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Newly Independent Cable One Plans Broadband Makeover With Speed Upgrades

cable oneNewly independent Cable One will reduce its emphasis on cable television and turn its time, attention, and capital towards improving broadband service for its 690,000 largely rural customers in 19 states.

Cable One was spun off from Graham Holdings on July 1 and is not likely to stay independent for long before it is acquired by another cable operator, most likely Patrick Drahi’s Altice, S.A. — which recently acquired Suddenlink. But in the meantime, Cable One is attempting to persuade investors it is remaking itself into a broadband company, de-emphasizing the traditional cable television package in favor of dedicating more bandwidth for faster broadband speeds.

“Our standard broadband offering for our residential customers since 2011 has been a download speed of 50Mbps, which is at the high-end of the range of standard residential offerings even today in our markets,” the company reported in a statement. “Our enhanced broadband offering for our residential customers is currently a download speed of 75Mbps, which we expect to raise to 100Mbps by the end of 2015.”

Cable One primarily serves small cities and towns in the central and northwestern United States.

Cable One primarily serves small cities and towns in the central and northwestern United States.

In several markets, 100Mbps speed is already available and regular pricing has been simplified to $1 per megabit of service: 50Mbps for $50, 75Mbps for $75, or 100Mbps for $100 a month.

To protect its broadband business model, which carries prices traditionally higher than larger operators, Cable One will stay focused on largely uncompetitive markets where it faces token DSL broadband competition from companies like Frontier Communications, CenturyLink, and Windstream. More than 75 percent of its customers are located in Mississippi, Idaho, Oklahoma, Texas and Arizona, many served by these three telephone companies.

Cable One signaled it will hold the line on cable programming costs as well. In April 2014, the company dropped 15 Viacom networks, including MTV, VH1, Comedy Central, Nickelodeon and others over contract renewal prices it claimed were too high. The cable TV package has continued without the Viacom networks for more than a year, resulting in the loss of more than 20% of its cable TV customers. More than 100,000 homes have dropped Cable One video service for another provider, but ironically that actually helped Cable One increase its cash flow by more than 11%, because it no longer has to pay programming fees on behalf of the lost customers.

On the bright side, Cable One executives discovered many of its former TV customers have stayed with Cable One for Internet service because the competition either does not offer broadband or generally provides DSL at speeds under 10Mbps. Company officials have emphasized this point to investors, suggesting broadband is a true money-maker and television can safely take second chair without sabotaging profits.

“We certainly have some sympathy for the notion that a broadband-only cable operator might be more profitable,” wrote analyst Craig Moffett in an investor note this month. “But there are some critical holes in the Cable One story. Does the company truly believe that all costs are variable such that cutting video will bring endless margin expansion? Are Cable One’s new shareholders really better off for having played hardball with Viacom?”

Moffett does not believe so because he is convinced Cable One’s independence will be short-lived.

“We all know the consensus opinion is that someone will buy Cable One,” Moffett wrote. “But the above questions still matter. Any potential acquirer would still place value on a video business, or pay less for the fact that Cable One has less of one.”

But as long as rural telephone companies barely compete for broadband customers, Cable One’s broadband performance will deliver them a de facto broadband monopoly in their largely rural service areas. That gives the cable company, or its next owner, plenty of room for rate hikes.

Vidéotron Will Offer 1Gbps Broadband Speed in Montréal

Phillip Dampier July 29, 2015 Broadband Speed, Canada, Competition, Consumer News, Vidéotron Comments Off on Vidéotron Will Offer 1Gbps Broadband Speed in Montréal

videotron_coul_anglais_webMontréal cable subscribers will soon be able to buy gigabit broadband speeds from Vidéotron after a successful pilot project demonstrated the cable company’s existing DOCSIS 3.0 network was up to the task.

“It is with great pride that we announce today that we have passed another milestone in the history of Videotron Internet service,” said Manon Brouillette, president and CEO of Vidéotron. “We have always been a trailblazer in this area. Over the past 10 years, we have introduced a series of high-speed Internet access services, each faster than the last, in order to meet consumers’ steadily expanding needs.”

Testing gigabit speeds began in a few Montréal homes and businesses earlier this year and the results have helped the cable operator optimize its network architecture and choose the correct cable modems to reliably support the service across its service area. Availability is expected sometime this year.

In 2016, Vidéotron will upgrade its network to DOCSIS 3.1 technology, which should support even faster speeds and require less network configuration to support the fastest Internet speeds.

Vidéotron has been aggressively pushing speed upgrades to its customers, largely in Québec. Fibre Hybrid 120 and Fibre Hybrid 200 Internet services are available to nearly 2.9 million households and businesses.

