AT&T Wants low ARPU customers gone

[jegrant]

I am glad I transferred my "grandfathered" DTVN account to someone else a while back, because the DVR never worked very well for me and I honestly didn't watch enough of the programming to keep it. I've since gone to the $16 plan at Philo - the DVR is fantastic and I can always skip commercials on DVRed content. AT&T keeps promising Fiber is coming to my area "any day now" and have said so for years. I finally told them let me know when you have the actual fiber in hand. My area didn't even get U-Verse until maybe 18 months ago, and even then, I can only get 24 mb, which, thanks to their new pricing, is over twice as much as Comcast's promo rate for 25 mb.

 

[NashGuy]

AT&T keeps promising Fiber is coming to my area "any day now" and have said so for years. I finally told them let me know when you have the actual fiber in hand. My area didn't even get U-Verse until maybe 18 months ago, and even then, I can only get 24 mb, which, thanks to their new pricing, is over twice as much as Comcast's promo rate for 25 mb.

I'm surprised that they even bothered with deploying Uverse, as opposed to fiber, 18 months ago. By that timeframe around here, they were already on a big fiber kick, upgrading some neighborhoods directly from DSL to fiber while upgrading others from Uverse to fiber.

 

[ncted]

I'm surprised that they even bothered with deploying Uverse, as opposed to fiber, 18 months ago. By that timeframe around here, they were already on a big fiber kick, upgrading some neighborhoods directly from DSL to fiber while upgrading others from Uverse to fiber.

In some places it is easier to get the permits to do Uverse, and they have plenty of extra equipment where they've replaced Uverse with Fiber. It gives people an upgrade until they can get around to doing a real fiber install with microtrenching or full-on fiber ducts.

 

[Claude Greiner]

In some places it is easier to get the permits to do Uverse, and they have plenty of extra equipment where they've replaced Uverse with Fiber. It gives people an upgrade until they can get around to doing a real fiber install with microtrenching or full-on fiber ducts.

Around here they actually bonded the fiber directly to the old copper lines, as not to take up any more space on the utility pole.

I think they did it like that around here so they didn’t have to pay a rental fee to hang another wire on the utility pole or get a permit or special approval.

If they would have ran it separate it would have been considered like allowing another cable company.

They are still running the old copper in my area, and slowly switching everyone to fiber.

I’m really surprised we even got Fiber. I didn’t even realize it until the girl knocked on my door trying to sell it to me.

It was the quickest and easiest sale ever for her, then we went to order and found out it stopped 3 doors down from me.

Had to wait a month for them to finish construction.

BTW, in the picture, I installed the gray weatherhead for the fiber and Comcast and Wow Tv service

 

[Jimbo]

Around here they actually bonded the fiber directly to the old copper lines, as not to take up any more space on the utility pole.

I think they did it like that around here so they didn’t have to pay a rental fee to hang another wire on the utility pole or get a permit or special approval.

If they would have ran it separate it would have been considered like allowing another cable company.

They are still running the old copper in my area, and slowly switching everyone to fiber.

I’m really surprised we even got Fiber. I didn’t even realize it until the girl knocked on my door trying to sell it to me.

It was the quickest and easiest sale ever for her, then we went to order and found out it stopped 3 doors down from me.

Had to wait a month for them to finish construction.

BTW, in the picture, I installed the gray weatherhead for the fiber and Comcast and Wow Tv service

You installer the weatherhead and made it unsafe for anyone without a bucket to access the pole .... thanks.

 

[Claude Greiner]

You installer the weatherhead and made it unsafe for anyone without a bucket to access the pole .... thanks.

You can get up to the pole just fine from the back side which is in my neighbors drive way.

Also the power company ran my electric up the same pole in a plastic sleeve.

AT&T, WOW and Comcast can get up there just fine with a regular ladder

 

[Jimbo]

You can get up to the pole just fine from the back side which is in my neighbors drive way.

