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AT&T talks merger with DirecTV

Discussion in 'TiVo Coffee House - TiVo Discussion' started by Johncv, May 1, 2014.

  1. tarheelblue32

    tarheelblue32 Active Member

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    The really sad thing is that AT&T is more than willing to sell you the more expensive U-verse internet speeds even though it is physically impossible for you to actually receive those speeds. Most customers never know the difference because they never run a speed test.
     
  2. Dan203

    Dan203 Super Moderator Staff Member TCF Club

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    Yeah with VDSL the speeds drop quickly as wire length increases.The truly fast speeds require less then 1000'. Most people are further and can only get 25Mbps at best.
     
  3. tarheelblue32

    tarheelblue32 Active Member

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    My house is about 2600' from the VRAD, so U-verse is a non-starter for me. With the tall trees surrounding my house, I couldn't even get satellite if I wanted it. My choices are Time Warner Cable or nothing. My only hope is that Google Fiber will one day come to my doorstep somewhere around the time that CableCards are completely phased out. If I ever have to go back to Time Warner's cable boxes I think I may have to shoot myself.
     
  4. Dan203

    Dan203 Super Moderator Staff Member TCF Club

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    I'm stuck with cable too. Around here AT&T DSL is only 6Mbps so cable is the only option for decent internet speeds.
     
  5. MikeAndrews

    MikeAndrews Registered abuser

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    Ya think so? The installer runs a speed test and will tell you if you can't get that level of service. NO customers ever run a speed test?
     
  6. Bigg

    Bigg Active Member

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    They absolutely have the money to do it, they just don't have the will to actually spend the money. That's the reason they didn't just do fiber in the first place.

    They don't want to lose a big market that they have worked hard to build up. They also can offer a larger, and more localized channel selection on U-Verse than they can on DirecTV. The only situation I could see them pushing people over is people who want faster internet packages.

    They actually both sell TV to a really good percentage of their total subscriber base. FIOS internet-only is priced so insanely that DirecTV and DISH subs are more likely to either go with slow DSL or get cable for internet, as the de-bundling penalty is far smaller than with FIOS.

    FIOS is expensive to build out, but it's MUCH cheaper to maintain than the mess of copper that AT&T has built up. If you drive from a U-Verse area to a FIOS area (near me there are both, in what amounts to the same city that's 3/4 in one state, and 1/4 in another), and you notice that Verizon has a small fraction of the amount of copper up on the poles that AT&T does. It looks to me like they've added more to support U-Verse, although at best, they haven't taken anything down since the days of virtually every house having two phones lines. Verizon's combined FIOS and copper lines are FAR smaller than AT&T's mess of copper.

    That is great for some MDUs that have deal with DirecTV, or where they allow individual dishes, like one that I used to live in. It doesn't help for a lot of others, where AT&T already have the right to be in the building as the incumbent telco, and if they really wanted to make big moves, could put a VRAD immediately near the complex to get fiber as close as possible.

    Some wooded areas can get dishes installed, some can't. Ironically, here in CT, we have big problem with DirecTV because of how low 119 is, how far north we are, and how many trees we have, and AT&T is trying to sell us off to Frontier.

    The dishes being ugly thing is a fictitious pile of BS, but there are a LOT of people who subscribe to it, and have an irrational fear of pizza-size dishes. There is no way to get over this irrational behavior because it's irrational. Also, while no HOA or covenant can ban dishes smaller than 1 meter, many people don't know their federally protected rights under OTARD.

    Hmmm, I didn't know that. They could increase the HD lineup and start doing 4K and other stuff with all that extra capacity. U-Verse has an incredible lineup now due to the IPTV technology, albeit missing AJAM for no apparent reason, but it doesn't have the bandwidth for better quality HD or 4k.

    Exactly. That concept makes absolutely no sense. The VRADs have fiber running to them, and dishes wouldn't work on so many levels!

    They may do that for customers who want more internet speed, although with QoS, they can do both with U-Verse, and the internet just slows down a bit while watching TV like it does now.
     
  7. Johncv

    Johncv Active Member

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    Woman, you know your stuff. :up::up::up: Do you work in this industry, if so what do you do. More important is where in god good earth do find the time to edit this at 5:23am. :eek:
     
  8. trip1eX

    trip1eX Active Member

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    Laying fiber is no guarantee of profit. Verizon did FttH and they stopped expanding too. ATT and VZ need to make sure they can cover their debt. And since VZ, at least, has had ftth in many areas for many years now I think they have a good idea of their returns.

