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AT&T Launches Broadband to Go
04 Jun, 2008
AT&T is leveraging their broadband wireless capability with DSL service to provide a converged broadband to go service. Branded as AT&T Net Reach, the new $79.95/month service targets laptop carrying customers with seamless access to Wi-Fi, 3G wireless, and home DSL/Wi-Fi service. Net Reach provides a laptop broadband connection manager that automatically connects with the strongest available broadband service among AT&T's 17,0000 Wi-Fi hotspots, 3G GSM wireless network, or the customer's home broadband service (via a home wireless network). Conceivably, customers won't know (or care) which network they're connected to - they'll just be connected to broadband. Customers must opt-in to unified billing of wireline and wireless services.
The strategy makes great competitive sense. It creates competitive differentiation between AT&T and their cable competitors. It's a great example of how telecom carriers can leverage their wireless advantage. But for how long? Cable will soon catch up. Between Cablevision's (granted they don't compete directly with AT&T) pending launch of a mesh Wi-Fi network and cable's involvement in the Clearwire WiMAX joint venture, the cable industry will soon try to flex some broadband wireless muscle of their own.
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Featured Article
Time to Prepare for DOCSIS 3.0 is Now
07 Aug, 2008Second quarter results for broadband growth were a tad underwhelming. There are any number of factors which probably contributed to this slowdown, with the economic slowdown and housing crisis certainly towards the top of the list. But growth is also slowing because broadband penetration has grown considerably over the past few years, now ranging somewhere between 50% to 60% (depending on who you ask), and is beginning to slow down. There certainly is more room for growth, but at some point in the near future, broadband penetration will slow even more as it approaches saturation. It’s anyone’s guess what saturation is, but I would bet somewhere around 75% penetration of households (as a national average - individual markets will vary widely). From a service provider’s point of view, that suggests that posting continuing net adds of broadband customers will increasingly involve convincing a competitor's broadband customer base to switch service.

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