Also the power company ran my electric up the same pole in a plastic sleeve.

AT&T, WOW and Comcast can get up there just fine with a regular ladder

Terminals on the other side ?

 

[bobvick]

Where I live it's another $55 per month. My current ISP is WOW! and I don't have any caps at a lower price without any promos. I do use my own equipment though.

I have a great ISP here. 1Gbps/1Gbps FTTH, no data limits, $80 per month.

 

[CSM]

This article thinks AT&T wants to get rid of low ARPU customers because they won’t help them pay down their debt.

Here's Why AT&T Is Wrong About 'Low-Quality' DIRECTV NOW Subscribers

 

[Claude Greiner]

This article thinks AT&T wants to get rid of low ARPU customers because they won’t help them pay down their debt.

Here's Why AT&T Is Wrong About 'Low-Quality' DIRECTV NOW Subscribers

The problem that AT&T is forgetting is that they have zero costs to maintain the subscriber other than programming and bandwidth costs.

There are no service calls, no equipment to supply or replace and virtually no support to provide.

So weather Directv makes $1 per subscriber or $30 per subscriber it makes no difference at the end of the day.

Directv on the other hand they have truck rolls, and equipment which occasionally needs to be replaced. Only reason why you want a higher ARPU for regular Directv is to off set a service call or equipment upgrade or replacement.

 

[Claude Greiner]

Terminals on the other side ?

What difference does it make. The cable company everything is facing down.

Only copper AT&T requires you to be on the front of the pole which you can still get to.

 

[slice1900]

What the guy who wrote that article is forgetting is content costs. Directv was LOSING MONEY on Directv Now at their old pricing, that's why they raised the prices. Dish loses money on Sling customers, but seems be OK with that for the time being, to build their subscriber base. It isn't like you pay less for ESPN if you deliver it via streaming than if you deliver it via satellite or cable. You're paying around $15/month for locals alone, and that's before you add any cable channels...

 

[Claude Greiner]

What the guy who wrote that article is forgetting is content costs. Directv was LOSING MONEY on Directv Now at their old pricing, that's why they raised the prices. Dish loses money on Sling customers, but seems be OK with that for the time being, to build their subscriber base. It isn't like you pay less for ESPN if you deliver it via streaming than if you deliver it via satellite or cable. You're paying around $15/month for locals alone, and that's before you add any cable channels...

I wish someone could explain to me how locals got to bring $15/mo.

Between the broadcast Tv fees on cable, local charges on Dish, and the fact they are rolled into Directv’s basic package it’s getting out of control for something most of us cab pick up for free and with way better quality.

 

[Juan]

Maybe they are losing money at that price point

The problem that AT&T is forgetting is that they have zero costs to maintain the subscriber other than programming and bandwidth costs.

There are no service calls, no equipment to supply or replace and virtually no support to provide.

So weather Directv makes $1 per subscriber or $30 per subscriber it makes no difference at the end of the day.

Directv on the other hand they have truck rolls, and equipment which occasionally needs to be replaced. Only reason why you want a higher ARPU for regular Directv is to off set a service call or equipment upgrade or replacement.

Sent from my SM-G950U using the SatelliteGuys app!

 

[slice1900]

I wish someone could explain to me how locals got to bring $15/mo.

Between the broadcast Tv fees on cable, local charges on Dish, and the fact they are rolled into Directv’s basic package it’s getting out of control for something most of us cab pick up for free and with way better quality.

Easy, sports. CBS and other networks keep paying more for rights to NFL, college football, NBA, MLB and so forth. They keep asking more money from their affiliates because of that, and because they know cable/satellite companies are kind of in a bind where they have to provide locals or they'll lose their subscribers.

Why do you say this is a problem for Dish? They have had a USB OTA adapter for years. Do they not let you drop the locals on their basic package?

