Today's Top Stories
1. AT&T sweetens U-verse bundle with free gifts
2. Verizon FiOS to adopt faux a la carte pricing model
3. Ericsson touts successful 1 Tbps transmission with Telstra
4. BT moves onto thePlatform to drive its IPTV services
5. Foxtel moves ahead in IPTV space Editor's Corner: Giveaways, online video needed to draw new subs to IPTV Also Noted: Qualcomm
Spotlight On... They coulda been--and are going to be--contenders
Bally Technologies bets on IPTV for casinos, hotels; Life Telecom sets subscription drive and much more... Special Report:
 Level 3, tw telecom, other CLECs step up to Ethernet plate
Where do CLECs fit in the Ethernet ecosystem? In the third installment of our series, FierceTelecom takes a look at competitive local exchange carriers that are providing a diverse set of Ethernet services from a multitude of business angles. Read more  Follow @FierceIPTV on Twitter!
News From the Fierce Network:
1. Comcast expands Ethernet service to Vermont
2. Verizon plans 'definite' launch of LTE Broadcast service in 2014
3. Online video gets bigger piece of ad budgets
More headlines...
| This week's sponsor is CounterPath. |  | eBook: Minimizing the OTT Threat This eBook from FierceWireless will provide an in-depth look at the threat from OTT providers, and examine how operators are making progress in delivering content to their customers. Download for free today. |
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Giveaways, online video needed to draw new subs to IPTV
 Sometimes even a phrase that has devolved into cliché is accurate. Low-hanging fruit, the abused way to describe easy-to-acquire subscribers, is such a phrase.
While tiresome to hear, low-hanging fruit probably best describes what IPTV and telco providers have been devouring during their short journey from scoffed-at novelty to viable business. A substantial group of consumers, unhappy with decades of ill treatment by cable operators and not quite ready to leap to satellite, have been easy pickings. Those salad days are probably over. To get to the next level of subscribers, IPTV providers need a ladder--or maybe a gimmick. AT&T this week chose to follow the banking model and give away toasters. Oh, correct that, AT&T is giving away a connected device--Kindle Fire HD, Nexus 7 tablet, SONOS PLAY:3 or Xbox 360--to new subscribers who expand behind high-speed broadband service. In addition to being sexier than a toaster, the device is expected to glue consumers to the carrier's IP-based home network once they're added to the ranks of phone (probably an afterthought) and TV (probably the primary target) service subscriber numbers. A cynic might say that the move portends a belief that IPTV alone can no longer draw substantial numbers of subscribers away from a resuscitated cable TV effort. In reality, the move is the logical next step of trying to acquire a crowd of nonbelievers who are either clinging to their existing pay TV service providers or, more worrisome yet, not buying into the whole pay TV model at all. You know, the OTT bunch. Which leads nicely into the next gimmick being used to draw subscribers to pay TV services: TV Everywhere. The pitch for TV Everywhere is that consumers bought a video package and should be able to see it wherever they go. The reality is that if subscribers who pay for content can't see it everywhere via their service provider, they might find a version of it from an over-the-top provider and realize that they may not have to pay for 17 channels of home shopping just to watch ESPN. They could become--drum roll please--cord cutters.  Click here to continue reading this Editor's Corner online
Read more about: NBCUniversal, Comcast
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Today's Top News 1. AT&T sweetens U-verse bundle with free gifts
AT&T (NYSE: T) has adopted an age-old marketing ploy of giving away a free appliance--or in the case of the service provider, connected device--in exchange for getting new subscribers who bundle up on its AT&T U-verse service. Customers who buy either U-verse TV or phone along with high-speed broadband can select from a free Kindle Fire HD, Nexus 7 tablet, SONOS PLAY:3 or Xbox 360, the carrier said in a press release. Those subscribers who take advantage of the package will be able to use the free devices to tap into AT&T's home network services. "Customers tell us they enjoy access to their in-home Wi-Fi network and the freedom to use more than 32,000 AT&T Wi-Fi hot spots across the country, which is why we're building new bundle offers around our broadband services," Mel Coker, chief marking officer of AT&T Home Solutions said in a company press