Posts Tagged ‘Verizon’

Tough Times Ahead for U.S. Phone Companies?

By Om Malik | Monday, August 11, 2008 | 4:30 AM PT | 12 comments |

Analysis: The second-quarter 2008 financial reports are in – and the tea leaves are not telling a sunny future for phone companies, who are facing increasingly aggressive cable competitors. Continue reading to find out why going is to get even tougher. Continue »

Cable Unit Boosts Time Warner’s Earnings

By Stacey Higginbotham | Wednesday, August 6, 2008 | 7:13 AM PT | 0 comments |

Time Warner Cable reported positive second-quarter earnings (PDF) this morning that fell 26 percent but excluding onetime charges, beat Wall Street’s expectations, and said it would split AOL’s dial-up Internet and advertising businesses into two divisions in 2009. Its earnings beat expectations largely because of gains in its film and its cable and networks division, which will also be spun out into its own company by the end of the year.

High-speed data revenue rose 12 percent to $1 billion, thanks to the company adding 201,000 broadband subscribers to bring its total to 8.1 million. In the second quarter last year it had added 188,000 subscribers, so broadband is up for the year-over-year period, although down from the previous quarter, when it added 304,000 broadband subscribers. Continue »

Comcast Earnings Prove Broadband Growth Slowing

By Stacey Higginbotham | Wednesday, July 30, 2008 | 6:32 AM PT | 2 comments |

As earnings season continues, it’s clear that some in the U.S. have had their fill of broadband. Within the past week AT&T and Verizon reported slowing broadband growth, and today Comcast saw its high-speed Internet access customers grow by 278,000 new subscribers, but added 18 percent fewer customers than it did during the second quarter of last year.

It appears that messing with P2P traffic, the likely enforcement order from the FCC and worries over tiered broadband have done little to dissuade people from moving to cable Internet, perhaps because it’s simply faster than DSL in most areas. During their second quarters, AT&T added only 46,000 DSL broadband subscribers and Verizon added 54,000.

We’ll know more when Time Warner Cable and Charter Communications report earnings next week, but as broadband growth slows, it’s time to tweak the service. Comcast CEO Brian Roberts said on the conference call this morning that the company plans to upgrade its network in 20 percent of its market to DOCSIS 3.0 later this year (Comcast said this last year, too). AT&T is pushing U-verse and Verizon is relying on FiOS. Can the former Baby Bells can lay fiber fast enough to keep their customers for the long-term, or might they nickel and dime them with tiered service to goose revenue in the short term?

Verizon to Launch FiOS TV in NYC on Monday

By Om Malik | Friday, July 25, 2008 | 10:51 AM PT | 8 comments |

Verizon will start selling FiOS TV in New York City on Monday. The announcement will be made at a glitzy ceremony at the Grand Central Station, and will be webcast as well. NYC had granted Verizon a television franchise in May, and the franchise was confirmed by the New York Public Service Commission on July 16. The company today announced that it was getting into offering web video on its set-top boxes.

On the FiOS NYC announcement, this move should turn the heat on Time Warner Cable which is finally going to see some aggressive competition in its home market. It would need to not only increase broadband speeds, it would need to give consumer a reason to stay with them for cable TV.

AT&T: Wireless Grows, Broadband Blows

By Stacey Higginbotham | Wednesday, July 23, 2008 | 10:23 AM PT | 4 comments |

In its second-quarter earnings call this morning, AT&T highlighted the awesome growth of its wireless business, which surged 14.8 percent to $11 billion and accounted for roughly a third of its $30.9 billion in revenue for the period. The company also said that the 3G iPhone was selling twice as fast as the first one, which given the price cut, isn’t too surprising.

Equally unsurprising was the 10 percent rise in the number of smartphone subscribers over the second quarter of 2007 (AT&T is the sole carrier of the iPhone in the U.S.). And those users are surfing the web, pushing AT&T’s data revenue up 52 percent from the same period a year ago, to $2.5 billion. After adding 1.3 million wireless subscribers during the quarter, AT&T is still the largest cell phone carrier with 72.9 million subscribers. However, Verizon said yesterday it had added 1.5 million subscribers, so the iPhone exclusivity can only do so much.

The tethered world was a little less rosy, however. AT&T did add 170,000 new U-verse subscribers, bringing that total to 549,000; it also reiterated its goal of having a million subscribers by year-end. But triple-play services were down and broadband growth is slowing. Subscribers to voice, data and TV fell to 48.4 million from 49.5 million at the end of the second quarter of 2007. And AT&T’s total broadband connections now number 14.7 million, up 1.4 million over the same quarter last year but a mere 46,000 higher than the first quarter of the year.

