In quite the surprise announcement today, Qwest announced that its efforts to dress the company up for sale over the last decade have finally paid off. CenturyLink, the result of a merger between ILECs CenturyTel and Embarq, is buying the company in an all-stock transaction. This comes not even a year after the merger that created CenturyLink, one in which CenturyTel purchased Embarq.
What remains to be seen is if this will improve Qwest’s long-ailing fortunes and legendary reputation for horrible customer service. I used to be a customer of Sprint Local in Las Vegas before it was spun off into Embarq and was always impressed with the service quality. The only reason I discontinued service was because Vonage was offering a very compelling feature set at a more attractive price. I don’t know how much of Embarq has rubbed off on CenturyTel (or even what CenturyTel’s reputation is), but any amount of it would help.
That said, I wonder if the new company will have the billions of dollars required to update badly-neglected infrastructure. It’s no secret that Qwest carries a very heavy debt load and hasn’t exactly been speedy with the rollout of ADSL2+ services. They also have no wireless or video revenues to cross-subsidize construction… and neither does CenturyLink. As land lines continue to death spiral and cable turns up the DOCSIS 3.0 heat, I’m left wondering how the new company will fare too much better than the old one.
Good luck, guys. You need as much of it as you can get.
Headlines this last week have been dominated by the DTV switch, The Pirate Bay’s trial, and a finalization of the broadband stimulus amount. There were also announcements on 4G wireless from AT&T and Verizon as well as more movement towards online video (and a big step back for Hulu). All this and more in this week’s Broadband Bytes!
The broadband stimulus number has firmed up at $7.2B in total spending and BPL looks like an unexpected back-from-the-dead winner. IBM plans to apply for stimulus funds to roll out BPL service to over 200k rural customers. The challenge is determining just which areas are considered underserved or unserved. Public Knowledge slammed Connected Nation, a broadband mapping group, as nothing more than a front for big ISPs and accused them of making up bogus broadband maps to serve their interests. It’s entirely possible that Connected Nation could score the lion’s share of the $350M in funds for mapping, a scary proposition if the accusations are true. After all, this isn’t the end of federal broadband efforts.
There’s a new attempt in Congress to force ISPs and hotspot owners to keep 2 years worth of access and subscriber logs to assist law enforcement. The justification, as usual, is that retaining the data will help catch people dealing in child porn. Unfortunately, keeping and managing two years worth of access logs is a huge undertaking, especially for wifi hotspots and home owners who choose to share their connection. Such efforts have typically died in committee despite previous pushes from both sides of the aisle.
In what I can only hope is the start of a trend, Linksys will be selling a router with integrated Internet security software. It’s only going to block malicious or suspicious websites for the time being, but future models could integrate anti-spyware and anti-virus. If someone offered such a device, I would definitely buy one. It beats installing resource-hogging security software on every PC.
Recession-influenced special pricing continues as operators struggle to hold on to cash-strapped customers. Sprint rolled out a new “Simply Everything” plan that adds laptop data (but not phone-as-modem) for another $50 a month. T-Mobile is also rumored to be looking at unlimited options of it’s own including a $50/mo unlimited voice plan as well as a $85/mo unlimited mobile voice and data plan. Verizon, though, takes the cake for considering a $5/mo inbound-only landline. Utah, though, is taking a step back. The legislature approved a move to upcap phone service rates for incumbents like Qwest and it is largely expected to be signed off on by the governor.
Congress passed the broadband portions of the stimulus package and just barely dodged some really nasty provisions while the DTV delay looks less than crystal clear. We’ve also seen Qwest’s abuse of monopoly power to shut down a rival ISP, both good and bad economic news (including Charter’s bankruptcy) and Fairpoint’s big bucket of fail in taking over Verizon assets in rural New England. All this and more in this week’s Broadband Bytes!
The Qwest vs. SkyWi fight got even uglier as the CLEC sold off its VoIP business citing the problems it has had with Qwest. The incumbent’s willingness to throw around its weight was no doubt designed to put other CLECs on notice as to who exactly is in charge. This certainly highlights a stronger need for competing transport options like UTOPIA.
Fairpoint has managed to make a fine mess of their takeover of Verizon’s rural New England network assets. Not only did they manage to screw up a bunch of e-mail accounts, they also seem to not be paying employees for overtime owed as a part of the transition. Not exactly a good first impression, is it? Unfortunately for them, Verizon’s last network spin-off in Hawaii ended in bankruptcy. Hopefully Fairpoint can avoid a similar fate.
As The Pirate Bay prepares to go on trial for copyright infringement and faces the possibility of shutting down, some have started wondering if it could lead to a collapse of bitTorrent as a whole. The website currently indexes over 50% of all torrents and the remaining torrent sites would probably be unable to handle the load created by the resulting vacuum. I’m sure that would make Cox’s planned network management a bit easier.
Good idea: trying to retain customers. Bad idea: using LNP requests to do it. The US Court of Appeals told Verizon that using LNP requests to convince customers to not switch their phone service is a big no-no. That means that the time for retention is before you get the Dear John letter.