| This week's sponsor is Prime Media. | | 
|
Editor's Corner: No issue Monday Also Noted: Spotlight On... TiVo adds 341K MSO subscribers in Q1
Living room set viewing still at 85%; Liberty Global expands TV Everywhere to Poland and much more...
 Follow @FierceCable on Twitter!
Fierce @ Twitter
Did you know that all of your favorite Fierce pubs are on Twitter? If you can't wait for our newsletters, make sure to subscribe to our Twitter feeds for up-to-the-minute news and reporting.
@FierceTelecom | @FierceCable | @FierceOnlineVid
@FierceDeveloper | @FierceWireless | @FierceWirelessE
Faster. Shorter. Fierce.
News From the Fierce Network:
1. Rumor Mill: Apple's $3.2B deal for Beats is about getting Dr. Dre
2. Alcatel-Lucent, Cisco and Juniper's router revenues decline sequentially, but up year over year, says ACG Research
3. Lawrence, Kan., proposes building its own 1 Gbps-capable FTTH network
More headlines...
| This week's sponsor is Adtran. |  | Webinar: Making the Move to Gigabit Services - What You Need to Know for a Successful Transition
Now Available On Demand This webinar explores how to make a successful transition to Gigabit services. We explore topics including market drivers for G.fast and FTTdp architectures, the G.fast value proposition, how to make FTTdp part of your FTTH Gigabit services toolkit, we will also explore other elements needed to complete your Gigabit toolkit. Register to watch now! |
| 
No issue Monday
In observance of the Memorial Day holiday, FierceCable will not be publishing Monday, May 26. We will be back in your inbox Tuesday, May 27. |
|
| Sponsor: Equifax FierceLive! Webinars > How to build a profitable metro-regional network - Thursday, May 29th, 11amET / 8am PT
> Inside NFV - Why is virtualization important? - Thursday, June 5, 2014 2 PM ET/ 11 AM PT
> Driving revenue from multiscreen opportunities - Wednesday, June 11, 2014, 2pmET / 11amPT
> Developing for the Internet of Things: Challenges and Opportunities - Wednesday, June 18th, 2pm ET / 11am PT
Events > The TIA Network of the Future Conference - June 3-5 - Dallas, TX - Sponsored by: Telecommunications Industry Association
> OPS - June 10 - New York
> Don't Miss this FierceWireless 5G Breakfast at Super Mobility Week! - September 9, 2014 - Las Vegas, NV - Sponsored by Ericsson, Intel, and SOLiD
> Don't Miss this FierceWireless IoT Breakfast at Super Mobility Week! - September 10, 2014 - Las Vegas, NV - Sponsored by RacoWireless and Sierra Wireless
Marketplace > Whitepaper: Next-generation OSS is critical to delivering service agility in new virtualized networks
> eBook: VoLTE and the Future of Mobile Voice
> Whitepaper: 802.11ac in the Enterprise: Technologies and Strategies
> eBook: Executive Summary | Thoughts on the Small Cell Evolution Part 2: Distributed Antenna Systems
> eBook: eBrief | MSOs See New Era for VoIP
> Whitepaper: Moving to the Suburbs: New Network Services For Data Centers
> eBook: Advancing the Network Through SDN and NFV
Jobs
* Post a classified ad: Click here.
