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AlaskaComm Delays LTE Launch to Year-End; Verizon Now Breathing Down its Neck

Alaska 4G Wireless

Alaska 4G Wireless

AlaskaComm Delays LTE Launch to Year-End; Verizon Now Breathing Down its Neck

AlaskaComm has postponed the launch of its Long Term Evolution (LTE) network from May to the end of this year. The delay corresponds with reports saying that the carrier has started selling Apple’s iPhone from April which can only connect to a 3G network at present. Earlier in Jun 2011 AlaskaComm had said that it would be spending around $20 million in deploying LTE in the state making it the first carrier in Alaska to offer 4G services. Verizon, the largest Internet service provider in the US had meanwhile applied to acquiring 700MHz C Block spectrum license from Triad covering Alaska in August 2011 with the FCC.   Triad had purchased this spectrum in an FCC sponsored spectrum auction in August 2010 for $1.8 million.  At that time Verizon didn’t have any agenda for FTE deployment in Alaska and it did not want to dispute AlsakaComm’s claims of being the first LTE provider in the state.

With AlalskaComm’s LTE launch now delayed the situation has changed and in Mar 2012, Alaska’s Matanuska Telephone Association (MTA) announced that it has entered into an agreement with Verizon Wireless to participate in Verizon’s ‘LTE in Rural America’ program. As part of the agreement, Verizon will lease 700MHz upper C block wireless spectrum to MTA in Denali and Matanuska – Sustina Boroughs covering almost 34,000 square miles. With MTA’s participation in this scheme, its customers can access LTE in more than 230 cities in the US.

The story might still have a twist in the tale as last week Verizon revealed that it is in a process to start its own independent operations in Alaska and has started laying groundwork for it by leasing acreage for cell towers covering the south central and interior regions. Irrespective of its alliance with MTA, Verizon has indicated that it would like to enter the Alaskan market in 2013.

 

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Posted by admin - May 14, 2012 at 8:14 pm

Categories: 3G, 4G, Alaska, Internet News, Verizon, Wireless   Tags: , , ,

AT&T to Launch 4G Network in Salt Lake City

AT&T to launch a 4G network in Salt Lake

AT&T to Launch 4G Network in Salt Lake

AT&T to Launch 4G Network in Salt Lake City

Last week AT&T announced that it will launch 4G LTE services over its own 4G network in the later part of this year in Salt Lake City to give competition to Verizon which also operates its own 4G LTE network in Utah.

With the advanced 4G technology mobile devices like computer tablets and cellphones are able to send and receive data up to 10 times faster than 3G networks. On these superfast networks users can stream movies and music, surf the Internet and download songs and apps at blazing speeds.

Jenifer Robertson, VP and General Manger for AT&T’s Rocky Mountain area said that the company is pleased to offer its 4G services to the residents of Salt Lake City. AT&T’s teams would work hard towards making the upcoming launch a success.

AT&T currently is using a form of 3G called HSPA which is compatible with select devices only including the latest iPhone 4S. Meanwhile its competitor, Verizon had already launched its 4G services in Salt Lake City in June last year and has even expanded its reach to areas around Ogden.

With the launch of AT&T’s 4G LTE service in Salt Lake City, its customers in this area can now get access to data speeds of up to 10 times faster than 3G networks and improve speeds for downloading movies, songs and applications.

AT&T did not specify as to when exactly the service would become available to its customers. Or will the service be extended beyond the city. But analysts feel that the start of AT&T’s 4G LTE service could coincide with the launch of new iPhone either in June or July this year. It is believed that the new iPhone will be compatible with 4G networks as the third generation iPad, launched in March last year is already 4G compatible.

 

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Posted by admin - May 14, 2012 at 6:59 pm

Categories: 4G, At&t, Internet News, Utah, Wireless   Tags: , , ,

AT&T, Verizon Still behind Cable Rivals in Broadband Growth

Cable Internet

Cable Internet

AT&T, Verizon Still behind Cable Rivals in Broadband Growth

Figures show that the biggest telephone companies in the US are growing their broadband subscriber bases but their growth rate is slower than their cable rivals as indicated by the figures of the first quarter. In broadband Internet wars, Verizon and AT&T are way behind Time Warner Cable and Comcast.