Fiber to the Press Release: Comcast’s 2Gbps Service Arrives – In One 993-Acre Houston Development

the grovesAfter months of issuing nationwide press releases promoting Comcast’s new, blazing fast 2Gbps fiber to the home broadband, the cable company has finally announced it will be available (so far) … in one single 993-acre unfinished planned community in a northeastern suburb outside of Houston: Humble, Tex.

The Groves, designed to eventually contain 2,200 single-family homes on 993 acres west of West Lake Houston Parkway and south of Kingwood, currently resembles a crop circle because much of the community has yet to be built.

Crescent Communities, the North Carolina-based developer, calls The Groves a “refuge” from the rest of Houston, with amenities close at hand. Residents may not instinctively balk at Comcast’s expensive super-fast service requiring a $1,000 installation fee and a multi-year commitment to get the special promotional price of $159/mo. Housing at The Groves starts in the upper $200,000s and extends into the $500,000 range.

The Houston Business Journal reports Comcast will directly connect homes in the development to fiber optics, not the usual coaxial cable used elsewhere. Every home in the development will have access to the all-fiber network, which will offer 250Mbps and higher speeds, according to Comcast spokesman Michael Bybee.

Comcast will officially launch the 2Gbps service next week.

The Groves crop

The Groves (center) is a master-planned upscale residential community that will eventually contain over 2,000 homes. But in this photograph, provided by the developer, it looks more like a crop circle.

Unfinished Business: Comcast will not face much of a challenge wiring an incomplete planned community for fiber optics. Much of The Groves has yet to be built.

Unfinished Business: Comcast will not face much of a challenge wiring an incomplete planned community for fiber optics. Much of The Groves has yet to be built. (Dark Green: Unfinished/Tan: Complete)

Comcast’s Poor Service Doesn’t Discriminate: Former Comcast VP Complains About Slow Speeds

chong

Rachelle Chong, a former commissioner of the Federal Communications Commission during the Clinton Administration, member of the California Broadband Task Force (2006-2008), commissioner of the California Public Utilities Commission (2006-2009), and Comcast’s vice president for government affairs for the California region (2011-2013) also happens to be a Comcast broadband customer.

She took to Twitter this morning to complain the company she used to work for was giving her a fraction of the speed she was paying for.

At least Comcast’s poor service doesn’t discriminate. Less prominent customers are experiencing the same issues:

One customer isn’t too sure fast speeds matter much. He lives in one of Comcast’s usage cap test markets, where Comcast enforces a usage allowance on their Internet service, with a bill-shocking overlimit fee if you dare exceed it.

Myanmar (Burma) Will Get Fiber-to-the-Home Broadband Service, Courtesy of Thai Consortium

Phillip Dampier July 28, 2015 Broadband Speed, Competition, Consumer News, Public Policy & Gov't, Rural Broadband Comments Off on Myanmar (Burma) Will Get Fiber-to-the-Home Broadband Service, Courtesy of Thai Consortium

myanmarResidents of one of the world’s most isolated countries will soon have the option of getting fiber-to-the-home service that will offer faster Internet access than most Americans get with traditional DSL from their phone company.

Thailand’s Benchachinda Holding Company has partnered with four other technology companies to launch Myanmar Information Highway Limited (MIH), with the goal of wiring fiber-to-the-home service to every home and business that wants service in Yangon and other major economic cities. It’s a remarkable investment for a country that had until recently been run by a military dictatorship for more than 50 years and is still liberalizing its economy and implementing democratic reforms.

Benchachinda’s president, Vichai Bencharongkul, said the group’s investment in international businesses in Myanmar is the first of a few foreign investments in other nations. Bencharongkul told the Thai press fiber broadband sells itself and investment in Myanmar would make good business sense.

vichai

Bencharongkul

He can point to the fact MIH was able to quickly get permission to lay fiber-optic cable from Yangon Electricity Supply Corporation, the country’s dominant electric utility. Myanmar’s bureaucracy can prove daunting to doing business in the country, but the promise of faster broadband overcame those concerns.

Internet access in Myanmar, better known internationally as Burma, has traditionally been a frustrating experience. Despite some fiber Internet rollouts by state-owned Myanma Posts & Telecommunications (MPT), offering up to 100Mbps, the average upper income Myanmar household still relies on DSL service and gets only up to 6Mbps speed. The country is ranked 159 out of 198 by Net Index for consumer download speed, averaging just 5Mbps. Fiber optic broadband will change that.

In a cost-saving measure, MIH will launch service with speeds averaging 20Mbps — four times faster than the current average speed in the country — and raise speeds and capacity going forward. They intend to deliver stiff competition to both Yatanarpon Teleport (YTP) and the state telephone company, which charges almost $65 a month for a basic DSL line. MPT charges $1,200 a month for 20Mbps fiber broadband and focuses on business customers. MIH is expected to charge lower prices for service and will rely on its own network instead of the one owned and controlled by the state-owned telephone company.

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