Thursday, May 18, 2006

Telecom industry analyst sees wireless supplementing AT&T wire line infrastructure

This report by telecom industry analyst Northern Sky Research sees AT&T adopting a strategy to use both wire line and wireless technology to provide broadband services. Note the report predicts AT&T will deploy satellite-based broadband only in the hinterlands, which in this blogger's view does not include markets such El Dorado County situated within a major metro region.

As NSR sees it, AT&T is taking a multi-tiered and mixed technology approach to offering a high value bundle of services, a strategy which may well be followed in one form or another by all large telcos in the coming years. Fiber will be used to serve residences and businesses in the high and medium population density areas, which will generally account for the large majority of clients. Where fiber does not reach based on economics, terrestrial wireless technologies will bring services to lower population density areas, and satellite will serve those clients on the very farthest edges of the existing copper network.


CAOgdin said...

Time for a wager, Fred:

I'll wager $100 that AT&T will not provide generally-available wired broadband to Fair Play/Somerset, and to Georgetown/Garden Valley areas of our county, at comparable rates to service in Sacramento, by 2012. They're going to offer you a take-it-or-leave-it satellite service through WildBlue.

You wanna bet?

Fred Pilot said...

You could be right, but I'm not a betting man on AT&T's strategy. I'm only interested in what Ma Bell actually does, not what she might do.

Pat said...

Back before when Pacific Bell was bought up by SBC (and later AT&T), the old Texans thought they could provide broadband to everyone. They seemed to have forgotten two things: first, there are hills and mountains in California, and second, that not everyone lives in town and only 300 feet from a switch system. (The signal deteriorates on copper wire.) But marketing people didn't know that. They just wanted their commission for the most sales--so they pushed. They got the people asking for it and now they can't provide it.

Now AT&T is scrambling to find a way to pass broadband over the existing wire.

One other note... I guess AT&T had some contract with WildBlue... They are offering their employees who don't get DSL broadband through discount...just offering.

Fred Pilot said...

"Now AT&T is scrambling to find a way to pass broadband over the existing wire."

The problem here is the existing cable plant has deteriorated and needs to be replaced. That's why the petition (see links) calls for AT&T to replace it with fiber. That will provide AT&T a reliable future infrastructure for wire line voice service as well as for broadband and information services.

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