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11 Cities Getting Verizon 5G Beta Test; No Details on Speed or Pricing Yet

Verizon will invite several thousand customers in 11 cities to participate in a “pre-commercial” beta test of its newly built 5G wireless network during the first half of 2017.

The fixed wireless, home broadband replacement will be provided over a limited coverage area in these cities: Ann Arbor, Atlanta, Bernardsville, N.J., Brockton, Mass., Dallas, Denver, Houston, Miami, Sacramento, Seattle and Washington, D.C.

Verizon’s announcement only generally promotes the future potential of 5G service without being too specific about what it intends to offer. We expect the service will be marketed as a wireless home broadband service, not for those on the go. There is no finalized standard for 5G service yet, so Verizon’s adaptation isn’t necessarily going to be the final standard and could change before the wireless provider expands the service to other customers.

“The 5G systems we are deploying will soon provide wireless broadband service to homes, enabling customers to experience cost-competitive, gigabit speeds that were previously only deliverable via fiber,” said Woojune Kim, vice president, Next Generation Business Team, Samsung Electronics.

Verizon’s ability to offer gigabit speeds will depend on several factors:

  • Backhaul connectivity: Verizon will likely choose areas where fiber connectivity is already installed, either as part of its FiOS project or through its fiber connections to cell towers. Because of the very high frequencies involved, 5G connectivity will be line-of-sight and the coverage area will be very limited, within a mile or less of the tower or small cell infrastructure Verizon will depend on to provide service to each neighborhood.
  • Distance and signal quality: 5G service will be distance sensitive and fixed wireless will require the installation of an antenna either pointed out a window or installed externally on a building. The further away, the slower the speed.
  • Shared network: Total available bandwidth on a 5G tower or small cell is shared among all users connected to it. During the initial beta test, speeds are likely to be very high. That may not stay the case as Verizon adds customers to its service.

Verizon has avoided mentioning specific speed tiers, pricing, whether service is unlimited or usage capped, equipment costs, and contract terms. We are also not aware if the service will be marketed by Verizon Communications, the wireline company that also markets FiOS or Verizon Wireless, the mobile operator side of Verizon.

Several of the test cities represent Verizon’s first home broadband invasion on other providers’ turf. Frontier Communications is likely unhappy to learn it faces direct competition from Verizon in Dallas. Verizon sold its landline and FiOS network in Texas to Frontier. Most of the other test cities seem to avoid direct competition with Charter Communications, as almost all are serviced by Comcast. The new 5G service will also compete directly with AT&T in Michigan, Georgia, Texas, Florida, and California.

CBS Rakes in $1 Billion in 2016 from Cable, Satellite TV Customers

Phillip Dampier February 20, 2017 Consumer News 3 Comments

CBS earned $1 billion from cable and satellite TV customers in 2016, collected from providers in return for permission to carry CBS stations on their lineups.

“Annual revenue from retransmission consent and reverse compensation has already exceeded $1 billion, a full year ahead of schedule, and continues to grow rapidly,” said CBS CEO Les Moonves in a statement.

Most cable and satellite providers pass along those fees directly to consumers either in the price charged for service or through so-called “Broadcast TV surcharges” that are broken out separately on the bill. CBS has plans to more than double those fees, with a target of collecting $2.5 billion annually by the year 2020. One-third of CBS’ national coverage area will face contract renewal discussions in the next 24 months, leading to higher priced renewals.

Other networks are also expecting similar compensation boosts, and SNL Kagan projected operators would be passing on $10.6 billion in broadcast TV retransmission consent fees within the next three years. That could raise the Broadcast TV surcharge to $10-15 a month in some areas, just to cover fees charged by local ABC, CBS, CW, FOX, MyNetworkTV and NBC stations.

Some of the windfall profits CBS are collecting from retransmission agreements could be spent acquiring more TV stations, if FCC Chairman Ajit Pai loosens TV station ownership limits.

