1. Industry

Discuss in my forum

David Salway

David's Broadband Blog

By , About.com Guide

Follow me on:

Federal Agencies Assisting Broadband Project Sponsors

Friday May 31, 2013

Both the National Telecommunications and Information Administration (NTIA) and the United States Department of Agriculture (USDA) released information which will help broadband project sponsors in both rural and urban areas expand access and increase adoption.

The USDA announced rules changes for its Community Connect Broadband Grant Program, and the NTIA released a Broadband Adoption Toolkit.

USDA Revises Rules for Community Connect Broadband Grant Program

NTIA Releases BTOP Best Practices Toolkit; Broadband Adoption Best Practices Draws on BTOP Awardees Experiences

The NTIA's Broadband Adoption Toolkit contains the following guidelines announced by the federal agency:

  • Make digital literacy programs relevant by teaching skills that can change people's daily lives, such as how to apply and search for a job online.
  • Partner with established community organizations that people know and trust to help engage hard-to-reach populations.
  • Provide convenient times and locations for broadband training and computer use to ensure easy access.
  • Address the cost of broadband adoption by providing access to discounted computer equipment and/or affordable broadband service.

 

 

 

NTIA Releases Broadband Adoption Toolkit

Friday May 31, 2013

A 2010 broadband adoption rate study conducted by the NTIA concluded that more work was needed to close the gap.  FCC Chairman Julius Genachowski often said that broadband adoption is what "powers the American dream," and empowers people to find jobs, pursue an education, and receive healthcare. Federal stimulus funding from the Broadband Technology Opportunities Program (BTOP) provided some funding for broadband adoption efforts, but many broadband adoption experts insist that the cable and broadband industries need to actively participate to bring up adoption rates.

What is Broadband Adoption?

In April 2013, the NTIA released a broadband toolkit containing the best practices of BTOP grant awardees, drawing upon the experiences of the agency and its funding beneficiaries. According to Larry Strickland:

"We developed the toolkit in order to share the expert knowledge and experience of the broadband adoption and computer training projects with a broader base of anchor institutions, government agencies, non-profits and others engaged in this effort."

NTIA Releases BTOP Best Practices Toolkit; Broadband Adoption Best Practices Draws on BTOP Awardees' Experiences

Reports and surveys across the country continually emphasize perception of need, affordability, and digital literacy and major barriers to entry.  Consumers who find little use for broadband and accessing the Internet are being left further behind as applications replace manual processes.  With functions such as school report cards no longer being sent home and primary communications being conducted by e-mail - citizens without a digital connection will be a disadvantage.

Some issues can only be resolved in conjunction with others.  For example, digital literacy can be addressed in schools, but cannot be put to good use if families cannot afford computer equipment, and the cost of Internet service plans. Broadband adoption is a much more complicated issue than broadband availability.  Future efforts need to be coordinated between government and the broadband industry to overcome major obstacles.

Hulu Doubles Number of Subscribers in a Year; Netflix Adds 3M in Q1 2013

Friday May 31, 2013

In  a testament to the growing popularity of viewing movies and television programming through Internet connected devices, two of the largest companies in the streaming video industry - Hulu and Netlfix announced new subscriber totals.

Rapidly Evolving Streaming Video Market Affects Netflix Earnings; Company Announces Q1 2013 Earnings

Hulu, the online video Web site that has both free and paid services, said Tuesday that it had doubled its number of paying subscribers in the last year, to four million. Meanwhile, Netflix published its Q1 2013 Quarterly Earnings Report, which stated that the company added over 3 million streaming members, bringing its total subscriber count to more than 36 million.

LRG Study: US Cable and Telephone Companies Garner 93% of the Broadband Market; Add 1.1 Million New Broadband Subscribers in Q1 2013

Verizon's Future Broadband Business Strategy Centers on Four Platforms

Friday May 31, 2013

Verizon Executive VP and Chief Technology Officer Anthony Melone outlined the company's broadband business strategy at an Orlando conference in April, 2013.  Melone said that all of Verizon's future services will be centered around four key platforms. It wasn't too surprising to conference attendees that one of those platforms was the company's vast 4G/LTE network, which now reaches 90% of the U.S. population.

Verizon's Future Broadband Business Centered on Four Platforms: Company's 4G/LTE Network Now Reaches 90% of US Population

Verizon's second key platform is fiber-to-the-premises, which aligns with a recently announced agreement between Verizon Communications Inc. and the Bloomberg administration in New York City to install fiber-optic cables under sidewalks to enable the company to offer faster broadband connections.

NYC to try Micro-Trenching to Accelerate Broadband Deployment

LRG: Cable and Telephone Companies Claim Large Share of Broadband Market; Largest Cable and Telephone Companies Add 1.1 Million New Subscribers

The fiber-optic installation technique Verizon is using is called "micro-trenching" or "saw-cutting," and involves cutting grooves in the ground which serve as a conduit for the placement of cables.  The company's agreement with the City includes room for Verizon's cables, as well as at least four additional carriers.

Verizon: Fiber Upgrades for Hurricane Damaged Areas

Verizon recently made news when it announced plans to replace network infrastructure damaged by Hurricane Sandy with faster fiber-based technology:

Fiber Upgrades for Victims of Hurricane Sandy: Verizon Storm Response Includes Upgrade from Copper to Fiber

Broadband Impacts Television Viewing Trends - and Neflix Revenues

Friday May 31, 2013

Broadband has been transforming the way consumers watch regular television programs, as well as all forms of video content.  With the ability to watch shows when and where you want, and on any number of portable electronic devices, new business opportunities are created and traditional revenue models evaporate.  A recent consumer survey and research report by Leichtman Research Group (LRG ) highlighted some of these trends:

LRG Study Finds More Than 50% of Adults Watch Video on Non-TV Devices

LRG also published a report analyzing the number of broadband subscriptions claimed by the largest telephone and cable companies in the United States.