The two major telcos have suffered losses in their ADSL Internet operations however these losses have been partially offset by the gains made by their respective FiOS and U-Verse businesses.

AT&T U-Verse gained 718,000 customers in the last quarter to reach an overall subscriber base of 5.9 million. However the net subscriber gain was only 103,000 as the company lost subscribers in the wire-line broadband sector. AT&T provides satellite and DSL line broadband under its wire-line broadband services.

Verizon too suffered DSL losses which hampered its broadband growth although it posted its highest quarterly net increase since the second quarter in 2009. Verizon lost 89,000 DSL subscribers in the first quarter of 2012. In the corresponding period last year Verizon had lost 109,000 DSL subscribers. It also gained 193,000 new FiOS subscribers.

Verizon’s and AT&T’s cable rivals continued to show good performance in adding a greater number of subscribers. Time Warner added 214,000 domestic broadband subscribers whereas Comcast added another 439,000.

The numbers are indicative of an industry trend where telephone companies have lagged behind the cable companies in broadband growth. Leichtman Research Group, earlier this year reported that phone companies served about 34.3 million subscribers whereas cable companies supported 44.3 million subscribers.

However the pay TV market hasn’t been so kind to the cable industry. In the last quarter Comcast, the largest cable TV provider lost 37,000 video customers in what is believed to be its 20th consecutive quarterly loss in video customers. Time Warner too lost 94,000 subscribers in the last quarter.

 

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Posted by admin - May 13, 2012 at 4:36 pm

Categories: At&t, Broadband, Cable Internet, Comcast, Internet News, Time Warner Cable, Verizon   Tags: , , , ,

AT&T Revenue, Net Income up on Smartphone Sales

AT&T Revenue, Net Income up on Smartphone Sales

AT&T Revenue, Net Income up on Smartphone Sales

AT&T Revenue, Net Income up on Smartphone Sales

Gains in mobile services especially in Smartphones sales helped AT&T revenue up 1.8 percent which is an increase of 5.2 percent in revenue compared to the same quarter last year.

The company reported revenue of $31.8 billion for the quarter ending March 2012 up from $31.2 billion for the corresponding quarter in 2011. Net income increased from $3.4 billion to $3.6 billion.

AT&T pointed out that the main reason for the company’s growth is the growth in its mobile services. The company sold 5.5 million Smartphones in the first quarter of 2012. Seventy eight percent of the company’s sales were postpaid device sales. More than 59 percent AT&T subscribers now own Smartphones. IN the same quarter the company added 726,000 new mobile customers to bring its total mobile subscriber base to 103.9 million.

The company’s mobile revenue increased by 5.4 percent to $16.1 billion. Revenue from mobile data went up to $6.1 billion which is an increase of 19.9 percent.

Randall Stephenson, AT&T Chairman and CEO said that the company expects to leverage its momentum in mobile Internet. The earnings for each share stood at $0.60 beating expectations from analysts who predicted $0.57.

On the wire-line side, AT&T reported revenue of $14.9 billion which is down 0.8 percent from the previous year. Net income gained 2.4 percent and stood at $1.8 billion. In a press release, the company noted that the revenue from AT&T DSL business is $9.2 billion which is also down by 0.8 percent however this has been the slowest decline in past three years.

Growth in the broadband sector had offset declines in other areas. Domestic broadband revenue stood at $5.4 billion signifying an increase of 1 percent. The company added 200,000 customers to its U-Verse television service and 718,000 U-Verse broadband service in the last quarter.

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Posted by admin - May 12, 2012 at 10:52 am

Categories: At&t, DSL, Internet News, U-Verse   Tags: , , ,

AT&T CEO Regrets iPhone Unlimited Data Plans

AT&T CEO Regrets iPhone Unlimited Data Plans

AT&T Regrets Unlimited Data iPhone Plans

AT&T CEO Regrets iPhone Unlimited Data Plans

Earlier last week, Randall Stephenson, AT&T’s CEO attended a conference when he was asked to speak on the state of the wireless industry in the US. Most people expected a standard CEOs speech from Stephenson but he surprised everyone with his clear and frank opinions. He very clearly admitted that AT&T committed a mistake by offering unlimited plans for its iPhone customers. He also said that he loses sleep whenever he thinks about Apple’s iMessage service.

