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Bob Wallace, Executive Editor, xchange RSS
bwallace@vpico.com

05/14/2008

Taking Telco TV to the Next Level

It’s no surprise that telcos are finding the bright spot in their quarterly earnings to be growth in video services, as evidenced by recent reports from IPTV innovator SureWest Communications and forward-thinking WindStream Communications.

But when battling one or more entrenched cable/satellite providers for customers, operators that often have deeper pockets, how do you continue video growth? While there’s no easy answer, non-telecom industry gurus say network expansion and growth are key.

The strategy already has worked for SureWest – it has acquired a broadband service provider well outside its Sacramento, Calif. service area in Kansas City. AT&T Inc. also has been expanding its service deployment by acquiring other operators. And Verizon Communications Inc.’s taking on the Big Apple.

But even when you finally become an incumbent yourself, how do you move from selling bits to selling movies? If we had a dollar for every time someone mentioned customer service as a differentiator, we’d all be on permanent vacation. And lovin’ it.

But Shelly Palmer, managing director for Advanced Media Ventures Group, believes that’s a core ingredient in the telco vs. anyone-else-in-the-TV-service battlefield. “Nobody recommends a TV provider based on their content. Why focus on customer service? That could be because when times get tough and money is tight, they cut agents from their call centers and do less-frequent truck rolls,” Palmer explains.

In the past, with little or no competition whatsoever, cablecos became infamous for their 9-5 arrival promises. Now, for many, it’s down to 10-2. And if you press, they might actually mention their limited Saturday hours.

Telcos have plenty of room for improvement on the customer service front, with many assessing sizable charges if service calls reveal a problem inside the home. Many others seem satisfied with endless direct mail bombing runs on the mailbox to acquire and/or upgrade consumers. Yikes.

That’s why it’ll be interesting to keep a close eye on a semi-pilot project Verizon is amidst in one county of Florida. FiOS customers are assigned personal account managers (PAM), actual people not hidden in call centers, that it hopes might put a happy face on customer service. That, in turn could result in fewer costs and greater sales, etc.

The PAM program could go regional in Florida in a month or so. I’m betting a ton will be learned whether it’s a gigantic success or a huge failure.

Other telcos, regardless of tier or wallet size, should be watching closely. Some might already do this but they don’t get the ink the huge telcos do. Same for cable.

This could be part, or more, of how you take telco TV to the next level. I’d rather wait on this effort than wait on an install/repair.

Stay tuned!


05/07/2008

Internet Access: Getting Past Gas Pains

So you think broadband access to the home is all about sharing pictures, cruising YouTube and downloading files from friends? Think again, and market accordingly, service providers – home access is becoming more about remote workers and telecommuting, at least during the “work day.”

Gas is quickly approaching $4 per gallon, well in advance of summer. I’m more than guessing that high-speed Internet access is about working effectively without getting behind the wheel of anything with an engine.

Telecommuting and remote workers both have been alive and well in corporate America for many, many years. But with almost everyone doubling their downstream speeds or more in the last few weeks, you can do way more from home.

Service providers should do some math on the cost of commuting via car and via public transit with and without parking, and so on, and build Internet marketing campaigns accordingly. The speed is there, but the focus is almost entirely on what you and others do before and after work, not what you could be doing during work hours.

It’s mostly about smart marketing and packaging, areas where service providers sure seem to need improvement with residential services.

You can’t watch a newscast without hearing some mention of soaring gas prices here in mid-spring. You can’t go a commercial break without an ad for a TV service, feature or bundle. And between TV, visits to the mailbox, and more, you can’t go at all without a mention of high-speed Internet.

But direct marketing without a message is like a joke without a punch line.

We get the long-standing price war among cablecos, telcos and everyone else. We get that speeds are increasing without a huge boost in price. And we sure get that the price of everything else is increasing quickly too.

Let’s make the focus for residential Internet on what you can do from home during the day, and what it costs people when they leave the house....to drive to work.

Oh, and maybe be thankful that home broadband gear doesn’t have a gas tank. Otherwise, extreme networking would mean siphoning gas from the neighbor’s lawnmower.


04/30/2008

Clarity on AT&T’s Video Services

Apparently there’s some confusion as to what AT&T Inc. currently sells and resells on the video services front, so let’s try and be crystal clear on the services.

AT&T has four offerings and a mobile option. U-verse is its landline-based entry. It also resells DISH Network’s TV service, which is offered via satellite, exclusively to new customers in its 22-state region. That started April 1.

The carrier is non-committal on whether it’s actively still reselling TV service from DirecTV. A fourth option for those seeking more than just satellite TV from AT&T is the telco’s Homezone service, which includes Internet access and more.

One the wireless front, AT&T recently launched mobile TV service for those on the go.

AT&T has presumably wanted this to be clear, but that’s a tall task when you’re acquiring or merging with other companies (SBC & AT&T, AT&T and BellSouth for example) and maintaining their services for some period of time.

That’s part of what made AT&T’s video services menu a tad confusing until recently, and a bit still today.

When AT&T hooked up with BellSouth, the latter was reselling satellite TV services in chunks of its region from DirecTV. AT&T had said publicly it would stop reselling it at the end of the first quarter of this year. So it appears AT&T’s now only reselling video services from DISH.

Asked for a definitive comment/statement on whether it’s still reselling DirecTV, it seems the satellite operator is not completely out of the game. A spokesperson sent the following reply:

“For the near term, DISH Network will be AT&T's exclusive satellite provider for new customers across its 22-state footprint. AT&T continues to evaluate its long-term relationships with both companies based on the best interests of AT&T's customers and shareholders and will announce a decision by late 2008.”

Everyone loves choice, but sometime too many options in one basic category can be a bit confusing. At the same time, people like simplicity, so figuring out what your options are as time passes and the landscape changes can require an occasional update.

There you have it, for now. Ping me with any questions, and if I can’t answer them, I’ll certainly get the info from those who can.

Stayed tuned!


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