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story category When U-Verse and FiOS Compete
Verizon enters AT&T territory in Texas...
08:51AM Thursday Jun 12 2008 by Karl Bode
tags: dsl · Fiber · competition · business · telco · Verizon FIOS · AT&T U-Verse
Traditionally baby bells don't compete for the same customers, but Onetrak notes that Verizon is preparing to overbuild one area in Texas already serviced by AT&T's VDSL-based U-Verse service. The area includes about 60,000 homes, who'll obviously be tempted by Verizon's top speed of 50Mbps, compared to AT&T's current best of 10Mbps. The move should prove more worrysome for Qwest, who is relying on slower ADSL2+, has no real triple play service to offer, and rubs up against Verizon in several markets.

Related:
  1. Verizon Stock Outperforms AT&T Stock
  2. AT&T U-Verse: 379,000 Subscribers
  3. Verizon: Offering FiOS In AT&T Turf 'Logical'
  4. 50Mbps, 20/20Mbps FiOS Tiers Hit All Markets
  5. When FiOS And U-Verse Compete
  6. NYC FiOS Deal Completed
  7. Qwest Blames Bad 2nd Quarter on Competition
  8. U-Verse Launched in Jacksonville
Forums » When U-Verse and FiOS Compete
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odog
Cable Centric Vendor Biased
Premium
join:2001-08-05
Norcross, GA
clubs:
·Metrocast Communic..
·Comcast
·Vonage

Telco overbuilding....

I didn't think I would ever see the day! It'll definitely be interesting for TW.

Imagine it... a Cable Beehive, VRAD cabinet, and coils of glass all in your easement! I can see the lawsuit now

tiger72
SexaT duorP
Premium
join:2001-03-28
Kansas City, MO
clubs:
·RoadRunner Cable

Re: Telco overbuilding....

said by odog See Profile :

I didn't think I would ever see the day! It'll definitely be interesting for TW.

Imagine it... a Cable Beehive, VRAD cabinet, and coils of glass all in your easement! I can see the lawsuit now
TW will be fine. It's got bandwidth to compete. ATT, however, will be crapping bricks.

Of course, Plano and Frisco are among the most wealthy (and fastest growing) areas in the United States, so whoever can dominate there is guaranteed to make big bucks.

MUCH RESPEK, VZ!
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara

ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest
·Charter Pipeline


edit:
June 12th, @10:26AM

Re: Telco overbuilding....

Keller TX (Dallas) was the initial FiOS site -- and was divided with AT&T across it's southern half.

Deregulation passed in 2005 -- allowing anyone to build-out anywhere (no more exclusive areas). It worked. Too bad I sold my house in the AT&T half of Keller. Now I could get FiOS.

Even Charter Cable rolled-out it's 16mbs tier in Keller -- due to FiOS. Deregulation works.
--
50% of Americans vote - 30% are repugs -- do the math.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
Yeah - my corp office is in Plano - nice - but very expensive area (relatively).
--
Canada = Hollywood North

Hookem99
Deep In The Heart

join:2007-07-18
Pflugerville, TX

Where??

Austin?? I guess it would be wishful thinking to hope they overbuild in an area they don't currently build in! Yet another reason I should live in the Metroplex!
--
Captain Oveur: Joey, have you ever been to a Turkish prison?

MrMaster
What If
Premium
join:2000-12-16
Austin, TX
clubs:
·RoadRunner Cable

Re: Where??

said by Hookem99 See Profile :

Austin?? I guess it would be wishful thinking to hope they overbuild in an area they don't currently build in! Yet another reason I should live in the Metroplex!
Please. "another reason"? What possible reason would you have to want to move to Dallas other than for FIOS?

Hookem99
Deep In The Heart

join:2007-07-18
Pflugerville, TX

Re: Where??

Yeah, ok point taken!

Camelot One
Premium,MVM
join:2001-11-21
Austin, TX
clubs:
·VoicePulse

Re: Where??

