& cplSiteName &

DirecTV's 12-Meg Bundle Comes With Caps

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/21/2012
50%
50%

Welcome to the broadband and cable news roundup.

  • DirecTV Group Inc. (NYSE: DTV) has introduced a satellite broadband bundle that supports maximum speeds of 12 Mbit/s downstream and 3 Mbit/s upstream, but the service's strict usage caps make it less than a video streamer's delight. Targeted primarily at rural areas with limited access to wired broadband services, the service, powered by ViaSat Inc. (Nasdaq: VSAT)'s new Exede platform, includes a high-end US$129.99-per-month tier with a data cap of 25GB. The service's data policy does offer some relief for customers who surf and stream during off-peak hours -- data usage is not counted from midnight to 5 a.m. in the customer's local time zone. Customers who exceed their monthly caps are subject to speed throttling, but they also have the option to purchase more data in 1GB increments.

    In a promo good through Feb. 6, DirecTV is offering a $10 discount on all tiers and waiving the $49.99 set-up fee for the first 12 months, if customers sign a two-year contract. DirecTV also has broadband and voice bundles available with several telco partners, including AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ) and CenturyLink Inc. (NYSE: CTL). Dish Network LLC (Nasdaq: DISH) launched a similar package with ViaSat in January.

  • Cox Communications Inc. confirmed a Multichannel News report that the cable operator will offer more than 90 linear TV channels on via its IP-based Cox TV Connect app before the end of the year. Cox TV Connect debuted about a year ago, starting with 35 channels on the iPhone. The report says that Cox will soon add support for the iPad, with Android devices on tap for the first half of 2013. Until out-of-home rights are obtained, access to live TV via the Cox TV Connect app is limited to the reach of the customer's home Wi-Fi signal. (See Cox to Stream Live TV to Tablets .)

  • Eastlink of Canada is using Cisco Systems Inc. (Nasdaq: CSCO)'s Videoscape, the vendor's managed multi-screen video platform, to power Eastlink to Go, an over-the-top TV Everywhere service for PCs, laptops, tablets and smartphones. The service will support both on-demand and live TV programming.

  • An update to the Comcast Corp. (Nasdaq: CMCSA, CMCSK) Xfinity TV Player app for iOS and Android devices has added an option that lets users download selected titles from Showtime Networks Inc. and Starz Entertainment LLC and watch them on the go, reports Engadget.

  • BC Partners and CPP Investment Board have completed their $6.6 billion purchase of Suddenlink Communications , a deal that includes a $1.985 billion investment by the firms. Suddenlink's management team, led by Chairman and CEO Jerry Kent, was also in on the deal, which was announced in July. (See CEO Joins $6.6B Bid for Suddenlink .)

    — Jeff Baumgartner, Site Editor, Light Reading Cable



    (8)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:17:21 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    The capabilities of satellite broadband have come a long way, but the caps would make it a tough sell for me unless I lived in the sticks and had no other option. It won't take much to eat through these caps.  The other options are 15GB for $69.99/month and 10GB for $39.99 per month (with the promotional discount from DirecTV).  JB

    shygye75
    50%
    50%
    shygye75,
    User Rank: Light Sabre
    12/5/2012 | 5:17:21 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    Jeff -- What's the rationale for the exorbitant price? Is it a capacity issue?

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:17:20 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    I'd have to check with them to be sure since they don't offer a line in the FAQ that addresses: Why are we so damn expensive?  :)


    but I suppose capacity and those sunk infrastructure costs for this new, higher-speed system do come into play as well as the required home equipment. However, customers already get hit with a one-time set-up fee of $149.99 (though it's "on special" for $49.99 these days), and they also include a $9.99/month lease fee... so they appear to be covering their bases there. JB


     

    shygye75
    50%
    50%
    shygye75,
    User Rank: Light Sabre
    12/5/2012 | 5:17:18 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    It would be interesting (love that word) to know the why behind the massive price. Maybe it's "all of the above" (bird cost, hardware on the ground, limited capacity, etc.) but it sure smells like a take-it-or-stick-to-your-two-tin-cans-and-a-string approach, which can't sit well with customers no matter how many head of cattle they own.

    paolo.franzoi
    50%
    50%
    paolo.franzoi,
    User Rank: Light Beer
    12/5/2012 | 5:17:17 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    Jeff,


    Why do you believe that LTE is a lower cost for this than DSL for the Telcos or DOCSIS for MSOs?


    seven


     

