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Is Cable Voice Getting a Sore Throat?

Source: gigaom.com

The economic downturn, in particular the housing market slump, that has been pressuring U.S. telecom operators now seems to be extending to cable operators as well. After enjoying nearly eight quarters of solid growth, it looks like the U.S. cable telephony business is slowing down.

The proverbial canary in the coal mine sounded the alarm yesterday. ARRIS, which makes hardware for cable operators, lowered its second-quarter forecast for both profits and revenues. Management blamed maturing cable telephony deployments and a slow housing market on the reduced demand for cable telephony services.

I think both are valid points. First, cable voice has become pervasive. You can now call your cable operator and get a fixed line connection without worrying if they actually offer voice service in your market. (Whether you’re happy with them, however, is a different story altogether.) So it’s hardly a surprise that the demand for equipment would slow down.

As we’ve previously noted, cable VoIP has been on a tear. At the end of the first quarter, Comcast had 5.1 million customers, while Time Warner Cable had 3.17 million, followed by Cox’s 2.46 million, Cablevision’s 1.68 million and Charter’s 1.08 million. Many of these subscribers came at the expense of telephone companies. Telegeography estimated that there were about 16.3 million VoIP households at the end of the first quarter of this year.

The cable companies benefited from the previous surge in new housing starts, which led to spectacular growth in their broadband and voice telephony businesses and in turn, made it easier for people to switch away from telephone companies. A slowdown in this business is only natural. In fact, I wouldn’t be surprised if large cable companies saw a sharp slowdown in broadband growth as well.

The real question is, just how big will the slowdown be? With the second-quarter earnings season just getting underway, it won’t take long to find out.

Published on July 9th, 2008 under , , , , , , , ,

AT&T May Drop Dish, But Still Has U-verse

Source: gigaom.com

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AT&T has decided not to renew its contract to resell television services provided by Dish Networks. The announcement, made last night in a filing from Dish with the SEC, have sent shares of the satellite company tumbling and analysts rushing to point out that this may not be the end for Dish and AT&T. My question is, why not? Where the heck is AT&T’s belated IPTV service?

Several analysts said that AT&T’s refusal to automatically renew the five-year-old contract means the telco will try to negotiate a better deal by bringing Dish rival DirectTV to the table. Others say this kills any hope that AT&T might buy Dish. But Dish has been a stopgap measure to give AT&T a triple play of voice, data and video as the cable guys encroached on the voice business. AT&T has always wanted to offer its own video service.

Six years ago I sat through demos of AT&T’s Project Lightspeed (now Homezone) and marveled at the coming television service options ahead. By that measure I’ve spent a fifth of my life waiting for U-verse as it worked through technical hurdles and issues with the Microsoft platform. And only now is the service getting widely rolled out. Dare I hope that AT&T is actually getting close to owning its own triple play?

Right now, according to an emailed response from an AT&T spokesman, “U-verse TV is our primary offering in the areas where it is available, but AT&T | DISH is available across our footprint.” As U-verse expands, losing the AT&T contract may not be such a blow.

Published on July 2nd, 2008 under , , , , , ,

AT&T Offers The Whole Enchilada- Broadband Internet That Flexs Depending on Where You Are and What You Are Doing

Source: alanweinkrantz.typepad.com

Being based in San Antonio, we think in terms of Mexican food.  I used to see former AT&T Chairman Ed Whitacre dine at LaFogatta, one of my personal faves.  When you get the whole enchilada, you get the whole thing, the big meal, the super combo deluxe dinner.

The phone company as we no longer know it has just launched AT&T Net Reach, a whole enchilda approach to providing home and on-the-go high speed Internet services for the ever-moving consumer and small business customer.

3Screens.net News Summary:

  • Combining the strengths of AT&T’s wireless and wireline networks, Net Reach includes AT&T High Speed Internet and LaptopConnect services, in addition to free access to more than 17,000 hot spots with AT&T Wi-FiSM service.
  • Plus, as part of the LaptopConnect service, new software automatically detects the strongest available AT&T signal from a nearby network — 3G, EDGE, Wi-Fi or one’s AT&T High Speed Internet connection at home — making connecting simple and easy.
  • AT&T Net Reach provides high speed Internet service at home, access to AT&T’s 3G wireless network in more than 275 major metro areas, national coverage on AT&T’s EDGE wireless network and free access to more than 17,000 Wi-Fi hot spots nationwide, including roughly 7,000 Starbucks locations.
  • The latest AT&T Communication Manager software, version 6.8, now pre-installed on the AT&T USBConnect 881, adds ease of use by picking up AT&T network signals directly from one’s laptop.
  • Customers may also download the new AT&T Communication Manager, at no cost, by visiting www.att.com. AT&T Net Reach plans are now available, starting at $79.95 a month, and may be ordered by calling AT&T or by visiting a local AT&T retail location.

