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story category Qwest: Kids Today Don't Need No Stinkin' IPTV
Telco reiterates they won't be getting into the video game...
(old news - 04:11PM Friday Jan 11 2008)
tags: Video · competition · business · bandwidth · Qwest.net
Qwest executives reiterate their opinion to Telephony Online that they don't need to get into the IPTV business, because the "young consumers of the future" are going to want to find that content online themselves. Qwest's frequently delayed current plan (leaked to us first last Summer) is to spend $300 million to deliver 20Mbps VDSL to about 1.5 million customers over the next two years. The company is also testing line-bonded VDSL at speeds of 38Mbps. Says the company's CEO of their IPTV-bashfulness:
"I don’t want to do IPTV – it’s too expensive, and there’s not enough scale," Mueller said in an interview Thursday. "We won’t be able to keep up on content. I love DirecTV. We have more subscribers that we’ve signed up to DirecTV than Verizon has on FiOS or AT&T has on U-Verse. We believe [consumers] will want a customized ability to get HD video on demand. And the only way to do that is to have enough bandwidth so it’s real time."
With pair bonding to the home, we believe it may be possible to (offer 40Mbps).
-Qwest CEO Ed Mueller

DirecTV (whose service Qwest resells) will soon be offering customers VOD using home broadband connections, which is probably playing a big part in Mueller's thinking. Qwest apparently is justifying their stance by saying the traditional broadcast model may become irrelevant -- and if not, they already offer video through DirecTV, so why spend the extra money. The company's CTO had this to say about you young, bandwidth hungry whipper-snappers:
"The young consumers of the future will want broadband on demand, and they are more interested in interaction and in the symmetry of the service. We have a great relationship with DirecTV [Qwest resells that service], and they have a core competency in content. What we want to be able to provide is that 20-Megabit Internet connection that is more important to the younger consumers of today. They not only don’t want a wireline phone, they also don’t want to have a TV – because they use video on demand."
While Qwest is consistently criticized for playing wait-and-see with video, the decision could ultimately come back to be the right one if Internet video-delivery trumps IPTV projects like AT&T's U-Verse. Of course if the company is really focused on just providing bandwidth, they'd be better served long-term by embracing FTTH. However, they lack Verizon's financial resources to do so, which is why they're embracing select deployment of VDSL.

Of course we should note that the company the only baby bell to employ cable-style download caps (albeit rather generous ones), which could pose a problem once DirecTV's HD-video-delivery system goes mainstream.

Related:
  1. Cable Tries To Stuff The Internet Video Genie Back In The Bottle
  2. Cablevision Ramps Up HD Availability
  3. Qwest Launches Rebranding Effort
  4. Qwest Struggling To Sell Long Haul Network
  5. Mark Cuban: Still Terrified of TV Competition
  6. Verizon Uses Your Forum Complaints Against Cablevision
  7. Qwest Keeps Pretending Speed Doesn't Matter
  8. Cogeco Metered Billing Goes Live, Confuses Customers
Forums » Qwest: Kids Today Don't Need No Stinkin' IPTV
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Post a:
smokarz

join:2006-07-24
West Hartford, CT

power to him

now there's an executive who know his customers. kids these days want to host game servers, download porn dvds in 30min, and watch hd contents online. you want tv, call directv.
Enlightener

join:2006-01-28
Cedar Park, TX

Exactly

I agree 100% Make partners for the content and focus on being a big fat pipe for distribution.

I love my DirecTV and I love pulling DirecTV Video On Demand over my AT&T Fiber. It's a good marriage and I'll pay more for more bandwidth.

danawhitaker
Space...The Final Frontier
Premium
join:2002-03-02
Urbandale, IA
·MSN
·Mediacom

Russian Roulette...

"DirecTV (whose service Qwest resells) will soon be offering customers VOD using home broadband connections, which is probably playing a big part in Mueller's thinking."

Oh good. More things to push users over Qwest's mystery bandwidth caps. Thanks so much. I wonder how much bandwidth one hour of VOD programming would consume. I love the idea of playing russian roulette with my DSL connection and hoping I don't get a warning letter just for wanting to watch VOD content. And if I did have access to this service, I would probably take advantage of it often because I have a small child and it's much easier to watch programming later on-demand than it is to watch while it's airing.

Or am I misreading exactly how this service would work? That's entirely possible.
--
You're watching Sports Night on CSC so stick around...
Lazlow

join:2006-08-07
Saint Louis, MO

Re: Russian Roulette...

