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U-Verse, FiOS Paying Dividends
Telco market share jumps as users flock to telcoTV...
by Karl Bode Tuesday 28-Apr-2009 tags: competition · business · cable · Verizon FiOS · AT&T U-Verse
Industry analyst Dave Burstein notes that phone companies may have captured upward of 55% of all net new broadband customers last quarter, a turnaround he credits to cheap DSL during a recession, but which is also thanks to FiOS (299,000 new customers) and U-Verse (284,000 new customers). While stock jocks like Craig Moffett have enjoyed criticizing infrastructure investment because it doesn't provide impatient investors with immediate returns, both U-Verse and FiOS are helping the telcos weather the recession, offset a decline in traditional DSL customers, and counter the cable triple play VoIP threat. A telco market share of 55% would be up from 46% in the first quarter of 2008. Comcast unveils their Q1 earnings on Thursday.

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doublea

join:2007-06-04
Petaluma, CA

Glad to see ISP's are befitting from improvement.



I know investment in network upgrades can be risky, but I ma very happy these newer faster services are beginning to roll out. It is obvious people like these triple play and faster internet service, even during a recession.

dav_ID
Happiness Is What You Make It

join:2001-11-22
Toronto

Re: Glad to see ISP's are befitting from improvement.

befitting or buffering? dang you sound like they are doing you a favour by sending out megabuck$ to the shareholders instead of investing more? or if any? see my other posts lol

oh yeah, now during the RECESSION they are happy to pay $200 a month for services vs.. what? 90 or so max before, and they should be happy they are feeding the shareholders great grandkids instead of their own

ITS OBVIOUS YOU ARE A TOTAL FLUNKIE FEEDING YOUR KIDS ON STEAK AND MUSHROOMS AND REALLY OUT OF TOUCH. JUST HOW DO YOU ASSUME FROM THEIR DIVIDENS THAT ITS OBVIOUS that people LIKE this SERVICE? vs having to pay it or else?

and just who paid for the network they are 'capitalizing' on, oh, yeah, the politicians they paid off before they split them up into separate companies that now own all the copper..

bleh,
note to MODS,,
I'm going to bed now lolol ./end.rant
--
In theory, a bumble bee cannot fly!

dav_ID
Happiness Is What You Make It

join:2001-11-22
Toronto
befitting or buffering? dang you sound like they are doing you a favour by sending out megabuck$ to the shareholders instead of investing more? or if any? see my other posts lol

oh yeah, now during the RECESSION they are happy to pay $200 a month for services vs.. what? 90 or so max before, and they should be happy they are feeding the shareholders great grandkids instead of their own newborns?

ITS OBVIOUS YOU ARE A TOTAL FLUNKIE FEEDING YOUR KIDS ON STEAK AND MUSHROOMS AND REALLY OUT OF TOUCH. JUST HOW DO YOU ASSUME FROM THEIR DIVIDENS THAT ITS OBVIOUS that people LIKE this SERVICE? vs having to pay it or else?

and just who paid for the network they are 'capitalizing' on, oh, yeah, the politicians they paid off before they split them up into separate companies that now own all the copper..
--
In theory, a bumble bee cannot fly!

JasonOD

@comcast.net

I was in Moffett's camp for a while....

But seeing how many of the bigger cableco's are stealing landlines and upping broadband speeds way above what DSL can handle, I guess the telco's are doing the right thing.
neufuse

join:2006-12-06
Indiana, PA

spin?

How is Moffette (Sp?) going to spin this now to make it look like fiber is still a bad choice?
Pv8man

join:2008-07-24
Hammond, IN

Re: spin?

He will probably say that fiber is bad for your diet and puts you at a higher risk of catching bird/human/pig flu...

lol

45071419

join:2006-07-30

Re: spin?

said by Pv8man:

He will probably say that fiber is bad for your diet and puts you at a higher risk of catching bird/human/pig flu...

lol
Or: TOO MUCH fiber will clog teh tubes!!1!111

espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless
said by neufuse:

How is Moffette (Sp?) going to spin this now to make it look like fiber is still a bad choice?
I think it was the only choice they had -- they were losing out big to MSOs able to offer the triple play on existing infrastructure, so new deployments needed to be made to replace their aging twisted-pair copper plant and operationally expensive TDM switch hardware.

