When the Salt Lake Tribune published their story as to what’s going on with Prime Time Communications, they noted that they were unable to reach anyone for comment. Yours truly, however, scored a 40-minute phone interview with Bryon Wentzlaff, one of their VPs. From the sounds of things, it’s just one more example of why telecom is a tough business to break into no matter who you are. Prime Time hit a point where they were not making money and didn’t project doing so for the foreseeable future.
It feels like the summer TV season as most of the news this week is reruns from last week. The DTV delay and broadband stimulus continue to dominate the news headlines. We also saw the launch of Lafayette’s fiber project, some new gadget news and more bad news from device manufacturers and SPs. All this and more in this week’s Broadband Bytes!
After years of lawsuits, construction and industry sock puppetry, Lafayette finally has a fiber network open for business with highly competitive pricing. The utility system owns and operates the network as the sole service provider, offering both triple-play packages and 100Mbit connections on-network. The network should be fully deployed by 2011. Prices are averaging a good 20% below what Cox Communications and AT&T, the local incumbents, currently offer. I’m sure you can expect both of them to go on a price-slashing frenzy, much like local incumbents have done ahead of UTOPIA and iProvo. Of course, you could be a smart incumbent like Dutch provider KPN. They partnered with municipal efforts to deploy FTTP and have reaped big rewards, even with a bunch of competing service providers.
Caps and throttling refuse to get out of the news. Cox Communications is busy trying to defend its network management plan to the FCC as video provider Vuze keeps on sniping at them in the news. Comcast also had to explain how its VoIP system works in relation to its network management policies, claiming that because it is a managed service it shouldn’t be treated the same as other traffic types. Time Warner, meanwhile, is rolling out caps to more markets, albeit with higher caps that what they’ve been playing with in Beaumont, TX. Charter is going whole-hog with a system-wide cap policy that’s about as generous as Comcast’s. The best way to make sure you don’t get on the bad side of customers, the FCC or some of the “net neutrality” zealots is to make a clear and concise policy, publish the full details and make sure that any management scheme is generous, fair and only active when absolutely necessary. Software companies are already putting out packages to make management easier and less likely to alienate your customers.