ISPs Have Great Ideas for Broadband Rules

By Stacey Higginbotham | Friday, July 18, 2008 | 11:52 AM PT | 4 comments |

Even if I wanted to, I couldn’t write a more necessary (and sarcastic) article about U.S. ISPs’ efforts to craft a nationwide broadband policy than the one over at DSL Reports. AT&T, Verizon, Comcast and others have signed onto a plan being pushed by nonprofit group Connected Nation to measure broadband penetration that’s aimed at increasing broadband usage. However, as DSL Reports makes clear, the package is hardly something to cheer about.

As alleged by another not-for-profit organization, Public Knowledge, Connected Nation’s mapping abilities are questionable and much of the group’s efforts go toward selling consumers the services of the larger incumbent carriers. Connected Nation’s ties to AT&T (through BellSouth) set off alarms a few years ago, much the way the embrace of its policies by the ISPs do today. These are the same ISPs currently trying out some very unfriendly consumer tactics, such as tiered broadband and traffic blocking, which makes Connected Nation look like the fox guarding the hen house.

Essentially the ISPs want Connected Nation to take public money and create a map of the U.S. that shows which communities have broadband, and which ones don’t. They want this even though they could just as easily ask the ISPs for that data (after all, some of them have given up a lot more when asked) themselves.

The FCC has let the inmates run the asylum and dictate broadband policy for a long time. Perhaps as broadband becomes more necessary to our entertainment and work, consumers will recognize that these issues are not abstract ones, but rules that affect our ability to get streaming HD content, high-quality medical care in rural areas and other such services that have broader repercussions on our daily lives.

State of U.S. Broadband: Demand Hits Speed Bumps

By Om Malik | Wednesday, July 2, 2008 | 7:24 PM PT | 10 comments |

With the economic slowdown and faltering housing sales, the US broadband growth has hit a speed bump. And that’s not good news for broadband providers, who hope to overcome the odds by offering speed boosts. Even that might not be enough. Continue Reading. Continue »

Verizon Helps Turn Consumers Into Geeks

By Stacey Higginbotham | Tuesday, July 1, 2008 | 8:06 AM PT | 2 comments |

As the average consumer embraces ever more complex technology, Verizon is offering a series of classes beginning in New York City to show consumers what their PDAs and smartphones can do for them. I’m sure many of our readers aren’t in need of such a class — which will teach users all about texting, syncing music and emails — but it’s a great idea.

I hated my BlackBerry Pearl when I first got it; it took what felt like forever to figure out how it was supposed to work. If done well, teaching people like me to use their phones should increase data revenue and overall ARPU for Verizon. If done well, it will also make committed smartphone users out of most participants. And luring people into the store and to teach them the “Verizon way,” means consumers are likely to pick up a few high-margin accessories to bolster their education.

People in the technology field know that poor usability and device complexity hurts customer satisfaction, but keep cramming more features into them. As consumers, rather than enterprises, buy more devices and drive technology adoption, usability needs to improve, or else vendors such as Best Buy with their Geek Squad or Verizon with its classes will take up the slack. At that point, consumers are more likely to heed the advice of their favorite Geek rather than the glossy ads of an OEM when looking for their next purchase.

Verizon’s Crazy Broadband Strigl Theory

By Om Malik | Friday, June 20, 2008 | 5:30 AM PT | 24 comments |

Corporate spin alert: Verizon’s president and COO, Dennis Strigl, in a speech this week suggested that three-quarters of American households have two broadband providers to choose from. He went on to compare the broadband penetration of Massachusetts and New Jersey with that of Korea and Japan. I think his analogy needs a closer look. Continue »

Social Networking Gets a Sanity Check

By Om Malik | Friday, June 13, 2008 | 8:30 AM PT | 38 comments |

The social networking space is finally getting a long overdue does of reality. A weakening economy and the resulting strain on advertising revenue means the social networking space is finally getting a long overdue does of reality, combined with a slowdown in growth, means things are going to get a lot tougher going forward. Continue »

Editorial Masthead

Sebastian Rupley
Editor in Chief
Carolyn Pritchard
Managing Editor
Celeste LeCompte
Special Projects Editor
Desiree DeNunzio
Copyeditor
Om Malik
Senior Writer
Stacey Higginbotham
Staff Writer
Ryan Lawler
Staff Writer
Wagner James Au
Contributing Editor
Liz Gannes
Staff Writer
Chris Albrecht
Staff Writer
Katie Fehrenbacher
Staff Writer
Josie Garthwaite
Staff Writer
Close
E-mail It