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Windstream Introduces Kinetic IPTV Triple Play in Lincoln, Neb.; Includes Wireless Set-Top Boxes, Whole House DVR

kinetic logoWindstream this week introduced its fiber to the neighborhood service Kinetic – its attempt to bring a competitive triple-play package of broadband, home phone, and television service to about 50,000 homes initially in Lincoln, Neb.

“We’re extremely excited to launch Kinetic in Lincoln,” said David Redmond, president of small business and consumer at Windstream. “Over the last year, we have heard loudly and clearly that this community is excited and eager for an alternative TV service. Windstream is confident that residents that sign up for Kinetic will find a highly interactive experience and a smarter way to watch TV than cable or satellite.”

The project in Lincoln will test consumer reaction and help the company plan if or how it plans to expand the service across many of its other service areas across the country.

Powered by the Ericsson Mediaroom platform, Kinetic is Windstream’s effort to squeeze about as much use of its existing copper wire infrastructure as possible. Like AT&T U-verse, Kinetic requires a fiber connection part of the way to customers, but continues to rely on existing copper telephone wiring already in the subscriber’s neighborhood. In effect, it’s an enhanced DSL platform that will split available bandwidth between television, Internet access and home phone service.

One unique aspect of Kinetic is its use of a next generation, compact whole home DVR that can record four shows at the same time, supplemented with wireless set-top boxes ($7/mo each), that allow subscribers to take the service to any television in the home without wiring. A subscriber can even move a television out into the yard and not lose service.

Remarkably, Windstream — an independent telephone company — completely de-emphasizes its own phone service in its up front promotions. Unless customers dig deeper into the Kinetic website, they will find prominently featured double play packages of television and Internet service starting at $59.98 a month. Telephone service is offered (and priced) almost as an afterthought, bundled into various packages for $5 extra a month. Phone customers get unlimited nationwide local and long distance calling.

http://www.phillipdampier.com/video/Windstream Kinetic TV 4-2015.flv

Windstream produced this introductory video to its new Kinetic TV service, offered initially to 50,000 homes in Lincoln, Neb. (1:20)

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We added the pricing details for Home Phone service.

The biggest limitation Windstream faces marketing the service is its legacy network of copper wires. Customers can only qualify for the service if the connection between their home and Windstream’s central office is good enough to sustain the speeds required to handle all three services at the same time. The company is focusing Kinetic squarely on customers looking for a cable television alternative to Lincoln’s only other provider — Time Warner Cable. That may be because Kinetic remains disadvantaged in the broadband department.

The highest Internet speed a Kinetic customer can buy is 15Mbps, which is the speed Time Warner Cable offers in its “Standard” package. Time Warner currently sells up to 50/5Mbps in Lincoln — more than three times faster than Windstream’s Kinetic. Many Windstream DSL customers have complained they don’t come close to the speeds they are paying for, particularly during peak usage periods. A Facebook group with over 500 customers exists to discuss exactly that issue. Whether it will be different for Kinetic customers is not yet known, but the company’s lawyers are prepared for that possibility.

Windstream's Whole House DVR is only about the length of its remote control.

Windstream’s Whole House DVR is only about the length of its remote control.

“Windstream cannot guarantee speeds or uninterrupted, error-free service,” the company says in its terms and conditions. “Internet speed claims represent maximum network service capability speeds.  Actual customer speeds may vary based on factors including simultaneous use of multiple devices, use of other Windstream services, customer device capabilities, Internet and Network congestion, website traffic, content provider service capacity, customer location, network conditions, and bandwidth devoted to carriage or protocol and network information.”

At least there are no usage caps.

Kinetic subscribers are also warned that just like DSL broadband, line quality will impact the kind of television service received.

“Kinetic TV includes digital channels (including local channels), one receiver and up to four standard direct video streams to the customer residence,” Windstream notes. “Of the four standard direct video streams per residence, customer’s location will determine both high definition (“HD”) availability and the maximum number of HD video streams (between one and four) a customer can view and record in HD at any one time, regardless of the number of receivers in the residence.  The remaining streams will be standard definition.”

