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Time Warner Cable Plans Mobile WiMax Launch
While second quarter earnings see continued healthy revenues...
by Karl Bode 08:53AM Thursday Jul 30 2009
Time Warner Cable issued their second quarter earnings, posting a better-than-expected rise in quarterly profit. The carrier saw revenue increase 4 percent to $4.47 billion, and second quarter net profit rose to $316 million up from $277 million. Despite claiming flat-rate broadband pricing wasn't sustainable during the company's metered billing fiasco, broadband revenue rose 9 percent to $1.1 billion.

The company lost 57,000 basic video subscribers, but added 88,000 new broadband customers, 54,000 digital video customers, and 103,000 VoIP customers.

Click for full size
Time Warner Cable CEO Glenn Britt told attendees of a conference call this week that Mobile WiMax launches are coming. "You will hear a lot more about this as we build up to the launch this fall," says Britt -- who confirmed Charlotte and Dallas as early launch markets. Like Comcast, Time Warner Cable invested in Clearwire's mobile WiMax network and will re-sell the service as part of a broadband bundle.

Britt did warn those attending the call that the company was seeing some customers leave their VoIP service as households convert to wireless phone only. "There's evidence of significant cord-cutting of voice in this environment," says Britt. "A tough economy is causing people to make that decision faster than they would otherwise."

"Given the slower subscriber growth in recent quarters, we expect that revenue growth will slow in the second half of the year," CFO Rob Marcus said, also blaming "higher expected programming and marketing expense(s)." Of course, Time Warner Cable has yet to launch faster DOCSIS 3.0 speeds in a single market, so in some instances Internet customers may be defecting to faster options. Time Warner Cable still insists their first DOC 3.0 market, New York City, will launch before the end of the year.

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Duramax08
To The Moon
Premium
join:2008-08-03
San Antonio, TX

hmmmm

This could be another way TWC can serve unserved customers (like me)......
--
OM NOM NOM

kdwycha

join:2003-01-30
Riverview, FL

well...

time to bring on the metered billing then!
CompTech210

join:2008-09-14
San Antonio, TX
Reviews:
·Clearwire Wireless
·AT&T DSL Service

1 recommendation

Re: well...

said by kdwycha:

time to bring on the metered billing then!
I hope to hell they dont bring that crap back! I have RR 15/2 here and ATT dsl 6/786 here at home due to work and i hope they dont bring on metered billing cause me and my fiancee both work from home some days and we use around 100 gigs a month easy.

kdwycha

join:2003-01-30
Riverview, FL
Reviews:
·Bright House

1 recommendation

Re: well...

said by CompTech210:

said by kdwycha:

time to bring on the metered billing then!
I hope to hell they dont bring that crap back! I have RR 15/2 here and ATT dsl 6/786 here at home due to work and i hope they dont bring on metered billing cause me and my fiancee both work from home some days and we use around 100 gigs a month easy.
Just kidding around about that anyway. Every time I see a news story about Time Warner I like to say something about caps/metered billing.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
said by CompTech210:

me and my fiancee both work from home some days
Asking your employer to help pay for your service and/or claiming a deduction on your income tax should help alleviate some of the financial burden.
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL

Re: well...

Here's the problem: TWCBC STARTS at $100 per month in the San Antonio/Austin area. That's for 10/512, which sucks for telecommuting because uploads are outright lame. However the next tier up is $50 more, for 512k more of upload speed!

TWC *does* have a 7/2 + phone lime promo for $80 per month, but that's for one year, after which the price doubles.

If TWC does caps, people will have to pay $250+ per month for 2Mbit up service with no cap in the SA/Austin area. Fortunately with Grande Communications competing with TWC for service, as well as U-Verse, this probably won't happen. But the prospect isn't too great anyway. Especially since the pricing I mentioned requires a three-year contract; $20 more per month if you want a one-year.

In contrast, Comcast actually has some decently-priced biz-class connections; they start at $60 (for 6/1 now, 12/2 later in about 45% of markets), work their way up through $90 (still not bad) and top out at $190 for either 22/5 (DOCSIS 2.0 areas) or 50/10 (DOCSIS 3.0 areas). Not too shabby when you can't get FiOS.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: well...

Obviously CompTech210 See Profile already has 15/2 service, so the costs must not be imperative at this time.
said by iansltx:

If TWC does caps, people will have to pay $250+ per month for 2Mbit up service with no cap in the SA/Austin area.
Where did that figure come from?
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL

Re: well...

1. In the Austin area there are three providersL Grande, AT&T U-Verse and TWC.
2. Grande's maximum cable package is 1.5 Mbit up, and that's on the business side of the house. Highest-end res packages is 12/1.
3. AT&T's fastest package is 1.5 Mbit up, at least for now.
4. TWC will cap residential tiers but not business class tiers.
5. The only TWCBC tier with 2 Mbit/s upload speeds is the 15/2 package for $249.95-$279.95 per month, depending on the contract length.

So yeah, $250 per month for 2 Mbit/s of upload speed. 1.5 Mbits via UVerse or Grande biz-class is close though, and might be necessary if they cost less than say, $150 per month versus TWC's $250.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Problem

The problem with this article summary is that it doesn't mention how Time Warner Cable's network investment has continued to decrease.

From stopthecap:
Upgrade costs plummeted in the six months ending June 30th, from $147 million in June 2008 to $86 million in June 2009.

The costs for Time Warner Cable’s broadband revenue continue their rapid decline, dropping by 14%, from $77 million dollars in the six months ending June 30th 2008 to just $66 million dollars in the six months ending June 30th, 2009.

So in other words, their revenue has increased while their costs have decreased, and they *still* want to pursue overcharging schemes.

NSA_CIA

@charter.com

Re: Problem

Click for full size
Network investments actually increased in scalable infrastructure and support capital expenditures. Stand alone "broadband" costs have decreased mainly because the equipment involved no longer just provides internet connections.

So instead of looking at just "upgrade/rebuild" spending (which TWC did massively over the last 2-3 years converting most systems to 860 and 1 ghz) and only "broadband" costs, looks at the bigger picture. Much of the equipment is getting "blended" as time goes on. Equipment such as CMTSs which previously were only used for internet connections are now also used to provide phone service and increasingly 2-way connections for cable boxes.

Replacing a DOCSIS 1 or 2 CMTS with a DOCSIS 3 CMTS is not a "upgrade/rebuild", it's "scalable infrastructure".
bj9030

join:2000-08-27
Palm Desert, CA

1 recommendation

Anon 51

Not hard to claim earnings..... just stop spending on those unnecessary, annoying things like maintaining your system, improving your system, upgrading your system, or improved programing. Ignore the customer complaints...
Provide less, charge more, implement caps to the "Uneducated Public"and claim higher earnings.
Viola' Stockholders are happy.
And the trend of customers fleeing your company will continue, for phone video and data.
How typical of Time Warner Cable..
Ever hear of Docsis 3.0 ?

Rojo_P

join:2001-10-03
Lancaster, OH

Earnings

The earnings report is before the 12% increase we saw here in Ohio for just the relatively standard packages.
Fear not, the more creative bean counters will find a way to renew the call for metered billing.
--
The god of the religious is the one that they were programmed to believe in, and the god the atheist doesn't believe in isn't the God that is.