Stephenson admitted that had AT&T refused to offer unlimited data to its iPhone users, the company could have made heavy data users pay for their usage. Conversely what the company was diverting revenue earned from light users and subsidize heavy users. He further added that he regretted introducing this kind of pricing where he has to invest for every additional megabyte used on AT&T’s network due to the variable cost model on which data business operates.

After its initial offering of unlimited data plans, AT&T has since moved to tiered and limited usage plans which seem to have worked in the company’s favor. In fact the company realized profits worth $6.1 billion from mobile data clearly showing that the company has moved in the right direction with respect to introducing data plans which are beneficial for all parties. Most Internet service providers have also followed the AT&T Internet pricing model and introduced capping on data usage although many user’s rights organizations are against it.

He further went on to criticize Apple’s iMessage service which depends on AT&T’s data but keeps users away from using AT&T’s own SMS service. He candidly admitted that he loses sleep over Apple’s iMessage service as it is disruptive to his business. He also talked about Microsoft owned Skype and admitted that these kinds of services were a threat to the wireless industry.

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Posted by admin - May 11, 2012 at 1:13 pm

Categories: At&t, Internet Caps, Internet News, Wireless   Tags: , , ,

AT&T Hikes U-verse TV To 4 Million Subscribers as DSL Woes Persist

AT&T Hikes U-verse TV To 4 Million Subscribers as DSL Woes Persist

AT&T U-verse TV Gains

AT&T Hikes U-verse TV To 4 Million Subscribers as DSL Woes Persist

The total subscriber base of AT&T U-Verse TV at the end of last quarter stood at 3.99 million users which represents a healthy gain of 200,000 new subscribers in the first quarter of 2012. The company also managed to enroll 718,000 new AT&T U-Verse Internet subscribers during the same period while the numbers in its AT&T DSL and voice customers continued to show a decline.

While the revenues and number of subscribers continued to climb, the company has completed a major portion of its fiber to the node U-Verse network by 2011 having a capacity to connect 30 million units which signals that the growth rate would be difficult to sustain. AT&T lost 615,000 DSL subscribers in the first quarter this year and its total wire-line broadband subscriber base stood at 16.53 million. The reports also show an increase in data usage trends amongst AT&T subscribers. Around 45% of its broadband customers have subscribed to plans delivering 6 Mbps or higher as compared to 35% in the first quarter of 2011. Meanwhile voice connections continued to show a decline and the company lost nearly 3.5 million voice connection subscribers representing a decline of 12.5% year on year standing at 20.5 million. AT&T still managed to recover some of the losses suffered in voice business by growth in the IP data services.

Sanford Bernstein a senior analyst from Craig Moffett noted that wire-line results were neither a cause for celebration nor a cause for concern.

Revenue from domestic customers in Q1 was $5.4 billion indicating an increase of 1% over Q1 of 2011. Over 55% of the company’s revenue is now associated with U-Verse broadband, voice over IP and video revenue. The corresponding figure was 47% in Q1 of 2011. The total Q1 wire-line revenue was $14.9 billion which is down 0.8% as compared to the same quarter in 2011.

 

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Posted by admin - May 11, 2012 at 4:35 am

Categories: At&t, DSL, Fiber Optic, Internet News, TV, U-Verse   Tags: , , ,

Senate Urged To Probe Data Caps

Senate Urged To Probe Data Caps

Senate Urged To Probe Data Caps

Senate Urged To Probe Data Caps

Consumer advocacy groups have appealed to lawmakers to intervene in the broadband capping introduced by Internet service providers.

In a letter sent to the leaders of the Senate Commerce Committee, representatives of the New America Foundation, Consumer’s Union, Public Knowledge and Free Press stated that broadband caps generally reduce broadband use and discourage large bandwidth applications like online video. These organizations have urged lawmakers to consider the issue when it comes for a hearing on online video distribution.

