* David Krantz, AT&T's Vice President for business development, discusses the company's broadband goal
Last week, AT&T announced it was expanding its broadband portfolio in the United States to include satellite-based and WiMAX-based broadband access. The announcement was made by Ed Whitacre Jr., the company’s Chairman and CEO.
Following the announcement, we had the chance to talk with David Krantz, AT&T’s Vice President for business development. Krantz said that while the company’s goal is to offer 100% broadband access in their 13-state regional service areas, the economics don’t always make wireline technologies like DSL a viable option. He said, “Broadband has almost become like any other utility – people expect it to be available regardless of where they live.”
The company will offer satellite based services through an agreement with WildBlue, to customers in AT&T’s 13-state local service areas where AT&T DSL service is not available. Speeds available will include a 512K downstream and 128K upstream for $49.95, a 1M downstream and 200K upstream for $69.95, and a 1.5M downstream and 256K upstream for $79.95.
The WiMAX-based broadband services are currently in market and technology trial, and the company is offering speeds up to 1.5M for $39.95 up to 3M for $69.95. Krantz noted the actual speeds may vary depending on proximity to the WiMAX transceivers and other environmental factors.
Krantz also noted that while these services are not targeted to enterprises (by including a business-grade class of service) he expects some businesses will prefer the wireless approach to Internet access over the option of using dial-up. He also noted these services aren’t currently eligible for double-play or triple-play discounts.
While the company’s cost per bit transmitted is more expensive than their traditional DSL services, in our estimate even a satellite-based feed (with all its inherent propagation delays) is still a better deal than dial-up connections. And since the USA ranks No. 12 among developed countries for broadband access, we believe AT&T’s endorsement of wireless technologies to expand broadband coverage is a step in the right direction. After all, broadband access is not only a “utility” – it is also a prerequisite for most converged services.
