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AT&T Announces Its Own “Gigabit Fiber Network” for Austin; Details Leave Wiggle Room

att-logo-221x300On the heels of today’s announcement from Google that it intends to make Austin, Tex. the next home for Google Fiber, AT&T issued a press release claiming it was suddenly interested in building a gigabit fiber network in Austin too.

Today, AT&T announced that in conjunction with its previously announced Project VIP expansion of broadband access, it is prepared to build an advanced fiber optic infrastructure in Austin, Texas, capable of delivering speeds up to 1 gigabit per second.  AT&T’s expanded fiber plans in Austin anticipate it will be granted the same terms and conditions as Google on issues such as geographic scope of offerings, rights of way, permitting, state licenses and any investment incentives. This expanded investment is not expected to materially alter AT&T’s anticipated 2013 capital expenditures.

Currently, AT&T’s U-verse system in Austin — a fiber to the neighborhood system — cannot exceed 25Mbps as it is now configured. GigaOm’s Stacy Higginbotham reports AT&T told her it would build its own fiber to the premises system in Austin to support faster speeds.

But AT&T’s announcement does not come without plenty of wiggle room which could make today’s announcement little more than a publicity stunt:

  1. AT&T claims it will build “infrastructure” capable of delivering “up to” 1Gbps. This could mean a network that supports a maximum of 1Gbps of shared Internet traffic, not 1Gbps to each home or business;
  2. AT&T does not say it intends this network for residential customers, nor did it suggest a monthly price for gigabit service. Its Project VIP expansion describes planned broadband speed upgrades for residential U-verse customers of up to 75Mbps and for U-verse IPDSLAM to speeds of up to 45Mbps, not 1Gbps;
  3. AT&T’s Project VIP already specifies fiber network build outs, but they are destined for cell towers, large business complexes, and multi-dwelling units that will share a fiber connection;
  4. AT&T wants the same terms and conditions Google has received, including investment incentives. But AT&T could have applied for those incentives, and potentially could have already received them, if it specified plans for a gigabit network of its own. Instead, AT&T executives have always believed residential customers do not want or need gigabit broadband speeds. In fact, AT&T still doesn’t believe fiber to the home service makes economic sense, which is why it invested in a cheaper fiber to the neighborhood system that still relies on old copper wiring. AT&T also warns that, “Our potential capital investment will depend on the extent we can reach satisfactory agreements” with local officials on those incentives;
  5. Wiring a city of Austin will cost tens of millions to reach every resident with service. Such an expense might be considered materially relevant to shareholders, requiring disclosure. Building a much lesser network, like a gigabit middle mile network or only offering fiber service to institutional or commercial customers would cost far less and could escape reporting requirements.

AT&T also did not miss an opportunity to promote its deregulatory agenda, which has so far not proved to be of much help to broadband speed enthusiasts stuck with DSL or U-verse.

“Most encouraging is the recognition by government officials that policies which eliminate unnecessary regulation, lower costs and speed infrastructure deployment, can be a meaningful catalyst to additional investment in advanced networks which drives employment and economic growth,” said Randall Stephenson, AT&T chairman and CEO.

AT&T’s agenda might result in a meaningful catalyst of a different kind — the end of rural landline telephone and broadband service.

Austin Media Gushing for Google Fiber

Austin’s television news has gone all out for Google Fiber, which is being unveiled today at a press event. Stop the Cap! will have coverage of the announcement, but in the meantime, here is a roundup of local coverage about Google Fiber in Austin:

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KTBC Austin Google Fiber Headed to Austin 4-8-13.mp4[/flv]

Austin’s local Fox affiliate KTBC reports city officials stayed tight-lipped about Google Fiber, but Google may have previewed its intentions by adding The Longhorn Network to its television lineup several months ago. Local technology experts say the upgrade is worth the wait and will be a boon to Austin’s economy. (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KXAN Austin The wait is on for Google Fiber 4-9-13.mp4[/flv]

Now that Austin will get Google Fiber, how long will residents have to wait to sign up? Mid-2014 is the estimate. KXAN explored how Google was unveiled in Kansas City. The station also took a look at other cities with gigabit fiber networks, many of them publicly owned alternatives to big phone and cable companies. KXAN compares the cost for 1,000Mbps service in different cities around the country. (3 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KEYE Austin Google Announcement Draws Near 4-9-13.flv[/flv]

KEYE notes Gov. Rick Perry is showing up for this morning’s unveiling of Google Fiber. In between some minor technical glitches in the report, some viewers say they are ready to sign up for $70 gigabit Internet now, just to stick it to Clearwire ($50 a month) and Time Warner Cable.  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KVUE Austin Google Going to Austin 4-9-13.mp4[/flv]

KVUE says Google Fiber could boost Austin’s economy by luring even more high-tech companies. It could also stop Time Warner Cable and AT&T from trying more Internet Overcharging schemes on area customers.  (2 minutes)

Time Warner CEO Earned a Cool $17.4 Million in 2012; Other Execs Also Got Pay Hikes

Phillip Dampier April 9, 2013 Consumer News Comments Off on Time Warner CEO Earned a Cool $17.4 Million in 2012; Other Execs Also Got Pay Hikes
Another happy year for most TWC executives.

