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DigitalBridge Launches New WiMAX Market
28 Feb, 2008
DigitalBridge Communications (DBC) announced the launch of WiMAX service in Hailey, Idaho. This is DBC’s third Idaho market, which also includes Rexburg and Pocatello. DBC’s WiMAX product is branded as BridgeMAXX. DBC claims BridgeMAXX delivers download speeds of up to 3Mbps and upload speeds of up to 2Mbps. DBC says they plan to launch BridgeMAXX service in over 15 cities in early 2008, including Idaho Falls and Twin Falls, Idaho; Butte, Montana; and Jackson, Wyoming.
Rural Broadband Wireless Gaining Momentum
11 Feb, 2008
Stelera Wireless, a new Oklahoma City, OK based wireless provider, has launched service in Floresville & Poth, Texas. Stelera is one of the first companies to launch service using the recently auctioned advanced wireless service (AWS) spectrum. Stelera claims their network can offer up to 7.2 Mbps download and up to 2 Mbps upload speeds. AWS operates in the 2.1 GHz and 1.7 GHz bands. Stelera has 42, mostly rural, markets with AWS spectrum and intends to slowly roll out service across their footprint.
Stelera joins DigitalBridge Communications who are also targeting rural markets, but with a WiMAX play in the 2.3 GHz spectrum bands. DigitalBridge has launched service in several rural markets in Idaho, Montana, and Indiana. Other pending rural wireless plays include Crossroads Wireless and Open Range. All of these companies are targeting “underserved” rural markets with a broadband alternative. Underserved generally is a code word for markets served by large RBOCs and/or MSOs who have not invested in local broadband networks. These markets are often identified as a part of the “digital divide.” DigitalBridge says they have reached 10% penetration within 6 months of one their first market entries, Rexburg, ID. These growing rural deployments are leveraging quickly evolving broadband wireless technology and pent up demand for broadband in markets where little or no broadband competition exists. This trend will definitely continue. There is certainly no guarantee of success. These new companies will have to prove their business case and execute well.
WiMAX Trials Gaining Momentum
12 Jun, 2007Much of the attention surrounding WiMAX focuses on larger carriers including Sprint and Clearwire. But much of the early WiMAX momentum is being carried by smaller players. We highlighted DigitalBridge Communications’ WiMAX launch in an earlier post, and now Horizon Wi-Com (no active website yet), headquartered in Alexandria, VA, is making noise about their Northeast U.S. WiMAX trials. Using Navini equipment, Horizon Wi-COM plans to implement service in Boston, New York, Philadelphia, Washington DC, Baltimore, Pittsburgh, Buffalo, Richmond, and Cincinnati with WCS A Block spectrum purchased from Verizon. Quoting from a Navini press release, Ron Olexa, President of Horizon Wi-Com says, "We are first. We have completed Phase I and are now trialing subscribers in some of the most exciting cities.”
It will be interesting to watch companies like Horizon go into tier 1 cities and compete in very mature competitive markets. They will need to get an early foothold and hold it. As larger carriers refine their broadband strategies in large markets with tools like 700 Mhz spectrum, smaller carriers like Horizon may have a tough go at it. Clearwire’s strategy is to focus on tier 2 markets (at least for now), where larger carriers won’t be for a while. And it appears as if companies like Digital Bridge see opportunities in much smaller tier 3 and 4 markets, where competitive pressures are far less.
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?

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