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AT&T Announces Awaited Network Investment Plan
Some DSL Users Get U-Verse, Some Get Absolutely Nothing

AT&T has announced their long-awaited plan to address the upgrade path for the company's DSL networks. According to AT&T's plan, the company will spend $14 billion on a new network expansion initiative that will include upgrading some current DSL users to U-Verse, but will also involve pushing many DSL users in outlying areas to their LTE network. $8 billion of the $14 billion total will be going toward upgrading LTE further, and around $6 billion will be going toward upgrading wireline networks.

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Specifically, AT&T says they'll be increasing their U-Verse coverage area from 24.5 million homes to 33 million. That 8.5 million upgrade total is welcome news, given that many analysts had predicted that number to be closer to around 3-4 million.

The company traditionally spends between $19 billion to $20 billion in annual capital spending, and says that they'll be boosting that to $22 billion a year for the next three years. The $6 billion being aimed at wireline services will not only go to U-Verse expansion; the company says it will also go toward increasing existing U-Verse speeds to 75 Mbps by the end of 2013, and 100 Mbps thereafter.

Another 24 million DSL users will be seeing what AT&T is calling "U-verse IPDSLAM" upgrades by the end of 2013. Those upgrades will offer users speeds up to 45 Mbps (depending on loop length), but won't include bundled TV offerings like AT&T's U-Verse platform.

While the U-Verse expansion is welcome, about 25% of AT&T's footprint won't be seeing any upgrades -- ever. Those DSL users will be swapping out DSL and a current 150 GB cap ($10 for each GB thereafter) with LTE service that may be faster, but also comes with a higher price tag ($15 per gigabyte overages). As noted previously, AT&T is busy stripping away regulations to pave the way for this market exit. That's going to court more than a little controversy given the billions in subsidies doled out to deploy and maintain these services, and the millions of people (particularly the elderly) that still rely on POTS services in these regions.

As I've been noting for some time, AT&T and Verizon's decision to hang up on millions of DSL users in more rural markets is a huge issue that has serious negative market repercussions. In an age where we're supposed to be eliminating broadband coverage issues, AT&T and Verizon are simply closing up shop and letting landline broadband users flee to cable, empowering the cable monopoly in these areas, which will result in higher prices and lower quality service for tens-of-millions of subscribers.

All of that said, the upgrades AT&T has announced are much more than what most analysts expected (myself included).

"This is a major commitment to invest in 21st Century communications infrastructure for the United States and bring high-speed Internet connectivity — 4G LTE mobile and wireline IP broadband — to millions more Americans," AT&T CEO Randall Stephenson said in a prepared statement. "We have the opportunity to improve AT&T's revenue growth and cost structure for years to come, and create substantial value for shareowners."

Shareowners weren't so impressed, punishing the stock today because they don't like that the company is investing anything into their wireline network. AT&T's stock fell 3.4 percent in early trading, compared to a broader index decline of 1.8 percent. AT&T has painfully considered what to do with their aging broadband infrastructure for some time. The company had originally hoped to sell off much of their networks to smaller telcos, but the majority of those companies (Windstream, Frontier) are already in the process of trying to digest major acquisition deals and weren't interested.
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LightS
Premium Member
join:2005-12-17
Greenville, TX

LightS

Premium Member

75mbps by 2013?

Two months to do this?

That being said... I'm glad they're doing it. My parents only have a measly 1.5mbps DSL connection (and it disconnects all of the time) at home. Where I live, I can get either a local municipally owned ISP (cable) - 10/1 for $34/mo. I personally have 30/2 for $54/mo, though.

That being said, if I could get their U-Verse IPDSLAM service I would be ecstatic. I'd gladly welcome in 24/3 for the higher upload speed, or even 45/6 or whatever projected upstream plan they have.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt

Premium Member

Re: 75mbps by 2013?

read carefully
"... U-Verse speeds to 75 Mbps by the end of 2013..."

LightS
Premium Member
join:2005-12-17
Greenville, TX

LightS

Premium Member

Re: 75mbps by 2013?

Definitely wasn't there when I posted :P
I figured it was a typo, though.
LightS

LightS

Premium Member

Re: 75mbps by 2013?

Thank you for this informative input!

Michail
Premium Member
join:2000-08-02
Boynton Beach, FL

Michail to tshirt

Premium Member

to tshirt
said by tshirt:

read carefully
"... U-Verse speeds to 75 Mbps by the end of 2013..."

Probably in Texas.

antdude
Matrix Ant
Premium Member
join:2001-03-25
US

antdude to LightS

Premium Member

to LightS
said by LightS:

Two months to do this?

That being said... I'm glad they're doing it. My parents only have a measly 1.5mbps DSL connection (and it disconnects all of the time) at home. Where I live, I can get either a local municipally owned ISP (cable) - 10/1 for $34/mo. I personally have 30/2 for $54/mo, though...

