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Frontier Considers Offering AT&T U-Verse
Though It Likely Won't Be Available in Many Markets
by Karl Bode 10:51AM Thursday Jun 07 2012
Last month reports leaked out that Frontier's plan for "next generation" broadband services would include licensing AT&T's U-Verse VDSL technology and offering that to a select group of customers. On the company's recent earnings call Frontier CEO Maggie Wilderotter confirmed the plan -- sort of -- stating the possibility remained in the exploratory phase and that licensing U-Verse is one of several options being considered.

"We’ve been evaluating a lot of other alternatives of which U-verse is one of the alternatives," Wilderotter said. The company may just be exploring some of the technology that underpins U-Verse, and not U-Verse itself. However, Wilderotter made it clear that should they offer a VDSL solution, many users won't get it. "It doesn’t make sense in all of our markets," says Wilderotter.

In short, Frontier can't afford to cover all their markets with such a service. The markets that do see the service will be in areas where Frontier sees something close to actual competition -- which is a minority of their overall footprint. Additional statements made by company executives since that earnings call clearly indicate that whatever technology is chosen, the scale of the effort may be relatively small.

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osravens

join:2011-01-26
Cumberland, MD

Frontier Has to Do Something

Verizon is laughing at you for buying their damaged goods.

But you don't have wireless to fall back on. If you keep riding the copper pipe with 3 Mbps DSL, you'll be in bankruptcy sooner than a newspaper.

Of their markets, the only places that might see a FTTN deployment are Rochester and Charleston/Huntington that I can think of. Beyond that, their larger markets I believe are covered by FiOS builds by VZ or too small to do much of anything with in a CEO's eyes.
Intrepid1

join:2011-06-15

Re: Frontier Has to Do Something

I would like to know what the plan is for all the fiber that they have laid in the central WI area. It's been sitting in the ground for a year now. They put it on all of the county highways so it wasn't a cheap endeavor but trying to get any information out of them is about impossible.
ssavoy
Premium
join:2007-08-16
Dallas, PA

Re: Frontier Has to Do Something

Let it age like a fine wine and dig it out when you can't wait any longer.
Sammer

join:2005-12-22
Canonsburg, PA
said by Intrepid1:

I would like to know what the plan is for all the fiber that they have laid in the central WI area.

Sounds like middle mile fiber.
etaadmin

join:2002-01-17
Dallas, TX
kudos:1
Also, AT&T has a lot of land line markets they would like to sell... maybe Frontier would be interested?

Looks like Frontier is building their business by purchasing all their stuff trough ebay.

Sty

@50.55.34.x

Frontier

One year and our county will be covered with fiber to the home...I will thoroughly enjoy canceling frontier..Haha
slimtim

join:2002-12-12
Coldwater, MI

Re: Frontier

Sty,

Which county is that, and any homes for sale/rent?

wesm
Premium
join:1999-07-29
Redmond, WA
Reviews:
·Frontier FiOS

Most obvious statement ever...

"'If we changed, we may have to change out set top boxes on [existing FiOS customers],'" Shassian said.

That would be an astounding undertaking. Frontier doesn't break out FiOS video customers, but their last quarterly report says they have 536,000 video subscribers, and since roughly 18% of their footprint can get FiOS, let's say they have 97,000 FiOS TV subs.

At an average of 2.5 (to keep the over/under clean) set top boxes per household, that comes out to 242,500 devices to replace assuming nobody gets pissed and quits or reduces service. At $50/box (a low number, but let's be generous), that is $12,125,000. Just for the boxes. Not to mention labor for employees to handle the install, additional customer support calls, etc.

My reaction: :O

Smith6612
Premium,MVM
join:2008-02-01
North Tonawanda, NY
kudos:23
Reviews:
·Verizon Online DSL
·Frontier Communi..

Re: Most obvious statement ever...

said by wesm:

"'If we changed, we may have to change out set top boxes on [existing FiOS customers],'" Shassian said.

