687,000 FiOS Customers

http://www.dslreports.com/shownews/81280

"Verizon's fourth quarter earnings are in, and we'll skip right to the part we're interested in: Verizon says that FiOS TV was available to 2.4 million households at the end of last year. According to Verizon, 89,000 customers signed up for FiOS TV in the fourth quarter, bringing their total TV customers to 207,000. There's 687,000 FiOS customers in total, with 165,000 added in the fourth quarter. "Verizon Telecom added 142,000 more net broadband and video customers during the fourth quarter 2006 than it lost in primary wireline voice access lines," states the company."

Cable Confronts Bandwidth Crunch

Alan Breznick (1.24.09)
http://www.lightreading.com/document.asp?doc_id=115344&site=cdn&WT.svl=news1_1

Cable companies are finally recognizing impending bandwidth limitations, and gathering resources to address the problem.

Cable operators are now drawing up plans to boost capacity at both the headend and plant levels. Instead of debating whether the coming bandwidth crisis is genuine, they're looking at ways to confront the crisis by splitting fiber nodes in half, converting systems over to more efficient switched digital video delivery, testing pre-Docsis 3.0 channel-bonding technologies, and expanding their systems' RF capacity to 860 MHz or 1 GHz.

Cable technology strategists are also looking at boosting their QAM power, instituting out-of-band spectrum overlays, and upgrading to MPEG-4 video compression standards. They're even weighing such previously unthinkable moves as building fiber-to-the-home (FTTH) networks and adopting PON architecture, just like some of the big phone companies.

At a conference sponsored by PK Worldmedia Inc. in Houston Tuesday, found that increasing bandwidth consumption is threatening to overwhelm even their fastest broadband piplines. Conference speakers also noted that such prime cable rivals as DirecTV Group Iinc. and Verizon seem determined to outflank MSOs by offering several dozens or, in DirecTV's case, even hundreds of HD channels to their customers.

Dom Stasi, CTO of TVN Entertainment Corp., pointed out that his company now supplies 3,500 hours a month of VOD content to cable operators, up from a mere 150 hours per month in 2001.

Provo Broadband Stumbles

Steven Titch (2.1.07)
http://www.heartland.org/Article.cfm?artId=20537

After only two years, the municipal broadband system in Provo, Utah has begun to show the pattern of losses and declining net asset value experienced by other cities that have mounted expensive fiber optic networking projects, according to a report published by the Reason Foundation in December.

iProvo, the $39.5 million system launched in July 2004, has had to request $1 million in additional funds from the Provo electric utility to meet its costs.

The report made four principal findings, all of which tend to be endemic to municipal systems:

• iProvo is behind on its business plan and being forced to borrow more money.

• iProvo’s wholesale plan attracted only one retail partner, HomeNet Communications, in its first year of operation. That relationship proved a disaster that ended with HomeNet pulling out of the market in July 2005 and declaring bankruptcy.
  

• Cable and Internet prices charged by iProvo partners are not significantly lower than pricing from Comcast or Qwest.

• There is little evidence to suggest iProvo has generated any significant growth in broadband usage or penetration in Provo.

While iProvo pointed to revenues of $2.1 million in fiscal year 2006, numbers that were available after principal research had been completed on the Reason report, it did concede losses “were larger than expected.” The municipal utility lists several reasons for the shortfall, stating that processes took longer to set up than anticipated, construction began later, transport fees were lower than expected, the retail partner failed, and the customer mix did not meet forecasts.

Municipalities, however, tend to run into these factors, in part because they function as an arm of local government, not under the market demands of a commercial company. Seven issues that are likely to be significant in municipal provision of Internet service are price competition, performance competition, the pressure for continuous improvement, technological change, obsolescence, risk, and uncertainty.

Council OKs tough approach with Cox

Rob O'Dell (1.18.07)
http://www.azstarnet.com/metro/165119

Formal franchising process will begin with Cox if compromises are not met.

The City Council voted 5-2 Wednesday to put Cox Communications through the costly and time-consuming federally mandated license-renewal process for the company to maintain its Tucson cable franchise.

The formal process could be suspended if Cox and the city can agree on several remaining sticking points:

● Five public access, education and government channels (PEG), down from the current nine, but more than the four Cox is offering.

● A nine-year franchise agreement, down from Cox's offer of 12 years.

● Requiring outside agreements made with the University of Arizona and Pima Community College to run for nine years — the same length as the franchise agreement. This would in effect give the city seven PEG channels.