Several years ago, few wire-line service providers started imposing data usage caps with high enough data limits which consumers didn’t come close enough to exceeding at that time. In 2008, Comcast started limiting residential usage to 250 GB per month which is roughly equal to 125 standard definition movies.

ISPs argue that introduction of data caps helps in limiting network congestion but critics say that there are other means through which they can control traffic.

Joel Kelsey, Free Press policy adviser remarked that traffic congestion is dynamic and temporary and cannot be an excuse to introduce uniform data capping which doesn’t make sense. Instead he advocates that networks should manage congestion better.

Broadband experts also believe that introducing caps will discourage people from watching online TV programs instead of watching them on pricey cable TV. He says consumers will be dissuaded from using high bandwidth applications when the meter is always running.

The letter focuses on wire-line providers but recently even wireless carriers discontinued their unlimited data plans. Verizon and AT&T lately had introduced tiered pricing and T-mobile had recently introduced monthly data caps and block users for exceeding them.

Public Knowledge, another group in the association has argued in a separate research that pay per byte pricing is illogical. At the most carriers can introduce this plan during peak hours and when there are chances of network congestion. During non peak hours when there is no chance of congestion, this pricing doesn’t make sense.

More Data Cap Info:

Comcast Usage Caps Ruining Families? – http://isp1.us/blog/comcast-usage-caps-ruining-families/

AT&T Implementing Home Internet Caps Starting May 2nd – http://isp1.us/blog/att-implementing-home-internet-caps-starting-may-2nd/

Xfinity for Xbox 360 Not Restricted by Comcast Bandwidth Caps – http://isp1.us/blog/xfinity-for-xbox-360-not-restricted-by-comcast-bandwidth-caps/

AT&T to Introduce Data Caps on DSL – http://isp1.us/blog/att-to-introduce-data-caps-on-dsl/

Cox – Still No Plans for Usage-Based Internet Fees – http://isp1.us/blog/cox-still-no-plans-for-usage-based-internet-fees/

 

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Posted by admin - May 10, 2012 at 3:46 pm

Categories: Broadband, Comcast, Government, Internet Caps, Internet News, ISP, Wireless   Tags: , ,

Missouri Works to Increase High Speed Internet Access and Usage in the Heartland

Missouri Works to Increase High Speed Internet Access and Usage in the Heartland

Missouri Works to Increase High Speed Internet Access

Missouri Works to Increase High Speed Internet Access and Usage in the Heartland

Representatives of MoBroadbandNow visited Memphis recently to release a report detailing Northeast Missouri’s plan to provide increased access to high speed Internet. The area is currently being served by 14 providers.

A random survey was sent to 4000 homes randomly through mail in May 2011out of which 573 returned the survey and 400 of these were analyzed by the company. The results of the survey were as follows:

  • 88% of those surveyed staying in Northeast Missouri owns a computer and over 56% of them had it for more than 10 years.
  • 12% of those surveyed did not own a computer. The reasons for not owning one being too expensive no need or didn’t know how to use it.
  • 88% computer owners have Internet.
  • 75% broadband users have high speed Internet.
  •  DSL is the major type of broadband service. 47% broadband users use it.
  • 54% businesses in N.E. Missouri use a cable modem.
  • 25% of those surveyed who said they do not have broadband Internet access stay in rural areas like Lewis and Clark counties.
  • Average broadband cost is around $30 in the region.

The survey pointed out the digital divide showing rural respondents most likely to have a computer and Internet but less likely to use broadband. MoBroadbandNow’s director said the three challenges faced by the region are availability, usage and non-familiarity with using the Internet.

He further said that one of his company’s goals is to ensure 95% of the area’s residents get broadband access at reasonable rates and speeds to ensure all segments of the community are connected to each other.

Few issues highlighted by the report include:

  • Lack of wireless access in rural areas.
  • K-12 education challenges; as Internet based homework becomes difficult for students.
  • Difficulty faced by local governments in putting services online as it will alienate residents who don’t have Internet access.

