Light Reading

Qwest Ready to Ride Video's Over-the-Top Wave

Carol Wilson
LR Cable News Analysis
Carol Wilson, Editor-at-large
12/8/2009
50%
50%

ORLANDO, Fla. -- Management World Americas -- Qwest Communications International Inc. (NYSE: Q) continues to chart a unique course among major U.S. telecom service providers, focusing on improving its broadband network in the belief that video content is moving rapidly to an over-the-top (OTT), on-demand model, Neil Cox, Qwest's EVP for product and IT, said here today at the TM Forum -run event.

"Only sports need to be live," Cox said. "We see these walled-garden IPTV models breaking down. We see a tremendous amount of over-the-top video."

For that reason, Qwest will continue to partner with DirecTV Group Inc. (NYSE: DTV), which has added an Ethernet jack to its newest DVR/set-top receiver to bring broadband content to the TV set "to provide a really rich customer experience," said Cox.

Even sports programming is moving to the online model, he said, citing Major League Baseball's successful online video efforts.

"We are seeing ASV -- ad-supported video -- and Blu-rays and new TVs hooked up to the Internet, and we at Qwest are not going to stand in the way," Cox said. "We want to make sure [OTT content providers'] video works better on our network than on anyone else's network."

Qwest will focus on providing content-delivery networks, as well as provisioning, maintenance, and billing, which are the company's strengths, in order to "get into the value stream of these economics," Cox said.

Qwest also sees opportunity in bringing broadband to the 40 percent of customers in its territory that don't yet subscribe, and in moving customers to higher tiered services, given that half of broadband customers today get 1.5 Mbit/s, he said.

Qwest offers 40-Mbit/s downstream and 20-Mbit/s upstream service to the more than 3 million homes passed by its fiber-to-the-node and VDSL2+ network today, Cox said, noting that the telco is adding more than 1 million homes per year to that network. (See Qwest Attacks Comcast With 40 Mbit/s.)

On the enterprise side, cloud computing represents an opportunity for Qwest to move beyond providing space and power in the hosting centers it built on its long-distance fiber network early in the decade to offer cloud computing. Just a few years back, "you could have played football in one of our hosting centers" because they were large empty buildings, but they are now running at 90 percent capacity, Cox said.

— Carol Wilson, Chief Editor, Events, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 3:51:31 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave
Or is Qwest a failure because it couldn't deliver an IPTV service that we could take seriously?

Say what you will about walled gardens being doomed, but I know a lot of folks who pay more than $100 a month to companies like Charter and AT&T and those providers aren't splitting revenues with DirecTV.
DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 3:51:30 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave
So is IPTV a bad idea, or just a bad idea to Qwest because Qwest couldn't afford it?
paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 3:51:30 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave


 


I don't know about "a failure" but they are the one large telco with really bad financials dating back to the whole Qwest formation.  It is taking a lot of investment by AT&T and Verizon to compete.  Qwest does not have the money to invest, so they are taking the path to save their lines.  Optimal?  Probably not.  But it is probably the only thing they can do.


seven


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 3:51:29 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave


I think if Qwest had its druthers and could afford to do it, they'd build out their own video service...and take all the subscription and ad dollars that MSOs and VZ and ATT already don't have to share.  Qwest headed down that road too early with the VDSL ChoiceTV stuff they operated in Phoenix and Highlands Ranch, Co, and opted to just phase it all out and put all its video eggs in the DirecTV basket.


But at TelcoTV it seemed like the price for entry for tier2 and tier3 telcos are starting to make more sense, so it'll be interesting to see when or if Qwest alters its strategy or if it's going to stick to DirecTV and continue to sell the virtues of that story.  i don't expect to see much in the way of a change there for a long time.  Jb

Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/5/2012 | 3:51:27 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave
The thing is that while IPTV is getting cheaper to deploy, video is not becoming more lucrative as a product - it remains a very low margin product for providers, since most of the service income collected is paid out monthly to content owners. What Qwest has been saying consistently for at least two years now is that they think they can make incremental revenues on other services.
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 3:51:20 PM
re: Qwest Ready to Ride Video's Over-the-Top Wave
That's a good point. Even though IPTV gear is cheaper, license fees for programming aren't as favorable for a company just getting into the video game and lacking a sizable sub base. Partnering with companies like NCTC help the smaller guys, but the rates they get aren't as good as those that big guys like Comcast and TWC get, which tier 2 and tier 3 operators have lamented for...ever. JB
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (0) comments


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (1) comment


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
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
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.