● If the agreements for the higher-education channels expire before nine years, Cox would be required to give the city back one PEG channel.

Councilwoman Karin Uhlich is hopeful for a speedy resolution, but believes the vote shows the council's willingness to go through with formal processes, while Councilmen Steve Leal and Jose Ibarra voted no. Leal said the city should negotiate harder and should look at denying Cox's license and buying its cable system.

Cities fighting Qwest's bid for statewide video

Kimberly S. Johnson (1.17.07)
http://www.denverpost.com/headlines/ci_5033844

Local municipalities are fighting back against proposed legislation that would give Qwest a statewide cable-franchise agreement to offer video services.

The bill, being sponsored by state Rep. David Balmer, is expected to be introduced next week. Balmer, a Centennial Republican, has said the goal of the legislation is to increase competition. Arvada Mayor Ken Fellman said legislators should oppose the upcoming bill because it takes too much authority away from local cities and towns.

"The legislation is designed around streamlining the process around obtaining a franchise," said Chuck Ward, Qwest's state president. "This is a bill about bringing competition to the cable market in a faster manner than what we've been able to achieve so far."

Many Colorado officials feel that this bill is no way to create competition and that local franchise processes do not hinder competition.

Regardless, the authority of individual municipalities to control permits and other matters related to any new video network should be respected, Arvada Mayor Ken Fellman said.

Comcast also opposes the bill.

Council to vote on Cox's cable offer

Eric Sagara (1.17.07)
http://www.tucsoncitizen.com/daily/local/38889.php

City officials and Cox communications argue over public access channels in Tuscon.

Cox's informal offer would reduce the number of public, education and government channels available to the city, make viewing those channels more expensive for some customers, and remove a requirement for the cable company to provide free service in Tucson schools.

City officials are willing to compromise on the number of PEG channels available to Tucson, but the dispute lies in how many should be removed from the airwaves, and say Cox's offer does not meet the needs of the community and hope that a formal process can bring about a better deal for Tucson. However, they must reach an agreement with Cox before July 1, when a new state law engineered in part by Cox takes effect.

The law will limit the number of PEG channels available to cities to four and place a cap on the fees cities can charge cable companies to use their rights of way to install cable.

The City Council is expected to make its decision during today's study session after a closed-door meeting to review a study conducted by the city.

Qwest cable help push bill to bypass municipal franchise requirements

By Andy Vuong

http://www.denverpost.com/portlet/article/html/fragments
/print_article.jsp?articleId=4996960&siteId=36

State Rep. David Balmer said Thursday he will introduce legislation that would allow Qwest to seek a statewide cable-franchise agreement.

Qwest currently has to seek franchise agreements with individual municipalities before it can offer video service to compete against cable companies such as Comcast. So far, the Denver-based company has reached agreements with only a few communities in Colorado.

Balmer, a Republican from Centennial, said the legislation is aimed at increasing competition. Balmer said he will introduce the bill "shortly" but has until the end of the month to do so.

The key issue between Qwest and individual municipalities has been network build-out requirements. City leaders want Qwest to offer its video service to every home, a requirement also placed on Comcast, the incumbent cable-TV provider in the metro area. Qwest wants the freedom to pick which neighborhoods it will offer its video service to.

The build-out requirement "is a barrier to competition," said Chuck Ward, Qwest's state president. He said Qwest shouldn't have to build out to every home, because it is the second entrant into the market.

"There is every opportunity for new entrants to enter the market today under the existing rules without any special franchising deals or special legislative loopholes," Comcast spokeswoman Cindy Parsons said.

Darryn Zuehlke, director of Denver's telecommunications office, said the Denver City Council insists that Qwest offer its service to every resident but is flexible on the time frame in which that requirement is met.

Some states, including California, have already passed statewide franchising legislation. Other states in Qwest's 14-state service territory will also likely see similar legislation this year, including Iowa, Minnesota, Utah and Idaho, Ward said. In addition, Qwest's Oregon president Judy Peppler has said a franchising bill will be introduced there this year.

Cox renewal bid comes up short, council say

By Rob O'Dell (1.10.07)
http://www.azstarnet.com/metro/163983

The City Council unanimously declared a proposal from Cox Communications for its cable franchise renewal insufficient in six key areas on Tuesday.

It set a deadline of Jan. 17 — the same deadline Cox has set — to come to an agreement in informal negotiations. If the deadline is missed, the council vowed to take Cox through the costly and time-consuming federally mandated license-renewal process.

