Russian satellite television provider Tricolor, in collaboration with Eutelsat Networks, has launched satellite broadband service throughout Siberia, with data plans offering speeds up to 100 Mbps.

Customers can choose from packages of internet and television service or just go broadband-only. A one time fee of $136.75 gets the customer a startup package including a satellite receiver and data modem. Customers can pick up equipment from stores in Novosibirsk, Omsk, Tomsk, Krasnoyarsk, Barnaul, Irkutsk and Kemerovo or have it direct shipped to their home address.

Customers can choose between three “unlimited” data packages: 40/10 Mbps for $75/mo, 20/5 Mbps for $45/mo, or 10/5 Mbps for $27/mo. Like many satellite providers, Tricolor reduces data speeds during peak usage times for customers using over 50, 25, and 15 GB of usage per month, respectively. But Tricolor says speed reductions will not be as severe as some providers that reduce speeds to less than 1 Mbps. A faster, usage-limited tier with speeds up to 100 Mbps is also to be introduced, and customers can get discounted subscriptions by agreeing to usage caps on the three aforementioned speed tiers.

Tricolor provides solid reception across the Russian Federation, including the vast expanse of Siberia. Wiring a country the size of Russia is a daunting task, so satellite and wireless internet services are likely to be a major offering across the country for years to come.

Tricolor’s coverage map.

Stankey

AT&T’s incoming CEO John Stankey has a message for America: If you are unwilling to pay $15 a month for AT&T’s HBO Max, you have a low IQ.

Stankey made that declaration pitching the new service, set to debut in May. The fact the video platform is late to a market already crowded by Netflix, Hulu, and Disney is just part of the challenge. That $15 price point is a bigger one.

If there is any company in the telecom business that can prove consumers are sensitive to price hikes and bill shock, it is AT&T. Its frequent rate hikes for its DirecTV satellite service and various streaming TV platforms have caused a customer exodus. More than a quarter of DirecTV customers have left and, even more stunning, well over half of AT&T’s streaming TV customers have dropped the service. In late 2018, DirecTV Now (today AT&T TV Now) — AT&T’s cord cutting TV alternative, had 1.8 million customers. As of last month, that number is down to 788,000 and still falling.

AT&T has repeatedly claimed it wants to focus on “high value” customers, which may explain why it remains confident its $15/mo HBO Max service will do well, despite being the most costly streaming service in the market.

Stankey’s predecessor, Randall Stephenson, will exit as AT&T’s CEO in July. He leaves a much larger conglomerate than what he started with. AT&T has diversified from its telephone and wireless portfolio with several major acquisitions, including DirecTV — the satellite TV service, and Time Warner (Entertainment), a Hollywood studio and entertainment giant. The result is a company loaded with debt and a revolt by activist investors that question the wisdom of creating the 2010s version of AOL-Time Warner.

Elliott Management Corp., the activist investment firm that has proved itself a nuisance to the expensive dreams of several rich and powerful CEOs, does not see a viable marriage between AT&T’s profitable telecommunications business and a media and entertainment company. It took its concerns public in 2019, calling on AT&T management to get back to the basics.

Stankey’s approach seems to be a willingness to embrace the newest members of the AT&T family, for now, while also reassuring investors the shopping spree of mergers and acquisitions is over. Bloomberg News reports his views seem to have won Elliott Management over. At the same time, Stankey has to convince investors and the public he is competent at running a media company. The jury is still out on that:

Bloomberg:

At a town hall with HBO employees last year, Stankey said the network had to dramatically increase its programming output, comparing the work ahead to childbirth. Once, when a Time Warner veteran criticized an idea during a meeting, Stankey replied, “I know more about television than anybody.”

[…] But over the past two years, Stankey has tried to acclimate himself to the glitzy world of entertainment. He started watching HBO’s “Westworld” and “Succession.” He could be seen mingling with HBO talent at glitzy Manhattan premiere parties. At an industry event, he wore a pin featuring a Looney Tunes character — a WarnerMedia property — on his jacket lapel.

Comcast today announced it will extend its COVID-19 crisis commitments until the end of June, including a continued suspension of its 1 TB data cap.

“These extended measures will continue to keep Americans safe and ensure that households are equipped for students to learn and stay informed at home as the nation copes with this unprecedented disruption to our daily lives,” said Dave Watson, Comcast Cable CEO. “Our services have never been more important, and we’re doing everything we can to keep people connected to the internet.”

Here is a reminder of Comcast’s commitments:

• No data caps: All customers have unlimited access until at least June 30, 2020. Make sure you are not paying Comcast extra for an unlimited data plan everyone can now get for no extra charge.
• No disconnects or late fees: To qualify, customers MUST contact Comcast and explain they are having difficulty paying bills because of current economic conditions. Those that do will not have their service suspended and late fees will be waived.
• XFINITY Wi-Fi: Is open to anyone that wants to use a Comcast Wi-Fi hotspot. You do not need to be a customer.
• Internet Essentials: If you qualify as a low-income household, you can get internet service from Comcast for $9.95 a month, with the first 60 days free.

Get ready for another huge streaming platform, America. HBO Max from AT&T’s WarnerMedia is scheduled to debut Wednesday, May 27th with over 10,000 of content encompassing the libraries of HBO, Adult Swim, Cartoon Network, Crunchyroll, CNN, Looney Tunes, Rooster Teeth, TBS, TNT, truTV, and Turner Classic Movies.

HBO Max will replace HBO Now — the premium movie network’s subscription service for cord-cutters, and will remain priced at $14.99 a month. Those who currently subscribe to HBO through Charter Spectrum, AT&T TV (and TV Now), or DirecTV will get access to the HBO Max service at no additional cost.

