Thursday, May 19, 2011

AT&T' U-verse Build Virtually Over

AT&T is scheduled to reach 30 million U-verse homes passed by the end of the year with their U-Verse service, or roughly 55 percent to 60 percent of homes.

AT&T President John Stankey now suggests that is about the limit of AT&T's intentions for U-verse. He suggested that 25 percent to 30 percent of AT&T homes will continue to use ADSL and that 20 percent of homes are "not a heavy emphasis for investment."

Those figures illustrate a couple of important strategic considerations. AT&T serves many lower-density customers where a fiber-to-neighborhood approach does not provide an adequate return on the investment.

That doesn't necessarily mean AT&T cannot provide higher bandwidth using other platforms. As often is the case in developing regions, wireless can make the most sense.

But that also suggests why, over the long term, it remains likely that satellite video providers might wind up being the preferred linear video delivery channel, irrespective of whether either or both leading U.S. providers wind up as actual parts of either AT&T or Verizon.

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