A few years ago Directv's (pre-acquisition) CEO said they were going to address this by providing a way for people to pick up their locals via OTA and that's when locals were like $3/month. Maybe those plans were shelved when AT&T bought them, but last year they finally testing the 'LCC', so it looks like we'll get it eventually. If Directv was smart I'd say they should break out the charges for locals the same way they break out the charges for RSN, so customers can see how much they are actually spending (my cable company does this) Then they can give people the option of getting an LCC and taking locals off their bill. Back when it was only a couple bucks most people wouldn't bother. But you give people a way to save real money - basically two or three years worth of yearly price increases - and those who are able to pick up their locals OTA might think it is worth the hassle.

 

[Jimbo]

Easy, sports. CBS and other networks keep paying more for rights to NFL, college football, NBA, MLB and so forth. They keep asking more money from their affiliates because of that, and because they know cable/satellite companies are kind of in a bind where they have to provide locals or they'll lose their subscribers.

Why do you say this is a problem for Dish? They have had a USB OTA adapter for years. Do they not let you drop the locals on their basic package?

A few years ago Directv's (pre-acquisition) CEO said they were going to address this by providing a way for people to pick up their locals via OTA and that's when locals were like $3/month. Maybe those plans were shelved when AT&T bought them, but last year they finally testing the 'LCC', so it looks like we'll get it eventually. If Directv was smart I'd say they should break out the charges for locals the same way they break out the charges for RSN, so customers can see how much they are actually spending (my cable company does this) Then they can give people the option of getting an LCC and taking locals off their bill. Back when it was only a couple bucks most people wouldn't bother. But you give people a way to save real money - basically two or three years worth of yearly price increases - and those who are able to pick up their locals OTA might think it is worth the hassle.

Careful what you ask about ...
I can see them allowing you to save that mony by dropping the OTA from the Sub, but at the same time, make it so the AM21/ LCC doesn't RECORD on the Genie/ other DVRs.

 

[Claude Greiner]

Careful what you ask about ...
I can see them allowing you to save that mony by dropping the OTA from the Sub, but at the same time, make it so the AM21/ LCC doesn't RECORD on the Genie/ other DVRs.

That’s a dick move. But if you can’t DVR It, might as well Just hook the antenna into the Tv.

But I think they would have issues as that’s why people pay a DVR fee.

Unless the DVR fee is included in the base package regardless if you have a DVR, I don’t see this flying very well.

 

[NashGuy]

Unless the DVR fee is included in the base package regardless if you have a DVR, I don’t see this flying very well.

At least for new sign-ups online, AT&T/DTV only offers service with 1 HD DVR built into the base price. Each additional receiver (which can access whole-home DVR service from the main receiver or central server) costs an additional $7/mo (with a one-time $99 fee for each receiver that's wireless). Maybe you can call in and get a special configuration without DVR for a lower monthly rate?

 

[Claude Greiner]

At least for new sign-ups online, AT&T/DTV only offers service with 1 HD DVR built into the base price. Each additional receiver (which can access whole-home DVR service from the main receiver or central server) costs an additional $7/mo (with a one-time $99 fee for each receiver that's wireless). Maybe you can call in and get a special configuration without DVR for a lower monthly rate?

I was aware of that. That’s why I said (regardless if you get a DVR)

But yes you can configure the package without a DVR, I think last time I did the math it was a few dollars more in year 1, but the real increase was in year 2.

At least Directv does not charge a no DVR Fee like Dish.

 

[slice1900]

Careful what you ask about ...
I can see them allowing you to save that mony by dropping the OTA from the Sub, but at the same time, make it so the AM21/ LCC doesn't RECORD on the Genie/ other DVRs.

Why would they do that? It is in Directv's interest to get customers to use an LCC, because every customer that doesn't rely on satellite delivery of their locals is a customer who wouldn't be affected by a channel dispute that blacked it out. The more customers that pick up their locals OTA the less leverage that the Sinclairs and Nexstars have over Directv when negotiating a new contract.