& cplSiteName &

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        ADD A COMMENT
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

cnwedit
50%
50%
cnwedit,
User Rank: Light Beer
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
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
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.