UVerse has reached Round Rock. And far-south austin. (Circle C is available) But being in in Pflugerville, you are screwed.
--
Intel Q6600 @3400Mhz/GA-EP35-DS3P/2x 2048Mb G.Skill/Seagate 750.10/EVGA 8800GT's SLI/Silverstone 850W/Custom water cooler

Hookem99
Deep In The Heart

join:2007-07-18
Pflugerville, TX

Re: Where??

Why are we screwed? Uverse is in most Pfville hoods...getting it my self next week. I would just rather have FIOS.
--
Captain Oveur: Joey, have you ever been to a Turkish prison?

Camelot One
Premium,MVM
join:2001-11-21
Austin, TX
clubs:
·VoicePulse

Re: Where??

I didn't realize they had rolled out there. Last I heard p-town was going to be the unserved void between round rock and north austin.
--
Intel Q6600 @3400Mhz/GA-EP35-DS3P/2x 2048Mb G.Skill/Seagate 750.10/EVGA 8800GT's SLI/Silverstone 850W/Custom water cooler

Hookem99
Deep In The Heart

join:2007-07-18
Pflugerville, TX
·AT&T U-Verse
·Suddenlink
·ViaTalk
·AT&T Southwest
·DIRECTV

Re: Where??

said by Camelot One See Profile :

I didn't realize they had rolled out there. Last I heard p-town was going to be the unserved void between round rock and north austin.
Been in my neighborhood for a few months now, and we were one of the last to get it!

ATT would have been dumb to leave out Pville. Most of the city is served by Suddenlink Cable, which, at best, sucks!
--
Captain Oveur: Joey, have you ever been to a Turkish prison?
openbox9

join:2004-01-26
Navarre, FL

Why Not Just Purchase the Area

I would think that purchasing markets and infrastructure would be more economical than overbuilding and attempting to compete with two competitors. Could prove to be interesting if this plays out.
JSRoman
Premium
join:2005-03-10
Callahan, FL


edit:
June 12th, @09:10AM

Potentialy very costly

If I'm a potential customer in this market I am happy, if I'm a stockholder of VZ/T I'm worried. At&T isn't just going to rollover. They are going to hit back hard and put new priority on poaching $$$$$VZ business customers. Potential to get very costly for both.
--
»www.seabee.navy.mil
mjwise

join:2007-05-09
Ann Arbor, MI

Re: Potentialy very costly

I have U-Verse, and it's a fine service, but Verizon will slaughter AT&T in this market - FiOS is really just in a different (higher) class of service. I for one support the poaching.

MrMaster
What If
Premium
join:2000-12-16
Austin, TX
clubs:
·RoadRunner Cable

said by JSRoman See Profile :

If I'm a potential customer in this market I am happy, if I'm a stockholder of VZ/T I'm worried. At&T isn't just going to rollover. They are going to hit back hard and put new priority on poaching $$$$$VZ business customers. Potential to get very costly for both.
business customers? This is a play for residential. AT&T can't keep up going head to head with VZW with U-Verse. Way too many limitations. AT&T would be forced to lower prices or change strategies.
Enlightener

join:2006-01-28
Cedar Park, TX
·AT&T U-Verse

Content vs Distribution

I know this is silly thinking, but it really seems like the cable companies and telcos should just build a common fiber infrastructure with the ability to switch a customer from one provider to another. Let them compete on content and service but share the expense of laying fiber.

I know this is how the electric system works ( power provider vs distributor ) in some areas, has it been successful or not?

Either way, Verizon can feel free to overbuild in Cedar Park, TX ( they are in Georgetown, TX now ) any time they want. Maybe that'll convince AT&T to give us FTTP customers more then 10mbps of goodness.
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Content vs Distribution

said by Enlightener See Profile :

it really seems like the cable companies and telcos should just build a common fiber infrastructure with the ability to switch a customer from one provider to another.
Makes competition too easy. I seriously doubt that you'll see any major telecom provider volunteering to jointly build a common infrastructure.

