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%
Repost This

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
LRTV Custom TV
Wind River Demonstrates Carrier-Grade Software for NFV

4|22|14   |   5:00   |   (0) comments


Wind River VP of Product Management, Glenn Seiler, takes a look the industry's first and only complete NFV software platform designed specifically for the unique carrier-grade and high-performance needs of telecom networks.
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
Hot Topics
WhatsApp Threatens Carrier VoLTE
Sarah Reedy, Senior Editor, 4/18/2014
The Hungry, Hungry Cloud
Dan Jones, Mobile Editor, 4/22/2014
Who's Ready to Play Broadband?
Carol Wilson, Editor-at-large, 4/21/2014
What's the Magic of Private Equity?
Carolyn Mathas, 4/22/2014
AT&T Turns Up Gig Heat in 21 New Metros
Dan Jones, Mobile Editor, 4/21/2014
Like Us on Facebook
Twitter Feed