* General ad info: Click here
* Post a job: Click here. | Today's Top News 1. Moffett: AT&T-DirecTV deal will get done, but not without regulatory 'perspiration'
Kicking the tires on the widely held belief that AT&T's (NYSE: T) proposed $49.5 billion purchase of DirecTV (NASDAQ: DTV) will sail through the regulatory approval process, media analyst Craig Moffett crunched some of the key numbers federal officials will be looking at when they decide to approve or nix the deal. Here is his essential conclusion, published Friday in a MoffettNathanson Research post to institutional investors: The deal will probably get the OK, but it will involve more "sweat" than "sailing" for the key parties. On a national level, Moffett writes, consolidating AT&T and DirecTV's pay TV assets will create a "relatively benign" threat to competition. "Out of 100.4 million pay TV subscribers in the U.S., DirecTV has 20.3 million and AT&T just 5.7 million," Moffett notes. "Together, their market share will amount to 25.8 percent, a modest 5.6 percent increase compared to the 20.2 percent DirecTV has on a standalone basis. Generally speaking, this sort of increase is not sufficient to raise eyebrows in D.C." Regulatory stickiness, Moffett believes, could arise from the fact that DirecTV and AT&T's U-verse services overlap in about 25 percent of the country. This will affect the Herfindahl-Hirschman Index, which is a guide decision-makers at the Department of Justice and Federal Trade Commission use to measure the level of concentration in specific markets. Without getting too in-the-weeds in explaining this formula, scores increasing the index by less than 100 points after merger are generally regarded as non-issues for regulators. But in specific markets where DirecTV and U-verse are the only alternatives to cable--or the only pay TV options at all--the HHI indexing for the deal is nearly off-the-charts. In fact, in some rural areas, Moffett calculates the market concentration increase factor to be as high as 667 points. The analyst concedes that regulators don't look at HHI dogmatically: online video alternatives will certainly be considered, for example. And he thinks regulators will be hesitant to balk on another big AT&T deal after nixing its T-Mobile (NYSE:TMUS) acquisition ambitions in 2011. Moffett sums up his report this way: "To be clear, we're still of the view that the deal will get done. Regulators are not mechanically bound by HHI analyses … But after running the numbers, we think the approval process may induce a little more perspiration than we had originally thought." For more:
- MoffettNathanson has this blog post (sub. req.) Related links:
Why AT&T is pushing DirecTV to renew its NFL deal: It's the broadband potential, analysts say
ACA, NAB question growing industry consolidation in wake of AT&T-DirecTV merger news
What the AT&T/DirecTV merger, 600 MHz auction rules and new spectrum screen mean for M&A in wireless Read more about: Approval Process, MoffettNathanson Research
back to top |
| This week's sponsor is Equifax. |  | Webinar: Alternative Data Use for Communication Service Providers
Thursday, June 26th, 2pm ET / 11am PT
The telecom industry is fiercely competitive and faced with challenges in understanding how to differentiate, grow, and protect a business. By using alternative data and predictive analytics, Communications Service Providers can better understand their customers, business and market. Join this webinar and learn about the practical value of alternative data through real-life examples from Equifax industry experts. Register Today! |
2. Cox offers details on 1 Gbps rollout--will start out in Phoenix, Las Vegas, Omaha
After revealing plans last month to kick off super-fast 1 Gbps Internet services, Cox Communications on Thursday revealed its roadmap for getting them launched. The Atlanta-based pay-TV and ISP provider announced that it will immediately begin building these services into select areas of Phoenix, Las Vegas and Omaha, Neb., with nationwide rollout scheduled to be completed by 2016. "We are excited about our road map to offer gigabit speeds to all our residential customers," said Cox Communications president Pat Esser. "Starting today, we will begin deploying new technology and infrastructure that will give customers the choice of gigabit speeds in all markets we serve." The rollout isn't exactly a secret: Esser told Bloomberg that Cox was planning to offer a 1-gig plan during April's NCTA Cable Show. Google (NASDAQ: GOOG) and AT&T (NYSE: T) have already began infiltrating select markets with 1 Gbps fiber-based networks. Google Fiber, for example, has already hit Kansas City and Provo, Utah, with plans to roll out in Austin, Texas with this year. Phoenix, meanwhile, is one of the 31 additional metropolitan markets Google is targeting. Cox is the largest pay-TV operator in that market, with 578,000 subscribers there, according to Bloomberg. For more:
- see this CNET story
- see this press release Related links:
Cox takes on AT&T and Google Fiber in 1 Gbps fiber race
Google Fiber to conduct small business pilot in Kansas City
Time Warner Cable bumps speeds for 100K Austin subs; service now tops out at 300 Mbps Read more about: 1 Gbps, AT&T
back to top |
3. Hispanics stream more video content than any other U.S. consumer demographic, report says
Often seeking programming they can't find on linear TV channels, U.S. Hispanics stream more video content than any other domestic consumer demographic, according to a report released earlier this week by research company PricewaterhouseCoopers. According to the report, 43 percent of Hispanics stream video on their smartphones and tablets, compared to just 25 percent for the general U.S. population. Hispanics are also twice as likely to download videos as the broader population--37 percent vs. 17 percent. Of course, it's yet more compelling data for any media company, given that Hispanics represent the fastest growing segment of the U.S. population. "The Hispanic population are generally larger consumers of entertainment, and that trickles down to mobile," Matt Lieberman, director of PwC's entertainment and media practice, told Re/code's Dawn Chmielewski. "But the variance between the general population and the Hispanic population did surprise us." PwC's study is based on an online survey of 1,000 people, with respondents evenly split between Hispanics and non-Hispanics. Data was also culled from social media listening. Among the various explanations for their viewing habits, a number of respondents said that they turned to online programming resources because the shows they are seeking are unavailable through pay-TV providers. Lieberman noted to Re/code that programmers in the pay-TV sphere and elsewhere have been slow to respond to this demand … but they are indeed responding. Last year, a group of investors, backed by producer Robert Rodgriguez and former William Morris Endeavor talent agent John Fogelman, launched the El Rey Network, an English-language pay-TV network targeting a youthful Hispanic audience. It's now available on Comcast (NASDAQ: CMCSA), DirecTV (NASDAQ: DTV) and Time Warner Cable (NYSE: TWC). Meanwhile, Fox is in the process of launching Spanish-language network MundoFox, while ABC is partnering with Univision to create the 24-hour English-language, Latino-targeted news network Fusion. For more:
- read this Re/code story
- read this story from TheWrap Related links:
Univision CEO says Comcast-TWC merger would hurt Hispanic TV viewers
Telemundo taps Discovery veteran Silberwasser as president
Major League Soccer scores $720M in new TV deals with ESPN, Fox, Univision Read more about: Pricewaterhousecoopers