Kinetic’s channel lineup is comparable to that of Time Warner Cable, with some minor exceptions. Time Warner imports some regional over the air channels from adjacent cities, Windstream does not. Certain channels like Turner Classic Movies are available on Kinetic, but only for customers subscribing to the most expensive tier. Time Warner offers that channel on its less expensive Standard tier.

Limited bandwidth may limit your broadband speeds and the number of HD channels you can watch at any one time.

Limited bandwidth may limit your broadband speeds and the number of HD channels you can watch at any one time.

Time Warner Cable spokesman Mike Hogan took indirect shots at both the City of Lincoln and Windstream in response to the introduction of Kinetic.

“Lincoln residents can count on the fact that Time Warner Cable will offer the best choices for TV, Internet, home phone and home security to the entire city — in sharp contrast to competitors who only serve select areas, or won’t even say where they will or won’t serve,” Hogan said in an email to the Journal-Star.

That’s a reference to Windstream’s refusal to specify exactly where in Lincoln Kinetic is available.

Stop the Cap! surveyed more than 100 Lincoln-area addresses this morning and found Kinetic available primarily in wealthy and newer neighborhoods south and southeast of the city center, including zip codes such as 68516. A review of real estate transactions across the city of Lincoln showed home prices in this area are well above other parts of the city. That suggests Windstream is targeting the service to higher-income neighborhoods during its initial rollout, which plans to reach up to 45 percent of city households.

Although Windstream officials expect to bring Kinetic to about 80% of Lincoln, the city has given the company 15 years to complete the project. Further expansion may also depend on how customers respond to Kinetic.

With plenty of time, Windstream may choose to turn its attention elsewhere, eventually introducing the service in other cities across its 18-state service area of Alabama, Arkansas, Florida, Georgia, Iowa, Kentucky, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina and Texas, before it gets around to wiring urban poor neighborhoods in Lincoln.

Cable industry defenders believe Time Warner Cable and Windstream are being treated differently by city officials. Hogan notes the cable company is required to serve the entire metropolitan area, unlike Windstream that critics contend may be interested only in cherry-picking the low-hanging fruit.

Windstream’s announcement leaves just two significant independent telephone companies without IPTV offerings: FairPoint and Frontier Communications.

http://www.phillipdampier.com/video/KLKN Lincoln New television service in Lincoln 4-16-15.mp4

KLKN in Lincoln covered the Windstream event introducing Kinetic TV to Lincoln and talked with company officials about what the new service offers Lincoln and how much it costs in comparison to Time Warner Cable, the area’s incumbent cable company. (2:29)

N.Y. Broadband Improvement Fund to Public Broadband Networks: Don’t Call Us, We’ll Never Call You

A $500 million New York State broadband improvement fund is effectively off-limits for would-be community-owned broadband networks trying to deliver broadband service in areas for-profit providers have deemed unprofitable.

New York Gov. Andrew Cuomo’s ambitious plan to revolutionize Internet access for New Yorkers depends almost exclusively on for-profit providers and the state’s largest cable operator, Time Warner Cable – the company that has so far received the largest share of state funds earmarked for better broadband.

Cuomo wants all of New York wired for 100Mbps service no later than 2018. His goal is ambitious because the overwhelming majority of upstate New York barely now receives a maximum of 50Mbps from Time Warner Cable, the only significant cable operator in the region.

The broadband map from N.Y. State shows 100Mbps service is available to most New Yorkers from Verizon FiOS, Cablevision, and a handful of municipal/co-op operators. Time Warner Cable only provides a maximum of 50Mbps service across upstate New York.

The broadband map from N.Y. State shows 100Mbps service is available only from Verizon FiOS, Cablevision, and a handful of municipal/co-op operators. Time Warner Cable only provides a maximum of 50Mbps service across upstate New York. Cablevision and FiOS compete on Long Island, Time Warner Cable Maxx competes with Verizon in New York City, and most of upstate New York is served by Verizon or Frontier DSL competing with Time Warner Cable.

Six months after the program was announced, Capital magazine reports the “New NY Broadband” plan is languishing with no defined guidelines, rules, or any clear sense about how the program will be implemented and the money spent.