release. Apparently, though, customers need a bit more of a nudge to move forward and buy more than just high-speed broadband. Once incented, though, they'll be rewarded, Coker added. "We know when customers bundle U-verse TV and voice services they have higher customer satisfaction and engagement," Coker added. "Customers tell us that packaging the services gives them even more reasons to love U-verse." Of course, as with any such offer, there's a qualifier--the "but wait" moment. In this instance, Stop the Cap reports fine print that says customers must wait up to 34 weeks after signing up before receiving a "reward notification," then completing an online redemption submission and waiting another 23 weeks for the free gift to arrive. Oh, and the customer must keep the service for at least 30 days. Those same customers will also get access to a new pair of interactive TV applications AT&T concurrently introduced, including U-verse Jukebox, an app that lets subs play songs from their mobile device on U-verse TV, and the Interactive Workout personal trainer application. In addition to enhancing the bundle and the home network, the applications "make it easier for our customers to boost efficiency, entertainment and even their health with the devices they use the most," said Maria Dillard, vice president of U-verse and video products in another press release. "We know when customers use TV apps they're more engaged and happier with their U-verse TV service, so we'll continue to bring more apps to customers that deliver more value and integration." For more:
- AT&T issued this press release
- and this press release
- Stop the Cap had this story Related articles:
AT&T to add ESPN 3D to U-verse TV lineup
Google Fiber adds 3D to Kansas City lineup Read more about: U-Verse
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2. Verizon FiOS to adopt faux a la carte pricing model
It's not quite a la carte, the so-called Holy Grail of subscription TV, but what Verizon (NYSE: VZ) is proposing for its FiOS TV service comes close to breaking the logjam of bundled channels currently clogging pay TV lineups. Call it "faux a la carte." According to a story in the Wall Street Journal and reported on multiple sites, Verizon's top programming negotiator Terry Denson said that the pay TV service is considering a model where its 4.7 million subscribers would be charged only for the channels they watch, based on information culled from their set-top boxes. On top of everything else, this would not involve Nielsen, which currently gathers viewing information for ratings used to price advertising, but would use only viewership data available via the set-tops. According to a report in Rapid TV News, this means that Verizon would only begin charging FiOS TV subscribers once they'd watched a channel for at least five minutes. Verizon would track this usage and develop personalized channel bundles that cater to consumer tastes rather than the bundled programming being offered by a number of big content providers. "Smaller channels would also reap the rewards of being successful and are given a better chance against the niche channels that media behemoths force pay TV distributors to take in order to get a decent deal on top-rated sister fare," the story said. That means subscribers, just through their viewing habits, could cull out some of the duplicated channels being pushed forward by players like Viacom, which delivers multiple takes on a theme like MTV, MTV 2, MTV 3 and MTV U, said a story in Venture Beat. As with any a la carte scheme--faux or not--the move probably won't have a serious impact on the bottom line subscription charge, Denson told the WSJ. On the other hand, he said, pricing for each channel could provide a more stable environment and moderate annual bill increases. For more:
- Rapid TV News carried this story
- and Venture Beat had this story Industry Voices: For telecom, it's all about IP Related article:
FiOS, U-verse subscribers like their VOD Read more about: Nielsen, a la carte
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3. Ericsson touts successful 1 Tbps transmission with Telstra
