newsday.com/technology/orl-biz-etan-horowitz-technology-031409,0,908590.column

U-verse serves up stiff competition for region's cable customers

Etan Horowitz
Orlando Sentinel

March 14, 2009



It's been three months since AT&T launched its U-verse TV and Internet 
service in Central Florida, so it's a good time to examine how serious 
competition for our home entertainment dollars has changed the landscape.

Before we delve into that, a word about availability. AT&T has 
consistently refused to say where U-verse is available because of 
competitive reasons.

"We're turning up new areas as quickly as we can, and we cannot provide 
specifics as our cable competitors would love for us to say exactly when 
and where we plan to launch," said AT&T spokeswoman Gretchen Schultz.

That may be true, but potential customers would also love to know where 
U-verse is available, and AT&T runs the risk of those customers losing 
interest if they continue to call in and be told the service isn't 
available.

Since AT&T won't provide U-verse's footprint, I created an online map on 
my blog and invited readers who can get U-verse to tell us where they 
live. So far we know that U-verse is available in parts of Hunter's 
Creek, east Orange County, Azalea Park, Conway, College Park, Oviedo, 
Winter Springs, Sanford and Lake Mary. To see the map, go to 
OrlandoSentinel.com/Uversemap

Schultz did say the number of households capable of receiving U-verse 
has more than doubled since launch. U-verse will only be available in 
areas that can receive AT&T land-line service, which includes parts of 
Orange, Seminole, Brevard and Volusia counties.

Representatives of both Bright House and U-verse said they welcome the 
competition because it will ultimately benefit the customers. And 
although neither side would reveal what it has done to respond to the 
competition, there have been a lot of positive developments, including:

•Bright House finally adds Fox Sports Florida to its lineup. For more 
than a year, Bright House customers could not watch many Orlando Magic 
games because of a standoff between the cable company and Fox Sports 
Florida over the placement of the channel in Bright House's lineup. The 
negotiations stretched over two Magic seasons and despite protests from 
fans, the channel remained unavailable. Then, a few weeks after U-verse 
launched (with Fox Sports Florida), a deal was struck to bring the 
channel to Bright House. There's no way to know exactly what finally 
caused this to happen, but the threat of losing customers to a new 
competitor couldn't have hurt. It will be interesting to see how the 
next dispute like this plays out.

•More high-definition channels. When U-verse launched, it offered 92 HD 
channels while Bright House offered 37. Since then, U-verse has added 11 
more for a total of 103 and Bright House has added 11 more for a total 
of 48. Although Bright House has half as many HD channels as U-verse, 
the company promises to reach 100 HD channels by the end of the year.

•Bright House adds more on-demand shows and movies. In the past few 
months, Bright House has added more on-demand movies and TV shows. This 
week, the company announced that you can now watch full episodes of 
prime-time shows from NBC, CBS, FX and other networks for free.

•More promotions and specials to win your business. When you threaten to 
cancel your service with a company that's the only game in town, that 
company doesn't have as much incentive to try and change your mind. But 
when there's another company you can go to, things change.

A colleague told me that when he called Bright House to cancel his 
digital phone service because the rate had gone up, the representative 
offered to give him the rate he had been paying for an additional year. 
So he stuck with Bright House. Although U-verse is not yet offering 
Internet phone service, they will soon, so perhaps the offer was 
recognition of that.

U-verse is offering new customers a $200 rebate as well as free 
high-definition service (it normally costs $10 a month) for one year. 
Bottom line: you should take a "what are you going to do for me" 
attitude with these companies when you are thinking of dropping one for 
the other. The same goes for satellite-TV providers.

Sadly, though, the increased competition hasn't lowered prices. In fact, 
both providers have raised their rates.

The Bright House increases, which went into effect earlier this month, 
increased standard cable service from $52.99 to $55.49 a month. The 
bills for digital-cable subscribers rose from $59.99 to $63.49.

In February, U-verse increased the monthly fee for having service on 
additional TVs from $5 to $7 and raised the rates on several other plans 
by $5 a month.

For those of you hoping for a price war, keep on dreaming.

----------------
Etan Horowitz can be reached at [email protected] or 
407-420-5447. To read his technology blog, visit 
OrlandoSentinel.com/techblog.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

***********************************
* POST TO [email protected] *
***********************************

Medianews mailing list
[email protected]
http://lists.etskywarn.net/mailman/listinfo/medianews

Reply via email to