back to top |
4. Verizon expands 12-tuner Quantum TV tier to Maryland, Virginia and D.C.
Now, 2.6 million residents and businesses spread across Maryland, Virginia and Washington, D.C. will be able to record 12 TV shows simultaneously. Verizon (NYSE: VZ) announced this week that it has expanded the rollout of its FiOS Quantum TV service to subscribers in these areas, building on a launch that began April 1 in North Texas and Harrisburg, Penn. The premium service is also available in Tampa, Fla., Pittsburgh, Philadelphia and Delaware markets and will continue to launch in other areas in the coming weeks. "With FiOS Quantum TV's premium DVR service tier, customers can record up to 12 shows simultaneously, eliminating worries about recording conflicts when customers' favorite shows or sports events are all airing at the same time," reads a Verizon press release announcing the latest expansion. So, yeah, if a family the size of the Waltons finds itself polarized by differing viewer taste, problem solved. The premium service tier is based on two Arris-manufactured whole-home DVRs that are configured with six tuners and 1 terabyte of storage capacity--enough wherewithal to store 200 hours of high-definition video. If it seems like excess, Verizon claims it's merely giving the pay-TV market what it wants. In its customer surveys, 78 percent of respondents say they want more DVR storage and 63 percent want more tuners. "FiOS Quantum TV enables Verizon to further differentiate from the competition by redefining the total TV-viewing experience for our customers, allowing them to enjoy their entertainment on their terms," said Christopher Childs, Verizon's Potomac region president for consumer and mass business operations. "With FiOS Quantum TV, you'll look at TV in a whole new way." As of its first-quarter 2014 earnings report, Verizon touted 5.3 million FiOS video subscribers and 6.2 million FiOS Internet customers. For more:
- see this press release
- read this Multichannel News story Related links:
Verison touts 12 tuners with launch of FiOS Quantum video media servers
Cablevision's marketing stunt: A DVR that can record 10 shows simultaneously Read more about: FiOS
back to top |
5. Analyst: Comcast could make a bid for T-Mobile to bolster wireless strategy
The deal-making chess pieces are being moved around in the telecom industry, and one financial analyst thinks the next move might be for Comcast (NASDAQ: CMCSA) to make a bid for T-Mobile US (NYSE:TMUS). According to a research note from UBS analyst John Hodulik, AT&T's (NYSE: T) proposed deal to buy DirecTV (NASDAQ: DTV) for $49 billion, and the implications that has for mobile video delivery, "could be the final straw that draws Comcast into the wireless mix." Hodulik notes that Comcast's current wireless strategy leverages Wi-Fi deployments and a Verizon Wireless (NYSE: VZ) resale deal. "While this may be a capital-efficient way to put a toe in the water, we believe it is not a long term strategy," he wrote. "In our opinion, this could eventually lead to the acquisition of T-Mobile--if it is still independent. Initial moves to execute on a Wi-Fi-MVNO strategy will inevitably spark the speculation that Comcast will indeed need to go further and put a still-independent T-Mobile back on the M&A target list were the SoftBank deal to be rejected." A Comcast spokesman declined to comment and T-Mobile representatives did not immediately respond to requests for comment. SoftBank-owned Sprint (NYSE: S) is reportedly eyeing a deal with T-Mobile that it may announce in June or July, though regulators have signaled their opposition to consolidation among the top four U.S. wireless carriers. Meanwhile, Comcast is also pursuing its own $45 billion deal for Time Warner Cable (NYSE: TWC), so adding another deal into the mix would make things that much more complicated for Comcast. Hodulik wrote that the idea of Comcast buying T-Mobile creates a third potential buyer for the company, behind Sprint and Dish Network (NASDAQ: DISH), whose chairman, Charlie Ergen, has said that T-Mobile would be of "strategic interest" to Dish if Sprint did not pursue a deal or if such a deal was blocked by regulators. "While this view may seem far-fetched, we note that Comcast and others in the cable industry have been closely evaluating entry into the wireless market since the industry began, most recently investing $1.05B in Clearwire in 2008 ($1.5B including the TWC contribution), spending $2.4B (including other MSOs) on AWS licenses in 2006, and embarking on ill-fated ventures such as Sprint-based Pivot in 2005," Hodulik wrote. "Cable MSOs undertook these efforts while there appeared to be little value-add from a product-bundle standpoint and while the cable industry was mix of sub-scale, un-clustered assets. Today, we have line of sight to a world where video will be mobilized and Comcast will attain national