Tuesday, April 07, 2009

"Cox builds Internet speed"

This morning's Advocate weighs in with an interesting view of Cox's new 5o mbps down/5 mbps up service. The report focuses on the reactions from most of the principals including Cox, EATel and AT&T but oddly excluding a direct reaction from LUS.

The article makes it clear that while Cox denies any direct influence, (apparently the local folks are making that mistake after all) knowing that LUS Fiber is offering a 50/50 mbps fiber-based internet service is the key to understanding why Cox would debut its new flagship service in such a small market.

The gist of the story as far as LUS vs. Cox is concerned is contained in the following paragraphs:
The introductory price of Cox’s “Ultimate” Internet service in Lafayette is $89.99 per month, plus $99.95 for the required modem and an installation fee that will vary by customer, according to information from Cox.

The company has set the standard suggested price for the service at $139.99 a month.

That price is comparable to similar offerings by Verizon and Comcast, though those companies generally provide their top-tier Internet services only in large markets.

LUS Fiber is selling its premium service of 50 Mbps download and upload for $57.95, with no additional cost for installation or equipment.

LUS Fiber customers can exchange information with others on the local fiber network at 100 Mbps.

The 50 Mbps residential Internet service options in Lafayette Parish are unique in the state.
The larger story is that competition is good: Lafayette has two 50 mbps providers, one with real symmetrical service and the rest of the state has NO such providers. The rest of the country will get this service, when Cox gets around to it, for 1 1/2 times as much, 50 bucks a month more...and it looks like the installation fee locally will "vary by customer" instead of being the 99 dollar pro install that others will uniformly pay. My guess is that, more precisely, the installation fee will vary by customer location...if you live in Lafayette and want this then tell Cox that you don't want to pay for installation—after all the competition, LUS, isn't charging for it. :-) Cox will probably be happy to put you on the hook for only the 100 dollar modem that you will have to dump when LUS gets to you. Like I said: Competition is good.

Reports from other providers flesh out the local and regional competitive picture. AT&T gets pitifully aggressively vague:
AT&T is preparing to launch its U-verse package in the Baton Rouge market with download speeds of 18 Mbps and upload speeds of 1.5 Mbps, AT&T spokeswoman Sue Sperry said.

Sperry said she could not give a specific timeline for Baton Rouge or plans for other markets...
AT&T will be a third run competitor in the city of Lafayette's already competitive market. Since Cox is battling LUS's full 50 meg offering with the best it can muster for the lowest price it can muster AT&T will surely be shut out of the city broadband market. It is hard to imagine that they see much upside to the costs of upgrading in-city only to remain in third place. What AT&T has on its side is wireless mobility — but both Cox and LUS have plans to minimize that strong point.

EATel in East Ascension and Livingston parish is a privately owned rural telephone company that has rolled out a FTTH project in some of the fastest growing parishes in the country.
A pocket of 30 Mbps service is offered in portions of Ascension and Livingston parishes by EATEL, a privately owned communication company that launched its own fiber-optic system in 2005.

The company charges $99.95 per month for download speeds of 30 Mbps and upload speeds of 15 Mbps, with $20 shaved off if Internet is bundled with phone and video, EATEL Sales and Marketing Director Brad Supple said.

He said EATEL’s fiber-optic system still has much capacity to offer faster service in the future.
EATel is running a very aggressive billboard campaign in its footprint. But has yet to elicit cheaper new services for its customers.

Finally, the Adovcate story makes sure its Baton Rouge readers understand the pickle they're in:
In Baton Rouge, Cox’s top-tier Internet service provides standard download speeds of up to 15 Mbps — with boosts of up to 20 Mbps — and upload speeds of 1.5 Mbps.
What the reporter neglects to mention is that AT&T back in March of 08, while it was successfully hoodwinking the state legislature in to passing an industry-sponsored bill to set up state-wide video franchising in Louisiana took the capital city off the table as a player by cutting a separate deal to offer the capital city many of the priviledges it was insisting that other city's not receive. At the time LPF insisted that this was a ploy and that AT&T was likely to treat Lousiana, and Baton Rouge, exactly as it had treated North Carolina where a similar successful move to infringe on the property rights of communities had lead to exactly NO new service launches by the incumbent AT&T. But the law had helped get a long, long list of cable providers off the hook to the communities whose land they use to provide cable services. AT&T has yet to launch any new services in our state and any it eventually launches in Baton Rouge will be, at best, second rate.

Competition, where you get it, is good. And in our state competition that boosts services and reduces prices has ONLY come from a municipality, a local government. State laws that gift the private duopolists with further privileges have had exactly no beneficial effect. It is never smart to feed the bully. And it's always a good idea to do it for yourself.

2 comments:

Anonymous said...

keep the stories coming man. i enjoy reading your posts! i cant wait until i can get fiber!

Peter Collins said...

Keep putting out the truth, John!

Regards,

Pete