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AT&T May Sell Off Many DSL Markets
Upgrades Schmupgrades
We recently noted how AT&T's U-Verse expansion is essentially over, and if you haven't seen your market upgraded yet you probably aren't going to. So what happens to a little less than half of their current customers still on older DSL technology? Like Verizon -- who offloaded millions of users in somewhat ugly deals with Frontier and Fairpoint, it appears that AT&T is looking to sell off many DSL markets and keep their focus on wireless.

AT&T's recently on record stating that they can't find an "economically viable" way to upgrade these users, despite a looming increase in faster and less expensive last mile DSL technologies. The company's also recently on record stating that they believe DSL is "obsolete" -- a troubling claim since that's their primary product. According to the latest DSLPrime newsletter from Dave Burstein, all signs point to the fact that AT&T's gunning to sell many DSL markets off, provided they can find a buyer.

That’s essentially all of AT&T not reached by U-Verse. Stankey is “doing a rapid tech evaluation” of whether they can upgrade their DSL + wireless to “a competitive broadband product.” But Randall “doesn’t see a solution.” If that’s confirmed, “we’re looking for others who might want the properties.” Stankey’s competent. Looking at bonded/vectored DSL he may change the company’s plans. Randall’s mantra, however, is "We are a wireless company." It's unclear if any of the “rural carriers” – Century, Frontier, Windstream – have the financial ability to make an attractive offer. If operators can’t raise the money, T would need to make a financial transaction. A complicated spinoff retaining the growing parts of the company is one possibility. There’s probably an interesting way to lose pension and deferred tax liabilities if they make that choice. All the big private equity firms are looking at bids.

The sale could involve anywhere between 10 and 25 million DSL lines. AT&T would then follow Verizon's lead and focus on selling capped, expensive LTE service to many more rural users, who primarily have the choice of slow, overpriced satellite, or slow, over-priced DSL (both, if they're "lucky"). The complete lack of interest in upgrading DSL lines in more than half of the United States is great news for cable companies, who'll be able to jack up rates for a decade as the only ISPs in many markets capable of anything close to next-gen speeds.

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voipnpots

join:2011-10-13
USA
Reviews:
·Comcast

Yup, AT&T is a wireless company

I can't really see my area being upgraded with Comcast available...it would be like investing in a product that still doesn't reach the capabilities of a product already available.

People will continue to use POTS from AT&T, but no one really has a reason to subscribe to DSL anymore, other than for the lower price. When you bundle services with Comcast, for example, it may actually turn out cheaper, and you get a much better value for your services.
Albert71292

join:2004-10-31
West Monroe, LA

Re: Yup, AT&T is a wireless company

I still use DSL, even though Comcast is in my area. The DSL provider I use is a small, regional one who doesn't have monthly data caps. AT&T DSL AND Comcast BOTH have monthly data caps, thus the reason I refuse to use them!

Iridium
Premium
join:2003-04-02
Los Angeles, CA
Reviews:
·DSL EXTREME
Not for me. The bundles are $99+, and gives me 2 services I don't want or need. I just want internet, I get my tv and movies from netflix and "pther" sources, and I have my cell for calls. But I get your point. I use DSL because of the price.
--
My next laptop will be an Apple, I am fed up with PC's and Windows.
ITALIAN926

join:2003-08-16
kudos:1

If AT&T doesnt want it, isnt that a hint?

At&T should just put these areas on Ebay, lots of worthless junk on that site.
25139889

join:2011-10-25
Toledo, OH

Re: If AT&T doesnt want it, isnt that a hint?

i'll buy all the coverage areas for $500 as long as i can do as i want with no union contracts and unions bitching at me. And that's what it's going to come down to. Nobody is going to want to deal with them, and ATT and VZ has had it with them.

*no offense if you still work for VZ or another telco or in the union*
lv66vette

join:2004-07-01
Miami, FL

Re: If AT&T doesnt want it, isnt that a hint?

"no offense", my azz!

DICKSS

@cox.net
so apperently you hate unions for the reason of what you think we make to much. the ceo of att makes 970,000 year in just country club fees that att pays. so i guess thats why your phone cost so much. not including he 40,000 a year for car allowance. so union that.
WhatNow
Premium
join:2009-05-06
Charlotte, NC

Re: If AT&T doesnt want it, isnt that a hint?