That said, if you look at Verizon's financials their revenue is decreasing in Mass Market wireline services, so even with the higher RGU's with FiOS they're still seeing negative financial growth at the moment.

David
Now accepting new patients
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:70
Reviews:
·AT&T Southwest
·DIRECTV
·AT&T Midwest
·Google Voice

In a recession

anyone will tell you price is more king than speed. That's still true to this day. My mother is even an attestment to that. I know she is in range for elite speeds cause I used to ride my bike past the C.O. in order to go to the bowling alley. She would only order higher speeds if the price is in the $20's somewhere. Ironically, she tells me charter wants to give her 10mbps internet for $50 something and she is not interested in paying that price.
--
If you have a topic in the direct forum please reply to it or a post of mine, I get a notification when you do this.
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danclan

join:2005-11-01
Midlothian, VA

Re: In a recession

mmmm no,

speed will sell to those that need it and have never had it.

There will always be some case somewhere where someone doesn't need it or is driven solely by cost.

History has proven to us that Americans like quality and will continue to pay for it even in down times. They will pass on cheap to get to the good. They will also skimp somewhere else so that they have something good somewhere else.

More importantly here, reliability and clearly a better product has them enthralled to say a big FU to the incumbent cable companies. Verizon doesnt have to make massive changes to keep up with cable, just slow incremental improvement and changes to meet the demands of the market. They own cable and cable knows it.

David
Now accepting new patients
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:70

Re: In a recession

Well, I can only tell you what I hear around here. If they like the speed and the price I won't complain.

I know for my parents they don't care for the speed and care for the price.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
said by danclan:

History has proven to us that Americans like quality and will continue to pay for it even in down times. They will pass on cheap to get to the good. They will also skimp somewhere else so that they have something good somewhere else.
Uh oh, better call Bentonville and sell that Wal*Mart stock.

Sorry, but I'll take the opinion of the guy who has been in the business for more than half a decade over, well, you.

However, I agree that cable's days are numbered. They've managed to almost price themselves out of the market and the current economy is accelerating the decline.

danclan

join:2005-11-01
Midlothian, VA

Re: In a recession

said by RadioDoc:

said by danclan:

History has proven to us that Americans like quality and will continue to pay for it even in down times. They will pass on cheap to get to the good. They will also skimp somewhere else so that they have something good somewhere else.
Uh oh, better call Bentonville and sell that Wal*Mart stock.

Sorry, but I'll take the opinion of the guy who has been in the business for more than half a decade over, well, you.

However, I agree that cable's days are numbered. They've managed to almost price themselves out of the market and the current economy is accelerating the decline.
half a decade huh...5 years...wow...he must REALLY know his stuff....and his history....deep well of experience there to draw on...
notwrth10

join:2007-03-03
1001EB

Re: In a recession

Yea I guess by your american standards I should call my ISP and depand the $200 (U.S.) tier because it's faster. Sorry in my corner of the world here I perfer price over speed.

Sorry your americans still don't get it.

So sorry

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

good

About time that cable gets a run for there money.

Hey tw and comcast there goes YOUR money since you want to play with LOW caps.

rawgerz
The hell was that?
Premium
join:2004-10-03
Grove City, PA

I like this graphic better


jsz0
Premium
join:2008-01-23
Jewett City, CT

U-Verse

Does deploying a late 80's style FTTN design really qualify as a good infrastructure investment by AT&T? Around here they can't offer speeds over 10Mbit due to lack of capacity streaming multiple HD feeds over IP. I give Verizon full credit for being forward thinking but AT&T is building something that even most cable operators wouldn't build today despite building their business on this FTTN architecture.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: U-Verse

said by jsz0:

Does deploying a late 80's style FTTN design really qualify as a good infrastructure investment by AT&T?
It appears the answer to your question is yes

Strong growth in AT&T U-verseSM TV subscribers, with a net increase of 284,000, nearly double the company’s gain in the year-earlier first quarter, to reach 1.3 million in service

