AT&T promises IPTV to low income residents

By Marguerite Reardon
News.com

http://news.com.com/AT38T+promises+IPTV+to+low+income+residents/2100-1034_3-6070272.html

Story last modified Tue May 09 13:01:33 PDT 2006



AT&T said it will serve 5.5 million low income households as part of its 
initial deployment of Internet-based TV services.

Speaking at the Detroit Economic Club on Monday, AT&T Chief Executive 
Edward Whitacre said the company plans to spend $4.6 billion through 2008 
on Project Lightspeed. Project Lightspeed is a new network AT&T is building 
to further extend fiber optic cabling into neighborhoods to allow more 
bandwidth to carry services such as IPTV. Whitacre said that within the 
next three years the network will reach 19 million homes, of which 5.5 
million will be low income.

AT&T and Verizon are upgrading their networks to offer TV service to 
compete directly with cable companies, which have already begun offering 
phone service. To speed up their deployments, AT&T and Verizon have been 
lobbying local, state and federal lawmakers to change franchise laws to let 
them enter new markets more quickly. But cable operators have fought back 
by accusing the phone giants of targeting wealthier neighborhoods as they 
upgrade networks, leaving poorer neighborhoods without access to new services.

AT&T's promise to address low-income communities should help quell these 
accusations, the company hopes.

"The company is affirming (its) commitment to assure the public that all 
income levels--including low income households--have early access as this 
cutting-edge technology is deployed," AT&T said in a press release.

While Verizon is offering TV service to communities in several states, 
including Florida, Texas, Massachusetts and Virginia, AT&T is just starting 
to roll out its IPTV service. So far, only a few neighborhoods in San 
Antonio, Texas, can get the service. A wider deployment is planned for 
later this year.

Whitacre also said AT&T announced initiatives that will help rural 
customers to access high-speed services. In areas where its DSL network and 
Project Lightspeed will not reach, Whitacre announced, AT&T will resell 
satellite broadband from WildBlue Communications in some regions starting 
in June.

WildBlue's service is much more expensive than AT&T's DSL service. It 
starts at about $50 a month for a download speed of 512 kilobits per 
second, and for 1.5Mbps downloads, the price is $80 a month. By contrast, 
AT&T offers a promotional price on its 1.5Mbps service of $12.99 for the 
first year of service.

Whitacre also said AT&T is testing wireless technology that could help 
rural customers get high-speed Internet access. Specifically, AT&T plans to 
deploy trials of fixed WiMax technology in Texas and Nevada. BellSouth, 
which will soon be acquired by AT&T, is already using WiMax in parts of 
Florida, Georgia, Louisiana and Mississippi.

WiMax is a radio frequency technology that promises to deliver two-way 
Internet access at speeds of up to 75Mbps. Its backers claim WiMax can 
transmit data up to 30 miles between broadcast towers and can blanket areas 
of more than a mile in radius.


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



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