That would be an astounding undertaking. Frontier doesn't break out FiOS video customers, but their last quarterly report says they have 536,000 video subscribers, and since roughly 18% of their footprint can get FiOS, let's say they have 97,000 FiOS TV subs.

At an average of 2.5 (to keep the over/under clean) set top boxes per household, that comes out to 242,500 devices to replace assuming nobody gets pissed and quits or reduces service. At $50/box (a low number, but let's be generous), that is $12,125,000. Just for the boxes. Not to mention labor for employees to handle the install, additional customer support calls, etc.

My reaction: :O

My question to that is, even if they were to change out their video delivery method, don't the Set Top Boxes already do services such as On-Demand over MoCa/The Internet? Couldn't Frontier simply push a few software upgrades that disables the portion of the set top box that utilizes QAM and set it up instead to use strictly IPTV over MoCa (or Ethernet)?
Sammer

join:2005-12-22
Canonsburg, PA

Re: Most obvious statement ever...

said by Smith6612:

Couldn't Frontier simply push a few software upgrades that disables the portion of the set top box that utilizes QAM and set it up instead to use strictly IPTV over MoCa (or Ethernet)?

Probably not, if it was that easy Verizon probably would have already done it in the FiOS areas they still have.

FRMFRTFIOS

@equinix.net
When I left frontier FIOS they had 120k subs and the count was going down by about 1000 per month after they got hinkey about the press releases about FIOS.

The set top box hardware costs pale in comparison with the costs of the software lic that runs on the box and the Content Control plant, changing the plant headend to IP Multicast and the VOD systems.

$12,000,000 is about what the disk storage they are going to need across the 3 markets to keep the VOD system up to date. To switch technologies, lic the new GUI, expect a cost of about $1000 per sub uo front and $100 - $300 per year afterwards.

Smith6612
Premium,MVM
join:2008-02-01
North Tonawanda, NY
kudos:23

Re: Most obvious statement ever...

Great info to know. Thanks

Oh_No
Trogglus normalus

join:2011-05-21
Chicago, IL

Interesting

So out of the 10 frontier customers that will qualify for Uverse, only like 3 of them will actually be happy with the serivce.

Frontier is going to fail unless they have very rich customers.
ATT could offset the higher costs of rural areas with cities to charge 1 price.
Now that Frontier has taken over all the high cost areas they have no cheaper areas to even out the costs, so that means frontier rates will be so high no one will be willing to pay or they will go out of business.
tmc8080

join:2004-04-24
Brooklyn, NY

jeez

how about a raffle for two cans and a string too?

mikedz4

join:2003-04-14
Weirton, WV

will west virginia get u-verse vdsl?

Will the customers in west virginia get this vdsl offering? I would jump in a heartbeat from comcast if they offered this for a reasonable price of course being west virginia I don't see them offering it here.

XANAVirus
Premium
join:2012-03-03
Lavalette, WV
Reviews:
·Comcast
·Callcentric
·AT&T Wireless Br..
·Suddenlink

Re: will west virginia get u-verse vdsl?

Or FiOS.

Suddenlink's great, but where are the other options?

I'd love to have FiOS, and mainly for the higher upload speed.
Why does no one offer anything higher than 1Mbit upload?

People like myself, who do Let's Plays for YouTube (and so have to have a high upload), some of us use our university's Internet conection to do our uploads.

But, it would be so much better if FiOS were here (I've already had a few complaints from my university).

mikedz4

join:2003-04-14
Weirton, WV

Re: will west virginia get u-verse vdsl?

We won't see FIOS probably in the near future. Heck we probably won't see this u-verse in west virginia either.
tjb122982

join:2009-09-22
Terre Haute, IN

Would a community of 100,000 get U-Verse?

After reading this, I am actually hopeful because why U-Verse is not perfect I would love to see someone challenge Time Warner in Terre Haute along with Comcast in Lafayette. Both communities are around a 100k but I think Lafayette would get it first because they have a major university and Terre Haute is just an old factory town.