Ericsson (Nasdaq: ERIC) is touting what it calls the first successful trial of a 1 Tbps (1,000 gigabits) link over 995 kilometers of existing fiber optic network operated by Telstra (ASX: TLS.AX) in Australia. The trial marks the first successful move of high-speed broadband technology from the Ericsson labs to the field, the company said. Ericsson's ultra-high-speed transmission over the Telstra link between Sydney and Melbourne is a harbinger of things to come in the way of higher quality broadband services, including in particular, IPTV, the two participants noted, and an indication that today's fiber networks can handle the increased bandwidth loads. "Like so many developed countries, Australia is a very technologically advanced market and Australians are sophisticated users of broadband and mobile technology. In addition, there is widespread smartphone, tablet, IPTV and HDTV take-up. Supporting all these services requires and ever-growing capacity in backhaul and inter-city transmission," Alessandro Panel, head of Ericsson R&D optical transmission, said in an Ericsson press release. That demand always threatens to outstrip current transmission capabilities, which is why the test results were so heartening, added David Robertson, director of transport and routing engineering at Telstra. "The trial has proven that our existing optical cable plant can support Tbps channels along with 40 Gbps and 100 Gbps channels simultaneously on the same fiber, verifying that we have the ability to increase capacity on our existing fiber cables when required," Robertson said in the press release. Hitting 1 Tbps and deploying 1 Tbps are, of course, different things. Telstra might be able to transmit at those speeds but the multiservice provider is now in the process of using only a tenth of that. "We are currently upgrading our optical transmission networks with Ericsson's next generation 100 Gbps technology and this trial demonstrates that the higher 1 Tbps speeds are possible," said Robertson. Ericsson said that the terabit system is not a one-and-done thing but part of a longer strategy to advance broadband speeds. As such, it has optical characteristics that are software-configurable and frequency packing for "high spectral efficiency," the company said. It also uses advanced forward error correction (FEC) for "superior performance in the communications channel." For more:
- Ericsson issued this press release Related articles:
Ericsson admits to 2012 decline in network equipment share
What lies beyond 100G?
Foxtel moves ahead in IPTV space Read more about: IPTV
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4. BT moves onto thePlatform to drive its IPTV services
It's Microsoft (Nasdaq: MSFT) Mediaroom out, Comcast (Nasdaq: CMCSA) thePlatform in for BT (NYSE: BT) and its IPTV services BT Vision and YouView. The British telco said it will use thePlatform's mpx video publishing system to manage video workflow, coordinate playback data in conjunction with recommendation engines and ensure that households get to see what they pay to see--and nothing more. BT had abandoned Mediaroom last year for a Linux-based system, setting off a search for a new system now filled by thePlatform. AT&T (NYSE: T) U-verse is the largest Mediaroom customer in the world, although TDS Telecom (NYSE: TDS) recently adopted the system as well. "thePlatform has a history of success managing video on behalf of some of the largest pay-TV operators and media companies in the world [and] enables us to simplify many of our back-end processes by providing a centralized video logistics system capable of publishing video to our new set-top boxes, and other IP-connected devices in the future," Alex Green, BT's TV director, said in the press release. Online video is a primary reason to make the move, added Ian Blaine, the CEO of thePlatform. "For customers like BT, mpx has raised the bar significantly for the OVP (online video platform) category by demonstrating that it can manage actual TV--where the stakes, volumes, and expectations are far higher than on any other screen," he said. According to the press release, BT is already using the mpx system to manage video across devices and delivering "an enhanced user experience with live, catch-up and on-demand TV on new IP-connected set-top boxes." For more:
- BT issued this press release Related articles:
YouView looking for new management again
TDS turns on Microsoft Mediaroom for its fledgling IPTV service
Comcast expands online video plays via thePlatform and Disney Read more about: AT&T, Video Management
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5. Foxtel moves ahead in IPTV space