How To Buy:
AT&T Net Reach is available to new and existing residential and small business customers who subscribe to AT&T High Speed Internet and AT&T LaptopConnect services. Customers must also opt to combine their wireless and wireline services onto one billing statement.

Published on June 4th, 2008 under , , , , ,

Broadband Wanted In The Air

Source: andyabramson.blogs.com

If this doesn’t tell you that Boeing blew it by being premature and pulling out of the flying WiFi space over a year ago, nothing proves it better.

A survey by BarclayCard shows that over fifty percent of the business travel market want Internet connectivity on the go and in the air, at least with the audience under 50. But even over 50 year olds, 40 percent of them, want it too.

Put me in the first group, for I’ve already had the experience on Lufthansa when they offered Connexxion back in 2006 and LOVED IT. Heck I even made a few VoIP and Skype Calls using Gizmo Project and Counterpath’s Eyebeam.

Most of all the sense of knowing all my email was caught up on was a big relief when I got off the plane versus the need to spend an hour cleaning up my inbox as I normally do each morning.

In my view, we’re going to see more users the next time around staying connected in the air…

Published on May 29th, 2008 under , , ,

The Need For Speed: AT&T Nears Completion of 3G Wireless Technology Deployment That Delivers Broadband Wireless Speeds - for Downloads and Uploads

Source: alanweinkrantz.typepad.com

Summer is just around the corner, and by June the phone company as we no longer know it, will deploy High Speed Uplink Packet Access (HSUPA) technology in the six remaining markets across AT&T’s entire 3G (third-generation) wireless broadband network.

When done, AT&T will have completed its deployment of HSUPA technology, which complements existing HSDPA technology (High Speed Downlink Packet Access), making AT&T the only U.S. carrier to have fully deployed HSPA technology in its 3G network.

Today the superfast AT&T 3G network is available in more than 275 markets. By year-end, the AT&T 3G network will be available in nearly 350 markets.

With the new addition of HSUPA technology, AT&T 3G users (think iPhone 2.0) can enjoy uplink speeds between 500 and 800 Kbps. The technology is available in all but the few remaining AT&T 3G markets and will be included in all future deployments. The new upload speeds complement AT&T’s 3G download capabilities, which currently offer up to 1.4 Mbps across all markets for customers who have capable devices, such as AT&T’s LaptopConnect wireless modems.

Published on May 23rd, 2008 under , , , , , , , , , ,

Now Vonage Will Also Sell Broadband

Source: gigaom.com

After a really rough 2007, Vonage (VG), the independent voice-over-IP service provider, seems to be having a better 2008. This morning the company reported its first-quarter 2008 financial results, and well, things are not bad. Not spectacular, but not bad, either.

More importantly, the company announced plans to sell Covad DSL services, rebranded as Vonage Broadband and tightly coupled with its VoIP service.

Revenues increased sequentially by 4 percent to $225 million, thanks to an increase in the number of subscribers (30,000, bringing the total up to 2.6 million) and average revenue per user to $27.85, up from $27.42 sequentially. The net loss for the quarter was about $9 million, or 6 cents a share. The only bad news: Average monthly customer churn increased to 3.3 percent in the first quarter of 2008 from 3 percent in the fourth quarter of 2007.

More importantly, the company is looking to diversify its business, and today said it’s going to start selling broadband service. It has formed a partnership with Covad, which is going to provide the DSL pipes for the new Vonage Broadband service, which will be available to both residential and small business customers. The company expects the new service to be available by the end of the year.

This is a smart, strategic move by the company, which has been punched silly by the incumbents. I’m surprised it took them so long. I think this helps Vonage overcome all the problems created by broadband providers and their networks. Now the big question is: Will consumers buy DSL service from a company with a checkered record when it comes to service and customer satisfaction?

Disclosure: Covad is a sponsor of GigaOM.

Published on May 8th, 2008 under , , , , ,

Kimpton Hotel’s Palomar Hotel in San Francisco Has Pitiful Broadband

Source: andyabramson.blogs.com

The other day Jonathan Greene posted about the lousy performance when it came to Broadband that he had at the Hotel Monaco in Seattle. The Monaco, like the Palomar here in San Francisco where I am for the week are both Kimpton Hotels and have a long tradition of catering to technology types on the road.

In the past I’ve always had a better than average experience at the Kimpton Hotel properties when it comes to broadband, but today, on the eve of Java One, my experience is nothing less than disappointing.

