AT&T kills off the failed TV service previously often called DirecTV Now

A large AT&T logo seen on the outside of its corporate offices.

Enlarge / AT&T company workplaces on November 10, 2020, in El Segundo, California. (credit score: Getty Pictures | AaronP/Bauer-Griffin)

AT&T is killing off the online-video service previously often called DirecTV Now and introducing a no-contract possibility for the newer on-line service that changed it.

AT&T unveiled DirecTV Now late in 2016, the 12 months after AT&T purchased the DirecTV satellite tv for pc firm. Costs initially began at $35 a month for the live-TV on-line service, and it had signed up 1.86 million subscribers by Q3 2018. However prospects shortly fled as AT&T repeatedly raised costs and minimize down on the usage of promotional offers, leaving the service with simply 683,000 subscribers on the finish of Q3 2020.

In 2019, AT&T modified the identify from DirecTV Now to AT&T TV Now, creating confusion amongst prospects and its personal workers as a result of the corporate concurrently unveiled one other on-line streaming service referred to as AT&T TV.

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Broadband energy customers explode, making information caps extra worthwhile for ISPs

An illustration of $100 bills being sucked into an Internet connection.

Knowledge cap money. (credit score: Aurich Lawson | Getty Photographs)

The variety of broadband “energy customers”—individuals who use 1TB or extra per thirty days—has doubled over the previous yr, making certain that ISPs might be in a position to make more cash from information caps.

In Q3 2020, 8.Eight p.c of broadband subscribers used at the very least 1TB per thirty days, up from 4.2 p.c in Q3 2019, in keeping with a examine launched yesterday by OpenVault. OpenVault is a vendor that sells a data-usage monitoring platform to cable, fiber, and wi-fi ISPs and has 150 operators as clients worldwide. The 8.8- and 4.2-percent figures discuss with US clients solely, an OpenVault spokesperson instructed Ars.

Extra clients exceeding their information caps will end in extra overage prices paid to ISPs that impose month-to-month information caps. Greater utilization may also increase ISP income as a result of folks utilizing extra information are inclined to subscribe to higher-speed packages.

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The tech antitrust downside nobody is speaking about

After years of constructing political strain for antitrust scrutiny of main tech firms, this month Congress and the US authorities delivered. The Home Antitrust Subcommittee launched a report accusing Apple, Amazon, Google, and Fb of monopolistic conduct. The Division of Justice filed a criticism towards Google alleging the corporate prevents shoppers from sampling different search engines like google.

The brand new fervor for tech antitrust has to date ignored an equally apparent goal: US broadband suppliers. “If you wish to speak about a historical past of utilizing gatekeeper energy to hurt rivals, there are few higher examples,” says Gigi Sohn, a fellow on the Georgetown Regulation Institute for Know-how Regulation & Coverage.

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AT&T loses one other 600,000 TV prospects because it seeks purchaser for DirecTV

AT&T's logo and stock price displayed on a monitor on the floor of the New York Stock Exchange in January 2019.

Enlarge / AT&T’s emblem and share worth displayed on a monitor on the New York Inventory Trade on Tuesday, Jan. 22, 2019. (credit score: Getty Pictures | Bloomberg)

AT&T misplaced 627,000 TV prospects in Q3 2020, an enchancment over earlier quarters as the corporate continues its try to promote its failing DirecTV division.

In earnings outcomes reported immediately, AT&T mentioned it misplaced 590,000 “Premium TV” prospects, a class that features DirecTV satellite tv for pc, U-verse wireline TV, and the net service generally known as AT&T TV. AT&T additionally misplaced 37,000 prospects from AT&T TV Now, the streaming service previously generally known as DirecTV Now.

The Premium TV lack of 590,000 prospects in Q3 is the very best outcome since AT&T misplaced 544,000 subscribers in Q1 2019. AT&T’s Premium TV losses ranged from 778,000 to 1.16 million prospects per quarter from Q2 2019 via Q2 2020. AT&T presently has 17.1 million Premium TV prospects, down from over 25 million in early 2017.

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T-Cell amassed “unprecedented focus of spectrum,” AT&T complains

A bird sits on top of a T-Mobile sign outside a mobile phone store,

Enlarge / A pigeon rests on a T-Cell emblem exterior a cell phone retailer, operated by Deutsche Telekom AG, in Munich, Germany, on Monday, Feb. 6, 2017. (credit score: Getty Pictures | Bloomberg)

AT&T and Verizon are nervous about T-Cell’s huge spectrum holdings and have requested the Federal Communications Fee to impose limits on the service’s means to acquire extra spectrum licenses. Verizon kicked issues off in August when it petitioned the FCC to rethink its acceptance of a brand new lease that will give T-Cell one other 10MHz to 30MHz of spectrum within the 600MHz band in 204 counties. AT&T adopted that up on Friday with a submitting that helps lots of the factors made in Verizon’s petition.

