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DirecTV for Traffic Offload?

TMCnet Feature

May 13, 2014

DirecTV for Traffic Offload?

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By Gary Kim
Contributing Editor

The ability to offload mobile Internet traffic to Wi-Fi has proven a crucial means for mobile service providers to maintain customer satisfaction and avoid stress on mobile data networks.

But the notion of freeing up bandwidth to support Internet access services is not new. In fact, one reason U.S. cable operators have shifted to digital video delivery (aside from the shift to over the air high definition TV), is the ability to free up bandwidth to support Internet access service.


Two decades ago, when cable operators were debating the merits of switched digital video delivery compared to “transparent” analog delivery, cable operators argued that transparent delivery had advantages as a consumer interface.

Telco strategists generally argued that switched digital was more bandwidth efficient.

Since that time, all video service providers have moved to digital delivery, making the issue of “video switching” compared to “video tuning” less relevant.

In recent years, fixed network telcos have used a form of video offload, namely by partnering with either Dish Network or DirecTV (News - Alert) to deliver video entertainment using the satellite networks, while interactive services are supplied on the fixed network.

It is possible an AT&T (News - Alert) acquisition of DirecTV could lead to more-intensive shift to video offload, even though AT&T has invested quite a lot in U-Verse video infrastructure. Still, capital investment to support video entertainment probably is two orders of magnitude less than the costs of the access network.

In essence, AT&T, after a DirecTV acquisition, could at least consider serving up linear video entertainment by satellite, thus freeing up bandwidth on the fixed network for high speed access.

A similar approach has worked for cable operators and mobile operators so far, and could be one potential benefit of AT&T acquiring DirecTV.

On the other hand, A&T might well be content, for the moment, to harvest DirecTV cash flow to fund its fixed network upgrades, without necessarily shifting the bulk of video entertainment delivery to satellite, even in areas where U-Verse video already is available.

In fact, DirecTV would seem to have greatest value outside AT&T’s fixed network footprint, as that would allow AT&T to compete for video customers where it has no network facilities.

Between DirecTV and its Long Term Evolution network, AT&T would have the ability to sell triple-play or quadruple-play services, nationwide.




Edited by Maurice Nagle


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