Can the Speed and Reach Promises of High Speed Internet Providers be Fulfilled?: [7th Jul 2011]

A study carried out by the Columbia Institute for Tele-information has discovered that US service providers still have a long way to go before they have realized their ambitious plans. The report states that if AT&T and Verizon were to reach their goals for broadband, at least 50 million homes in the US would get speeds of 10Mbps or better in just two years. Both companies also claim they will reach 40% of US households with their TV services. The report also shows that 63% of US households had wired broadband in 2009 and this figure will increase to 69% by 2014. Meanwhile investment in infrastructure will remain flat for the next few years.


New figures from Consumer Reports has found that the average monthly data usage is currently just 500MB per month. For people who are using the new Verizon tiered plans, this sounds like good news, however the reports also states that users of phones which are not data heavy have no option but to buy a 2GB option - even if they use less than 500MB. This is in contrast to T-Mobile and AT&T who both have plans aimed at those who use just 200MB a month. These plans are charged at just $10 and $15. The report also points out that Sprint is the best option for those who use the most data, due to the unlimited email, web, video and texts at just $30 a month. Sprint is the only provider who still offers unlimited data plans.


Verizon have finally released the details of their EVDO and LTE smartphone pricing plans. There are three options available: 2GB of data for $30 a month, 5GB for $50 or 10GB for $80 each month. While the limits may seem generous, any overages are worked out at an expensive $10 per extra GB used. It has been pointed out that while most users are currently easily using less than 1GB each month, with the LTE network, download speeds and times will be improved, making it more likely consumers will watch video. This could easily lead to overages even on 10GB a month.


It has emerged that two resignations at the FCC could lead to delays in the decision about the AT&T and T-Mobile merger and the Lightsquared network application. One seat at the FCC is currently open after the resignation of Meredith Baker who moved to Comcast. Meanwhile Michael Copps will be leaving later this year. This leaves just three commissioners on the FCC panel. Although they could make the decisions themselves, the opposition and public interest in the cases makes it very likely that they will wait until the posts are filled. It has also been pointed out that these staff members all have their own assistants and advisors who will need to come up to speed with FCC rules.


A study by JD Power and Associates has shown that despite the rise of Internet video and TV, just 3% of TV viewers have stopped using the medium to watch their favorite shows. Overall only 6% of young people have turned to Internet TV and just 1% of those aged over 66. Frank Perazzini from the company has claimed that the predictions of the demise of subscription TV services are far fetched at the moment. 52% of people still say they watch TV when it is scheduled to be on. He suggests it will stay this way for at least the next few years. However Netflix has recently seen huge success in the download market.