AT&T Lightspeed Gets More Expensive
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I suspect AT&T has expended significantly more money on reconditioning existing wires in order to meet the 34Mb/s speed target needed to deliver video and data to a residence. AT&T cannot mention this cost as it would cast serious doubt on their decision to leverage the existing copper infrastructure instead of biting the bullet and putting in fiber.
Regardless of its true cause, this budget slip significantly changes the economics supporting AT&T’s decision to avoid laying fiber. Previously, AT&T could deliver video services at 1/3 the cost of Verizon. With the slip AT&T’s cost per home went up nearly 50% and is almost 1/2 the cost Verizon FiOS FTTH solution.
The truth of the matter is AT&T traded cost for a large amount of operational risk. When they shunned fiber AT&T assumed the risks of inconsistent DSL performance, IPTV software trailblazing, electronics scattered throughout the field, and a sub par experience based on the 35Mb/s limitation.
AT&T is deploying a very complex architecture with major limitations in the interest of saving money. It offers nothing better than what the incumbent Cablecos can provide. And now, this mediocrity comes at a higher price.