Late to this party but it is not the Union you don't want but 1/2 the managers. Most of the problems are in middle management and staff micro managing. Most managers even at the state level are just clerks not allowed to make real decisions. Everything come down from just below the CEO officers. They don't care about the most important part of the success of the company that is the customer. If it was not for many great Union members doing that extra effort that blows their numbers the company would have lost even more customers.

The company likes having a Union so they can blame their mismanagement on someone else.

mackey

join:2007-08-20
kudos:3

Slight change needed

who primarily have the choice of slow, overpriced satellite, or carrier pigeon.

There, fixed that for you.



/M

HaloFans

join:2006-12-18

AT&T gonna AT&T

See. This is a prime example why corporations lobby for deregulation.

No responsibility.

Just a bunch of old greedy selfish babies.
mds297

join:2012-03-03
Smyrna, GA

Re: AT&T gonna AT&T

said by HaloFans:

See. This is a prime example why corporations lobby for deregulation.

No responsibility.

Just a bunch of old greedy selfish babies.

They are indeed greedy, although they often lobby in order to set up regulation that favors them and puts their opposition out of business. It's far more an issue of moral character corruption than political philosophy.

trebzon

join:2001-09-03
Grandville, MI
Of the detestable companies AT&T has an especially putrid aroma.
SunnyD

join:2009-03-20
Madison, AL

Economically viable?

I live in a 2 year old neighborhood. The AT&T tech that rolled out to me two years ago to run the line to my house said that my neighborhood was already wired for and completely capable of UVerse... all that was needed was to swap the cards out in the node across the street. He also told me that that wasn't going to happen any time soon - AT&T wasn't providing the cards to him for my address.

Of course, I also am privy to know that Bell South had south Huntsville already run with FTTH and was starting trials when AT&T re-acquired them. Since then, AT&T has shut everything off in terms of FTTH other than a select few (likely employees).

It's really sad when a company refuses to think of anything but profits.
CharlesH1

join:2011-04-29
Milpitas, CA

Re: Economically viable?

said by SunnyD:

It's really sad when a company refuses to think of anything but profits.

My understanding is that the management of a corporation has a fiduciary responsibility to their stockholders to do exactly that.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
·RoadRunner Cable
·Comcast

Re: Economically viable?

But to think of short-term profit as the only goal is...shortsighted. You may be able to make a buck now with wireless but eventually you'll run out of ways to make money. There is a limit to how much people will pay for wireless service, even if the number of devices they can use it on grows. At that point you have to start looking at the wireline side of things, which is best served by FTTH (low maintenance costs, very high speeds).
BiggA

join:2005-11-23
EARTH
Verizon's doing it with FIOS.
en103

join:2011-05-02
AT&T is 'large enough' to spin off its own separate company for the 'unprofitable' (rural) sites, and find a method of making it work and profitable. It just can't fit rural (less profitable) + urban (profitable) under the same corporate umbrella.
cramer

join:2007-04-10
Raleigh, NC
kudos:7

Re: Economically viable?

It's *ALL* immensely profitable. All of the legacy DSL gear has been installed and paid for for a long time now. (so long, most of it has likely been completely depreciated.) The biggest problem I can see is one of vendor support... the vendor either doesn't support the aging gear, or they no longer exist at all. "Uverse IPDSLAM" is the technology refresh here -- which as another poster points out, is a linecard swap. This "upgrade" is a rounding error compared to the billions the idiots have wasted putting a VRAD on every street corner and front yard in the country in order to get a short enough loop. And it's ALL already obsolete; copper loop DSL is a dead end.
BiggA

join:2005-11-23
EARTH

Re: Economically viable?

Yup. They should have put fiber in instead.

Doctor Olds
I Need A Remedy For What's Ailing Me.
Premium,VIP
join:2001-04-19
1970 442 W30
kudos:18
said by SunnyD:

I live in a 2 year old neighborhood. The AT&T tech that rolled out to me two years ago to run the line to my house said that my neighborhood was already wired for and completely capable of UVerse...

Of course it is, just like my 50 Year old neighborhood. Uverse is just higher speed xDSL over traditional POTS.
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?
Arty50
Premium
join:2003-10-04

Best money ever spent

I'm so happy we gave the telcos $200B to bring us fiber.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Best money ever spent

Me too. They are so responsible and good to us consumers.

We should give them more, they really really deserve it!