Another study published by LRG in 2012 measured the adoption of Internet connected TV's  in North American homes: Report: Internet Connected TV's on the Rise

Although there is some good news for Netflix, the report examines some trends about device manufacturers, and the emergence of new competitors in the Internet TV market.  Neflix could use some good news, after a series of public relations missteps over the last two years which alienated many customers.

Netflix Controversy a Sign of the Future; Is Netflix Getting Too Greedy?

Rapidly Changing Streaming Video Market Affects Netflix Earnings

LRG Study Highlights Changing Viewing Habits; Netflix Releases Quarterly Earnings Report

As viewing trends continue to evolve and new players enter the streaming video market, Netflix will have to stay ahead of the curve to preserve subscribers and future revenues.

 

Washington Post: Obama to Nominate Tom Wheeler as FCC Chair

Tuesday April 30, 2013

The Washington Post is reporting that Tom Wheeler, a telecom industry executive, will be nominated by President Obama to lead the Federal Communications Commission.  Wheeler's nomination follows the departure of Julius Genachowski several weeks ago.  Wheeler has served as an adviser to both the White House and the FCC.  He also has strong industry ties, having served as the leader of both CTIA and NCTA, trade associations for the wireless and cable industries.

AT&T to Deploy Gigabit Network in Austin - If Offered Google Terms

Tuesday April 30, 2013

Not soon after Google announced that Austin, Texas would be the Internet giant's next metropolitan region to become a Google gigabit city, AT&T said it would also deploy an ultra-high speed broadband network.  However, AT&T's offer came with a simple condition - that it would receive the same concessions and terms from local officials.

The AT&T announcement was significant not for being a double gigabit city, but because the company was trying to emphasize how regulations encountered by traditional phone companies are a significant barrier to broadband deployment.

At&T also recently announced an ambitious plan to provide broadband connectivity to over 300 million people by the end of 2014. By investing $14 billion in both wireline and wireless technology, By investing significant capital into the company's broadband network, AT&T hopes to reach over 96% of all U.S. residents.

The ambitious AT&T strategy called Project VIP, includes both a wireless and wireline broadband strategy to expand broadband access in rural America.

Details of the project include plans to explore the implementation of DSLAMs to increase speeds of current DSL copper-based networks, as well as the expansion of the company's 4G/LTE wireless networks.  The strategy comes at a time the company is calling on the FCC to loosen restrictions on legacy networks.

Google Winning Speed Race in Limited Markets

Tuesday April 30, 2013

In the fiercely competitive race to offer the highest broadband speeds available in the consumer market, Verizon is continuing to set the standard with advertised speeds in major markets.  Verizon recently doubled two of its existing speed combinations, and offered a new speed combination of 75/35 Mbps (Download/Upload)  - and a new speed tier offering 300/85 Mbps broadband service.

Verizon's Fiber Broadband Strategy: Company invests heavily in fiber in NYC and rural America

The announcement of the newly introduced FiOS speeds followed previous releases promoting the company's home-monitoring service and streaming video content delivery.

While Verizon is increasing its advertised speed tiers in many markets, Google continues to dominate the news when it comes to selective deployments in major metropolitan areas.  First is was the Kansas City metropolitan area, followed by Austin, Texas, and then Provo, Utah.

Verizon also recently introduced HomeFusion, as a wireless alternative for home broadband use - although the service is priced higher than most home broadband service.

Partnership Between NYC and Verizon to Increase Broadband Access

Tuesday April 30, 2013

Along with a number of broadband initiatives announced in 2012, the Bloomberg administration announced an agreement between Verizon Communications Inc. and New York City to install fiber-optic cables under sidewalks to enable the company to offer faster broadband connections throughout the City.

NYC's Broadband Strategy: Bloomberg Administration Seeks to Accelerate Broadband Access

FCC Chairman Julius Genachowski Announces Director of Digital Learning Director

The fiber-optic installation technique Verizon is using is called "micro-trenching" or "saw-cutting," and involves cutting grooves in the ground which serve as a conduit for the placement of cables.  The company's agreement with the City includes room for Verizon's cables, as well as at least four additional carriers.

NYC to try Micro-Trenching to Accelerate Broadband Deployment

As Fiber continues to dominate the business strategy of many large broadband providers, does this trend signal the demise of copper networks?

Is Copper DSL for Broadband Dead? American Broadband Providers Reevaluate Use of Copper DSL

 

Google Gigabit Fiber Expands to Austin and Provo

Tuesday April 30, 2013

The Google fiber project in the Kansas City metropolitan area started with a community competition to offer very high speed Internet service to the community with the most compelling presentation and value proposition. After making considerable progress in deploying a gigabit broadband connection to many homes and businesses in the Kansas City region, the company announced plans to build another network in Austin, Texas.

Only two weeks after the Austin announcement, Google announced plans to build another gigabit network in a third American city - Provo, Utah.

Google announced plans to divest itself from ownership in financially troubled Clearwire

The Google announcement to bring its ultra high-speed Internet and television service to Austin next year, prompted another telecommunications giant to reveal plans to do the same.  AT&T promised to build a broadband network capable of similar speeds, if it received the same concessions and terms from local governments.

In addition to Google's announcement, Verizon continues to broaden its 4G market share by adding cities to the list of coverage areas:  Competition for 4G Service and Devices Heat Up, and recently begin promoting its HomeFusion 4G/LTE service as an alternative to fixed broadband service.

 

©2013 About.com. All rights reserved.