“If the cap is lifted we’d strategically look to buy more stations,” Moonves said.

Charter CEO Admits You May Be Sharing Your Internet Connection With 499 Neighbors

The average Charter/Spectrum customer shares their internet connection with up to 499 of their neighbors, according to an admission made today by Charter Communications CEO Thomas Rutledge.

“Our average node size is around 500 homes,” Rutledge told investors on a morning conference call.

According to a lawsuit filed by the New York State Attorney General Eric Schneiderman, from about 2012, Spectrum-TWC’s network across New York typically provided about 304Mbps (8 x 38Mbps channels) of bandwidth to be shared among all the subscribers in a service group. In some areas, this would mean that 300 customers in a node would have around 1Mbps of bandwidth to use if all 300 subscribers used the internet at the same time. Time Warner Cable had begun expanding bandwidth on DOCSIS nodes to 16 channels at the time Charter Communications acquired the company, giving customers shared bandwidth of about 608Mbps.

Remarkably, Rutledge’s admission suggests some Charter customers may be serviced by DOCSIS nodes even more populated than the ones in New York State that regularly failed to deliver advertised internet speeds and prompted the Attorney General to file a lawsuit against Charter.

New York’s lawsuit claimed as of February 2016, the average Time Warner Cable customer in the state shared their connection with about 340 other customers. Information obtained from Time Warner Cable found some nodes with as few as 32 subscribers while the most overcongested had as many as 621 subscribers.

Rutledge’s comments this morning suggest Charter/Spectrum customers may be sharing their connection with up to 499 of their neighbors, making them more likely to experience congestion potentially worse than experienced with Time Warner Cable. Standard internet service from Charter is also much faster than Time Warner Cable’s corresponding Standard plan — 60Mbps vs. 15Mbps, which has the potential to lead to even worse slowdowns if customers use their internet connections at the same time.

Rutledge defended the average node size by claiming Charter has a lot of fiber in its network.

“And we have the ability to take that fiber deeper,” Rutledge said. “We have the ability incrementally to take the network to a passive network and to do that at reasonably efficient capital cost through time and to do that in very targeted ways where we need the capacity. So we’re very comfortable with the extensibility of our network and the ability to put high capacity anywhere in our network.”

Rutledge said node expansions take place through a “market demand driven sort of process.”

“There are bunch of ways you can manage capacity on our network,” Rutledge explained. “We can do what are called virtual node splits. If you clear analog spectrum and go all-digital, [that can create] excess capacity in your network, and [if] you have demand to put more capacity in a node, there [are] two ways of doing it. One way is to physically split a node into a smaller node, which requires the placing of an electronic device in the field, and maybe the extension of some fiber. It depends on how the architecture of that is structured, but it’s relatively inexpensive on a grand scale capital perspective, but a lot more expensive than a digital or virtual node split. And you can do those if you have channel capacity by just recreating additional DOCSIS paths to create a virtual node essentially. And so we manage our network for the future based on the actual load on the network as opposed to some theoretical issue.”

AT&T Follows Verizon Back to Optional Unlimited Data Plans for All Starting Tomorrow: $100/Mo

Unlimited data is back.

AT&T has followed Verizon Wireless back the era of unlimited data plans, starting tomorrow.

The AT&T Unlimited plan will be available to all customers, not just those signed up with DirecTV, and will be expensive. A single line unlimited voice, text, and data plan will reportedly cost $100 a month. Customers switching four lines to unlimited data will pay $180 after a $40 bill credit kicks in 60 days after signing up. This means for the first two months, customers will pay $220 for the privilege of unlimited data.

The new plan is open to residential and business/corporate accounts and business customers will also get the benefit of any corporate discounts.

AT&T’s definition of “unlimited” actually means 22GB. If you exceed that amount, AT&T reserves the right to slow your data connection “during periods of network congestion.”