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2

Re: Best money ever spent

Damn, I've never seen so much sarcasm in my life!
ITALIAN926

join:2003-08-16
kudos:1
and what 200 Billion in charity are you two referring to?
Arty50
Premium
join:2003-10-04

Re: Best money ever spent

said by ITALIAN926:

and what 200 Billion in charity are you two referring to?

»www.pbs.org/cringely/pulpit/2007···683.html
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

1 edit

Re: Best money ever spent

So, obviously, you believe that the telco's have 200billion in a vault somewhere. Or was any monies in question used to provide for EXISTING SERVICES at the time.

... and besides all that, Verizon FiOS and AT&T Uverse has passed many more homes than the article states. There are over 4 million FiOS customers alone.
Arty50
Premium
join:2003-10-04

Re: Best money ever spent

Congratulations on completely misrepresenting the article. Did you even read it?

said by ITALIAN926:

So, obviously, you believe that the telco's have 200billion in a vault somewhere. Or was any monies in question used to provide for EXISTING SERVICES at the time.

"Over the decade from 1994-2004 the major telephone companies profited from higher phone rates paid by all of us, accelerated depreciation on their networks, and direct tax credits an average of $2,000 per subscriber for which the companies delivered precisely nothing in terms of service to customers. That's $200 billion with nothing to be shown for it."

That money isn't sitting in a vault anywhere. It was used to record record profits and to re-consolidate the Baby Bells back into less than a handful of companies. Two in particular, AT&T and Verizon, are much larger than the rest.

They were originally supposed to use that money to roll out "video dial tone, which referred in the mid-1990s to the provision of video-on-demand and cable TV-equivalent service by U.S. telephone companies at (bidirectional!) speeds up to 45 megabits per second over fiber and hybrid fiber-coax networks." They got that dumbed that down even further in the final bill to ADSL, and then they gamed the states' public utilities commissions so that they could basically reap all of the benefits but roll out minimal service.

Need I also remind you that this was originally supposed to be 45M SYMMETRICAL service. U-Verse tops out at 24m down and 3M up...if you can even get it. Hell, I can't even get AT&T DSL and I live in the Bay Area.

said by ITALIAN926:

... and besides all that, Verizon FiOS and AT&T Uverse has passed many more homes than the article states. There are over 4 million FiOS customers alone.

"In a Federal Communications Commission (FCC) report from 1994 there were requests from U.S. telephone companies to provide video dial-tone service at unprecedented levels. Bell Atlantic (now part of Verizon) wanted to install service to 3.5 million homes in its service area. Nynex (now also a part of Verizon) requested permission to install service to 400,000 homes. Pacific Bell (now part of AT&T) wanted to install service to 1.3 million homes. Ameritech (now part of AT&T) wanted to install service to 1.2 million homes. GTE (now part of Verizon) wanted to install service to 1.1 million homes."

Adding up the numbers for Bell Atlantic, Nynex, and GTE yields 5M...in 1994. Fios has hit 4.6M as of Q3 2011. Not bad, until you realize that the US population has grown by 50M people and 17M households since then, of which I'm sure Verizon has its fair share.

Basically, we got totally screwed.

Bell Baby

@bellsouth.net

Re: Best money ever spent

Good old BAIT and SWITCH. At&t was real smart at getting the money they wanted to use for other things. In the end there cell service is still the worst out there.

Doctor Olds
I Need A Remedy For What's Ailing Me.
Premium,VIP
join:2001-04-19
1970 442 W30
kudos:18
said by ITALIAN926:

So, obviously, you believe that the telco's have 200billion in a vault somewhere.

Nah, They already done spent that money (while it was still hot from the Treasury presses) on Mansions, Jets, Exotic Cars, TGE Call Girls, personal Stock Options and Balloon Payment to non-producing CEO's (Prior and current). Etc. None went to investing into infrastructure to provide fiber to the home.
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?
ITALIAN926

join:2003-08-16
kudos:1

Re: Best money ever spent

OK, so the billions that was used for FiOS must have been counterfeit.

Doctor Olds
I Need A Remedy For What's Ailing Me.
Premium,VIP
join:2001-04-19
1970 442 W30
kudos:18

Re: Best money ever spent

said by ITALIAN926:

OK, so the billions that was used for FiOS must have been counterfeit.

Um, Right! Tax dollars, Tax Credits and Yearly cash flow from paying customers are all counterfeit funds.....
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?
dishrich

join:2006-05-12
Springfield, IL

Is this for dial-tone & all???

OK, so just so I'm clear...

