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AT&T Sees Wi-Fi, Starbucks as a Growing Competitive Tool
11 Feb, 2008Starbucks has inked a deal that replaces T-Mobile with AT&T for their company store Wi-Fi hotspot service. T-mobile customers will still be able to access the network through a roaming agreement with AT&T. AT&T’s broadband and U-verse customers will have access to the Starbuck’s Wi-Fi networks free of charge. This latest move expands upon AT&T’s growing use of Wi-Fi as a competitive tool. They recently opened up their nationwide Wi-Fi network free of charge to existing broadband customers.
AT&T is leveraging Wi-Fi for several reasons. Giving it away to broadband customers creates additional value for an AT&T subscription. AT&T also has millions of newly minted iPhone subscribers, who are hungry for broadband access to utilize their smart phone’s full potential. Additionally, AT&T may be making some pre-emptive moves against Sprint. It’s widely known that Sprint is attempting to launch a nationwide WiMAX network. Assuming that get’s done (which might be a big assumption), Sprint conceivably will be in a position to provide a better broadband wireless experience than their competitors. With widescale access to Wi-Fi, AT&T customers may feel like they have enough and not be tempted to try Sprint’s new Xohm network.
AT&T Steps up Bundling Wars – Launches Free Wi-Fi Roaming
02 Jul, 2007
AT&T launched a free roaming program to nearly 10,000 Wi-Fi hotspots for qualifying broadband subscribers. According to AT&T, the hot spot network includes “…leading airports, McDonalds restaurants, Barnes & Noble bookstores, coffee shops and popular sporting venues.” Of course, the venerable Starbucks and its thousands of accompanying hot spot locations are not included. Starbucks is the domain of T-Mobile, who also recently launched their own hot spot initiative. In order to qualify for the free hot spot service, consumers and businesses must subscribe to certain AT&T broadband products.
Timing this announcement closely with the recently launched and fanaticized Wi-Fi capable iPhone is no mistake. In addition, AT&T announced that these same qualifying broadband subscribers can receive a free wireless Wi-Fi router for their home. Both maneuvers hope to encourage bundling of broadband and wireless service by existing and potential AT&T customers. And while you’re at it, why not take U-verse video and home phone service to boot. It is a shrewd bundling tactic. One that is somewhat difficult for cable MSOs to match. Not as difficult for Verizon Wireless and Sprint, but nevertheless, a nuisance that will need to be addressed.
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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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