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.
Between visiting family in Sacramento for Thanksgiving and a business trip to Montreal (where the hotel apparently didn’t believe in reliable Internet service), I got a bit behind on the Broadband Bytes feature. Never fear: I’ll make it up to you with a special double feature to get caught up on the previous two weeks.
A recent study shows that 18% of HDTV owners can’t tell the difference between standard and HD programming. This may be why DirecTV can get away with claiming over 150 HD channels when they include 480p digital broadcasts. Also of interest is that 38% of all HDTV buyers are motivated by a broken/old TV set or are buying an additional set. A scant 22% bought their set for the better picture quality. There’s also a significant number of people who won’t upgrade to an HD set until well after the digital cut-off in February. Standard-definition video will be a significant player for some time to come.
It’s no wonder subscribers are shedding video packages. Price increases have been as regular as Yellowstone’s Old Faithful with Comcast, Time Warner and Bell Canada continuing to jack up the rate you pay. Qwest has decided to go in the other direction and extend their $15/mo offering (1.5Mbps/YourGuessIsAsGoodAsMineKbps). Comcast also upped the speeds on their value tier (from 768K/128K to 1M/384K), but it’s not as competitive as Qwest’s offering and was a direct response to Verizon making the same speed changes. Consumers are taking it into their own hands and finding ways to negotiate lower rates with thier providers. The French, however, are laughing all the way to the bank. Fierce competition has resulted in a triple-play package with 100Mbps data, VoIP and 120 channels of video for $38/mo.
Verizon continues to draw blood by not-quite-overbuilding AT&T U-Verse service areas. If the incumbents get into a full-scale war for customers down in Texas, you can bet consumers will be the winners. In other overbuilding news, it seems that BPL isn’t quite dead yet. While it’s a poor choice for end-to-end connectivity, it shows promise as the last mile of a FTTN system. With speeds of up to 400Mbps, it could very well spur even fiercer competiion.
The FCC is still trying to push a nationwide porn-free wireless network. The latest incarnation allows adults to opt out of the filtering, but, as usual, pretty much everybody is going home unhappy and nobody knows how the carrier that will eventually operate the network can end up turning a profit.