Verizon has entered into a definitive agreement to acquire competing fiber Internet service provider Frontier Communications in a transaction valued at $20 billion, including $9.6 billion in cash. The deal is expected to close in about 18 months, pending Frontier shareholder and regulatory approval. Verizon says the deal will increase its fiber subscribers by 2.2 million customers and extend its network reach to 25 million households across 31 states and Washington, D.C. It is also expected to expand Verizon’s intelligent edge network for digital innovations like artificial intelligence and the Internet of Things. Continue reading Verizon Plans Frontier Acquisition in Deal Valued at $20 Billion

T-Mobile has agreed to buy most of U.S. Cellular in a deal worth about $4.4 billion that would bring the self-proclaimed “un-carrier” more than 4 million new customers as well as its retail stores and about 30 percent of U.S. Cellular’s wireless spectrum. U.S. Cellular would hang on to 70 percent of its spectrum and towers and lease much of it back to T-Mobile, which was already leasing its infrastructure. T-Mobile says it plans to use the added spectrum to improve its service in rural areas, which constitute the bulk of U.S. Cellular’s footprint. Continue reading T-Mobile Plans to Buy Most of U.S. Cellular in $4.4 Billion Deal

The Federal Communications Commission has updated its definition of what constitutes high-speed broadband, increasing it fourfold to download speeds of 100 megabits per second and upload speeds of 20 megabits per second from the 2015 benchmarks of 25/3 Mbps. The change is based on speeds available from Internet service providers, consumer usage patterns and federal and state programs, the FCC says. In a report assessing whether advanced telecommunications capability is being deployed “in a reasonable and timely fashion” across the U.S., the FCC concludes it is not, and that gaps in deployment are not closing rapidly enough. Continue reading FCC Announces Updated Benchmark for Broadband Speeds

As consumers increasingly cord-cut, severing the once-profitable content subscriptions that offset infrastructure costs for ISPs, governments are now looking to charge Big Tech companies for access to broadband networks, which are expensive to install and maintain. The European Commission is being lobbied by telecom firms to implement such a plan, which the Biden administration is urging EU lawmakers to reject on the basis it would be difficult to enforce and could also potentially undermine net neutrality. Direct payments to telecom operators “could reinforce the dominant market position of the largest operators,” the U.S. said in response. Continue reading White House: Big Tech Shouldn’t Be Forced to Pay ISP Fees

The COVID-19 pandemic has led to significant operational changes as businesses adjust to new, often experimental or untested processes. ETC has taken this unprecedented time to interview executives from our member companies who generously agreed to share their experiences, information and ideas about how they are adapting to the crisis. The following is the first in a limited series to be published Tuesdays and Thursdays over the coming weeks. We begin with a conversation with Darcy Antonellis, division president of Amdocs Media and CEO of Vubiquity, an Amdocs Company. Vubiquity delivers premium content to viewers on any screen, device or platform. Continue reading Executive Spotlight: Interview with Vubiquity’s Darcy Antonellis

NBCUniversal inked a deal with NFL for the rights to stream “Sunday Night Football” to mobile phones, beginning in 2018 and including Super Bowl LII on February 4. The media titan, which will stream the games through its “TV Everywhere” mobile phone offering, has been streaming “Sunday Night Football” to various platforms since 2008, but this is the first time it will be able to stream the No. 1 primetime TV show on all digital platforms. Cable subscribers have had access to the games via apps for tablets and smart TVs. Continue reading NBCUniversal Snags Mobile Rights to ‘Sunday Night Football’

Despite the increasing number of digital streaming services currently available, including Amazon, Hulu and Netflix, about 85 percent of U.S. households continue to subscribe to traditional cable television. However, The Diffusion Group suggests the tide is turning; the market analyst predicts that by 2030 as many as 40 percent of Americans will have cut the cord. TDG Research also expects the percentage of households subscribing to pay TV will drop to 60 percent during the same period. TDG suggests that by 2030, about 30 million households will be “without an MVPD service of any kind.” Continue reading TDG: 40 Percent of U.S. Households Will Cut the Cord by 2030

About 6.5 percent of North American households are now accessing illegal TV streaming services per month, according to data from a new Sandvine study based on broadband service provider customers. The illegal services earn an average of $10 per month in fees, which represents nearly $840 million for the pirates, notes Variety. Meanwhile, the percentage also represents a potential $4.2 billion in lost revenue for cable, satellite and telco providers based on a estimated $50 per month fee for pay-TV services. However, it is not known whether the households in question would even consider legal pay-TV or OTT options. Continue reading Sandvine Details Households Turning to Illegal TV Streaming

