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Will Satellite Get Caught in VZ's LTE Crossfire?

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
3/6/2012
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Here's a look at what's pushing cable's buttons this morning.

  • Satellite broadband could end up being one of the big competitive targets for HomeFusion Broadband, Verizon Communications Inc. (NYSE: VZ)'s new residential service that will deliver high-speed Internet connections over Long Term Evolution (LTE) and concentrate on areas that lack access to DSL and cable modem services. That's pretty much the market being pursued by EchoStar Corp. LLC (Nasdaq: SATS)'s HughesNet and ViaSat Inc. (Nasdaq: VSAT), which has recently introduced Exede, a new service that's matching a 12Mbit/s downstream with a 3Mbit/s upstream. (See Verizon Takes LTE to Rural Homes, ViaSat to Phase Out WildBlue and DirecTV Cuts WildBlue From Its Broadband Future .)

  • New York's Cablevision Systems Corp. (NYSE: CVC) says its interactive ad platform has delivered nearly 4 billion impressions via more than 900 campaigns with 600-plus advertisers. The results seem to demonstrate that that local interactive advertising continues to gain steam as Canoe Ventures LLC , a cross-MSO advanced ad J.V., shuts down a national interactive ad effort to instead focus on dynamic video-on-demand (VoD) ad insertion. (See Cable's Canoe Sinks Interactive Ad Business .)



  • Carlos Slim's América Móvil S.A. de C.V. is mulling a Netflix Inc. (Nasdaq: NFLX)-style streaming video service for Mexico, but is holding off until the company receives regulatory clearance, Bloomberg reports. América Móvil currently is banned from using its landline network to deliver TV services in Mexico, but does offer streaming video services in Argentina and Uruguay.

  • Alticast Corp. has introduced Windmill, an interactive TV "ecosystem" for pay-TV operators that integrates the company's altiPlatform middleware core, user interface, and conditional access system and digital rights management products.

  • itaas Inc. has approved iCueTV Inc. 's apps for iLaunch, a program that pre-tests the deployment of interactive services based on cable's Enhanced TV Binary Interchange Format (EBIF) platform. icueTV has developed reusable EBIF-compliant app templates that, among other things, let consumers buy products using their remote controls.



    — Jeff Baumgartner, Site Editor, Light Reading Cable



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    joanengebretson
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    joanengebretson,
    User Rank: Light Beer
    12/5/2012 | 5:40:32 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    It's also interesting that Verizon itself does not offer landline broadband in these markets -- but AT&T does.


    For years the Big Two have avoided hand-to-hand combat on one another's turf in the belief that they would just trade customers & erode one another's margins. But perhaps Verizon is counting on having a first-mover advantage.


    Although AT&T should be able to offer a similar product as it rolls out its own LTE offerings, Verizon does have a lead, which it may be able to capitalize on.

    Jeff Baumgartner
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    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:40:32 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    Most of the cable incumbents in the first three HomeFusion markets are now Verizon Wireless partners:


    Dallas: TW Cable


    Nashville: Comcast


    Birmingham: Bright House & Charter


     

    joanengebretson
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    joanengebretson,
    User Rank: Light Beer
    12/5/2012 | 5:40:31 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    After rereading your coverage & Light Reading's longer piece on this topic, I see that Verizon is launching this new offering only in rural areas without other options (which apparently means areas where AT&T has not brought broadband).


    So it appears the unspoken no hand-to-hand combat pact is still in effect between the Big Two.

    Jeff Baumgartner
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    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:40:30 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    But you have to wonder if they'll truly limit access  only to areas that don't have other options; that's the spin they are putting on it, but I seriously doubt it, though Verizon has to be careful about what it says since they still have a DSL business. But they could take some shots at AT&T's DSL business in these markets, which you smartly point out.  


    I also wonder if this will have as much competitive impact on cable modem service as satellite broadband does now, which is to say very very little. JB


     


     


     

    kaps
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    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:40:29 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    Any word on whether Verizon will make this service available to the rural operators who are leasing its 700 MHz spectrum? Seems like that could be a good deal.


    Also remember being pitched a Verizon-Cisco thing about an LTE blade that served as a fixed service for small businesses. Any more news about that idea?

    kaps
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    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:40:29 PM
    re: Will Satellite Get Caught in VZ's LTE Crossfire?


    Any word on whether Verizon will make this service available to the rural operators who are leasing its 700 MHz spectrum? Seems like that could be a good deal.


    Also remember being pitched a Verizon-Cisco thing about an LTE blade that served as a fixed service for small businesses. Any more news about that idea?

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