While the title it talking about selling off DSL Markets, is this meaning selling off the accompanying "dial tone" (ie: access lines) & plant completely? (like Verizon did w/Frontier)

Or are they ONLY talking about the DSL service(s) itself?

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

Re: Is this for dial-tone & all???

It will be POTS + DSL. It will be areas outside of large cities. For example around here they could easily sell many towns and areas to Windstream. They already have in the past, they would just sell them more.

They'll cherry pick and keep the cities of course and areas where a lot of expansion is occurring but they'll unload satellite towns and fringe areas..... not areas where they were necessarily losing money, mind you, just areas where they didn't make as much. Remember how SBC then AT&T got many states to do a statewide franchise, and removal from PUC or Corporation Commission regulations, using promises of expanded DSL deployment into towns and areas around lucrative markets as a "selling point." Now they'l be able to go back on those promises, and yet stay unregulated.

Surprise!
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

lordfly

join:2000-10-12
Homestead, FL

No loss for me

Since I dropped AT&T a couple of years ago to switch to a local WISP, even if they upgraded my tiny neighborhood, there is no incentive to switch.

DSL is so last century

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

Re: No loss for me

yup me too. The WISP I use is light years ahead of DSL
--
... need help? »evdo-tips.com/

att sucks

@sbcglobal.net

I wish they would sell it

I have had nothing but trouble with my DSL since last fall. Perhaps a different company would upgrade and my DSL would be where it should be.
WHT

join:2010-03-26
Rosston, TX
kudos:5

Economically viable is code

"They (AT&T) can't find an "economically viable" way to upgrade these users" is code for "we can make more money with a 10 GB capped wireless system".

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

Re: Economically viable is code

You bring up a valid point. Since the profit potential of a system of high speeds but with really low caps and then overages and metered billing making it potentially incredibly profitable (At the expense of our Internet future) there's actually incentive for them to kill off or allow to wither on the vine DSL and other services to cut people's options and force them to wireless, where they can really gouge.

I know people in some areas who cannot get DSL or Cable and use those "MiFi" devices, but oh boy, does that cost. Most have a 5GB cap and then steep overages AND IMHO doesn't seem like they measure traffic very well either.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

CaptainRR
Premium
join:2006-04-21
Blue Rock, OH
Reviews:
·Verizon Wireless..

Re: Economically viable is code

I am one of those people with only dialup from at&t wouldn't make a difference if someone else bought the outfit where I live. I do have Verizon 3g service at the moment but use is sparingly due to the 5GB cap. A matter of fact the central office that takes care of our part of the county is the only thing that has DSL as far as I know all of the RT's around it are dark.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
Reviews:
·RoadRunner Cable
·magicjack.com
Your post reminded me of the old AOL business model. 20 bucks for 20 hours on dial up. Then it was a buck an hour or so for anything over that.

My average AOL bill would be about 80 to 100 bucks a month. So it makes perfect sense for the modern companies to want caps. Look how "fat" AOL got before the "all you can eat' companies started. Now that AOL is mostly dead, and the telcos feel that it's memory of limited time is a faint memory, they want to return to that.

And to be truthful, who here would give up internet if they had to pay 100 plus bucks a month for unlimited service?
Considering how many use the internet as their primary source of family contact, news, games, porn, entertainment?

--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.

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

Re: Economically viable is code

They may not want to give it up, true... but the expense will sure lead to a lot of family fights, methinks.

... and these days everyone and everything wants everything connected and online, yadda, yadda. It could get very expensive, and really for no real reason other then the fact the competitive landscape in the USA is a joke.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Oh_No
Trogglus normalus

join:2011-05-21
Chicago, IL

LOL

Most of their Uverse is DSL so they are essentially going to just sell their entire plant.

dclawd

@sbcglobal.net

Re: LOL

UV Internet and DSL are two totally different items in the eyes of AT&T. The want everyone to convert to UV internet. This is a product they will not give up on right now
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast

Ridiculous

It's such short-term thinking. They should think long, and roll out FTTH to 100% of their customers. Heck, even a combo of VRADs and ADSL2+ RDSLAMs in more rural areas could push them to 100% coverage at 6mbps.

At least the ex-Verizon areas now in Fair Point's hands have seen more DSL coverage, and speed upgrades close to the CO.
amungus
Premium
join:2004-11-26
America
Reviews:
·KCH Cable
·AT&T DSL Service

screw this

I'm cancelling. Done. Game over. Only had the promo for a few months in this place, and am moving again soon anyway.