Why don't they just get cable then faster speed and stability? My parents' new place and neighbors have crappy 1 Mb/sec Verizon DSL services (no FIOS in this rural area), but they all got Time Warner Cable services and now happier. It's funny how neighbors copied the new house owners.

LightS
Premium Member
join:2005-12-17
Greenville, TX

1 recommendation

LightS

Premium Member

Re: 75mbps by 2013?

They don't have cable available. Charter, the incumbent cable ISP, completely skipped the neighborhood years ago. Probably a disagreement with the HoA.

antdude
Matrix Ant
Premium Member
join:2001-03-25
US

antdude

Premium Member

Re: 75mbps by 2013?

said by LightS:

They don't have cable available. Charter, the incumbent cable ISP, completely skipped the neighborhood years ago. Probably a disagreement with the HoA.

Oh that sucks! Get HoA to get cable!
ShellMMG
join:2009-04-16
Grass Lake, MI

ShellMMG

Member

I have a description for this:

"Broadband Apartheid"

Those LTE caps will cut off internet access for thousands of consumers. According to Techdirt, a Razor mouse now requires an internet connection to work. There's a huge market that will be completely cut off, and nobody is putting pressure on ISPs to reconsider this mess.

Metatron2008
You're it
Premium Member
join:2008-09-02
united state

Metatron2008

Premium Member

Re: I have a description for this:

LOL, you are full of it if you think this is political. At&t has been losing thousands of customers for quarter after quarter. It was either build out or concede defeat to cable.
Expand your moderator at work

Gilitar
join:2012-02-01
Mobile, AL

Gilitar

Member

Whats the plan for existing FTTC

I wonder what they plan to do with existing FTTC like the Marconi DISC*S systems in place in BellSouth areas.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

1 recommendation

WhatNow

Premium Member

Re: Whats the plan for existing FTTC

If they did not do anything else they need to covert DISC*S to Uverse. Every time they get close they halt the conversion. They are going to lose all their customers in those areas if they don't do something.
jc3116
Premium Member
join:2003-01-03
Snellville, GA

jc3116 to Gilitar

Premium Member

to Gilitar
They have converted a few IFITL remotes to an Ericsson PON system that supports Uverse speeds, but after the initial conversion, things seem to have slowed considerably.
The rumor is that the Ericsson system is too costly and they are searching for a cheaper alternative.
Hopefully IFITL will be included in this upgrade. I have tried unsuccessfully to get them to cut me to IP DSL but I'm told it's not available in my crossbox even though I'm less than 1.5 miles from the CO.

Gilitar
join:2012-02-01
Mobile, AL

Gilitar

Member

Re: Whats the plan for existing FTTC

They have to upgrade us IFITL customers or either lose it all to cable.
Gilitar

Gilitar

Member

......
Os
join:2011-01-26
US

Os

Member

Faster Speeds for U-Verse are Huge

Not only will this make their internet offerings more competitive with cable, but if they can stop overcompressing the TV and not have limitations to the number of streams, they may really be on the right path after all.

••••
etaadmin
join:2002-01-17
united state

etaadmin

Member

At&t won't do nothing...

As usual at&t will end up doing nothing and their 75Mbps and future 100Mbps thereafter pipe dreams are just that, pipe dreams.

Perhaps in 5 years uverse will offer 75 Mbps to the lucky few closer than 1000ft from the VRAD but for the rest it's 6 Mbps heaven. $14 billion dollars spent on wheels in a car worth $100.

First deliver the 45 mbps plan they have been working on for 2 years and then talk about 75 or even 100 Mbps

»45 MB internet service

No wonder why their investors are not happy.

Ultibeam
join:2008-05-27
USA

Ultibeam

Member

A network behind

This is still not good enough as Docsis 3.1 will be rolling out during the same time frame. at&t is really trying hard for the bottom position and that is why share holders are angry.
34764170 (banned)
join:2007-09-06
Etobicoke, ON

34764170 (banned)

Member

Re: A network behind

DOCSIS 3.1 modems will start showing up middle to end of 2014. MSOs won't do upgrades until end of 2014 and into 2015.
amungus
Premium Member
join:2004-11-26
America

1 recommendation

amungus

Premium Member

worthless

Totally worthless with such caps. LTE is neat, but there are still tons of gaps in coverage. The biggest issue is still usability. Sure, you can browse a bit faster, but forget really using wireless broadband anything like wired.
This is just sad. There really should be a fixed service with usable terms. It is otherwise worthless, and a huge waste.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Why not sell off the unwanted DSL lines?

