Thursday, July 30, 2009

Investing in a broadband future-plugged-in - FierceTelecom

With all the recent fanfare paid to wireless data and applications alike, one might begin to wonder if the horizon for wired broadband is simply fading to a bleak mural of a yesteryear gone by. Not so, if companies like AT&T and Verizon have a say. New capital investments and a stealth retooling of their operational systems could imply that wireline carriers recognize the strategic value of ownership in the broadband last mile.

Adding new subscribers has proven challenging for most operators, especially in light of a downturn in discretionary spending for services among U.S. domestic households since Q2, 2008. The inflection point in Q1, 2009, however, shows a reversal in consumer behavior as many opt to consolidate services such as cable content, VoIP over TDM wires, and services that ante up better utility of telecom purchases. A positive uptick in momentum for bundling voice and data, along with digital content services, is turning a new corner on just how consumers plan to slog through the recession while staying connected. Clearly, this ebb of stagnate consumerism is different by the way in which consumers value the telecom influence...