The result of that process could be denial of Cox's franchise renewal and the city seeking another cable provider — although people on all sides say that's unlikely and would lead to litigation.

The council listed concerns about public access channels, the proposed length of the agreement, new public channels for education, the "digital divide" that would charge non-digital users higher bills to get access channels, unpaid license fees and issues with providing cable for schools.

Broadband video-to-TV trend seen roiling business models

By Kenneth Li (1.9.07)
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=

Technology unveiled at CES last week allows people to more easily access Internet and PC content via their TVs potentially driving demand for bandwidth to supply high definition streaming content as well as creating new potential business partnerships.

At the Consumer Electronics Show in Las Vegas this week, electronics manufacturers from Sony Corp. to start-ups such as Sling Media unveiled a raft of new products to allow consumers to play Internet videos, or media files stored on PCs, directly on their TV screens.

"There are a lot of companies looking to bypass cable," said Bob Greene, executive vice president of Liberty Media Holding Corp.'s Starz Entertainment network.

Consumers are currently unwilling to pay more for a device that lets them view PC content on TV screens, according to a poll of 5,000 U.S. homes by Forrester Research. Moreover, the bandwidth constraints of current broadband services essentially rule out any downloading or streaming of high-definition programs.

Some big cable operators have conceded they need to craft a response to the growing trend in watching PC-based Internet videos on big screens, one media executive said. On a panel discussion, Chase Carey, chief executive of No.1 U.S. satellite TV provider DirecTV Group Inc., said he saw more opportunities than challenges. DirecTV is also in discussions with top online video sites YouTube and News Corp.'s MySpace to allow viewers to watch clips directly on TV screens.

Localizng the Internet: 5 Ways Public Ownership Solves the U.S. Internet Problem

By Becco Vargo Daggit, Institute for Self Reliance
http://www.newrules.org/info/5ways.pdf

This 32 page document, Localizing the Internet, outlines the benefits of publicly owned fiber lines. It summarizes quickly both pre and post-Telecommunications Act of 1996 regulations, the basics of broadband techology, the risks involved, and case studies of successful implementation of public owned fiber.

Their 5 arguments for public ownership are:

1. High-speed information networks are essential public infrastructure.
2. Public ownership ensures competition.
3. Publicly owned networks can generate significant revenue.
4. Public ownership can ensure universal access.
5. Public ownership can ensure non-discriminatory networks.

U.S. Broadband Penetration to Hit 60% in 2007, Led by DSL Growth

SILVER SPRING, MD -- (MARKET WIRE) (1.8.07)
http://www.marketwire.com/mw/release_html_b1?release_id=200951


About 60 percent of all U.S. homes will subscribe to broadband service by the end of the year, but cable operators will come precariously close to losing their majority market share, Pike & Fischer concludes in a new report published by its Broadband Advisory Services unit.

Cable operators will see their share of the high-speed Internet market fall to slightly more than 50 percent as adoption of standard DSL and, to an increasing extent, fiber to the home or node (FTTx), continues to help the major telephone companies net the largest number of new broadband customers, Pike & Fischer forecasts in its "Broadband Business Outlook 2007."

However, a growing array of on-demand and high-definition programming, together with aggressive promotional offers, will lead digital cable subscriptions to make up the majority of the industry's core video customer base.

Comcast To Launch Upstream Powerboost

broadbandreports.com (1.9.9)
http://www.dslreports.com/shownews/80834


"A company insider informs us that Comcast is expected to announce plans for deployment of PowerBoost upstream speed enhancement sometime in the first half of 2007 for all 6Mbps/384kbps and 8Mbps/768kbps residential subscribers. Users will see upstream bursts up to 1Mbps and 2Mbps, respectively, for the 384kbps and 768kbps upstream speeds. While scheduled launch is expected to begin in February, as with downstream Powerboost deployment, specific dates will vary by market. "

Qwest to view video options

By Andy Vuong (1.7.07)
http://www.denverpost.com/business/ci_4968128

Qwest is looking into upgrading copper lines to fiber to be able to provide its own IPTV service.

Qwest is quietly taking steps toward a major upgrade of its network that would ultimately allow the company to offer its own video service on a broader scale.

Kermit Ross said the deadline for responding to Qwest's RFP was late last month. He said Qwest will probably spend two to three months reviewing proposals before selecting a vendor.

