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Welcome to Faulkner's Telecom Daily. We publish Monday through Friday, updating top stories
as events warrant. If you would like to receive Telecom Daily emailed
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Friday, May 9...
Comcast Considering Bandwidth Limits
Comcast confirmed that it is
considering setting an official limit on the amount of data that
subscribers can download per month and charging a fee for those who go
over the limit. Prior to this, Comcast has refused to reveal any limit on downloads,
although it classified some users as abusive to the network. Comcast, in
the past, called customers who used considerably more bandwidth than an average
customer and asked them to reduce the downloads or have their account
canceled. Comcast has been trying to figure out how to handle massive
downloads as multimedia files become more popular, including movies, TV
shows, and music. Comcast describes excessive users as those who send, for
instance, 40 million emails or download 50,000 songs per month. One option
being considered is to cap bandwidth usage at 250 GBs per month. If the
250 GBs is allotted for just downloads, it would allow for the download of
50 high-definition movies, 250 standard-definition movies, or more than
6,000 songs every month. If users exceed that cap, they could be charged
$15 USD for every 10 GBs over the base amount.
T-Mobile Tops 30 Million Subscribers, Profit Increased in
1st Quarter
T-Mobile USA, the Deutsche
Telekom US subsidiary that is the fourth- largest US mobile network operator, added 981,000 new customers in the first quarter. Customer churn rate was reduced from 1.8 percent to 1.7 percent. The subscriber gain coupled with the 1.1 million subscribers gained through the acquisition of SunCom gave T-Mobile a total of 30.8 million subscribers at the end of March. First quarter service revenues increased14.5 percent to $4.57 billion USD from $3.99 billion USD in the same quarter last year. Net income increased 46.7 percent to $462 million from $315 million last year.
Cablevision to Build Wireless
Broadband Network in New York
Cablevision Systems announced
that it plans to spend $350 million USD to build a wireless
broadband network to serve its subscribers in the New
York area. COO Tom Rutledge said that the network, which will be
completed within the next two years, will be accessible via Wi-Fi-enabled
portable devices such as iPhones
and laptops. The network will be accessible for free to existing customers
but as average customer revenues and cash flows rise, the company would
benefit by offering a more comprehensive service for customers, which
would help to lure new customers and retain existing ones. Cablevision
said it has been testing the service, which will have speeds up to 1.5M
bps, comparable to traditional wireless networks, in small areas across
its 3.1 million customer base.
Vonage Posts Record Quarterly Revenue, Lower Losses
Vonage reported that first
quarter revenue increased 14.6 percent to $224.6 million USD from $195.9
million USD in the same quarter last year. Net loss fell to $8.96 million,
or $0.06 per share, compared to a loss of $72.3 million, or $0.47 per
share, last year. Vonage said that the revenue was a quarterly record, and
it came about due to the addition of 30,000 subscribers and an increase in
average monthly revenue per line to $28.85 from $28.31 last year. The
subscriber additions was down sharply from the 166,000 that were added in
the first quarter last year. Vonage
said that it had a total of 2.6 million subscribers at the end of the
quarter.
Harris Considering Sale of Company: WSJ
The Wall Street Journal reported that Harris
has begun exploring its strategic options, which could lead to an eventual
sale of the company. Harris, with a market capitalization of $7.3 billion
USD, only recently began the process and could decide against a sale. The company is expected to receive interest from a number of defense and general industrial
companies, likely to include Raytheon,
BAE Systems, and Northrop Grumman.
Harris' stock performance has doubled that of the S&P 500 Index in the
past five years, gaining nearly 285 percent since September 11th,
primarily benefiting from the wars in Iraq and Afghanistan. Harris may be
considering the move because it believes that defense spending is about to
decline, but the company could appeal to buyers with its mix of
communications and surveillance equipment. Harris employs 16,000 and
markets products in about 150 countries.
....
Russ
Drumheller, Faulkner
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