Home » fiber to the home » Recent Articles:

Windstream Relying on Government Funding to Double 100 Mbps Availability in 2019

Windstream is relying on the Federal Communications Commission’s Connect America Fund to double the areas where it will offer 100 Mbps broadband service, expected to reach 30% of the company’s 18-state local service area by the end of the first quarter of 2019.

“Windstream understands that premium internet speeds are critical to families and businesses in rural America, and we are systematically enhancing our network to meet that urgent demand,” said Jeff Small, president of consumer and small and medium-sized business services. “Network upgrades are expensive, especially in rural areas where there are relatively few customers, so Windstream is using a combination of its own capital and crucial support from the FCC’s Connect America Fund to make faster speeds more widely available. Without support from the Connect America Fund, many of these projects simply would not be economically feasible.”

Thomas told attendees at the Citi 2019 TMT West Conference Windstream’s legacy copper wire telephone network is not up to the job of handling the kinds of internet speeds more modern technologies can manage.

In urban and larger service areas, Windstream is most likely to deploy fiber to the home service in new housing developments and select gentrified neighborhoods where a business case exists to invest in fiber upgrades. The company also typically replaces its copper wireline infrastructure with fiber where road construction projects or damage forces the company to replace or relocate its lines. Suburban and more densely populated rural areas are likely to receive an upgraded version of Windstream’s DSL service that can manage up to 50 or 100 Mbps. In Windstream’s significant rural service area, the phone company is increasingly turning to fixed wireless technology, especially in flat midwestern states like Nebraska and Iowa where it plans to offer a combination of 3.5 GHz “CBRS” and 5G millimeter wave fixed wireless broadband capable of delivering up to 1,000 Mbps.

Windstream’s service area

“[We are deploying wireless internet] probably at a larger scale than a lot of the larger wireless companies,” Thomas said, especially in flatter areas where wireless signals go a long way.

Because most current broadband expansion fund programs require companies to commit to at least 25/3 Mbps service, simply expanding basic ADSL technology has proven inadequate to meet the government’s speed requirements. But wiring fiber to the home service to get faster speeds in rural areas does not meet the Return On Investment requirements Windstream’s shareholders demand. Windstream claims fixed wireless can solve both problems.

“You can get 100 Mbps out there very cost-effectively,” Thomas claimed. “You are really blowing away copper infrastructure and making it irrelevant because you’re embracing this 100 Mbps technology.”

As of early 2019, Windstream claims that 60% of its customers can get at least 25 Mbps service, 40% can receive at least 50 Mbps service. By the end of March, 30% will be able to receive 100 Mbps service.

 

A satisfied Windstream customer talks about his upgrade to 50/8 Mbps, which replaces his old 6 Mbps DSL service. (6:03)

Verizon Says Goodbye to 10,400 Workers; Company Will Slash $10 Billion in Costs

Phillip Dampier December 10, 2018 Verizon, Wireless Broadband 1 Comment

Despite a strong economy, Verizon Communications will shed 10,400 employees and cut $10 billion in costs as part of a transformation initiative promoted by the company’s newest top executive.

“These changes are well-planned and anticipated, and they will be seamless to our customers,” said Verizon CEO Hans Vestberg. “This is a moment in time, given our financial and operational strength, to begin to better serve customers with more agility, speed and flexibility.”

For Andrew Challenger, vice president of Challenger, Gray & Christmas, an outplacement firm that closely monitors corporate layoffs, Verizon’s willingness to let go of 7% of their workforce is an ominous sign of possible additional job reductions in the future.

Vestberg has advocated reorienting Verizon towards a potentially lucrative 5G wireless future. The estimated $10 billion in cost savings could placate investors on Wall Street alarmed about increased spending Verizon is likely to undertake to deploy 5G infrastructure over the next five years.

In October, Verizon offered more than 44,000 employees a voluntary buyout package and announced it would transfer thousands of current employees to Infosys, an outsourcing company headquartered in India. The voluntary separation package included up to 60 weeks’ salary, bonus and benefits, depending on length of service. This morning, accepted participants received word of their last day of employment, which will be the last day of this year or at the end of March or June, 2019. Verizon currently has 152,300 employees.

Challenger believes Verizon is likely to continue letting employees go as the company faces ongoing pressures on its landline and business service units and endures cord-cutting for its FiOS fiber to the home service. Challenger told CNBC the 44,000 workers who took Verizon’s offer likely made a smart decision. Companies that offer voluntary buyouts in good times can be a sign of likely layoffs when the economy slows down. With record low unemployment, the Verizon workers leaving the telecom company are likely to find new jobs much easier than those forced to look during a recession.

Verizon employees transferred to Infosys may be among the next to be targeted in future layoffs, according to Challenger. Verizon workers will be working closely with low-paid Indian staffers who may eventually replace them.