A typical tv show is 400mb(43 minutes now?) and a movie is 700mb. With the 264 compression and random hexagons the quality gets even better and the size smaller (takes longer to compress). The majority of TV show are currently available through various venues.

a333
A hot cup of integrals please

join:2007-06-12
Corona, NY
·Verizon Online DSL


1 edit
what caps? as far as I know, DSL is the only internet service in the US that doesnt have any caps (generally speaking)
EDIT: Ok, I guess I didn't read the article carefully. Damn, that sux! Why the HELL does Qworst have caps? That basically makes them the only DSL ISP in the US that actually enforces caps!

Karl Bode
News Guy
join:2000-03-02

Re: Russian Roulette...

They're very high, but Qwest does employ them:

»Qwest's 'Excessive Use Policy'

danawhitaker
Space...The Final Frontier
Premium
join:2002-03-02
Urbandale, IA
·MSN
·Mediacom

In response to a333, check out this thread: »Heads up on EUP

In response to the size. Hmm. Based on the number of shows I watch and approximately how many episodes per week per month, that would end up being about 20 gigs extra per month - only if I stuck to just the shows I like. That's not a huge amount, but everything adds up. And that's just for me, I imagine households with multiple people using such services could quickly add up. Thanks for the info.
--
You're watching Sports Night on CSC so stick around...
kcblack
Premium
join:2000-09-11
Chicago, IL
·RCN CABLE

Beginning of the end and a new beginning....

finally an exec who may actually be earning his salary...

He's 200% right about the traditional broadcast model being obsolete. It will be at some point(hopefully soon) all about the pipes...

I also see that the data caps are going to be an issue too. Luckily I'm on 20/2 RCN right now and for all their other issues (P2P Bandwidth throttling and poor customer service/tech support) they haven't done bandwidth caps yet.

It also makes all this writers guild/strike crap a moot point. We've already seen the beginning of the breaking of the studio/writer/network stranglehold that has been the basis of the broadcast model.

Kevin
--
"Because we’ve invested over $4 billion in building our MegaBand network so you can enjoy the internet the way it was intended to be – fast and uncapped." (RCN marketing Promo)

Thespis
I'm not an actor, but I play one on TV.
Premium
join:2004-08-03
Keller, TX
·Verizon FIOS

Re: Beginning of the end and a new beginning....

said by kcblack See Profile :

It also makes all this writers guild/strike crap a moot point. We've already seen the beginning of the breaking of the studio/writer/network stranglehold that has been the basis of the broadcast model.

Kevin
How so? This is simply about how content is distributed; not how it's produced. To produce a drama or comedy, you still need writers, directors, producers, actors, technicians and studios...

decadent
Premium
join:2002-04-02
Piscataway, NJ

4G

He should not worry about young generation. They will use wireless 4G and Qwest will be no so relevant. But people who pay bills now, watch TV one way or another.

WocNona

@rr.com

WTF?!

Am I reading this right? Baby Bell company executives in touch with their consumers needs? Whoa! Next thing you know pigs will fly and hell will freeze over. LOL!

Hope this pans out and that other companies (ie. telcos, cable cos, ISP, etc.) will follow Qwest's lead about just being a big fat pipe and let others deal with content.

Mr Kentucky

@alltel.net

Re: WTF?!

Could not have said it better myself.
neufuse

join:2006-12-06
Indiana, PA

no...

don't tell us what we don't want... let us decide for ourselves.. and if you dont make it how can we ever tell
tmc8080

join:2004-04-24
Floral Park, NY

Money where it's needed...

Fine, but it's well over due to get with fiber to the node and/or home where appropriate, pronto. Get some vendors lined up and employees hired to get the QWEST network modernized. It's not going to download itself..

SmartGuy

@comcast.net

Qwest guy is a smart one

His older fellow board members may think WTF, there still clicking the remote control on the TV, as opposed to getting it from net with PC hooked up to LCD TV.

But dude is spot on! Give me a blazing fast battery back up powered Internet service that is content neutral and you win the world!

Of course the cost of broadband will increase, but I use it so much that I'd pay 100 for it a month!

DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
clubs:

Good for Qwest

This dovetails well into an article I wrote on this topic a few days ago:

»corp.sonic.net/blog/2008/01/08/s···-anyway/

It's good to see my theory validated by a major carrier's comments on the same topic!

-Dane
mdrift

join:2003-08-15
Spokane, WA

Talk is cheap

Instead of quarterly reiterations, just upgrade to ADSL2+ and let the results show in new accounts and upgraded accounts.
Forums » Qwest: Kids Today Don't Need No Stinkin' IPTV


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