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:17:17 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    I wasn't trying to make a direct cost analysis here; just noting that LTE seems to be getting a closer look in markets where a service like sat. broadband makes more sense. JB


     


     

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:17:17 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    Yes, they do have some people in rural areas over a barrel on this one. But it does make me wonder if this could make LTE a viable competitive option in these broadband-deprived markets for the wireless guys, especially Verizon and its HomeFusion product. JB

    paolo.franzoi
    50%
    50%
    paolo.franzoi,
    User Rank: Light Beer
    12/5/2012 | 5:17:16 PM
    re: DirecTV's 12-Meg Bundle Comes With Caps


    There is definitely an investment bias towards wireless in Telcos.  My take is that both Verizon and AT&T see it as a long term replacement for POTS.  


    Now my parents happen to have satellite broadband and I will ask them who their provider is.  They chose it over cable which is available (DSL is not although they are very close to an old 80D cabinet - within DSL reach of it).  The reason is that in their area the cable guys want to charge them for construction costs from the road to their house.  They just wanted something better than dial-up and so it was a lot cheaper than paying for the construction costs.


    seven


     

    From The Founder
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Huawei Video Resource Center
    BBWF 2016: Orange Poland's Next-Gen Central Office

    3|28|17   |     |   (0) comments


    Introduction to Orange Poland's legacy next-generation central office solution.
    LRTV Custom TV
    Viavi at OFC 2017

    3|28|17   |   4:15   |   (0) comments


    Light Reading's Editor-in-Chief Craig Matsumoto reports from the Viavi booth at OFC and gets an update on the 400G testing market from Tom Fawcett, VP and GM of LAB & Production. At this year's event, Viavi won three awards from Lightwave magazine and showcased an interoperability demo with Ethernet Alliance and Finisar.
    LRTV Custom TV
    Connecting the Entire Home With DOCSIS 3.1

    3|28|17   |   3:58:   |   (0) comments


    Hitron Technologies had the first cable modem certified for DOCSIS 3.1 and already has over 120,000 units in the field. Greg Fisher, CTO of Hitron, provides an update on his company's rollout of new gateways and why he thinks DOCSIS 3.1 will continue to drive value for operators into 2017 and beyond.
    LRTV Interviews
    Amazon Prime's Hand of God Creator on Producing for OTT

    3|28|17   |     |   (0) comments


    Ben Watkins is the creator, writer and producer of Hand of God, a series on Amazon Prime. At Light Reading's Cable Next-Gen conference in Denver, he explained the advantages of producing for an OTT platform versus traditional TV.
    LRTV Custom TV
    How Metrological Keeps Cable Customers on the Couch

    3|28|17   |     |   (0) comments


    Metrological offers an open source solution that reduces the time it takes cable operators to integrate OTT content into the linear television viewing experience.
    LRTV Documentaries
    The ABC of OTT

    3|28|17   |     |   (0) comments


    At Light Reading's Cable Next-Gen conference in Denver, Ben Watkins, creator of Amazon Prime's Hand of God show, explained how producing content for an OTT platform differs from producing content for traditional TV.
    Shades of Ray
    Why Analytics Is the Tech World's Digital Glue

    3|27|17   |   02:20   |   (0) comments


    It was obvious at the massive annual CeBIT enterprise tech trade show that the foundation for tech innovation right now is real-time analytics.
    LRTV Custom TV
    CommScope – Meeting the Demands of Tomorrow's Networks

    3|24|17   |     |   (0) comments


    Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
    LRTV Huawei Video Resource Center
    AMS-IX & Huawei's OSN 902

    3|24|17   |     |   (0) comments


    Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
    LRTV Huawei Video Resource Center
    Huawei's Smart Energy Innovation Center

    3|24|17   |     |   (0) comments


    In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
    Valley Wonk
    OFC & Hyperscale: A Good Mix?

    3|24|17   |   01:50   |   (0) comments


    Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
    LRTV Custom TV
    Etisalat on NFV Journey

    3|24|17   |   10:37   |   (0) comments


    Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Eurobites: A1, Nokia Turn It Up to 11
    Paul Rainford, Assistant Editor, Europe, 3/22/2017
    FTTH No Slam Dunk for Cable
    Carol Wilson, Editor-at-large, 3/23/2017
    Unlocking China's $194B Telecom Market
    Robert Clark, 3/27/2017
    Welcome to the Wild West of Privacy
    Carol Wilson, Editor-at-large, 3/24/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
    Animals with Phones
    Working From Home Doesn't Work for Everyone Click Here
    You shouldn't nap on your keyboard, for instance.
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.