scale." Comcast is reportedly contemplating launching its own wireless service that would largely rely on Wi-Fi, according to a report from The Information. According to the report, Comcast officials recently told people outside the company that it was considering a mobile phone service, which would rely on a combination of Wi-Fi and leased capacity on cellular networks. Comcast's Wi-Fi network currently encompasses 1 million hotspots right now, but that number will skyrocket to 8 million by year's end, with the cable MSO promising to operate hotspots in 19 of the country's 30 largest cities. Tom Nagel, senior vice president and general manager of wireless services at Comcast, said in April that while the cable companies have built a compelling network of Wi-Fi hotspots, it is not a cellular network. Most cable executives have said they see their Wi-Fi networks as complementary to cellular. For more:
- see this Barron's article
- see this Investor's Business Daily article
Related Articles
Comcast planning 8 million Wi-Fi hotspots in 19 major cities by year-end
AT&T to purchase DirecTV in $49B deal
Dish's Ergen leaves door open for T-Mobile deal if a Sprint/T-Mobile effort fails
Report: T-Mobile wants $1B breakup fee from Sprint if a deal fails
DT open to creating 'super maverick' with T-Mobile US, but is wary of regulatory hurdles
Report: Sprint to push forward with T-Mobile deal in next few months Read more about: Sprint, Mergers and Acquisitions
back to top |
Also Noted SPOTLIGHT ON... TiVo adds 341K MSO subscribers in Q1 DVR technology company TiVo announced its best quarter for MSO subscriber acquisitions ever, adding 341,000 in Q1 through its various pay-TV partnerships and pushing its total past 4.5 million, an all-time high. TiVo's MSO subscriber base grew by 313,000 in the fourth quarter and it's up 23 percent year-over-year. The company reported service and technology revenue of $86 million for the quarter, up 39 percent from Q1 2013. TiVo's full first-quarter earnings report can be found here. More cable industry news from across the Web: > Vubiquity CMO Laurie Lawrence told a Multichannel News roundtable Thursday that 85 percent of TV watching is still done on the primary TV screen. Story > Liberty Global, the largest pay TV service in Europe, is set to roll out its authenticated Horizon TVC multiscreen video service in Poland. Story > A UK study shows that middling ratings performers on linear broadcast and cable channels are much more effective audience drivers when they're posted on subscription VOD site Hulu. Story > Amazon has posted its first original kids series, "Tumble Leaf," on its Prime Instant Video service. Press release And finally... Amazon is sending a targeted list of customers to try its Fire TV free for one month. Story News From the Fierce Network:
> NASA has a new plan to save its zombie spaceship; DOD turns to FedRAMP and cloud brokering; Post
> Internet ownership an 'arrogant,' 'counterproductive' argument, says Sepulveda Post
> Survey: Organizations are slowly abandoning dedicated conferencing tools Post
> Another side of net neutrality: The case in favor of Title II Post
> How to build a profitable metro-regional network - Thursday, May 29th, 11amET / 8am PT In this webinar we'll look at how service providers can craft retail business service offerings and revenue opportunities for specific verticals like education and health care. And we'll talk about the demand for Ethernet and optical services. Register Today! > Inside NFV - Why is virtualization important? - Thursday, June 5, 2014 2 PM ET/ 11 AM PT Vendors claim that the wireless industry is about to go through a major change as operators simplify and scale their networks by separating hardware and software functionality and using virtualization to improve network management in the software layer. This webinar will look at the latest developments in NFV and what it means to operators and vendors. Register today! > Driving revenue from multiscreen opportunities - Wednesday, June 11, 2014, 2pmET / 11amPT Smartphones, tablets, smart TVs and other IP-connected devices are revolutionizing the way content providers, distributors and advertisers reach viewers. While multiscreen devices promise to increase viewer engagement and social interaction, the strategies for making money from these other screens are still evolving. This webinar will look at a variety of multiscreen strategies that are currently being used by pay-TV providers. Register Today! > Developing for the Internet of Things: Challenges and Opportunities - Wednesday, June 18th, 2pm ET / 11am PT Cisco estimates that 50 billion devices and objects will be connected to the Internet by 2020. Will there be a role for developers in this area? And if so, how can developers position themselves in the months ahead on this nascent but potentially explosive opportunity? Register Today!
