A 1 Gbps FTTH service may be enticing in terms of the nearly ubiquitous speed it provides, but it's hardly a fit for most consumers. Instead, a number of ILECs--including CenturyLink, Consolidated and TDS Telecom--are finding that their 1 Gbps buildouts are creating a broadband "halo effect."
Hawaiian Telecom will light up 1-Gig service in the Hawaiian islands next week, doubling the 500 Mbps broadband service that its customers can currently access. The company said that it has invested nearly $500 million in building its fiber network and systems and in 2015 it will invest about $100 million in the effort. Hawaiian Telcom's FTTP service will be available in about 96,000 locations initially and more will be added as the company expands its 1-Gig footprint.
Hawaiian Telcom may still be a nascent player in the TV space, but like its larger incumbent telco brothers AT&T and CenturyLink, it is finding that its TV service is producing two benefits: reducing churn and driving up broadband attachment rates.
Hawaiian Telcom is making headway with its IPTV rollout, reporting that as of the end of the first quarter, it penetrated 17.9 percent of households with the service.
It's clear that the U.S. wireline broadband market is in a state of transition. On one side, Google Fiber is turning the broadband industry on its head with its 1 Gbps fiber-to-the-premises (FTTP) offerings, and on the other side major players like AT&T and Verizon are selling off their wireline assets. A key component of this transition centers on price. In this new report, we look at the cheapest and most expensive prices for broadband service across the country. To be clear, this is a ranking of telco providers, not wireless carriers or cable operators. Technologies covered include fiber and DSL.
Hawaiian Telcom said it is seeing more of its wireless backhaul customers ramp up their speeds from an initial 50 Mbps to 100 and even 200 Mbps.
Hawaiian Telcom reported that despite ongoing gains in IPTV, broadband and data center colocation service growth in the fourth quarter, these gains were offset by a decline in managed revenues and legacy POTS voice access line revenue, a factor that drove revenue down to $99.6 million year-over-year from $101 million in the same period a year ago.
CenturyLink said it has restored service in north Phoenix and northern Arizona after repairing a fiber line that it said was "deliberately cut" in the New River area.
Hawaiian Telcom reported that while it continued to see IPTV, broadband and data center colocation service growth in the third quarter, these gains were offset by a decline in managed revenues and expected legacy POTS voice access line revenue, driving down overall revenue slightly year-over-year to $97.3 million.
New Zealand-based Hawaiki Cable Limited, the owner and developer of Hawaiki submarine cable system, has chosen Hawaiian Telcom to be its landing partner in Hawaii.