T1 Rocky

join:2002-11-15
Dallas, TX
·Time Warner Telecom
·ygnitionnet

said by Enlightener See Profile :

I know this is silly thinking, but it really seems like the cable companies and telcos should just build a common fiber infrastructure with the ability to switch a customer from one provider to another. Let them compete on content and service but share the expense of laying fiber.

I know this is how the electric system works ( power provider vs distributor ) in some areas, has it been successful or not?

This is what the Telecom Act of 1996 instructed the government to do. The goverment hired the telos to build out the fiber networks and that was the end of progress. The telcos have literally spent billions of dollars lobbying to make sure that htey have exclusive rights to their fiber. They will not open their networks up to any one for any reason. I love that Verizon and AT&T are stepping on each other's toes now. It was bound to happen when there is no competition left.
axus

join:2001-06-18
Washington, DC

good for Verizon

they seem to do risky things that run counter to the oligopoly model of business. It will be interesting to see which big corporate strategy wins out.
datwell1

join:2002-01-08
Falls Church, VA
·Verizon FIOS

And they said...

And they said the big telcos would never compete against each other!

Verizon knows they have the "better mouse trap" and if they are allowed to compete, they should beat the brains out of their competition. FiOS is just great and I speak from experience.

Just my 2 cents.

--Doug
MrSpock29

join:2008-02-09
Hammonton, NJ

Qwest

"The move should prove more worrysome for Qwest, who is relying on slower ADSL2+, has no real triple play service to offer, and rubs up against Verizon in several markets."

This is what I think is a key part of what Karl posted. Qwest is having some financial issues, and I believe they said they didn't believe FTTH was worth it, so if VZ did overbuild in Qwest's areas, Q would have a hard time competing.

In a perfect world, it would be nice if all areas could have a choice of many providers instead of a couple. The differences between them all would probably become much clearer too.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

Re: Qwest

said by MrSpock29 See Profile :

"The move should prove more worrysome for Qwest, who is relying on slower ADSL2+, has no real triple play service to offer, and rubs up against Verizon in several markets."

This is what I think is a key part of what Karl posted. Qwest is having some financial issues, and I believe they said they didn't believe FTTH was worth it, so if VZ did overbuild in Qwest's areas, Q would have a hard time competing.

In a perfect world, it would be nice if all areas could have a choice of many providers instead of a couple. The differences between them all would probably become much clearer too.
Verizon could come here, i'm betting theres lots of dark fibre they could pick up for a song.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee
questionable

join:2005-10-18
Phoenix, AZ

Fios

Please come to Phoenix

or get Qwest worried to build the network the way they should

Alakar
Facts do not cease to exist when ignored

join:2001-03-23
Milwaukee, WI
·AT&T Midwest

.

Could be interesting to watch this play out.

Verizon has the advantage in internet speed and more then one HD stream. AT&T has the advantage with cost. People that want faster internet will go with Verizon, but for people where cost is the biggest concern may go with AT&T and AT&T has more room to move on cost since their investment isn't as high.
--
"Necessity is the plea for every infringement of human freedom; it is the arguments of tyrants; it is the creed of slaves." William Pitt the Younger
eqshadimar
Premium
join:2004-10-20
Plano, TX
·Vonage
·Verizon FIOS

They know what they are doing.

I am sure that most of the 25,000 homes in Allen, TX will be in the Twin Creeks developments. That is where all the big houses are. I also happen to have many friends who live there that would drop whatever they are currently using for FiOS. Most of the people in the area work in tech related fields and fiber is simply the must have accessory for them. Kind of like the iPhone.

Imagine the cocktail parties:

"Hey Joe how are you doing?"
"Great Jim we just got FiOS"
"Oh really how do you like it"
"It is great, beats that old cable technology, oh I am sorry you are still on cable aren't you?"


Well something along those lines anyway.

Laters,
Jeff

GTaylor
Premium
join:2002-12-14
Frisco, TX
clubs:

Re: They know what they are doing.