T-Cell was as soon as the smallest of 4 nationwide carriers and complained that it did not have sufficient low-band spectrum to match AT&T and Verizon’s superior protection. However T-Cell surged previous Dash in recent times after which purchased the corporate, making T-Cell considered one of three large nationwide carriers together with AT&T and Verizon. T-Cell additionally bolstered its low-band spectrum holdings by dominating a 600MHz public sale in 2017.

“The mixture of Dash and T-Cell has resulted in an unprecedented focus of spectrum within the arms of 1 service,” AT&T wrote in its submitting to the FCC on Friday. “Actually, the mixed firm exceeds the Fee’s spectrum display, usually by a large margin, in Mobile Market Areas representing 82 p.c of the US inhabitants, together with all main markets.”

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AT&T backs Trump plan, calls for “neutrality” on Fb, Amazon, and Google

A man with an umbrella walking past a building with an AT&T logo.

Enlarge / A person walks with an umbrella outdoors of AT&T company headquarters on March 13, 2020, in Dallas, Texas. (credit score: Getty Photos | Ronald Martinez)

AT&T is supporting President Trump’s crackdown on Huge Tech, arguing in a weblog put up yesterday that on-line platforms ought to need to uphold “neutrality” on the Web. The controversy over web sites ignited by Trump’s petition is extra essential than the years-long debate over internet neutrality guidelines utilized to Web service suppliers, AT&T claimed. The corporate stated it’ll file feedback with the Federal Communications Fee this week because the FCC continues its evaluation of the Trump administration’s petition.

The phrase “internet neutrality” nearly at all times refers to Web service suppliers like AT&T, not web sites. The final thought is that ISPs ought to need to act as impartial conduits, connecting Web customers to any (authorized) web site or on-line service they need to entry and with out forcing web sites to pay tolls to succeed in customers.

When the Obama-era FCC imposed internet neutrality guidelines in 2015—prohibiting ISPs from blocking or throttling site visitors and from giving precedence to Net companies in alternate for cost—AT&T sued the fee in an try to overturn the foundations. That lawsuit failed, however AT&T and different ISPs received their want when the Trump-era FCC deregulated broadband and eradicated internet neutrality guidelines.

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AT&T reportedly making an attempt to promote DirecTV after huge buyer losses

An AT&T logo on the side of a building.

Enlarge (credit score: Getty Photographs | ljhimages)

AT&T is reportedly making an attempt to promote DirecTV to private-equity traders simply 5 years after shopping for the satellite tv for pc supplier. The negotiations with potential consumers come after tens of millions of shoppers ditched DirecTV over the previous two years, and will worth DirecTV at a lot lower than the $49 billion AT&T paid for it.

“AT&T is in search of private-equity traders to purchase nearly all of its DirecTV satellite-television enterprise, serving to it deal with a significant drag on its operations, in accordance with folks aware of the scenario,” Bloomberg wrote yesterday. AT&T and its advisers at Goldman Sachs “have been in talks with private-equity suitors in regards to the satellite tv for pc TV unit,” with potential bidders together with Apollo International Administration and Platinum Fairness, The Wall Road Journal reported.

AT&T might find yourself promoting DirecTV for much lower than it paid 5 years in the past. “Any deal for the satellite tv for pc TV service can be sizable however seemingly a far cry from the $49 billion AT&T paid for it in 2015,” the Journal wrote, quoting sources aware of the talks as saying that “a deal might worth the enterprise under $20 billion.”

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AT&T’s epic DirecTV losses mount as one other 954,000 video prospects flee

A DirecTV satellite dish mounted to the outside of a building.

Enlarge / A DirecTV satellite tv for pc dish seen outdoors a bar in Portland, Oregon, in October 2019. (credit score: Getty Pictures | hapabapa)

AT&T misplaced practically 1 million TV prospects in Q2 2020, persevering with a speedy exodus of customers from DirecTV and different AT&T-operated video providers.

Within the three months ending June 30, AT&T reported a web lack of 954,000 video prospects in earnings outcomes launched in the present day. That features an 886,000-customer web loss from AT&T’s “Premium TV” providers, a class that features DirecTV satellite tv for pc, U-verse wireline service, and the AT&T TV on-line service that mimics cable TV. One other 68,000 prospects left AT&T TV Now, a separate streaming service previously often known as DirecTV Now.

Greater costs helped drive the shopper losses. Because it has in previous quarters, AT&T stated its observe of giving out fewer promotional-pricing offers contributed to the shopper losses for AT&T TV Now. AT&T stated the Premium TV loss was “attributable to competitors in addition to decrease gross provides from the continued deal with including higher-value prospects.” As prospects depart the older DirecTV and U-verse providers, any positive aspects from the AT&T TV premium streaming service clearly have not been excessive sufficient to offset the exiting satellite tv for pc and wireline prospects.

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