Surely in some of these ares there would be a company that would buy up these lines at&t seems to not have an interest in maintaining.

dnoyeB
Ferrous Phallus
join:2000-10-09
Southfield, MI

dnoyeB

Member

Re: Why not sell off the unwanted DSL lines?

unless those are so-called 'dry' lines, ATT pads their POTS numbers with those.

mikedz4
join:2003-04-14
Weirton, WV

mikedz4 to 88615298

Member

to 88615298
Do you want another company to run those lines? Someone that also has no plans on upgrading those lines just maintaining the status quo?
markrubi
join:2004-08-11
Edmond, OK

markrubi

Member

LoL yeah right. 75Mbps

I can't even get the Max Turbo speeds. I am all fiber too.
88615298 (banned)
join:2004-07-28
West Tenness

1 recommendation

88615298 (banned)

Member

Re: LoL yeah right. 75Mbps

Yep. The fastest speed they offer in my area is 18 Mbps and I can't even get that. And I'm right in town. I'm about 200 feet from being able to get 18 Mbps so the best I an get is 12 Mbps. They want $48 for that. Meanwhile I an get 30 Mbps from Charter for $50. Hmmmmmm which do I choose?
Dampier
Phillip M Dampier
join:2003-03-23
Rochester, NY

1 recommendation

Dampier

Member

Bait and Switch

Once you read beyond the press releases and really dig into the regulatory filings and sit through the entire two hour event (our good friend Craig Moffett was on hand for this one too), the real agenda begins to emerge.

This is one giant stunt to bait the feds with the promise of better broadband in return for the wholesale abandonment of the landline network and its universal service requirements. AT&T's wireless and VoIP voice services are barely regulated and abandoning rural landline networks in favor of wireless is win-win... for them.

Customers have zero recourse if they lose landline service and get stuck with lousy AT&T service and will be slapped with the same overpriced wireless service and usage caps. AT&T gets to pocket the fat profits.
countscabula
join:2010-03-09

countscabula

Member

Re: Bait and Switch

We have a winner!

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

1 recommendation

KrK to Dampier

Premium Member

to Dampier
Heads, they win!
Tails, you lose!
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

LTE

We have no idea what their LTE service for replacing DSL or those without even DSL will be priced at. No one knows that it will be $15 per GB, that's purely speculation.

We have to keep in mind much of the 25% of At&t's footprint that isn't getting upgrades probably doesn't have DSL at all.

•••
kaila
join:2000-10-11
Lincolnshire, IL

kaila

Member

Let's see

SBC/ATT DSL/Wireline initiatives promising DSL in my town since 1998:

1999- Project Pronto: DSL promised, dropped undelivered
2004- Project Lightspeed: DSL promised, dropped, morphed into.... U-verse
2007- U-Verse VRAD's installed in my Chicago suburb, never turned on....
2010- Unused and rusting VRAD's repainted
2012- Some VRAD's lit, the one serving my neighborhood is still neglected......
This latest initiative: ?

Fun
@sbcglobal.net

Fun

Anon

Re: Let's see

People sometimes chainsaw the cables down that feed the vrads. I wouldn't doubt it if it's happened in your neighborhood.
countscabula
join:2010-03-09

countscabula

Member

VRADs

They pulled the plug on the VRADs then they noticed something, they were making lots of money. So they're starting back. Great idea.

MovieLover76
join:2009-09-11
Cherry Hill, NJ

MovieLover76

Member

Should have to maintain dsl network.

Since they were built via a subsidy, they should in addition at least be required to keep the existing dsl markets that aren't in the upgrade plans on. LTE charges per GB are way to high to replace dsl.

Darknessfall
Premium Member
join:2012-08-17

Darknessfall

Premium Member

Hinted?

I had a hint that this was going to happen. Over the past few days AT&T has been running a lot more U-verse ads in our state than they normally do. They usually only run one once and awhile, now it's all the time lol.

mikedz4
join:2003-04-14
Weirton, WV

mikedz4

Member

any idea WHERE they are upgrading to u-verse?

Is there any news on whether or not eastern ohio will get u-verse or will they be left to 4g-lte?
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

Re: any idea WHERE they are upgrading to u-verse?

Is there DSL there now? I would imagine pretty much all areas currently served by DSL will be getting some sort of an upgraded DSL, possibly U-verse.

mikedz4
join:2003-04-14
Weirton, WV

mikedz4

Member

Re: any idea WHERE they are upgrading to u-verse?

there is dsl there now but it is not a major population area. Alot of rural areas.

GvilleDSL
join:2009-11-12
Greenville, SC

GvilleDSL

Member

It's gonna suck when....

One day you have DSL and the next LTE...

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Such BS.

Being forced off DSL to expensive capped and metered LTE.

These users obviously don't have any choice other then: Pay it or do without.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: Such BS.

said by KrK:

Being forced off DSL to expensive capped and metered LTE.

While the cap is higher, DSL from at&T is capped.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

WhatNow

Premium Member

Re: Such BS.

If they matched they made the wireless connection with the same caps as DSL for the same price or maybe just a bit more because of the higher LTE speeds it would not be so bad.
Bob61571
join:2008-08-08
Washington, IL

1 recommendation

Bob61571

Member

GigaOm's Om Malik has some comments on the end of DSL

»gigaom.com/2012/11/07/he ··· ood-bye/

tigerpaw509
join:2011-01-19

tigerpaw509

Member

LTE Home

So they want to give me a LTE Home router with 2 gigs a month with a $15 charge for every gig over ????
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