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jabailo
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jabailo,
User Rank: Light Sabre
6/29/2014 | 5:27:21 PM
PUDs
Here in Washington State I've been looking at rural properties.  One of my requirements is Internet connectivity (and satellite unfortunately has too low bandwidth caps).

I've been surprised by the number of remote residences that are served by cable and optical fiber.   What I would do is look up the properties on the National Broadband Map (http://www.broadbandmap.gov/).   I started to see crazy high speeds in some of the most far flung places...1Gbps, Google Speed...and the ISP was listed as something like "PUD District #3".

So, it turns out that due to an act of Congress for rural broadband, the local electrical utilities stepped in where no cable or telco would go and hooked up farmhouses and ranches to the optical fibers on their power lines.   And since there was no economic reason to "throttle" they let them get the full optical fiber speeds!!

I think this is hilarious, because there are still areas of hi-tech Seattle that can't get broadband or anything above a couple of Mpbs!!

 
Carol Wilson
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Carol Wilson,
User Rank: Blogger
6/27/2014 | 10:44:32 PM
Re: The smart play
Actually, the nails in this coffin started going in about three or four years ago when rural telcos started shutting down their IPTV or cable services in favor of making it easier for their customers to buy higher tier broadband offerings and some kind of OTT video. This included bundling Roku boxes or other OTT devices and, in at least one case, offering to help customers install digital antennas to pull in off-the-air digital TV signals. 

Video has been a loss leader for many IPTV providers for almost 10 years now and some of them -- a growing number - are deciding it's just not worth the headache. 

The capex investment can be high and the cost of content just keeps going up and up. And that's a cost you pay per user on a monthly basis. The big guys may be able to negotiate somewhat but as we've seen recently in the high-profile battles between cable and satellite providers and various content giants, even Time-Warner Cable and DirecTV take a hit when they take on big content. 
smkinoshita
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smkinoshita,
User Rank: Light Sabre
6/27/2014 | 9:58:18 PM
Re: The smart play
@Carol Wilson:  I agree, but my thoughts went to the question of if "Is this is going to be a new trend?"  I'm sure I'm not the first person to question the future of video service and I'm just wondering if this is the first nail in the coffin.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
6/27/2014 | 5:23:23 PM
Re: Smart move
Ryan Welch - True, but there are other ways to get the word out: Text messages,robodialers, even cars going down the street with loudspeakers. 
Ryan Welch
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Ryan Welch,
User Rank: Lightning
6/27/2014 | 4:28:28 PM
Re: Smart move
Mitch, I only mostly agree with you on that second point. Yes, cable TV has become an entertainment service more than anything, however, there is still the matter of local public saftey broadcasting. Admittedly, that's not a very big slice of the pie, but as I see it, that obnoxious BEEP BEEP BEEP and pop-up alert ticker is still a sure-fire way to disseminate information about local emergencies (ie severe weather, amber alerts, evacuation orders, etc). Argueably, all of that information is also available online, but only if you're looking for it; whereas with TV, the information is put right in front of you.

Still, I do see that cable TV is slowly being edged out by OTT video. The network operator could strike an agreement between the local authorities and the OTT services to integrate those same public alerts into their content at the local level.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
6/27/2014 | 2:10:11 PM
Smart move
This is a smart move. Broadband is necessary to attract business, even if the service itself is unprofitable or even loses money. 

Cable TV is entertainment, not something government should be spending taxpayer resources on. Let the people get TRUE BLOOD on their own nickle. 
RBR
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RBR,
User Rank: Light Beer
6/27/2014 | 1:39:56 PM
Data first is where all local access roads lead
Excellent article(s) Jason, you've brought good insight on several fronts.  I've held the single play data first option is best for small operators and where non-national footprint operators will eventually arrive.  Not enough margin in Video or Voice to warrant organic investment; best to partner with 3rd parties.  Current client is getting $70 ARPU and +40% penetration with a FTTH broadband only play and now approaching neighboring RLECs (and AT&T) for them to provide IPTV and POTS across our network.  Not the ARPU we had as triple play providers, but lower OPEX and Churn yielding stronger ROI.  Truism, first one in with fiber is the lasting.
jasonmeyers
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jasonmeyers,
User Rank: Blogger
6/27/2014 | 1:13:24 PM
Re: Economic Development via Gigabit Networks
I agree on all counts - and in Longmont, municipal buildings and some schools are already connected via the existing fiber network, so many residents are already used to it.

When I told Tom from LPC that I wish I could get a gigabit connection for $50/month, his response was "That's what we like to hear -- move to Longmont."
TimDowns
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TimDowns,
User Rank: Light Beer
6/27/2014 | 12:30:16 PM
Economic Development via Gigabit Networks
Jason

Interesting article about Longmont, which as you point out is unique with its business model. Why would they take on the headache of an in-house video service when there are plenty of signs of OTT video surging in the hearts of consumers? There's Aero, but also Hulu, Roku and more. 

Secondly, a gigabit network to homes and businesses is required nfrastructure for visual communications, not video. Think high definition telemedicine, business collaboration, distance learning -- if you live in Longmont five years from now, you'll want these types of services more than you'll want to ESPN 2.

Finally, on the subject of economic development. I would think that the key driver for a city such as Longmont may not be new economic development, though that is always good. The question is, if the city doesn't make this investment, and the carriers don't make this investment, citizens will have a choice to live somewhere else. Like Chattanooga.

 

TD
mendyk
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mendyk,
User Rank: Light Sabre
6/27/2014 | 10:51:18 AM
the anti-Aereo
Wow -- Longmont is blazing a trail that will become well worn over the next decade. It's all about OTT service delivery, not making sure customers are being forced to pay for 15 ESPN talking-head channels.
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