First I couldn’t log on, as the auto sign on said I wasn’t the guest in the room I was listing (wrong) and then it went on to say there wasn’t a credit card on file (wrong again as I already had checked in.) That required a call to support from ElevenWireless, the company which handles the connectivity.

After I was on, I realized the support person didn’t give me the service I was trying to activate, the more expensive ($4.95 vs. Free) service that promises higher speeds and better throughput vs. the free service.

Here’s what I found out:

Free service gave me 300 k down, and 150 k up. That’s not really broadband.

The paid service is giving me between 330k and 500k down and between 150 and 500 k up over a series of tests.

As JG says, "sorry. This isn’t broadband."

Published on May 4th, 2008 under , , , , , , , , ,

San Diego Airport Broadband Part Two

Source: andyabramson.blogs.com

I’m on my way to the Bay Area for a week’s worth of meetings, meet up
and to also assist winemaker friend Sylvain Fadat of Domaine d’Aupilhac
on Monday at the annual Kermit Lynch Client event that starts tonight.

As I await my slightly delayed Southwest flight to SFO I ran a fast  speed test.

Download  14403kb/s
Upload 8359 kb/s

To
me, that rocks and shows that making pointed comments directly to the
airport management as I have really didn’t fall on deaf ears.

Published on May 4th, 2008 under , , , , , ,

San Diego Airport Broadband Part Two

Source: andyabramson.blogs.com

I’m on my way to the Bay Area for a week’s worth of meetings, meet up
and to also assist winemaker friend Sylvain Fadat of Domaine d’Aupilhac
on Monday at the annual Kermit Lynch Client event that starts tonight.

As I await my slightly delayed Southwest flight to SFO I ran a fast speed test.

Download 14403kb/s
Upload 8359 kb/s

To
me, that rocks and shows that making pointed comments directly to the
airport management as I have really didn’t fall on deaf ears.

Published on May 3rd, 2008 under , , , , , ,

Airport Broadband at San Diego Airport Part Two

Source: andyabramson.blogs.com

I’m on my way to the Bay Area for a week’s worth of meetings, meet up and to also assist winemaker friend Sylvain Fadat of Domaine d’Aupilhac on Monday at the annual Kermit Lynch Client event that starts tonight.

As I await my slightly delayed Southwest flight to SFO I ran a fast speed test.

Download 14403kb/s
Upload 8359 kb/s

To me, that rocks and shows that making pointed comments directly to the airport management as I have really didn’t fall on deaf ears.

Published on May 3rd, 2008 under , , , , , ,

For Comcast, Broadband Still Growing. For Now.

Source: gigaom.com

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So all the noise, anger and finger-pointing at Comcast’s cheap traffic tricks didn’t impact its broadband business. The company just reported a decent enough first quarter, but what got my attention: It now has 14.1 million high-speed subscribers, compared to 13.6 million at the end of 2007. That translates to about 500,000 new subscribers. Given how broadband sales have slowed down for DSL providers (but not for FTTH services), this is pretty significant. Karl on DSL Reports is taking a glass-half-full approach to the earnings but writes that things are slowing down. Seems like extra speeds are helping push the revenues as well, according to the company:

The strong subscriber and revenue growth in the first quarter of 2008 benefited from the introduction of additional promotional offers and speed tiers, including Comcast’s BLAST and Performance Plus services (8Mbps or higher service) and Comcast’s Economy Internet service (768Kbps service).

Another astonishing number: Comcast added 639,000 Comcast Digital Voice (CDV) customers during the first quarter — penetration reached 12 percent or 5.1 million customers with revenues of about $587 million in the first quarter of 2008. Time Warner Cable also posted a similar kind of growth, adding 280,000 phone customers and 304,000 high-speed customers in the first quarter. In comparison, the phone companies keep losing landline customers. No wonder phone companies are worried.

Published on May 1st, 2008 under , , , , , , , ,

Speed Bumps Coming To A BroadBand Near You Soon

Source: andyabramson.blogs.com

Om’s post about better speeds from your broadband provider is music to my years. As a home based teleworker and global traveling nomad speed is my connectivity lifeline. Bad broadband for me is the equal to a bad hair day.

But it’s his closing paragraph which really nails what the important part of having better pipe is all about. The upstream path.

Broadband 2.0 is all about collaboration and sharing, and that requires just as much upstream bandwidth as it does downstream speeds. Regardless, this coming year is going to be fun as the cable companies and phone operators will do unnatural things to entice new subscribers, starting with offering faster connections at lower prices. Nothing wrong with that.

Basically for client companies like Vapps with their HiDef Conferencing, Yugma, SightSpeed, Truphone, Junction Networks, iotum, and their competitiors, the upstream improvements will really help make for a much better user experience.

Published on April 30th, 2008 under , , , , , ,

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