Another happy year for most TWC executives.

Time Warner Cable handed CEO Glenn Britt an effective $1 million raise in 2o12, compensating Britt with $17.4 million, up from $16.4 million paid a year earlier. The disclosure came in a statement filed with the Securities and Exchange Commission.

Britt, who is reportedly considering leaving Time Warner at the end of the year, also had his employment contract extended to Dec. 31, 2013.

Some other Time Warner Cable executives also walked home with substantial pay increases this year:

  • Chief operating officer Robert Marcus made $10.1 million, up from $8.4 million last year;
  • Chief technology officer Michael LaJoie took home $2.7 million, up from $2.6 million;
  • General counsel Marc Lawrence-Apfelbaum cashed in $3.3 million in earnings, up from $2.8 million.

Only chief financial officer Irene Esteves saw a pay decrease. She earned $5.5 million this year, down $400,000 from a year earlier.

Second TV Network Threatening to Sign Off Free Airwaves if Aereo Lives

univisionUnivision is joining Fox Television warning that if an upstart online video streaming service is allowed to stay in business, it will seriously consider turning off its free to watch over-the-air programming and go pay cable only.

Univision chairman Haim Saban says if Aereo continues to sell online streaming of its over the air stations, it could be forced to turn off more than 50 local broadcast affiliates, forcing viewers to cable, satellite, or telco pay television to keep watching.

Univision is no longer a small player in American broadcasting. The Spanish language network is now more popular than NBC in the ratings.

Saban says its local affiliates could find themselves off the air if the network abandons them — Univision’s network programming occupies most of the broadcast day, with most local stations airing only local news and a small selection of syndicated programming and program length commercials.

“To serve our community, we need to protect our product and revenue streams and therefore we too are considering all of our options — including converting to pay TV,” Saban said. “With Hispanics watching over-the-air news and entertainment at twice the rate of non-Hispanics, being forced to convert to cable would significantly impact this community.”

FOX-TV-logoThe real threat, according to industry analysts, is Aereo’s business model could offer an end run around lucrative retransmission consent fees now demanded by broadcast networks and local television stations. If the cable, satellite, and telco TV industry were to license Aereo’s technology, it could carry broadcast stations for free without paying broadcasters for permission to put their stations on the lineup.

The collateral damage could be felt by more than 13 million American households that have either abandoned pay television, can’t afford the asking price, or don’t have access for other reasons. If the networks make good on their threats, viewers would no longer have access to network programming for free.

Industry observers suggest Fox and Univision are engaged in saber-rattling for the benefit of Washington lawmakers that might be asked to choose sides in the dispute.

Aereo has responded to the industry’s line in the sand by reminding the networks they are violating a long-standing deal they made with Congress in return for access to the public airwaves.

“It’s disappointing to hear that Fox believes that consumers should not be permitted to use an antenna to access free-to-air broadcast television [after promising] that they would broadcast in the public interest and convenience, and that they would remain free-to-air.”

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg RBCs Bank on Aereo Fox Broadcast Dispute 4-8-13.mp4[/flv]

Bloomberg News reports on the conflict between Aereo and over the air broadcasters and how far both sides are really willing to go.  (5 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Aereo Broadcaster Battle 4-8-13.mp4[/flv]

CNBC’s Julia Boorstein reports on Fox’s assertion Aereo is “pirating their signal” and notes the network may be preparing to convert its over the air free service into a pay channel.  (2 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Why News Corp Is Trying to Outfox a Start-Up 4-13.mp4[/flv]

CNBC talks with Aereo founder Chet Kanojia about the court decision to allow Aereo to keep operating. Kanojia also explains how Aereo works for consumers who don’t want to pay for a big cable TV package.  (6 minutes)

Corr Wireless Acquired By AT&T; Wireless Industry Consolidation Continues

Phillip Dampier April 9, 2013 AT&T, C Spire, Competition, Consumer News, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Corr Wireless Acquired By AT&T; Wireless Industry Consolidation Continues

corrAT&T Mobility will acquire 21,000 Corr Wireless subscribers and spectrum owned by the Alabama-based wireless carrier in a private transaction between Corr’s parent company C Spire Wireless and AT&T.

Corr was acquired by Mississippi-based C Spire (formerly Cellular South) in February 2010 as the carrier sought expansion into northeastern Alabama and western Georgia. But Corr’s network has never been upgraded beyond 2G service, and the Corr has traditionally positioned itself as a value priced feature phone provider. As its competitors have moved beyond 3G into 4G service and now pitch mostly smartphones, Corr has fallen behind.

attCorr’s coverage area has not been a priority for larger carriers like Verizon Wireless and AT&T. The acquisition, which includes multiple PCS and 700MHz “C-Block” licenses, will bolster AT&T’s weak coverage in the region, which includes Huntsville, Oneonta, Decatur, Cullman, Hartselle, and Arab, Ala.

AT&T is expected to decommission much of Corr’s older equipment and replace it with 4G LTE service.

Customers may not have to immediately upgrade their phones. Corr Wireless, like AT&T, operates a GSM network.

 

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