about rewriting USF rules to allow for the money to be spent on broadband. It’s not all sunshine, though. IPI, a “stink tank” much like The “Reason” Foundation, is trying to block any efforts to fund muni efforts. Because, you know, incumbents did such a bang-up job deploying affordable and widely available broadband.
  • Comcast says that it’s picked up enough phone customers to be the third largest phone company in the country right behind AT&T and Verizon. (Sorry Qwest, but we knew this day would come.) They’ve been very aggressive at marketing phone service (unlike Qwest), offering competitive pricing on triple-play packages (unlike Qwest), and doing a lot of work to improve their company image (three strikes; guess who’s out). Not satisfied with their current numbers, Comcast is suing the feds so they can get bigger. The FCC currently prohibits any cable operator from owning more than 30% of the national market.
  • Remember Grandcentral? You know… phone number for life, rings all of your lines, intelligent forwarding, hasn’t done anything for the last two years as Google sat on their purchase. Sound familiar? Well, Google finally unveiled Google Voice, the successor to Grandcentral. In addition to all of the other great calling features of Grandcentral, they also tossed in SMS forwarding and automatic voicemail transcription, both searchable with Google’s own search technology. They aren’t open to any new users just yet, but the feature-rich services they offer are something worth copycating. Oh yeah, and they’re going to do super-cheap international calls. Think that phone companies may be a bit edgy?
  • Sprint is moving one step closer to dumb pipe operator by hinting that despite betting the farm on WiMax via Clearwire, they haven’t ruled out using LTE in the future. Despite the impression that WiMax and LTE are day and night, the difference is more in the software than the hardware. I think Sprint is getting ahead of the curve and realizing that operating the wholesale pipe is a lot more stable than trying to please end users, a task it has proven ill-suited at handling. Given the massive vertical integration of landlines, video, fixed data, wireless, and mobile broadband from giants AT&T and Verizon, Sprint’s exit from the telco business by spinning off local operations as Embarq, and further pressure from Cox Communications, Time Warner, and Comcast as they ramp up wireless products, Sprint may have seen the writing on the wall.
  • Verizon’s big FIOS builds aren’t just benefiting dense East-coast towns. Their insatiable demand for fiber has dropped equipment prices substantively allowing smaller telcos to go fiber-to-the-home. Even Utah’s own Manti Telecommunications Company is reported to be getting in on the action. With equipment costs dropping like a rock, now you just have to worry about the high cost of trenching and being obstructed by your “friendly” local incumbent.
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3 Responses to Broadband Bytes: March 7-13, 2009

  1. u235sentinel says:

    I just hopee Qwest get’s bought out by say Verizon so we can have FIOS in the area. At least that’s the rumor that should Qwest get bought out then FIOS would be coming.. Especially since Qwest is installing Verizon switches and other equipment the last couple years.

    At present Verizon says they have no plans for bringing FIOS here in the next 10 years.

    Pity.

  2. Jesse says:

    Some experts think that a foreign company could buy them out a la Chrysler. At this point, any buyout would be a Good Thing(TM) in my book.

  3. Jonathan says:

    I do find it a little ironic that with Qwest’s change to Verizon for Wireless. Those customers will be helping to pay for Verizon FIOS.

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