After nine months of merger talks, SoftBank has reportedly suspended its plans to combine Sprint with T-Mobile US. This marks the second time in three years that Sprint has backed out of negotiations. According to those familiar with the matter, directors of SoftBank Group Corp. (Sprint’s parent company) met in Tokyo and opted to suspend the merger plans. Insiders indicate that the news came as a surprise to T-Mobile officials. While discussions could be revisited in the future, the same insiders note that the two sides could not agree on the valuation of Sprint’s shares, and SoftBank chairman Masayoshi Son had concerns about relinquishing too much control. Continue reading SoftBank Suspends Negotiations to Merge Sprint and T-Mobile

FCC chair Ajit Pai is moving forward with plans to reverse regulation introduced during the Obama administration under former FCC chair Tom Wheeler. Two items expected to pass today — involving Internet connection fees and limits on the number of stations a TV broadcaster can own — “will empower big telecom and media firms that have lobbied aggressively for deregulation,” reports The New York Times, “but consumer groups say it may also eventually put consumers at risk of higher prices and fewer options for services and media.” The new Trump appointee “has abolished a plan to open the cable box market” and “suspended several participants from a program for low-income broadband subsidies.” Pai is expected to introduce a proposal to counter net neutrality soon. Continue reading FCC Chair Takes Steps to Reverse Restrictions on Telecoms

According to new research from Kagan, pay-TV providers in the U.S. lost about 1.9 million subscribers in 2016. Additionally, OTT providers such as Sling TV, DirecTV Now and Sony PlayStation Vue “gained about 900,000 subscribers last year, rising from approximately 600,000 at year-end 2015 to 1.5 million at the end of 2016,” reports Variety. “While the gains on the OTT front would appear to be good news for cable programmers, the problem is that many broadband-targeted TV packages are stripped-down ‘skinny bundles’ that omit many of the channels included in traditional basic cable lineup.” Kagan estimates 94.7 million residential pay-TV subscribers for the close of 2016, down 2 percent from 2015. Continue reading Research Indicates Another Drop in Number of Pay-TV Subs

Deloitte’s 11th annual “Digital Democracy Survey” found that 73 percent of U.S. consumers have binge-watched video, up from 68 percent two years ago. Binge-watching TV is more common with younger audiences — 90 percent of millennials (ages 20-33) and 87 percent of Gen Z (ages 14-19) — who are increasingly watching on mobile devices. While televisions are losing popularity among younger audiences for marathon-viewing, older demographics — 60 percent of Gen X (ages 34-50) and 80 percent of Baby Boomers (ages 51-69) — still prefer TV. Nearly 40 percent of younger viewers binge-watch TV on a weekly basis, averaging about five hours of content per session. Continue reading Survey Finds Binge-Watching by Younger Viewers on Upswing

Amazon unveiled two new Prime plans on its website, introducing a video-only option for monthly subscribers. The new offering could ramp up the competition between its video service and Netflix. The first new plan costs $8.99 per month to stream TV shows and movies through a video-only version of Prime, while the second runs $10.99 per month for all Prime benefits, including video and music streaming, free two-day shipping on Amazon purchases, and more. Amazon hopes to reach consumers that have been reluctant to pay $99 up front for an annual Prime membership. Continue reading Amazon Offers New Monthly Subs, No Annual Commitment

Up until now, “zero rating” has been a gray area in net neutrality, but Verizon’s recent action might force the FCC to clarify its stance. Zero rating means that an Internet provider allows certain video and/or music streams to not count against a subscriber’s data cap. Verizon just confirmed that it has applied zero-rating to its new go90 service, thus giving itself preferential treatment and putting competitors such as Netflix, YouTube and other streaming services at a disadvantage. Continue reading Verizon’s Zero-Rating for Go90 Likely to Spur FCC Response

Verizon is already developing a 5G cellular network, the next generation of wireless technology following 4G LTE. Chief financial officer Fran Shammo says the company plans to launch the first 5G network in the U.S. Verizon hopes to begin trials of the 5G network as early as this year, but the technology probably won’t be widely available until 2020. Verizon says the 5G network is different from the LTE network because 5G is designed to accommodate demands of the Internet of Things. Continue reading Verizon Plans to Test 5G Network Technology in U.S. in 2016