Light Reading

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 Beer
    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 Beer
    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


     

    Flash Poll
    From The Founder
    The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
    LRTV Documentaries
    LTE Paves the Way for the 5G Revolution

    4|20|15   |   4:20   |   (0) comments


    Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

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


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    LRTV Huawei Video Resource Center
    What's in Store for Huawei & DataCore?

    4|10|15   |   05:44   |   (0) comments


    At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
    LRTV Huawei Video Resource Center
    Du Puts Its Faith in Huawei's Routers

    4|9|15   |   3:42   |   (0) comments


    Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
    LRTV Huawei Video Resource Center
    Huawei Gets Active in the Data Center

    4|9|15   |   3:17   |   (0) comments


    With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
    LRTV Huawei Video Resource Center
    Blue Consult & Huawei for a Better Solution

    4|8|15   |   4:01   |   (0) comments


    Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
    Upcoming Live Events
    May 5, 2015, Hyatt McCormick Place, Chicago, IL
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
    Hot Topics
    Verizon Scores New OTT Content Deals
    Mari Silbey, Independent Technology Editor, 4/16/2015
    Nokia, Alcatel-Lucent in Merger Talks
    Iain Morris, News Editor, 4/14/2015
    Nokia & Alcatel-Lucent: What's Going On?
    Ray Le Maistre, Editor-in-chief, 4/15/2015
    What if the Comcast Merger Fails?
    Mari Silbey, Independent Technology Editor, 4/20/2015
    LPWA: A Threat to 'Wait & See' IoT Operators?
    Steve Bell, Senior Analyst, Heavy Reading, 4/16/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.