Light Reading
Walled-garden IPTV efforts are doomed, so Qwest wants to ensure that OTT video runs the best on its broadband network, exec says

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
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
LRTV Custom TV
Exploring the Future of Cable Access

10|15|14   |   6:23   |   (0) comments


Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
LRTV Custom TV
Optimizing & Monetizing WiFi

10|15|14   |   5:53   |   (0) comments


Cisco's Vince Pandolfi outlines the reasons for cable WiFi's rapid growth, lays out the issues with the technology and explains the new Cisco tools that can help operators monitor and improve their WiFi delivery.
LRTV Huawei Video Resource Center
Emulex & Huawei Collaboration Mutually Beneficial

10|14|14   |   4:17   |   (0) comments


US company Emulex collaborates with Huawei in areas such as blade servers and workload documentation. Mike Heumann of Emulex believes that Huawei has done incredibly well moving from a telecom company into servers and networks, working closely with customers to realize their needs.
LRTV Huawei Video Resource Center
Chile's VZION Looks Forward to Seeing More of Huawei

10|14|14   |   4:43   |   (0) comments


VZION is a systems integrator company in Chile with a focus on virtulization technology. In this video, Cesar Alcacibar talks about the challenges in virtualization and how Huawei helps his company to achieve the best results possible. Alcacibar is expecting more adoption and integration of Huawei technologies in Chile.
LRTV Huawei Video Resource Center
Pro-Datech & Huawei for a High-Tech Singapore

10|14|14   |   2:59   |   (0) comments


Pro-Datech Systems is a specialty IT solution provider based in Singapore. For an added value to its customers, the company uses Huawei's hardware and trusted performance and features for a total solution. It's looking forward to the creation of a lab, to be based in Singapore, for the two companies' coorporation on total storage solution.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Forget the Internet, Brace for Skynet
Stephen Saunders, 10/15/2014
HBO Will Go OTT in 2015
Mari Silbey, Independent Technology Editor, 10/15/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Like Us on Facebook
Twitter Feed