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AT&T goes after Comcast with digital TV service

Posted Dec 12 2007, 07:13 AM by Kim Peterson
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After years of paying Comcast at least $100 a month for cable and Internet, I can't help but cheer AT&T on these days. The company is going after cable in a big way by aggressively expanding its U-verse digital television service. AT&T said yesterday it wants to have signed up 1 million video customers by the end of next year. And by 2010, the company said, the service will be available to 30 million customers.

Getting there isn't cheap: AT&T is planning to spend about $5 billion this year and next to deploy U-verse, which could cut into 2008 earnings by as much as 14 cents a share. It wants to up its weekly installs from 10,000 to 40,000 by next year.

U-verse's TV signal comes over Internet Protocol through broadband, and you don't need a traditional voice line to use it. The service's advantages include fast channel changing, the ability to record four shows at the same time on a DVR, and a picture-in-picture tool that lets you watch one channel and browse another. You can only watch one HD channel at a time, but AT&T said it will change that in the future.

U-verse is already available in California, Texas, Connecticut and several states in the Midwest. But the service only had 126,000 customers at the end of last quarter.

All this comes as cable stocks are suffering from new subscriber slowdowns, more intense competition and pricing pressures. Comcast had to lower its guidance twice in the past few months, most recently on Dec. 5, when it said cable revenue growth would be 11% in 2007 instead of 12%. And it isn't just Comcast that's hurting. Time Warner Cable and Cablevision have had a tough go this year.

AT&T shares jumped 4% yesterday on other news from the company, most notably a dividend increase to 40 cents and a $15 billion share buyback plan. 

What does this mean for the consumer? More choices, for one, and more features to choose from. I don't expect my monthly bills to drop significantly, but it's nice that the competition is there for people tired of the cable monopoly.

Comments

 

Comcast users please take note .... TELL COMCAST TO CHANGE YOUR SERVICE TO STANDARD BASIC SERVICE and stop paying the premium for Digital Service with the inferior comcast tuner. If you have a DIGITAL TUNER in your new HDTV Set ... STANDARD CABLE still transmits about 60 (at least in my south suburban Chicago Area) digital cable channels in the STANDARD BASIC SERVICE (Some of which are High Def. Tell Comcast to take their box and stuff it. Some of the digital channels actually reside on the same cable and can be received by your Television Directly without the so-called required Comcast Box. Just try it yourself. Disconnect your cable box from your set. reconnect the CABLE directly to your TV .... Have your TV do the channel search and Viola .... just see what you get .. I'm sure you'll be pleasantly surprised.

Having companies compete for your business is great but you must look down the road. As direct satelight did. Great intro package but after a few months the prices doubled or tripled. Plus who wants 50 music channels when you have radios or you can have sirus. Wrap junk around a few good  channels, that is most of the times. Also depends where you live on what chanels are basic and family and so on. Is AT&T going to be any better or are they going to have a lot of junk around a few want to see. I do not need 20 shop at home channels, 50 sports, 30 news or business and then one or two TNN or Discovery ect. But if you upgrade you can have SI-FI, Animal planet TCM ect and next year you will not be able to use and antenna to watch anything unless you have an added box. Why cannot a company let the customer pick 20 or more channels that they want for a basic price and then add a few of the junk channels that noone wants but is there anyway.

Time for cable companies like Comcast to allow us to bundle our own packages for what we truly want and watch.  I could do 10 channels, but have had to pay for many more.  On a per-channel fee, think of the reasonably priced monthly bills we would have, paying for just what we watch!  What a novel idea!  If the cable companies think some channels would suffer because of everyone's individual choices, so be it!  Isn't that what competition is all about?  

I also have dish network and when the wind blows wrong it goes out. I am looking for something different but it will not be cable

I just recently switched from Comcast Cable TV to U-Verse  and bundled my phone, tv and internet service into the U-Verse system.  I am now paying slightly less for all three bundled together than I was paying for the three separate services.  Comcast kept taking away channel offerings in the extended basic package and to get them back would have  cost me more money.  I  now have more channel selections for tv, expanded phone service and faster internet access than I had previously.  Customer service and technical support for my questions has been excellent.

I can not wait to get rid of AT&T. dish service is horrible and so is their customer service.  Not consumer friendly - go through a maize of hit 1 hit 2 etc.  

Your dreaming if you think they'll let you personalize your channel lineup. Comcast will never allow you to pick 10 channels that you want to watch. Why would they? Why would they allow you to pay half or less than half of what you're already paying? The only way that will ever happen is if a new service like this U-Verse, not only does it first, but takes away enough marketshare and leaves them no choice but to do the same to stay competitive. Hopefully this U-Verse service makes it's way to South Florida, Comcast is pretty good but it's just getting way too expensive. And down here with the inclement weather, the dish is not an option as far as I'm concerned. It doesn't even have to be raining or windy. If there is a lot of cloud cover, you get a weak signal and channels freeze, and you get a searching for signal message. It baffles me the amount of dishes I see on houses down here. Then again, there is a dish on my roof and it hasn't been used since I bought the house several years back.

I hate Cox cable that we have in Conn. We also have U-Verse being offered here in my town. I get tons of junk mail from AT&T every week wanting me to sign up, which I did. I live near an intersection where I can see the U-Verse box ( 500 feet away ) and they tell me there is no service on my street. THe apartment building across the street has it, but not me. I inquire thru AT&T and no one can tell me when service will be available. THey have a extremely arrogant attitude towards customers. I've talked to area managers and they promise to give me a reply, but never follow thru. There's not even a email address to contact U Verse with any questiions. Thier customer service sucks!!

Try this with Time Warner: I called them and said I wanted the least expensive cable service possible - they were freaked. I was transferred. Did I know, they said, that now I would lose access to their Pay for View movies? Yeah (at $3.95 each no bargain). Did I know I would lose access to the FREE movies? Yeah (stay the same for a month,very  limited selection). Did I know I would have to return the converter & the remote (the remote gave me pause - where was the one that came with the tv?). Anyway, when I insisted I was going to do this, they reduced my charges $10.00 a month by disconnecting  something or other & crediting me with it. This felt so good I decided to just bring back the converter & remote (found it) to feel even better. I now get channels 2 through 25 for $13.95 - actually $18.95 with tax. Plus, I get phone service for $39.95 a month. Try it. You will get a kick out of how they try to stop you. I don't miss much of the stuff they offered - maybe cable news - but since most of it is bad news, I feel relieved. If I want to watch a movie I rent one and watch it at my leisure not immediately or

within 24 hrs. I no longer look at the TV and feel like it is ticking away the dollars.

Here in South Madison lake county Ohio we have Time Warner and we would love to see some competition, I am sure everyone here would too, most of us here are paying $114.00 a month for phone, basic cable and internet thru them and of course if you want any kind of movie channels they would be happy to tack on a extra charge for that too, but the sad part of it all for us here is there is no other providers in our area, please send some compitition to South Madison Ohio.

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