Salway

Salway

In fact, one of the only clear statements coming from David Salway, a former telecommunications consultant who now administers the program, is that local governments should not bother applying because he doesn’t want them competing with Time Warner Cable, Verizon, and Frontier. It’s private enterprise only:

“The primary focus of our program is that we’re not going to be in the building business,” Salway said. He emphasized that municipal governments won’t be specifically precluded from receiving funds under the program, but said that the state is “wary” of “the government building and competing with the private sector. We see this as a provider partnership process where an incumbent provider or maybe a new entrant comes in.”

Local government leaders can read between the lines and most will not bother applying for funding if Salway’s vision guides the grant-making process. Instead, Salway wants to funnel money that effectively belongs to New York taxpayers into the pockets of for-profit providers like Verizon, Frontier, Windstream, Time Warner Cable and other providers that have consistently refused to expand their networks into rural areas on their own dime. The money earmarked for broadband is part of a $6 billion legal settlement the New York Attorney General’s office negotiated with Wall Street and commercial banks that helped plunge the country into The Great Recession.

statewide availability 1

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Broadband advocates across the political spectrum are slamming the broadband program for different reasons. Christopher Mitchell from the Institute for Local Self Reliance predicts providers will deliver bait and switch broadband on the taxpayer’s dime and send the proceeds out of the area.

“When you subsidize the private sector, you don’t really know what kind of services they’re going to provide in the future,” Mitchell said. “There’s a fair number that basically rip off consumers,” and they “basically extract resources from the community they serve.”

Mitchell

Mitchell

“The only clear beneficiaries of this program will be cable and Internet providers, who will have a new state subsidy to expand their footprints into areas in which their competitors have demonstrated an inability to operate profitably,” said Ken Girardin of the conservative Empire Center for Public Policy, in a scathing review of the New NY plan.

So far, Verizon has shown no interest in the program. It’s eventual intent is to decommission rural landline service and push existing customers to wireless service, so applying for wired broadband expansion funding isn’t a priority. The most likely applicants include Windstream, which serves a small percentage of rural New York telephone exchanges, Frontier Communications, which dominates Rochester and parts of the Finger Lakes region, and Time Warner Cable, which used earlier funding to connect two rural communities to its cable service. But all three companies are waiting for the program and its grant terms to be better defined.

With incumbent cable and phone companies reluctant to take part, there are several wired and wireless broadband initiatives in rural areas around New York starved of resources to expand their networks. The “white space” wireless broadband project in Thurman, for example, will be seeking funding to expand its wireless high-speed network into other parts of the community. Other initiatives could allow existing middle mile fiber networks in the Southern Tier and Finger Lakes region to explore building out “last mile” service to homes and businesses that now receive only DSL or no Internet access at all.

Salway promises he’ll consider funding networks that deliver the best broadband speeds for the lowest relative price in similarly sized communities. But all the money in the world won’t help if an existing phone or cable company shows no interest in serving unprofitable rural areas even after the state defrays the initial cost of placing the infrastructure to provide the service.

Mitchell believes local communities are best positioned to know what their residents want and many support publicly funded fiber technology rollouts. He points to Longmont, Col., a community that fought off propaganda mailers and a $300,000 marketing effort by CenturyLink and Comcast to defeat public fiber broadband in the city. The residents voted in favor of building their own network to move beyond the “good enough for you” broadband coming from the phone and cable company.

“The Longmonts of the country can decide to wait until these private sector companies decide its in their interest to finally build these fiber networks out, or they can say, ‘You know, we’re always going to be behind the greater technological curve of the nation,’ and do it themselves,” Tom Roiniotis, Longmont’s general manager, told Capital.

Frontier Boosts Internet Speeds for its FiOS Customers in Oregon, Washington; But You Have to Ask for Them

Phillip Dampier April 6, 2015 Broadband Speed, Competition, Consumer News, Frontier No Comments

frontier fiosFrontier Communications customers lucky enough to have access to fiber to the home service will find broadband speeds have been increased to offer identical upload and download rates.

In FiOS areas of Washington and Oregon, symmetrical broadband speeds of 30/30, 50/50, 75/75, 100/100, and 150/150Mbps are now available.

Both the 75 and 150Mbps tiers are new to customers.

