BellSouth's IPTV strategy may pay off

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between 20mbps to 25mbps," said Buckingham Research's Hasan. "If BellSouth can't get bonding to deliver these data rates, they won't be able to compete as effectively."

To its credit, that early start on fiber optics has allowed BellSouth to avoid a costly, speedy upgrade of its network. By comparison, SBC and Verizon have announced multibillion-dollar initiatives to upgrade their networks with fiber-optic cables, which they also plan to use to deliver TV service. With optical transmission technologies, a single strand of fiber can provide nearly infinite amounts of bandwidth.

"We want to make sure that the IPTV technology really works, and we need to make sure the business model works too."

--Michael Bowling, vp of broadband services, BellSouth

In January, BellSouth announced plans to test Microsoft's IPTV software, which is also being tested by Verizon and SBC. BellSouth execs said that so far testing is going well. A preliminary trial of the service will be launched later this year, said Michael Bowling, vice president of broadband services for BellSouth. BellSouth also has a partnership with DirecTV.

"We want to make sure that the IPTV technology really works," Bowling said. "And we need to make sure the business model works too."

Duane Ackerman, BellSouth's chairman and CEO, said he isn't worried about pulling all the pieces together.

"Historically, BellSouth has maintained a low profile, but we've never been absent from the competitive landscape," Ackerman told reporters after his Supercomm keynote speech Wednesday. "We are currently evaluating all these different technologies. And then we'll decide what to do."

Regulatory issues could be far more vexing. BellSouth's success also hinges on revamping the TV franchising system.

Under current law, new entrants in the television market must negotiate separate franchise agreements with cities and municipalities. Obtaining agreements is not impossible, but phone companies complain that it is a slow and laborious process.

Verizon, which has been lobbying state and federal officials on this topic, has begun filing franchise applications throughout the country. So far, it has successfully negotiated six contracts. SBC hasn't yet begun filing for franchises, because the company has taken the stance that its service, which will be based on IP, does not need a franchise agreement.

BellSouth also has not begun filing for franchise agreements. If new laws either at the state level or in Congress are not passed, the company could find itself years behind competitors.

"BellSouth is in a good position," said Hasan. "But these other factors really need to fall into place for the strategy to pan out."

Bellsouth

Now I understand why Bellsouth services are so despicable. Instead of ironing out their current problems, this company spends their resources in strategizing ways to enter in new markets. Meanwhile, their current customers suffer with lack of knowledgeable and speedy customer services to handle the innumerous and regular outages of Bellsouth services, billing discrepancies, ?special? offers with the intent to trap customers into tricky contracts and the list is long. It seems to me that Bellsouth?s executives would profit more if they spent their expensive time in strategizing ways to fix their current problems and repair their disgraceful reputation as a service provider, instead of inventing new ways to delude consumers into using their despicable services. The level of consumer dissatisfaction with Bellsouth services is way too high for anyone to consider venturing in this company?s new ideas of services. Bellsouth has a shameful credibility in Florida and I personally would never use them no matter how appealing.

BellSouth comment from Christina B.

I absolutely agree with Christina B. regarding to BellSouth services and Customer Service Reps. Their policy is unfair, if not illegal to the residents of Florida.

I have been charged almost $2,000 in calls not made from my phone number, so I've disputed the charges and asked BellSouth to try identify from where the phone calls were made.

No acknowlegment or contact was made regarding my claims and BellSouth is still sending me the same letter over and over, asking me if I have to dispute the charges it should have to be made in a thirty day period, which it was.

I always respond their letter disputing the charges. They simply ignore me. I even told them if I would receive a proof that the charges belong to me, I would pay it. No response except for the same standard letter.

You need competion BellSouth, so you can start to care about your current customers and fight for their business. Gina C.