Might as well take Cox up on the free month of service, and cancel "Ma Bell" right now.

Yes, I could get "uHearse" at this location, but I'm not going to be there long enough to fulfill the contract, and forget about messing around with video + data + voice over a phone line...

I've said it years ago - I find it funny that AT&T is only just now realizing how pointless it is to try to squeeze so much crap through a little stir-straw sized pipe.

Now begins the fun of trying to cancel my service.
So long, DSL. Hope I never have to deal with you, ever again.

Oh, and fun coincidence that we just got a bill at work for a P2P T1 circuit that just went out of contract, so the rate is INSANE for a freaking T1 P2P literally across the street.

Icing on the 'fsck you' cake.

At least I have the small satisfaction of:
1) not giving them any more money personally
2) setting up a wireless bridge to this building, even though it'll be a PITA due to LOS issues (but it can, and will be done).

smell that? ...yep... less money headed your way soon Ma Bell...
en103

join:2011-05-02

AT&T (and others) should have to

Give up their slush fund (Universal Service Fund),
Give up their 'rights' to not allow muni/public wiring.

I personally don't think that any Telco would take on this, after seeing Verizon's (un)Fairpoint and Frontier mess.

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

Re: AT&T (and others) should have to

Hey it was a mess for Frontier and Farpoint (and the customers) but it was an incredible deal for Verizon!

alwaysanon

@pacbell.net

OMG

OMG... here it comes! Been with ATT since early dial-up days..... and now they're gonna sell off my DSL line. Service has been GREAT.... outages few and always like some drunk hitting a pole, or a truly severe storm. I've been pleased and always feared this day would come.

Heh... landline would finally go! There's ALWAYS a silver lining.

Son is 24 now... been with them since he was 6.
elray

join:2000-12-16
Santa Monica, CA

Opportunity Knocks

This would seem the ideal time for all of the whining wannabe Muni folks to step up and buy themselves local access, poles and all.
countscabula

join:2010-03-09

our broadband supremacy

All the time people compare US internet service to folks in Japan. Hello, stop mindlessly blogging and think for a few seconds. That's right, what did you figure out? That maybe with just a weak WiFi signal you could probably reach 10,000 customers in Japan. Your neighbors house is further than they walk to work.

nonamesleft

join:2011-11-07
Manitowoc, WI

Sounds great

I have been wishing they would sell off my area to someone who hasn't eroded consumer rights and there lines.
Madtown
Premium
join:2008-04-26
Madera, CA

My concerns.

1st of all, I have the 3 Meg plan on ADSL, but if I were a new customer and I wanted DSL, I could only get 1.5 Meg on what they brand as U-verse. Maybe the ports are full and that is why 3 Meg or higher isn't available.

2nd, Since my area has been "upgraded" more like downgraded, ATT might not sell this area off.

3rd, and even if they do sell it off, what will the prices be, the monthly limit and the speed offering?

4th, Is it possible for ATT to sell DSL to a different provider without disconnecting me and if not, how long would I be disconnected from the internet?

5th, With CumCrap Suckfinity being offered, will that has any affect at all?

It would be nice if ATT does sell off this area to another provider, but like always, the grass isn't greener, it's mostly browner mixed with some yellow.

DSL12steps

join:2001-12-24

looking for a new job now

So much for long term employment. I wonder if Frontier is hiring? Half of my current work load out in the country C.O.'s is DSL The other half is POTS. Sprinkle a bit-o IPDSLAM in there too. Every year it seems we hear how AT&T can't WAIT to get rid of land based services. I still can't figure out how they are NOT making money on POTS and DSL. Up until today, I figured I had 19 yrs left before I can retire @ 59. Now I need to really buckle down and get re-educated. They (AT$T) are NOT moving POTS/DSL techs into the wireless side.

a_dinosaur

@ameritech.net

Re: looking for a new job now

hell i had a good run i guess. 21 years, was hoping for 30, but what can ya do? i still feel if at&t maximized dsl/uverse potential for the existing infrastructure, it could still be something useful. they just seem to have it in their mind that they are a wireless company only though.

former rep

@sbcglobal.net

Re: looking for a new job now

I bailed after 28 yrs, and took my pension money with me. Got to be too much...keep in mind, if they sell pots, your pension would be the responsibility of the new company...couldnt take that chance.....

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