Existing customers will not be upgraded to the new speed tiers until they call Frontier and request them.

“Customers have been demanding faster upload speeds for access to the cloud, gaming and streaming applications, and Frontier is committed to fulfilling those needs,” said Vicky Oxley, Frontier vice president and Washington general manager. “This is something our competitors don’t offer.”

The majority of Frontier’s customers receive DSL service at speeds averaging 6Mbps.

Spain’s Telefónica Junking Copper; Switching Customers to 300/30Mbps Fiber Broadband (And Charging $41/Mo)

telefonicaSpanish telephone company Telefónica knows the days of traditional ADSL broadband are numbered, so the company is junking its copper wire network and upgrading customers to fiber broadband at no extra charge.

Telefónica president Luis Miguel Gilpérez said the upgrade is part of Spain’s march to be the most digital country in Europe. It also establishes a modern broadband platform on which Telefónica can sell its streaming video and pay TV services to the public. The company holds an 85 percent share in the fiber network.

Gilpérez likened the company’s current top-tier of 100Mbps as yesterday’s news.

“It appears that 100Mbps falls short and customers demand more speed, so the company is looking to develop these services [with] an increase in speed,” Gilpérez told El País.

Spain already has 10.3 million households connected to fiber. Telefónica hopes to reach an additional 3.6 million homes this year, but is threatening to cut its investment if it is forced to share its fiber network with competitors.

Telefónica is already required by Spanish regulators to open its copper network to competing ISPs at a regulated wholesale price. The Comisión Nacional de los Mercados y la Competencia (CNMC), the Spanish trade and competition regulator, is currently proposing to extend open access to Telefónica’s fiber network as well.

At present, the telephone company faces competition from Vodafone/Ono, Jazztel and Orange, which all offer up to 200Mbps speeds. Most expect competitors will boost speeds to match or exceed Telefónica’s new speed offer.

Time Warner Cable Restoring Service in Parts of SE Texas Nine Years After Hurricane Rita

The Golden Triangle of southeastern Texas encompasses the cities of Orange to the east, Port Arthur to the south, and Beaumont to the west.

The Golden Triangle of southeastern Texas encompasses the cities of Orange to the east, Port Arthur to the south, and Beaumont to the west.

Nine years after Hurricane Rita swamped parts of the Golden Triangle region of southeastern Texas, Time Warner Cable is finally getting around to restoring service to parts of Orange County that haven’t had cable broadband since 2005.

A warm spring has allowed crews to start construction to parts of Orange County affected by the storm that wreaked havoc on the area nearly a month after Hurricane Katrina struck New Orleans. Although some properties were severely damaged by the hurricane, other utilities restored service to the area years ago. Time Warner Cable is the last, and it cannot come soon enough for Chelsey Walters.

The Orange, Tex. resident is forced to get usage-capped DSL broadband from AT&T, and her last monthly bill reached over $750.

“Both of my car notes are less than that and even with our Internet you cannot do anything because it drops and there are times when it does not work,” Walters told KBMT-TV in Beaumont. “When we first moved out there, they (Time Warner) came out and ran all the cables in my house, then called us and said – oh we do not service that area.”

The construction schedule for Orange County, Tex.:

  • Hwy. 105 East on Hwy. 62 to Caribou Ln. is forecast to be serviceable by the middle of May
  • From Woodcock St. to Michell Rd. is forecast to be serviceable by the middle of May
  • On Hwy. 62 from S. Meadow Dr. to Egan Dr. is forecast to be serviceable by the middle of May
  • On Tulane Rd. from Hwy. 62 to Burton Dr. is forecast to be serviceable by the middle of June
  • On Tulane Rd. from Burton Dr. to Old Hwy. 90 is scheduled to be on by the middle of June
  • On Old Hwy. 90 from Tulane Rd. to E. Wood Fern St. is forecast to be serviceable by the end of June
  • I-10 west from Med Davis Rd. to N. Lewis Dr. is forecast to be serviceable by the first of July
  • I-10 West from Naquin Rd. to Peru Rd. is forecast to be serviceable by the first of July
  • From Moss Ln. to Hartzog Rd. is forecast to be serviceable by the first of August

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