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The rise of AT&T and Verizon in the TV/Internet market at the expense of DirecTV (DTV -0.2%) and...

The rise of AT&T and Verizon in the TV/Internet market at the expense of DirecTV (DTV -0.2%) and Dish Network (DISH +0.8%) increases the odds the two satellite players merge. Not only does a DISH-DTV deal appear more likely to clear regulatory hurdles now, by the numbers it makes more sense than ever. Another point to consider, Dish Network CEO Charlie Ergen wasn't exactly shy about the topic on his company's earnings call.
Comments (3)
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    I have been seeing this move into streaming and away from cable/satellite for some time. I think that the biggest mistake that both Dish and DireTV made was not getting themselves in some form on the internet.

     

    I think the biggest single holdup now in consumers making a mass switch is the poor state of the US in FIOS high speed internet hookups. Just one example: "By the end of this year, South Koreans will have access to Internet speeds that are more than 200 times faster than what most Americans have, and they can have it for just $27 a month, or slightly more than half the average price Americans pay."

     

    Over 85% of Koreans have access at bandwitdths that exceed 10 gigabytes per second, the US is something like 6%.

     

    Did not Obama promise a "Great Leap Forward" in broadband in 2008?

     

    Of course one problem is the definition of "broadband". A few years ago it was anything better than 19,200 baud - but now with XHD movies and tons of other stuff that needs high speed, I think that only 4 gigs per second should qualify (which leaves out most DSL and cable).
    9 Nov 2012, 12:43 PM Reply Like
  • LST
    , contributor
    Comments (40) | Send Message
     
    I'm curios. Aren't CATV broad band speeds significantly faster than DSL, and T's U verse service? Only VZ's FiOS service, which is fiber to the home, vs T's fiber to the node, is equal to what CATV offers. And since it does not make economic sense to for VZ to roll out FiOS across its entire footprint, then in the end telcos will lose out to CATV. I see DTV and Dish surviving separately, or as one, in this environment because eventually CATV companies may start selling more aggressively, I think a couple already do, stand alone broadband services. I believe that the broadband piece of the triple play bundle has the highest margin. So I'm seeing a world where telcos slowly shrink, CATV grows, and satellite has place.
    9 Nov 2012, 04:03 PM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    In theory, CATV is faster. In practice, not so much. I used to have Cox cable, which was labeled to "internet speeds as high as 5 mbs". And that was true - part of the time. But in prime viewing hours, like from around 5PM to 11PM I saw actual throughput drop to as low as .9 gps and was commonly in the 1 to 1.5 gps range. The only time I saw higher than 4 mbs was around 4AM. Typical DSL is in the 1 to 2.5 gps range.

     

    Pretty much, until FIOS is much more widespread, most people are not going to be watching XHD streaming movies.
    10 Nov 2012, 11:42 AM Reply Like
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