& cplSiteName &

The Power of the Gig

Jason Meyers
7/30/2014
50%
50%

When I answered an incoming customer service call from Comcast yesterday, all I really hoped was that my experience would be better than this guy's. (See What Can We Learn From Comcast's Customer Service Nightmare?)

Turns out it was. For one, my call was from an automated and far less argumentative voice. Also, I wasn't planning to cancel my service (not yet, anyway). And finally, the automaton told me that Comcast Corp. (Nasdaq: CMCSA, CMCSK) was doubling my internet speed for no additional charge, effective immediately.

I haven't binge-watched House of Cards since I got that call, so I have yet to know if Comcast's action will improve my often frustrating Netflix Inc. (Nasdaq: NFLX) experience. But I know this: I feel a little better about Comcast.

Is it a sign of the times, this unsolicited gesture to satisfy customers and stave off churn? It would seem so -- and it's likely a development driven by ever-increasing competitive pressure, especially from the myriad providers now beginning to offer gigabit services.


Get the latest updates on what will be the next Gigabit Cities by visiting Light Reading's Broadband/FTTx content channel.


These providers run the gamut: There's AT&T Inc. (NYSE: T), which has recently added San Antonio, Nashville, Dallas/Fort Worth, and three North Carolina communities (Charlotte, Winston-Salem, and Raleigh-Durham) to the list of cities that will join Austin in getting its GigaPower service. There's Google Fiber Inc. , which is signing up customers in Kansas City and Provo, Utah, and has Austin and nine more cities on deck, many of which overlap AT&T's GigaPower map.

But then there are the smaller providers -- according to the Fiber-to-the-Home (FTTH) Council , 55 in all in the US, including telcos, municipalities, utilities, and even real estate interests. These are the entities bringing gigabit services to smaller cities and towns, stepping up the competitive pressure on the Comcasts, AT&Ts and Google Fibers of the world, whether those larger players are willing to admit it or not -- and adding to the regulatory ruckus while they're at it. (See If Not Muni Networks, Then What?, Muni Utilities Take Gigabit Fight to FCC, and The Municipal Menace?).

Competitive pressure can do wonders for service innovation. (There's even a startup in my tiny hamlet that's plotting a gigabit network build, which might account for the Comcast call.) Competitive pressure also ups the level of debate, raising important issues like states' rights, the role of the FCC and federal government, proper municipal use of taxpayer funds, even the question of how necessary gigabit speeds are -- especially for residential customers -- at this point in time. And in regions that might never get the attention of Google Fiber or GigaPower from AT&T, gigabit initiatives are aiding economic development efforts and potentially contributing to community transformation. (See Comporium Aims Gig at Businesses, Residents.)

All of it is certain to continue apace, keeping things very interesting -- and, if nothing else, improving the binge-watching experience for us all.

— Jason Meyers, Senior Editor, Utility Communications/IoT, Light Reading

(8)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
atiller
100%
0%
atiller,
User Rank: Blogger
8/1/2014 | 7:47:04 AM
not just about csp churn..

Yes competition is sometimes the mother of innovation, and also of improved customer care.  But maybe it shouldn't just be about reducing churn - maybe there's some rev-gen that can come that way as well.  

Maybe next-time your operator detects you are trying to binge watch House of Cards, it could offer you a service speed upgrade for the next 3 (4, 5, 24?) hours to improve your viewing.  You might happily pay a couple of dollars for that uplift.  Or Netflix might want to pay some or all of that for you - in order to stop you switching to Amazon LoveFilm (and that would be improving customer service to stop churn by an OTT player).

But then we have strayed from improving customer service into the whole net-neutrality debate and kicked off another thread entirely.  Some of these innovations can get pretty interconnected.

pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
7/31/2014 | 9:42:00 AM
Re: The Need for Speed
@FakeMitchWagner,

Unfortunately in my location in NYC, we're locked into only 1 high speed provider. Somehow, our building management only allows TWC.
SachinEE
100%
0%
SachinEE,
User Rank: Light Sabre
7/31/2014 | 6:20:00 AM
Competitive pressure
Clearly the increase in competitive pressure is the only reason why Comcast is doubling your internet speed. There are many rival carriers who are also offering some sort of discounts so that's the only way to stay afloat and avoid losing their clientele to other carriers. I wouldn't mind if they threw that offer my way but as it is, they have no choice. It's actually a step into the right direction because now they can keep up with the other carriers.
Michelle
50%
50%
Michelle,
User Rank: Light Sabre
7/30/2014 | 10:38:47 PM
Re: The Need for Speed
I would take the additional speed for almost the same price I'm paying now! I don't need a gig and would be very happy if we were getting 70 mbit/s. We're bandwidth poor. Enjoy your doubled bandwidth!
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/30/2014 | 9:44:43 PM
Re: The Need for Speed
I believe each Netflix HD movie stream only requires about 2Mpbs for playback.

The problem with streaming has often been with the Netflix servers themselves or the ISP, though they've been addressing both those issues with more hardware and by paying for bandwidth.

With those being optimal, you should easily be able to fit 5 concurrent movie streams, however, you probably would need a very good Wifi hub to manage all the traffic.




 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
7/30/2014 | 6:34:37 PM
Re: The Need for Speed
I almost certainly don't need a gig. But I can always use a little more than I have now. And I expect that will be true if I get a little more -- I'll want a little more than that. Pretty soon I'd have a gig and still be hankering for more. 


I wonder whether carriers really face competition through much of the US. 55 communities sounds like a lot, but the US is an awfully big place, and it's my impression that the overwhelming majority of the population has a choice of at most two high-speed providers. 
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
7/30/2014 | 5:26:37 PM
Re: The Need for Speed
Jason,

Not sure I would take it as I would then have to up my home router.  I don't use any of the router capabilities of my Cable Modem as I want to control that exclusively.

Other than that - sure.....

 

seven
jasonmeyers
50%
50%
jasonmeyers,
User Rank: Blogger
7/30/2014 | 4:46:19 PM
The Need for Speed
Netflix streaming really is the most bandwidth-intensive application going in my household, with various devices like Kindles and iPhones in the hands of small people (streaming purely educational content, I'm told) running a close second. A quick Ookla speedtest tells me I'm currently getting about 70 Mbit/s download speeds if I sit near the Comcast box, and just a little shy of that if I sit one room away. 

The point of all this is to say that I probably don't really need a gig -- but if it were available to me for a price in the ballpark of what I'm paying now, I would take it. Would you?
More Blogs from The Gigabot
A private community in Florida takes broadband matters into its own hands and builds out a gigabit-speed network.
Light Reading will bring the Gigabit Cities community together in Atlanta May 13 and 14.
President Obama's stance on municipal broadband is politically polarizing – but could there be an upside for commercial service providers?
Communications service providers of all types need to figure out what role they will play in the Internet of Things (IoT) ecosystem.
Google Fiber delays the planned deployment of its gigabit network in its next nine metro targets, as other gigabit hopefuls step up.
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    LRTV Huawei Video Resource Center
    ONS 2016 – Demonstration of Huawei's NetMatrix Multi-Vendor SDN Orchestrator

    4|15|16   |     |   (0) comments


    This demonstration shows how Huawei's NetMatrix SDN Orchestrator (SDN-O) addresses an operator's core service agility needs for services spanning multi-domain, multivendor networks: it includes a demonstration of:
    - Rapid New Service Design: using YANG to model a complex example of multi-domain, multivendor L3VPN network connectivity service that ...
    LRTV Custom TV
    AT&T Wants to Own North Carolina

    4|15|16   |     |   (1) comment


    Venessa Harrison, president of North Carolina for AT&T, tells how the company will expand its GigaPower service beyond the seven N.C. cities it already serves.

  • This blog, sponsored by AT&T, is the second part of a ten-part series examining next-generation broadband technologies titled "Behind the Speeds."
  • Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    Mitel Asks: What Time of Day Do You Shower?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/25/2016
    GoT Fans Curse HBO (Not Right) Now
    Mari Silbey, Senior Editor, Cable/Video, 4/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.