 

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Posted by admin - May 10, 2012 at 3:25 pm

Categories: Broadband, Cable Internet, DSL, Internet News, Missouri, Wireless   Tags: , ,

Verizon Fires Back at Critics of Deal

Verizon Fires Back at Critics of Deal

Verizon Fires Back at Critics of Deal

Verizon Fires Back at Critics of Deal

Last week Verizon hit out against critics of the proposed deal between Verizon and a coalition of cable companies in a representation made by the Federal Communications Commission (FCC).

The deal will clear the path for Verizon to buy spectrum from Bright House, Time Warner Cable, Cox and Comcast . These companies have also agreed to cross selling of each other’s products and services.

Consumer rights groups like Free, Press and Public Knowledge as well as communications companies like T-Mobile have objected to the deal saying it will allow Verizon to become the dominant player in the market and it is against the practice of fair competition. These groups have requested the FCC to block the deal.

In its reply to the FCC, Verizon has said that on one hand these companies were not using their spectrum and on the other hand Verizon was finding it difficult to meet the growing frequency demands of its customers.

Verizon also argued that the FCC should not consider other alternatives to the deal like the companies selling their spectrum to T-Mobile.

T-Mobile in its filing with the FCC has stated that Verizon already has the majority of spectrum owned by any carrier and the deal will allow Verizon to block other carriers from accessing this valuable resource. But Verizon has firmly denied the accusation saying that it is not interested in warehousing and the accusation against it is absolutely false. The company thinks itself as a good steward of the spectrum and it needed more spectrum to fulfill customers’ demands for 4G LTE service and cable Internet subscribers.

Consumer groups feel that the deal will push the market towards duopoly with AT&T Verizon sharing the pie amongst them. The company argued that the market is very competitive and that neither AT&T nor Verizon owned the most spectrum’s but that distinction went to Clearwire, another wireless Internet provider.

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Posted by admin - May 10, 2012 at 4:39 am

Categories: At&t, Bright House, Comcast, Cox, FCC, Internet News, T-Mobile, Time Warner Cable, Wireless   Tags: ,

Comcast beaming with $1.22 billion in first-quarter revenue

Comcast is beaming with $1.22 billion in first-quarter revenue

Comcast beaming with $1.22 billion in 1st-quarter revenue

Comcast is beaming with $1.22 billion in first-quarter revenue

Comcast, one of the largest cable providers in the country reported that it earned a 30 percent profit increase in Q1 of 2012 on the back of advertising during the Super Bowl and its hugely popular broadband Internet service.

Last week the Philadelphia based company declared its first quarterly results wherein its income rose to $1.22 billion between January and March. The shares rose from 34 cents a year ago to 45 cents during Q1 of 2012.

Comcast’s revenue was up by 9.6% and stood at $14.9 billion which included cable and NBC Universal results.

In Jan 2011 Comcast had closed its acquisition of NBC Universal which owns movie studios and TV channels. NBC Universal accounted for a third of Comcast’s revenue. The NBC broadcast network grew over 37 percent largely due to the Super Bowl which was broadcasted by Fox in 2011. Apart from the Super Bowl, NBCs revenue also increased due to shows like “Smash” and “The Voice.” Comcast’s other stable cable  business grew at a modest 5.7 % from the previous year.

Comcast CEO, Brian Roberts had earlier suggested that Comcast would be able to arrest the trend of cable TV subscribers cancelling their subscription in favor of TV service provided by telephone and satellite companies but the results show otherwise as Comcast lost 37,000 cable TV subscribers in Q1 of 2012, approximately the same number it had lost in the same quarter of the previous year. However Roberts was optimistic and told analysts that he believed Comcast can continue to make progress to retain video subscribers. Roberts did mention that its web based video service, Streampix was launched for its video customers in February. The company also added 439,000 internet subscribers in the last quarter which is the highest number of new subscribers for any quarter in the past 4 years.

 

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Posted by admin - May 9, 2012 at 10:02 pm

Categories: Broadband, Comcast, Internet News, TV   Tags: ,

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