NNSquad - Network Neutrality Squad
[ NNSquad ] AT&T: We need to buy DirecTV because U-verse TV is a failure
AT&T: We need to buy DirecTV because U-verse TV is a failure
(Ars Technica): http://arstechnica.com/business/2014/06/att-we-need-to-buy-directv-because-u-verse-tv-is-a-failure/
"AT&T has world-class wireline and wireless broadband facilities, but
its video service, which is available in only a minority of customer
locations within AT&T's 22-state incumbent local exchange carrier
('ILEC') region, is uneconomic and not fully competitive with cable
providers," the company said. AT&T only provides U-verse video where
it has fiber-to-the-node or fiber-to-the-premises, the company said.
"As a result of its relatively limited video footprint, AT&T is far
smaller than Comcast and Time Warner Cable, its principal
competitors," it said. "Lack of scale particularly hinders AT&T with
respect to content acquisition, which is by far the largest variable
cost of MVPD [multichannel video programming distributor] service.
AT&T therefore faces challenges selling competitive broadband/video
bundles even inside its U-verse video footprint." Although AT&T lags
behind Comcast in Internet and video subscribers, it has double
Comcast's overall revenue. AT&T made $128.8 billion in revenue last
year compared to Comcast's $64.7 billion. Left unsaid is that AT&T
bears responsibility for making U-verse available only in "a minority
of customer locations," by choosing to slow down and limit its fiber
deployment, until AT&T announced a recent expansion.
- - -
--Lauren--
Lauren Weinstein (lauren@vortex.com): http://www.vortex.com/lauren
Co-Founder: People For Internet Responsibility: http://www.pfir.org/pfir-info
Founder:
- Network Neutrality Squad: http://www.nnsquad.org
- PRIVACY Forum: http://www.vortex.com/privacy-info
Member: ACM Committee on Computers and Public Policy
Lauren's Blog: http://lauren.vortex.com
Google+: http://google.com/+LaurenWeinstein
Twitter: http://twitter.com/laurenweinstein
Tel: +1 (818) 225-2800 / Skype: vortex.com
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