Australian multichannel video programming distributor (MVPD) Foxtel is beefing up its IPTV play with a new TV Everywhere-like service called Foxtel Play that is expected to be available for a range of TVs, consoles and mobile devices. Unveiled at the ASTRA Conference by Foxtel CEO Richard Freudenstein, Foxtel Play is seen as a way to bring new customers into the Foxtel pay TV service with subscriptions as low as $25 per month with no lock-in contracts. Freudenstein said the new service will help it meet its goal of reaching 50 percent of Australians. "This is a perfect new way for those people who have not yet experienced Foxtel to enjoy our popular content," Freudenstein said at the conference, according to Lifehacker. And, of course, it will be a way to draw those viewers into more lucrative deals with the IPTV provider. "Ideally when they've sampled Foxtel Play and see what a great product it is, they'll sign up to the full service," Freudenstein conceded in a story carried by Ad News. "It's an opportunity to introduce Foxtel to a new customer segment." The opportunity will be happening this year, as Foxtel expects an on-demand movie service to roll out in the third quarter or so. The IPTV service is also working to upgrade its set-top box to have 10 times more processing power and eight times more memory. In addition to drawing in new customers, Foxtel is working to keep those it has with a triple play that combines broadcast, broadband and telephony, with the support of part owner Telstra (ASX: TLS.AX), Freudenstein said. "We believe it makes sense for us. It will place us firmly in the centre of the broadband connected home," he concluded. For more:
- Lifehacker had this story
- Ad News carried this story Related articles:
IPTV destroying video store business in Australia
Australian free-to-air TV networks eye online video venture Read more about: Foxtel Play, ASTRA Conference
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Also Noted | This week's sponsor is Qualcomm. |  | Webinar: Wi-Fi Evolution and its role in the future of wireless
Wednesday, April 3rd, 1pm ET /10am PT Tune-in to this webinar to learn more about Wi-Fi evolution, its critical role in addressing the looming 1000x data challenge, enabling smart connected homes, and exciting new frontiers it is poised to explore. Register Today! |
SPOTLIGHT ON... They coulda been--and are going to be--contenders  No doubt thanks to some good marketing and nifty devices, wireless seems to dominate telecommunications as sports dominates talk radio. The thing is, wireline is hardly a relic of the past, a dinosaur destroyed by the incoming blast of new wireless technologies. Wireline, as FierceTelecom's Samantha Bookman puts it in her special report, "The Contenders," is full of companies who are "challenging the status quo" and driving the wireline industry. Who these forward-looking companies are and what they're up to is part of a fascinating series that will delve into the likes of companies ranging from Cisco (Nasdaq: CSCO) and Clearfield to set-top provider Pace (LSE: PIC.L). Read more
More news bytes from around the World Wide Web: > Multiple casinos and hotels are getting IPTV services thanks to an agreement between Bally Technologies and Visionary Solutions. Story > Brazilian service provider Life Telecom hopes to sign up 12,000 IPTV subscribers by the end of the year after it launches in San Paulo in July. Story > UPC Slovakia has been accused of blocking access to a basic IPTV package being offered by Slovak IPTV provider Antik Telecom. Story > Accedo showcased its TV Everywhere product at TV connect in London this week. Press release > Singapore's StarHub has launched an IPTV service, StarHub TV on Fibre. Story > Norway's GET is powering its IPTV, cable and OTT multiscreen services with a Harmonic headend solution. Story Cable News > Liberty Media Corp. will acquire a 27.3 percent stake in Charter Communications for $2.62 billion, marking the return to the U.S. cable business of industry pioneer John Malone. Article Online Video News > Redbox Instant by Verizon, the joint venture between Coinstar and Verizon and the latest over-the-top play to challenge Netflix, is "open for business," according to CEO Shawn Strickland. Article And finally … Thailand's CAT Telecom launched an OTT service using IPTV software from Oregan Networks. Story News From the Fierce Network:
> Netflix to offer $100,000 in 10 prizes for cloud computing solutions Post
> Wi-Fi Evolution and its role in the future of wireless - Wednesday, April 3rd, 1pm ET / 10am PT Tune-in to this webinar to learn more about Wi-Fi evolution, its critical role in addressing the looming 1000x data challenge, enabling smart connected homes, and exciting new frontiers it is poised to explore. Register Today! > CorporateTube - The Next Step for Enterprise Success- Thursday, April 18th, 2pm ET/ 11am PT Learn from an elaborate case study and see how leading companies implemented this cutting edge solution to reap the benefits of video in the enterprise. Experts from Oracle, Akamai, and Kaltura will explain the many possibilities of deploying a CorporateTube for your organization. Register Today!
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