Qwest's capital expenditures have hovered around $1.6 billion annually in recent years and are expected to remain at that level for the foreseeable future, Jon Lentz said. Much of the company's spending has gone toward improving the reach and speed of its high-speed Internet Digital Subscriber Line offering.

J:COM to bond with 160 Mbps Internet service

By Jeff Baumgartner (1.5.07)
http://www.cedmagazine.com/article/CA6404675.html

J:COM, the largest cable MSO in Japan, will use pre-DOCSIS 3.0 channel bonding techniques to deliver a super-fast Internet service that caps downstream speeds at 160 Mbps, and upstream speeds at 10 Mbps.

The service, which carries the provisional brand of "J:COM.NET 160 Mbps," will be offered to individual homes and customers beginning in April 2007.

AT& T-BellSouth deal called 'breakthrough' for consumers

Leslie Cauley (1.2.07)
http://www.usatoday.com/printedition/money/20070102/fcc02.art.htm

FCC's ability to get net neutrality sets precedent

The FCC's approval of the merger between AT&T and BellSouth on Friday allowed the deal to close immediately. To secure the FCC's blessing, AT&T agreed to a list of consumer-friendly concessions. Among them: For the next 30 months, AT&T agreed to sell "naked" DSL — meaning consumers don't have to buy any other service from AT&T to get the DSL service — for just $19.95 a month. That's less than half the $44.95 that AT&T now charges.

AT&T also agreed to a "net neutrality" provision that will require the company to treat all broadband services, its own as well as rivals', equally for the next two years. That means AT&T can't favor its own traffic, in terms of transmission speed and quality.

In addition, AT&T agreed to sell some unused wireless spectrum. That could enable a new rival to enter the market, creating more options for consumers.

Adelstein called the settlement a "breakthrough" for consumers in that it establishes a new standard of behavior for the USA's communications giants. Big companies such as AT&T and Comcast "have told the FCC that they can't live with a net neutrality provision in place," Adelstein said. "They can."

Internet telecom blossomed, but payoff was elusive in '06

Bruce Meyerson (12.28.06)
http://www.azcentral.com/arizonarepublic/business/articles/1228biz-telecom1228.html

While 2006 showed less than stellar returns for IP telephone services like Skype. With Skype and similar innovators cable companies are prepared to strike back at in 2007.

No doubt the main event for 2007 will be the impending smackdown between the traditional phone and cable TV industries. The regional Bell companies, after losing millions of customers to rival phone services from cable providers in 2006, are just starting to ramp up their risky push into TV.

Verizon Communications Inc. expects its FiOS TV service will be available to 1.8 million homes by January. AT&T Inc. finally appears to be pushing past technological holdups with U-verse, maintaining the IP-based service will be offered in parts of 15 markets by the close of December.

The competitive response couldn't come a minute too soon, as cable companies have had a field day in the phone business thus far. Just over 6 million homes will have switched to cable phone service by the end of 2006, a gain of 2.5 million for the year, the industry research company TeleGeography estimates.

TeleGeography estimates that Skype users are on track to make over 27 billion minutes of computer-to-computer calls this year, with about half of them used for international long distance (all free).

While that sounds like a lot, it still represents just 4.4 percent of total international traffic in 2006, up from 2.9 percent in 2005.

FCC ruling helps AT&T; upsets towns

By Anna Marie Kukec (12.28.06)
http://www.dailyherald.com/search/searchstory.asp?id=264177

The National League of Cities and the Illinois Municipal League are upset with recent FCC rulings and are likely to sue the federal agency for overstepping its boundaries.

The National League of Cities and the Illinois Municipal League said the FCC’s decision blocks local governments from exercising their franchising process, earning revenues, offering services to all residents and protecting public rights of way.

“We believe the FCC has overstepped its authority,” said Ken Alderson, executive director of the Illinois Municipal League.

The FCC last week ruled municipalities cannot unreasonably refuse companies from competing with cable operators. This includes unreasonable requests for “in-kind” payments that attempt to subvert the 5 percent cap on franchise fees, drawn-out local negotiations with no time limits and other situations.

The towns contend AT&T is required, just like Comcast, to follow the same franchising process, pay the same fees for public rights of way, allow for services to all residents regardless of ability to pay and provide local access channels.

AT&T has argued it’s not a cable company and shouldn’t be treated like one.

Peter Collins, information technology manager for Geneva, and Gary White, media manager for Wheaton, said their towns still need to review the FCC order, expected in about a month, before determining what it means to their franchising process and to the AT&T lawsuits.