I'm in the Frisco area so while I'm happy to see FIOS coming I'm concerned my area won't be covered as I'm in the "ghetto" zip code

GeoPon

@myvzw.com

Re: They know what they are doing.

I'm a Fios tech and live in Frisco. I heard we were going into att areas in Keller and Plano, but not Frisco. If they are feeding Frisco from plano, my guess is they will service all the 500k+ up homes on legacy first . I live in the grayhawk community on Eldorado and I doubt Fios is headed this way.

GTaylor
Premium
join:2002-12-14
Frisco, TX
clubs:

Re: They know what they are doing.

Bahh, can't say I'm surprised. At least they're considering us, even if it's the neighborhood on the nice side of the tollway.
talk2charles
Premium
join:2008-06-12
Plano, TX

Do you have any idea of the particular neighborhoods that will be getting FIOS? I live in Ridgeview Ranch which is in the general area but I was wondering if all of the houses in the general area will be covered or just certain neighborhoods. To that point, although I'm technically in an at&t area, I don't even have U-verse yet.
bgentle

join:2008-08-01
Frisco, TX

Geo,

I think I live about 2 blocks away from you - my brother is a Fios Buried Wire Tech in Irving - he checked on the build out for Grayhawk and they are looking 18 months out atleast... Not sure if they will build from Plano/Lewisville/Denton...

I really want Fios - Uverse is in the subdivision just south of us and has been for a year... There is a fiber/vrad box in the park right here - and they can seem to pull their heads out of there @$$' and plug us in... Even the AT&T Uverse guys don't understand why we don't have it...
jgriffin7

join:2002-08-12
Allen, TX
I live in Twin Creeks, and look forward to the day when I can dump AT&T dsl. I moved here 2+ years ago from Carrollton, and had to give up FiOS. I could never explain to the Mrs what a sacrifice I was making...

heat84

join:2004-03-11
Fort Lauderdale, FL

@#!%#@$&$&$

So there's gonna be neighborhoods with both FIOS and U-Verse when mine still has neither? Just fuckin great.

Just Visiting

@rr.com

Cherry Picking

Some may think this is good, and to some degree it is.

But don't ask the people in Maine, Vermont or New Hampshire about triple play fiber service -- they got dumped.

There used to be laws that made it an equal playing field for all customers - Now we see greedy companies with poor management going after gravy markets.
Ulmo

join:2005-09-22
San Jose, CA
·Comcast
·SONIC.NET

Re: Cherry Picking

said by Just Visiting :

But don't ask the people in Maine, Vermont or New Hampshire about triple play fiber service -- they got dumped.
What's the relative financial profile for ME, VT & NH? Are they affluent? What is the cash flow? What is the expendable cash? What is the debt level and equity level of home and land owners? What portion of the people have those levels, and what portion of the people have what other levels? How does this compare to other areas?

I know FiOS has other considerations, but I prettymuch already know those.

Just Visiting

@rr.com

Re: Cherry Picking

You must be one of those management people ---

And to tie into a backbone of "Enterprise" class equipment.

Just wait and see.........

houkouonchi

join:2002-07-22
Corona, CA
clubs:
·Pacific Bell - SBC
·Charter Pipeline
·DSL EXTREME

Holy Crap I am happy to hear this!

Man oh man I am happy to hear this! I happen to live in one of the largest growing communities in California in a very nice area which is about 80-90% served by AT&T and the rest is served by Verizon and FIOS is available. Basically people just 1 mile north, 1 mile east and 3 miles west of me can get FIOS but I can't since I live in AT&T land. Since all the houses are less than 10 years old (probably 80% less than 5 years) there is conduit in place already which should make a fiber build out very easy and cheap compared to a regular community. I would love it if FIOS became available to me.
--
Chugging along on 2x 6016/768k DSL Extreme DSL lines and one 6016/768 ATT DSL DIrect line as well as one 10mb/1mb Charter cable line for a combined total of just over 26 meg download and 3 meg up (after overhead). yay!
Forums » When U-Verse and FiOS Compete


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