VON: Embarq Takes its Own Path

While several telcos have taken a three-screen approach to deliver video content to consumers (wireline TV, Web and wireless), Embarq Chairman and CEO Dan Hesse detailed at VON on Tuesday a different strategy with the PC or media server as the central distribution point in the home.

“The PC is the heart of our business in the home going forward,” said Hesse. “So we created a portal, which creates our fifth business - advertising - as Google pays us when one of our customers searches on their site.”

Part of the impetus for this approach is Embarq’s interest in building its wireline business. “We’ve been losing share to standalone wireless companies and need to move usage in the home back onto wireline networks,” explained the head of the local Telco and former top dog at AT&T Wireless.

Embarq’s plan actually addresses four screens: traditional TV, mobile devices (which includes non-wireless Apple iPods), the Internet and the home phone. “Pretty much nothing has happened in home phones in 25 years. The home phone is not a digital screen, nor a digital device, but we believe it will be going forward,” said Hesse.

The telco sees its home media experience as more of a consumer electronics play. “Apple gets it. They have the iMac as the center of the universe. They have the iPod and iTunes where folks operate in a walled garden with tall walls. But, they give that up for simplicity.”

Hesse doesn’t consider iPods as wireless devices as they are side loaded.

Nonetheless, saying viewers want the freedom of time and space, Hesse said Embarq’s strategy is to be able to offer all four screens, in part through relationships with EchoStar and DISH Networks.

The telco has already begun to leverage the popularity of wireless by linking the wireless phone and its in-home counterpart. One service feature creates a single voice mail capability spanning all phones, according to Hesse. “Soon you’ll be able to switch between wireless and office networks,” he vowed without providing details.

Embarq believes its increasing focus on residential services it the way to go. “People work at home and shop at work,” noted Hesse. “Online has started changing business model. It’s driving pricing parity between businesses and consumers.”

Apple Inc. www.apple.com
AT&T Inc. www.att.com
DISH Networks www.echostar.com
Embarq www.embarq.com

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