Workers who are assigned to train cheaper workers should keep their eyes open and resumes ready, Challenger warned.

AT&T Still “Meh” on Fixed 5G Wireless; “We’re Focused on Mobility”

AT&T continues to gently discourage the media and investors from comparing its 5G strategy with that of its biggest competitor, Verizon, suggesting the two companies have different visions about where and how 5G and small cells will be deployed.

“We’ve done fixed wireless in our network on LTE as part of our Connect America Fund commitment from the government. We’ve been doing that for two years. And so we know the technology. We know it works, and it works for the purposes intended, which is real broadband,” said Scott Mair, president of operations at AT&T. “The challenge is the use case and the economics, right? So where does fixed wireless work? We’re focused on mobility.”

Mair echoes earlier sentiments from AT&T’s chief financial officer who has repeatedly told investors that AT&T sees fiber to the home service as a superior offering, and one economically within reach for the company in its urban and suburban service areas.

Speaking on Barclays Global Technology, Media and Telecommunications Broker Conference Call, Mair did not rule out 5G residential fixed wireless service in certain expensive-to-reach areas, but it is clear AT&T’s priority will be to bolster its mobile network, not invade the home internet access marketplace. Mair noted AT&T will deploy small cells to power its 5G services, but primarily to resolve congestion issues in high wireless traffic areas.

“If we’re there, we build small cells primarily for capacity,” noted Mair, adding the company believes “the mobility use case is probably the right place to be spending our time and effort.”

AT&T plans to target its first fixed or short-range 5G services on its business customers.

“We see initially enterprise businesses as being the area where the entry will be first,” Mair said. “We’ve thought about partnering with a manufacturing firm, and I really believe that manufacturing is going to be a key capability. When you look at a factory floor, it’s real-time telemetry, real-time analytics. You have factories that now need to be more nimble than ever in terms of being able to reconfigure for product changes very quickly.”

AT&T is also continuing to aggressively expand its fiber footprint, including the prospect of constructing fiber networks outside of AT&T’s traditional landline service area. But the company stressed it is building fiber networks in new ways that will maximize the company’s Return On Investment.

Mair

“So with our fiber build-out, fiber underlies everything we do, whether it’s wireline or wireless. And so fiber matters,” Mair said. “By middle of next year, we’ll be at 14 million homes passed and because we also have a deep fiber footprint, we’ll have another eight million businesses that we pass. That gives us 22 million locations that we can sell fiber-based services.”

AT&T’s fiber network planning has become very sophisticated these days. The more customers sharing a fiber connection, the faster construction expenses will be paid off.

When a business client contacts AT&T to arrange for fiber service, the company used to run a dedicated fiber cable directly to the business. These days, AT&T attempts to maximize the potential use of that fiber cable by routing it through areas that have a high potential of generating additional business for the company or traffic on its network. For example, a fiber connection furnished for a business might also be used to serve multiple dwelling units, like apartment buildings or condos, or rerouted to also reach other businesses that can be sold fiber services.

“I’m passing two [AT&T] cell sites that I’m paying someone else transport and backhaul for, where I can now put it on my own network,” Mair offered as an example. “I know where I’m going to be building small cells in the future. We can plan out that. We know where we’re going to be. I can route that fiber. So now I’ve optimized the route.”

By 2022, Online Video Will Make Up 82% of Internet Traffic; 60% of the World Will Be Online

By the year 2022, 60% of the world’s population will be connected to the internet and 82% of online traffic will come from streaming video.

Those are the conclusions found in Cisco’s newest Visual Networking Index (VNI), based on independent analyst forecasts and real-world network usage data tracked by the networking equipment manufacturer.

“By 2022, more IP traffic will cross global networks than in all prior ‘internet years’ combined up to the end of 2016,” Cisco predicts. “In other words, more traffic will be created in 2022 than in the 32 years since the internet started.”

Key predictions for 2022

Cisco’s VNI looks at the impact that users, devices and other trends will have on global IP networks over a five-year period. From 2017 to 2022, Cisco predicts:

  1. Global IP traffic will more than triple

    • Global IP traffic is expected to reach 396 exabytes per month by 2022, up from 122 exabytes per month in 2017. That’s 4.8 zettabytes of traffic per year by 2022.
    • By 2022, the busiest hour of internet traffic will be six times more active than the average. Busy hour internet traffic will grow by nearly five times (37 percent CAGR) from 2017 to 2022, reaching 7.2 petabytes1 per second by 2022. In comparison, average internet traffic will grow by nearly four times (30 percent CAGR) over the same period to reach 1 petabyte by 2022.