471,000 net increase in total broadband connections — wireline and wireless LaptopConnect cards — to reach 16.7 million in service

16.4 percent growth in wireline IP data revenues driven by rapid expansion in AT&T U-verse services
Chaldo

join:2008-03-18
West Bloomfield, MI

U-Verse needs to get faster

U-Verse needs to get faster internet speeds and I think they will be alright, they need to compete with FiOS now
Rob2647

join:2008-08-12
Rochester, MI

Re: U-Verse needs to get faster

That should be fairly easy if they get the RG's to sync at a faster rate.

pickaname1

@cox.net

Re: U-Verse needs to get faster

they need to quit using used rg's...
daveberstein

join:2002-07-15
New York, NY

Author wants to give credit

Thanks for including me in your reporting, as always. DSLR is one of the half-dozen pubs I constantly check because of the quality of your reporting.
I wanted to stop by and give credit to Tom Seitz of Barclays/Lehman for the 55% estimate I used. The suggestion that the lower DSL prices were the most probable cause is mine. Karl's comment that the FiOS and U-Verse builds were critical to the survival of the landline business is right on the money. DSL "net adds" at Verizon were negative and AT&T close.
Dave Burstein

dav_ID
Happiness Is What You Make It

join:2001-11-22
Toronto

3 edits

GIG deal with Uverse - they'll get you in the end

just wait till they cap it and start charging outrageous overage fees per gig to force everyone and their 3rd cousin to pay $200 a month for U-verse

and .oh, on top of the $200 for basic fios inet, tv, and phone service.. Now they want to cap your 18meg portion for "u stupid bish why don't u just get ehh-mail" fees is what it amounts to at how much per gig (don't look up transit costs you'll cry for their shareholders)

Edit: btw, have you realized the US is Down-Under to us Canuks? pay attention - the future is coming ...

Edit-2: A friend in Texas has U-verse - but,, and its a capital BUT - IF they cap that (threatening to:) to force her to use pay per moobie instead of downloading the odd one its going to cost a lot more than that $200 U$.. and insult to injury they advertise the DVR they include can record 4 channels but what they do NOT tell ya is that you have to leave your tv off while you do it, haha, watch a SD tv station record 2 HD and 1 SD or vice versa, and so on, and OH i've got 2 tv's and a second box NFG dude.. 2nd one has no DVR

So the bottom line is on top of the above she's soon going to be faced with a 26mbps connectiion (iirc) of which her tv uses 7 and her iNET gets 18 ~ give or take - so she will have to pay $200 for the 7meg tv and phone and Holy Hell Batman for the 18Meg DSL to download what she wants
p.s. I know she's gonna go over like a skyrocket she's a blonde granny heh hee - now collecting dvd's for the next grandkid to pop along

Edit 3: while I'm at it - if this makes you think you might be headed for problems, read the news on whats going on up here in MooseyLand ;p THEN, count your lucky stars you have at least some POLITICIANS down there pulling for the consumer.

./end.rant./my.2¢

--
In theory, a bumble bee cannot fly!
Cod

join:2000-07-05
Kernersville, NC
Reviews:
·RoadRunner Cable

Re: GIG deal with Uverse - they'll get you in the end

said by dav_ID:

and .oh, thats on top of the $200 for basic fios inet, tv, and phone service.. duh
$200? You can get Fios triple play (TV, phone, internet) for $99/month.

dav_ID
Happiness Is What You Make It

join:2001-11-22
Toronto

Re: GIG deal with Uverse - they'll get you in the end

heh, cool, re-read with my edits plZ.. I let off some steam ....

nite/morning/whatever
--
In theory, a bumble bee cannot fly!

dav_ID
Happiness Is What You Make It

join:2001-11-22
Toronto

Dividends? bottom line: UBB = MORE Dividends

you don't really expect them to invest that $2 per gig overcharge in expanding the network do ya,, especially considering they are expanding quite nicely without any UBB at all

UBB duh Usage Based Billing
--
In theory, a bumble bee cannot fly!

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