| > The TIA Network of the Future Conference - June 3-5 - Dallas, TX - Sponsored by: Telecommunications Industry Association The Conference, which highlights the intersection of markets, technology, and policy perspectives, will focus on transformation of the ICT industry as globalization, technological innovations and regulatory environments present challenges and opportunities. Topics include: 5G, SDN, Big Data, NFV, Cybersecruity, and much more. Click Here Now. > OPS - June 10 - New York OPS is where digital media leaders meet, develop best practices and work together to solve today's most important online advertising challenges. As a digital strategist, OPS is the one event where you're certain to get the information you need to stay competitive and maximize profitability. Register Now. > Don't Miss this FierceWireless 5G Breakfast at Super Mobility Week! - September 9, 2014 - Las Vegas, NV - Sponsored by Ericsson, Intel, and SOLiD Join Kris Rinne, AT&T; Vish Nandlall, Ericsson; and other industry experts as they explore how to get from today's networks to the 5G network of the future. Seats are limited. Register Today! > Don't Miss this FierceWireless IoT Breakfast at Super Mobility Week! - September 10, 2014 - Las Vegas, NV - Sponsored by RacoWireless and Sierra Wireless Join Matt Thompson, Microsoft; John Horn, RacoWireless; and other industry experts as they delve into the market segments where IoT technologies are blossoming now, and explore where the next opportunities may lie. Seats are limited. Register Today!
| > Whitepaper: Next-generation OSS is critical to delivering service agility in new virtualized networks This white paper outlines the key role the OSS will play in enabling CSPs to deploy and realize anticipated benefits from service agility, operational flexibility and cost optimization. Download today. > eBook: VoLTE and the Future of Mobile Voice Despite more than two years of anticipation, the U.S. is still waiting for the widespread deployment of voice over LTE as major operators delay deployment. Experts say this shouldn't come as a surprise given the complexity of the technology. FierceWireless will take an in-depth look at VoLTE as well as explore HD voice and other advanced services made possible by VoLTE. Download this eBook today! > Whitepaper: 802.11ac in the Enterprise: Technologies and Strategies Download the White Paper "802.11ac in the Enterprise: Technologies and Strategies" to learn from industry expert Craig Mathias about the technologies behind 802.11ac, deployment misconceptions and review steps that every organization should take in getting ready for 802.11ac.
Download today! > eBook: Executive Summary | Thoughts on the Small Cell Evolution Part 2: Distributed Antenna Systems TE Connectivity conducted surveys in the spring and fall of 2013 to gauge how service providers, hardware/software integrators and other segments of the industry are thinking about small cell technologies and their roles in the macro/micro network. The surveys found that attitudes and perceptions continue to evolve. Download this executive summary today! > eBook: eBrief | MSOs See New Era for VoIP This FierceCable eBrief will explore that while cable MSOs may be struggling to retain video customers, several Tier 2 and Tier 3 operators are growing their revenues by bundling VoIP services with their existing video and high-speed Internet packages. Download this eBrief today! > Whitepaper: Moving to the Suburbs: New Network Services For Data Centers Data centers are moving outside traditional metro areas to take advantage of lower real estate and power costs. Learn three ways service providers can manage this shift by reading this white paper. You will learn: How to optimize connectivity between users and content, how to differentiate user to content domain services and how on-demand service offerings can bring additional revenue. Download this whitepaper today. > eBook: Advancing the Network Through SDN and NFV FierceWireless explores the current status of SDN and NFV in this ebook. In addition, we look at some of the advanced capabilities the two technologies can offer. Download this eBook today! | |
No comments:
Post a Comment
Keep a civil tongue.