Monday, April 28, 2008

For some mired in AT&T broadband black holes, U-Verse could bring long awaited high speed Internet

For some residential and small business customers currently outside the reach of AT&T's underpowered DSL service, there could be an unexpected benefit with the rollout of AT&T's triple play U-Verse advanced service offering. If they are served by central office switches where U-Verse is being deployed, the odds are likely higher they will finally get wireline-based broadband.

Last October, Ralph de la Vega, AT&T's group president, regional telecommunications and entertainment, told Investor's Business Daily the telco plans to phase out its its existing voice network and replace it with a VOIP (Voice Over Internet Protocol) system where U-Verse is being deployed. In other words, swapping out existing legacy voice-based telephone central office (CO) switching equipment with what are essentially souped up Internet servers capable of delivering multiple Internet Protocol-based advanced services including Voice Over Internet Protocol (VOIP), video, and of course high speed Internet access. That's U-Verse.

Since AT&T like other telcos is rapidly losing residential wireline subscribers who are migrating to wireless voice, it could opt to speed up U-Verse deployments since it would allow the company to sell more than just Plain Old Telephone Service (POTs). That would provide revenues to replace lost residential customers as well as gain additional revenues justifying a ramped up rollout. U-Verse not only gives AT&T the opportunity to replace lost residential voice lines, but also to finance upgrades to its copper cable plant so it can reliably provide U-Verse services, which are delivered by VDSL-based remote VRAD terminals fed with fiber optic connections.

An added incentive for AT&T in some of these areas would be the absence of existing competition from cable companies, which would invariably increase the take rate for U-Verse since these broadband-deprived prospective customers are likely to jump at the chance to get off dialup and satellite.

1 comment:

Ali said...
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