The plan includes:

  • unlimited calls from the U.S. to Canada and Mexico
  • unlimited texts to over 120 countries
  • talk, text and use data in Canada and Mexico with no roaming charges when adding the free Roam North America feature
  • the ability to switch off AT&T’s “Stream Saver” which limits online video playback to 480p

“We’re always listening to our customers and will continue to evolve to provide more choice, more convenience, and more value,” claims AT&T in a press release. But observers believe AT&T listens to the competitive realities of the marketplace more than its customers who never wanted to lose the option of unlimited data in the first place.

 

AT&T Slowly Strangling U-verse TV to Reposition Bandwidth for Broadband

Phillip Dampier February 16, 2017 AT&T, Broadband Speed, Competition, Consumer News, Online Video No Comments

AT&T’s U-verse TV has been losing customers for over a year. (Image: Market Realist)

AT&T wants its U-verse TV video service dead, but is willing to watch it bleed customers for a while before likely downsizing or axing the service to make room for better broadband speeds.

The phone company has allowed U-verse TV to wither on the vine for more than a year, losing hundreds of thousands of customers every quarter since late 2015, and surprisingly has done almost nothing to stop the subscriber losses. In all, more than a million AT&T U-verse TV customers canceled service in 2016.

AT&T has admitted it has abandoned aggressively marketing its U-verse TV platform and has put its marketing muscle into selling DirecTV, the satellite provider AT&T acquired two years ago. DirecTV has added customers at a remarkably similar rate that AT&T has been losing U-verse TV customers. AT&T is even willing to watch customers walk into the arms of their competitors, a clear sign AT&T hopes their U-verse TV customers churn away.

Customers report U-verse TV-related promotions and retention plans have gotten worse in the last 14 months and some tell Stop the Cap! they were steered to DirecTV when they contacted AT&T to discuss their options.

Even the U-verse brand is being gradually discontinued. AT&T recently rebranded its fiber to the home service AT&T Fiber, dropping the AT&T U-verse with GigaPower brand the company had used since first announcing gigabit speed access.

AT&T U-verse as a brand is slowly disappearing in favor of AT&T Fiber.

Market Realist reports AT&T doesn’t necessarily want to spend a lot of money upgrading its legacy U-verse fiber to the neighborhood network across its entire landline service area, but needs to boost broadband speeds to stay competitive with cable broadband. When U-verse was originally launched, the service reserved much of its available bandwidth for television service, limiting broadband speeds to a maximum of around 24Mbps. That is no longer seen as competitively adequate and that leaves AT&T with only two options: upgrade its legacy infrastructure to support fiber-fed gigabit speed or reduce the amount of bandwidth devoted to television services and use it to expand broadband speeds.

AT&T is doing a little of both, expanding its gigabit broadband service in very limited areas in 46 cities with 23 more to come sometime this year. An indication of just how few customers can actually buy AT&T’s gigabit speeds was revealed indirectly by AT&T. Only four million homes and businesses, including 650,000 apartment and condo units can buy 1,000Mbps broadband from AT&T nationwide. Los Angeles and Chicago — both AT&T Fiber service areas, combined have more than five million potential customers alone.

In many cases, fewer than 10% of AT&T’s customers in AT&T Fiber cities can actually buy the service. In Knoxville, Tenn., AT&T admitted its gigabit service was only available in about 30 apartment and condominium complexes.

AT&T is promising to expand its fiber service to reach at least 12.5 million customers in 67 metro areas by the summer of 2019. But that will still likely leave more than half of AT&T’s customers out of reach of the service.

AT&T has told investors it plans no blockbuster budget increases to aggressively roll out fiber service across its footprint, which includes much of the south and midwest and large sections of California. Instead, it will likely offer fiber service to new housing developments, multi-dwelling units, and higher income areas. That decision still requires AT&T to do something for customers not on a near-term upgrade list, and that will likely be a gradual transformation of legacy U-verse into broadband-only service with speeds closer to 50-75Mbps, where video streaming from services like DirecTV Now can travel over the top to customers.

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