    I don't see why they wouldn't have the will to spend the money to deploy more ftth if the returns were decent.
     
  9. Johncv

    Johncv Active Member

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    AT&T's Stephens: DirecTV deal will create synergies in set-top boxes, advertising and content

    Read more: AT&T's Stephens: DirecTV deal will create synergies in set-top boxes, advertising and content - FierceCable http://www.fiercecable.com/story/at...op-boxes-advertising/2014-05-21#ixzz32OnaSr00
    Subscribe at FierceCable

    Have to vent: "Stephens didn't provide specifics about the video product that AT&T is envisioning, but said that the company would try to take the best of AT&T's U-verse product and DirecTV's satellite product and create an offering that makes both products better."

    Really, crappy1 + crappy2 = crapper3 as far as I am concern. Why can't the stupid people in charge just use TiVo? Both AT&T and DriectTV are paying TiVo now. Hell I would pay them more money to use a TiVo Roamio. End vent. :mad:
     
  10. tarheelblue32

    tarheelblue32 Active Member

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    AT&T and Verizon are both making tons of money off of wireless. There is no reason why they can't use the profits from wireless to subsidize the buildout of FTTH. FTTH does have a good projected return on capital, it's just the returns are over 50+ years, and neither company seems willing to wait past the next quarter.
     
  11. moedaman

    moedaman New Member

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    And this is the exact reason why both ATT and Verizon quit expansion of those networks. Wireless offers higher margins, less regulation, less infrastructure maintenance and a non-union workforce. All wins in the their eyes. Neither one is going to dump wireless profits into fiber unless they have to.
    Everyone needs to remember that stock options are a large part of CEO compensation. Rising stock prices and dividends, while important to all shareholders, are extra important to upper executives who aren't going to be there in 50+ years. Once they get paid and retire, they couldn't care less if that company sticks around that long. Until stock options are removed from the equation of compensation, short-term thinking won't go away.
     
  12. murgatroyd

    murgatroyd Don't stop believin'

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    AT&T is more than willing to sell you U-verse whether it is physically possible for you to get it or not. So I'm not surprised.
     
  13. randian

    randian Member

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    How much does it cost per subscriber? I wonder exactly what they mean by "returns aren't there".
     
  14. trip1eX

    trip1eX Active Member

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    Well if you borrow $1 million to buy a McDonalds and you only get back $10k every year you probably won't be taking out another loan to buy a second McDs anytime soon. Your return wouldn't be there.

    But if you made $100k a year from your $1 million investment then its like well maybe I should buy another.

    I can't see another reason except wireless why they wouldn't continue the build out. Everything I remember reading,from the very beginning of VZ's buildout, always mentioned concern about VZ never making back the initial investment or it taking too long.
     
  15. trip1eX

    trip1eX Active Member

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    good projected returns on capital don't mean waiting 50+ years.
     
  16. tarheelblue32

    tarheelblue32 Active Member

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    So I guess that means I should quit my long-term investing and just switch to day trading.
     
  17. slowbiscuit

    slowbiscuit FUBAR

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    Not following how DirecTV has a crappy TV product, they arguably have the best pic quality and channel selection. You can quibble about whether their Genie DVR setup is crappy or not compared to Tivo, but D* is far superior to U-Verse for example.
     
  18. MikeAndrews

    MikeAndrews Registered abuser

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    Yeah, lord knows why AT&T spent $6 billion over 3 years to build out U-Verse.
     
  19. Diana Collins

    Diana Collins Well-Known Member TCF Club

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    Thanks! I'm not in this industry (I work in enterprise software sales) but I have been around for quite a while. I was a moderator on DBSDish.com, the first satellite TV site back in the 90's, then started a new site with the DBSDish founder called DBSForums that I ran for several years. We switched from Dish Network to DirecTV in 2001 specifically to get the Series 1 DirecTivos. At one point we had 5 Series 2 DirecTivos running, all with dual drives and hacked to support MRV and running TivoWeb Plus.

    Oh, and I'm on the east coast, so it was 8:23am for me. :)
     
  20. trip1eX

    trip1eX Active Member

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    Well if that's your conclusion then you might want to quit investing.
     

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