      1 A petabyte is equal to 1,000 terabytes or one million gigabytes.

  2. Global internet users will make up 60 percent of the world’s population

    • There will be 4.8 billion internet users by 2022. That’s up from 3.4 billion in 2017 or 45 percent of the world’s population.
  3. Global networked devices and connections will reach 28.5 billion
    • By 2022, there will be 28.5 billion fixed and mobile personal devices and connections, up from 18 billion in 2017—or 3.6 networked devices/connections per person, from 2.4 per person.
    • More than half of all devices and connections will be machine-to-machine by 2022, up from 34 percent in 2017. That’s 14.6 billion connections from smart speakers, fixtures, devices and everything else, up from 6.1 billion.
  4. Global broadband, Wi-Fi and mobile speeds will double or more
    • Average global fixed broadband speeds will nearly double from 39.0 Mbps to 75.4 Mbps.
    • Average global Wi-Fi connection speeds will more than double from 24.4 Mbps to 54.0 Mbps.
    • Average global mobile connection speeds will more than triple from 8.7 Mbps to 28.5 Mbps.
  5. Video, gaming and multimedia will make up more than 85 percent of all traffic
    • IP video traffic will quadruple by 2022. As a result, it will make up an even larger percentage of total IP traffic than before—up to 82 percent from 75 percent.
    • Gaming traffic is expected to grow nine-fold from 2017 to 2022. It will represent four percent of overall IP traffic in 2022.
    • Virtual and augmented reality traffic will skyrocket as more consumers and businesses use the technologies. By 2022, virtual and augmented reality traffic will reach 4.02 exabytes/month, up from 0.33 exabytes/month in 2017.

Regionally, Asian-Pacific internet users are expected to use far more internet data than North Americans — 173 exabytes a month by 2022 vs. 108 exabytes in North America. Usage caps, usage-based pricing, and overall slower internet speeds in the U.S. and Canada have slowed growth in new high-bandwidth internet applications. The prevalence of low-speed DSL in rural areas also restricts potential traffic growth. Large parts of the Asia-Pacific region use very high-speed fiber to the home technology.

The slowest growing regions — Latin America and the Middle East/Africa, which lag behind in internet penetration, often apply low usage caps or bandwidth restrictions and often do not have the ability to financially scale growth to meet demand. Even by 2022, Latin America will generate only 19 exabytes of traffic per month.

VIDEO: How Big Telecom Isolates Rural America

From the producers of Dividing Lines:

Across the country, state legislatures have created barriers to community involvement in expanding internet access.

In Tennessee, lobbyists from AT&T, Charter, and Comcast spread huge campaign contributions around the state legislature. AT&T’s influence is felt in the governor’s own broadband expansion legislation, which was tailor-written to allow the phone company to collect huge taxpayer subsidies to expand inferior DSL into rural parts of Tennessee.

Meanwhile, some local communities seeking to build state-of-the-art fiber to the home networks capable of delivering 10 gigabit service found that doing so would be illegal under state law.

Think about that for a moment.

A multi-billion dollar telecom company is allowed to expand its slow speed DSL network with taxpayer-funded grants while your local community is forbidden to bring fiber optic service to your home even if your community votes to support such a project. Exactly who is the governor and state legislature working for when it comes to resolving Tennessee’s rural broadband nightmare?

In part two of this series, watch State Senator Janice Bowling describe how much influence AT&T has over the Tennessee state legislature. (5:31)

Search This Site:

Contributions:

Recent Comments:

  • Rossa Williams: I moved over and they qualify for early buyout off under $500 I've called twice I've got no respond they say they was going to send me something in th...
  • snake: I had the original $20 a month service for years. Then last week they shutdown my internet, before my bill was due. I paid the amount. Service was sti...
  • JayS: Are the streaming services that carry local channels (Sling, DirectTv Now, YouTubeTv....) paying the same/similar remuneration to the local stations a...
  • Nicole: Would be fine if spectrum actually worked all the time. It's the worst....
  • jeff k: So glad I looked at reviews FIRST! I was 5 minutes away from buying the 3 for $73.75 deal. WOW, I started the day calling COX to find out how much it ...
  • Adam: Figured I’d take a deeper look into my bill. Each month it kept slowly creeping up! My bill increased $20 more since last year! I’m stuck with their m...
  • Divine Retribution: I've had Fios since 2006 when it was originally owned by Verizon & much better then mind you & I can tell you their internet speed isn't even ...
  • Mark: I ordered LiveWave yesterday and used PayPal/AMEX. I read through theses comments and decided to cancel my order. I called the number listed on my ord...
  • fordoughnow: My Internet started at $40 less than 2 years ago with Spectrum. $68 now with all the taxes and service BS. I haven't had a raise in that time so I'm n...
  • Bob: Altice is garbage and they can't deliver even close to the internet speeds they claim. They should be paying me to use their sh*t altice and their gar...
  • Suze: I so agree. They couldn’t make Prisim a win so they sold out to DT. Losers. Worst customer service ever....
  • Sandra neil: God I dealt with them for 5 yrs, hideous customer service. They’re now moving all they’re customers to Direct Tv. I have nothing other then northern e...

Your Account: