Light Reading

Sandy-Related Repair Costs Could Reach $600M

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

Welcome to the broadband and cable news roundup, T.G.I.F. edition.

  • Superstorm Sandy could end up costing network operators $550 million to $600 million in clean-up and repair costs, reports Reuters, citing an estimate from Barclays Capital analyst James Ratcliffe that factored in the anticipated financial impact at Cablevision Systems Corp. (NYSE: CVC), Verizon Communications Inc. (NYSE: VZ), Time Warner Cable Inc. (NYSE: TWC), AT&T Inc. (NYSE: T) and Sprint Corp. (NYSE: S). He said that Cablevision will have "the biggest impact relative to its size."

    Individual service providers have yet to reveal anticipated Sandy-related costs, but more details about the financial impact of the storm could emerge next week, when Cablevision and TW Cable report third-quarter earnings. Verizon, meanwhile, said it's too early to estimate the financial impact from the storm, but did note in an 8-K filing Friday that Sandy will have a "significant" effect on the company's fourth-quarter operating results. (See Service Providers Still Fighting in Sandy's Aftermath.)

  • Service providers are working round the clock to get services restored, but access to power appears to be the long pole in the tent. Cablevision, for example, reported that about half its customers were without power as of Thursday morning. Verizon spokesman Bill Kula confirmed that the company expects to have services back up "in the hardest impacted zones ranging from a few days to up to two weeks." The latter timeframe is the "worst case scenario based on the restoration of commercial power," he added. In the meantime, Verizon, which hasn't said how many customers have been affected by the storm, has hundreds of central offices operating on backup generators. "The broader story is that we're making steady progress daily," Kula said.

  • Boxee is priming the pump for its new $99 broadband-connected device with a set of introductory offers, including three months of Netflix Inc. (Nasdaq: NFLX), three months of its cloud-based No Limits DVR (normally $14.99 per month), a $5.99 credit from Vudu, and a free month of Spotify Premium. The Boxee TV device, which blends OTT video and apps with over-the-air TV, went on sale Thursday at Walmart stores, and at Boxee is also working on deals that will bring authenticated TV Everywhere content to its new platform. (See Boxee CEO Now a Friend of Big Cable?)

  • Over-the-top video revenues will surge from an expected $8.2 billion this year to more than $32 billion by 2017, predicts ABI Research . Subscription services such as Netflix have dominated the OTT market of late, but the firm expects OTT rentals to supplant subscription revenues by 2014.

  • Sales of set-top boxes with Multimedia over Coax Alliance (MoCA) on board rose 33 percent in the first half of 2012 compared to the same period in 2011, says Infonetics Research Inc. , noting that it expects MoCA to become the de facto wired technology for video distribution to devices in the home.

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (3)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Jeff Baumgartner
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:14 PM
    re: Sandy-Related Repair Costs Could Reach $600M

    Cablevision on Friday said customers will get credit for any full or partial day during which Optimum services were down, including any disruption brought on by power outage. Customers can also exchange set-tops and other equipment  damaged by the storm at no cost. More detail here. JB



    Jeff Baumgartner
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:11 PM
    re: Sandy-Related Repair Costs Could Reach $600M

    Cox provided an update on its recovery from the storm as of Friday afternoon (Nov. 2):  

    - Back to business as usual in Virginia and Connecticut

    - 98% of customers have working service in Rhode Island (versus 87 percent the morning of Oct. 31)

    - More than 90 percent have working service in Clevelend  (up from 70 percent as of the morning of Oct. 31).  

    The remainder in R.I. and Cleveland have a power or network issue "and we will continue to work closely with power companies until all service is restored," Cox spokesman Todd Smith said via e-mail. JB


    vz 29.5
    vz 29.5,
    User Rank: Light Beer
    12/5/2012 | 5:18:10 PM
    re: Sandy-Related Repair Costs Could Reach $600M

    When 140 West street is neckdeep in h20 we know even the execs.are paddlin'with craft and our faithful National Guard.A Malibu son.

    From The Founder
    Light Reading's conference in November will attempt to answer all of the big questions around white box networks. No pressure...
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    ZTE in Budapest ITU 2015

    10|13|15   |   03:26   |   (0) comments

    ZTE Chief Architect David Huo discusses the company's progress on the 5G front.
    Telecom Innovators Video Showcase
    Close-up on ConfD

    10|12|15   |   10.21   |   (0) comments

    Tail-f's Renée Robinson-Stromberg tells Steve Saunders about the powerful ConfD management interface.
    Women in Comms Introduction Videos
    Women in Comms: Highlights From Dallas

    10|12|15   |   2:23   |   (1) comment

    The best soundbites, quotes and words of wisdom from leading women from Intel, AT&T, Verizon and Genband at our recent WiC breakfast in Dallas.
    Telecom Innovators Video Showcase
    NetNumber Founder on Managing Signaling Control

    10|12|15   |   6:36   |   (0) comments

    NetNumber Founder and Chief Strategy Officer Doug Ranalli describes the essential complexity of real-world signaling-control and how NetNumber enables carriers to bring signaling-control "under-control". Learn why virtualization alone isn't the answer.
    LRTV Documentaries
    Verizon Gets Proactive on App Performance

    10|12|15   |   04:50   |   (0) comments

    SDN is turning traditional service models around to allow Verizon to measure and deliver performance at the application layer. As Shawn Hakl, VP of enterprise networking and managed solutions for Verizon, explains, the carrier had to develop new skill sets and change some of its internal operations, but the payoff was happier enterprise customers.
    Telecom Innovators Video Showcase
    Tail-f, Cisco & What the Future Holds

    10|9|15   |   8:17   |   (0) comments

    Steve Saunders meets with Tail-f's Director of Technology, Carl Moberg, in Stockholm to discuss becoming part of Cisco, ETSI MANO, virtualization and the need to combine science and business in order to create opportunities for service providers.
    LRTV Interviews
    Broadband Forum Embraces SDN & NFV

    10|9|15   |   02:42   |   (1) comment

    At Gigabit Europe 2015, Robin Mersh and Kevin Foster from the Broadband Forum explain how the industry body is adapting to meet the SDN, NFV and cloud needs of the access network sector.
    LRTV Interviews
    Top Tips for FTTH Operators

    10|8|15   |   02:26   |   (0) comments

    At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
    LRTV Interviews
    M-net Calls for FTTx Unity

    10|8|15   |   03:45   |   (0) comments

    At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
    LRTV Documentaries
    The Business Case Challenge for NFV

    10|7|15   |   03:47   |   (0) comments

    Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
    LRTV Interviews
    JT Offers Some Gigabit Lessons

    10|7|15   |   4:08   |   (1) comment

    Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
    LRTV Interviews
    AT&T's Chiosi on the Potential of Open Source

    10|6|15   |   06:27   |   (0) comments

    AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
    Upcoming Live Events
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
    Hot Topics
    Dell Buys EMC for $67B in Biggest Tech Deal Ever
    Mari Silbey, Senior Editor, Cable/Video, 10/12/2015
    M&A Speculation Swirls Around Juniper
    Ray Le Maistre, Editor-in-chief, 10/6/2015
    Cord Cutting? 'Fraid so.
    Brett Sappington, 10/7/2015
    Cisco Makes 'Martian' Connection
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/9/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
    Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
    Cats with Phones
    "What?! I'm on with Finisar about their stock price tanking" Click Here
    Live Digital Audio

    Think NFV is just about virtualization? Think again!

    Network architects are learning that there's a lot more to the technology than first thought – more complexity, that is; but also, more potential benefits.

    On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM, HP Communications Solutions Business at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!