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Wireless Connection Still Not a Serious Fixed line Competition
AT&T and Verizon have made no secret of their interest in using fifth-generation wireless connection as a fixed line broadband replacement as DSL customers are hung up on by both firms they do not need to update. But a fresh report by research company Strategy Analytics asserts that for now, wireless broadband just is not seriously challenging fixed line alternatives, particularly from cable.
As we have noted, phone companies are being completely dominated by cable when it comes to fixed line broadband, cable adding 99% of the net broadband improvements seen in the first quarter. That is thanks in part to AT&T and Verizon’s unwillingness to update DSL customers, and deliberate attempt to drive a few of these users away with cost increases despite last-generation speeds.
The trouble with that investigation is that outside of Boston, Verizon’s fiber growths are all but immobilized. And while AT&T is definitely making lots of advertising noise about its “Electricity” Uverse gigabit fiber growths, we have noted these installations are significantly more sound than fury, concentrated mostly (with a couple exceptions like North Carolina) on housing developments and college campuses. And while that growth will reach millions, the bulk of AT&T customers will stay on last-gen speeds for the greater part of this decade.
Allowed 5G radio could let AT&T and Verizon and cable broadband compete, but with the standard serious deployment will not be until 2020 or later. And given AT&T and Verizon’s inclination toward premium pricing and use limitations on wireless, it is not all that likely that these services will be viewed as a real option.
The reality is that should 5G technology be an excellent option to rigid service, the wireless and cable businesses will probably work to prevent competing on cost, much as we have seen throughout the DSL/cable duopoly age.
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