Bellsouth

Now I understand why Bellsouth services are so despicable. Instead of ironing out their current problems, this company spends their resources in strategizing ways to enter in new markets. Meanwhile, their current customers suffer with lack of knowledgeable and speedy customer services to handle the innumerous and regular outages of Bellsouth services, billing discrepancies, ?special? offers with the intent to trap customers into tricky contracts and the list is long. It seems to me that Bellsouth?s executives would profit more if they spent their expensive time in strategizing ways to fix their current problems and repair their disgraceful reputation as a service provider, instead of inventing new ways to delude consumers into using their despicable services. The level of consumer dissatisfaction with Bellsouth services is way too high for anyone to consider venturing in this company?s new ideas of services. Bellsouth has a shameful credibility in Florida and I personally would never use them no matter how appealing.

BellSouth comment from Christina B.

I absolutely agree with Christina B. regarding to BellSouth services and Customer Service Reps. Their policy is unfair, if not illegal to the residents of Florida.

I have been charged almost $2,000 in calls not made from my phone number, so I've disputed the charges and asked BellSouth to try identify from where the phone calls were made.

No acknowlegment or contact was made regarding my claims and BellSouth is still sending me the same letter over and over, asking me if I have to dispute the charges it should have to be made in a thirty day period, which it was.

I always respond their letter disputing the charges. They simply ignore me. I even told them if I would receive a proof that the charges belong to me, I would pay it. No response except for the same standard letter.

You need competion BellSouth, so you can start to care about your current customers and fight for their business. Gina C.

[jacomo]

Fiber to the Node will not float

BS did not take a risk when they elected to deploy fiber. What they did was simple and logical at the time. They already had copper to their homes and all they needed to do was extend fiber to the neighborhood and terminate on a DSLAM and tap into existing copper.This was a low cost alternative to what was really risky in Fiber to the Premise.
The risk they took and which will bite them big time in the next few years is :
1.betting that they can deliver 100Mbps plus over copper. The real world 30-40 Mbps max they will realize will not be enough to compete with Fiber to the Premise and future WiMAX based products.
2.Even more important that that and apparently under the analysts radar is the high OPEX cost of supporting Node based Electronics vs a PON infrastructure deployed in FTT Premise.

Watch what they end up doing in Greenfield deployments. I will bet they will end up going with FTTPremise either directly with Ethernet or with a PON (GPON) system.

OPEX folks is where it is at if these boys want to compete with the MSO who have minimal OPEX to deliver their Voice and VOD services.

Let's get soem analysts to really look into this and report back some real facts.
What si the cost of OPEX ona FTTNode vs FTTPremise over a 7 year period.

Jacomo
Jacomo

You sound pretty knowledgeable, but...

If and WHEN they need to convert to FTTP, it will be magnitudes cheaper than it is now. They will have other carriers, namely Verizon, to thank for that.

I think that they will go with a WIMAX solution before they dig for FTTP. It will be alot cheaper and easier to maintain and support.

[jacomo]

Fiber to the Node will not float

BS did not take a risk when they elected to deploy fiber. What they did was simple and logical at the time. They already had copper to their homes and all they needed to do was extend fiber to the neighborhood and terminate on a DSLAM and tap into existing copper.This was a low cost alternative to what was really risky in Fiber to the Premise.
The risk they took and which will bite them big time in the next few years is :
1.betting that they can deliver 100Mbps plus over copper. The real world 30-40 Mbps max they will realize will not be enough to compete with Fiber to the Premise and future WiMAX based products.
2.Even more important that that and apparently under the analysts radar is the high OPEX cost of supporting Node based Electronics vs a PON infrastructure deployed in FTT Premise.

Watch what they end up doing in Greenfield deployments. I will bet they will end up going with FTTPremise either directly with Ethernet or with a PON (GPON) system.

OPEX folks is where it is at if these boys want to compete with the MSO who have minimal OPEX to deliver their Voice and VOD services.

Let's get soem analysts to really look into this and report back some real facts.
What si the cost of OPEX ona FTTNode vs FTTPremise over a 7 year period.

Jacomo
Jacomo

You sound pretty knowledgeable, but...

If and WHEN they need to convert to FTTP, it will be magnitudes cheaper than it is now. They will have other carriers, namely Verizon, to thank for that.

I think that they will go with a WIMAX solution before they dig for FTTP. It will be alot cheaper and easier to maintain and support.