WarnerMedia is positioning the service as a general interest streaming platform and super-sized HBO offering, sold as “Where HBO meets so much more.” It will combine legacy network TV content with original HBO movies and shows, and productions made especially for HBO Max.

“Our No. 1 goal is having extraordinary content for everyone in the family, and the HBO Max programming mix we are so excited to unveil on May 27th will bear that out,” said Bob Greenblatt, chairman of Warner Media Entertainment and Direct-To-Consumer. “Even in the midst of this unprecedented pandemic, the all-star teams behind every aspect of HBO Max will deliver a platform and a robust slate of content that is varied, of the highest quality, and second to none.”

HBO Max is likely to face challenges that its closest competitors — Netflix, Hulu, and Amazon Prime Video do not. First, the service will launch with a premium price – $14.99 a month, which is more than double what Hulu charges and more than streaming leader Netflix, which suffered a growth slowdown after the last price increase brought its most popular plan to $12.99 a month. Second, the streaming market has become saturated with services that launched before HBO Max, which may potentially limit enthusiasm in these times of economic uncertainty. Disney+ launched with heavy discounting and comes free to a number of customers through cross-promotions with other companies. A subscription service asking for $15 a month at launch may prove a difficult sell, especially to those with no interest in HBO. Third, the HBO brand conveys an impression to would-be customers about the platform’s content. HBO has been criticized for its “male-centered” programming, replete with violence and sexual content. The brand itself may be a hard sell in conservative households with younger children, despite the fact it will feature a large roster of classic and new Looney Tunes cartoons, a Sesame Street original, and other family-friendly programming.

Subscribers will find content on the platform including:

Classic TV Shows: “Friends,” “The Big Bang Theory,” “South Park”

Movies: all Studio Ghibli films, films from Warner Bros., New Line and DC like “Joker,” “Suicide Squad,” “Wonder Woman,” “The Matrix,” “Casablanca” and “The Wizard of Oz.”

Originals: Comedy series “Love Life” starring Anna Kendrick, documentary “On the Record” about accusations of sexual harassment and rape against hip-hop mogul Russell Simmons; “Legendary,” an underground ballroom dance competition series; “Craftopia,” hosted by YouTube star LaurDIY; an all-new “Looney Tunes Cartoons” from Warner Bros. Animation; and Sesame Workshop’s “The Not Too Late Show with Elmo.”

Watch the trailer from HBO Max original “Love Life,” starting May 27. (1:57)

Frontier Communications filed for bankruptcy reorganization protection this week with more than $10 billion in debts and departing customers, despite retention efforts that cost the company more than $5 million a month.

The company had warned investors it was considering restructuring and failed to make a timely bond payment to cover a portion of its debts. Frontier had been in negotiations with debt holders for several months, attempting to secure a Restructuring Support Agreement that would reduce debt in return for an equity stake in the company. At least 75% of unsecured bondholders are reportedly on board with a deal that would free up money to spend on fiber optic upgrades.

Most of Frontier’s legacy customers are served by a deteriorating copper wire network designed for basic landline phone service. The company’s DSL internet service has been roundly criticized for being slow and unreliable. Instead of upgrading copper customers to fiber service, Frontier instead spent billions acquiring new territories from other phone companies, notably Verizon Communications and AT&T. The acquisitions did not deliver the financial returns the company expected, and customers canceled service after Frontier botched billing and service transitions that left some without service for weeks.

Today, Frontier has about four million customers, 3.5 million broadband subscribers and 18,300 employees operating in 29 states. The company has arranged a debtor-in-possession loan of $460 million from Goldman Sachs Bank to continue operating during the bankruptcy reorganization. It also expects to receive an additional $1.35 billion in cash later this month from the sale of its territories in Idaho, Montana, Oregon, and Washington to Northwest Fiber.

Frontier also divulged new details about its deteriorating business to the Bankruptcy Court:

• Frontier estimates it spends approximately $1,000 for each new residential customer and $2,500 for each new commercial customer.
• Almost all of its new customers sign up for service under a sales promotion. “On average, [Frontier] spends approximately $1.3 million per month on marketing campaigns.”
• Customer retention efforts are crucial for Frontier, which has been losing customers at an alarming rate. Frontier uses three enticements to convince customers to stay: “Save Offers,” “Roll-Off Offers,” and “Discretionary Credits.”
• “Save Offers” are a classic retention tool, offering enticements to customers threatening to cancel. Frontier offers free premium channels, reduced rates, and/or discounted service upgrades to convince customers not to leave. Frontier disclosed it pitches approximately 24,000 Save Offers each month, a sign many customers are prepared to cancel their accounts.
• “Roll-Off Offers” are made to customers calling to complain about their bill after their new customer promotion ends. Frontier regularly offers complaining, bill-shocked customers a new, less generous promotion going forward. For example, an expiring new customer discount of $60/month might be replaced with a $30/month discount if the customer agrees to stay. These offers typically last six months to a year and still leave the customer eventually paying regular prices. Frontier disclosed that it loses many more complaining customers than it keeps after promotions expire. About 16,000 customers per month (or roughly one-fourth of customers complaining about an expiring promotion) are retained as customers because of a roll-off offer.
• “Discretionary Credits” are one-time bill credits given when customers call with service complaints, reports of damage done to private property by Frontier, or missed time guarantees for service calls. Frontier admitted it is currently paying out an average of $3.9 million a month in Discretionary Credits to upset customers.

Post bankruptcy, Frontier has proposed undertaking a modest fiber upgrade program in its more profitable territories where a significant return on investment for fiber upgrades can be demonstrated. That is unlikely to include many of Frontier’s rural service areas.