AT&T threatens TWC's hold on Los Angeles broadband, video market with 1 Gig launch

AT&T (NYSE: T) is lighting up its 1 Gbps FTTH service in the Los Angeles metro area, creating a new competitive threat to Time Warner Cable (NYSE: TWC) as the cable operator gets ready to be swallowed up by new parent Charter Communications (NASDAQ: CHTR).

After announcing that the Los Angeles area was a service target in December 2015, AT&T has made the service available to thousands of single family homes, apartments and small businesses in parts of Eastvale, Irvine, Los Angeles, Orange County and surrounding communities.

Los Angeles was among 38 additional metro areas where AT&T said it would build out its FTTH service this year. At that time, the telco did not specify when it would reach these markets, saying only that it will "more than double (gigabit) availability by the end of 2016."

AT&T said that as part of its plan to "triple availability by the end of the year," it will bring the 1 Gbps service to other areas such as Arcadia, Glendale and others.

However, the telco has not indicated an exact timeline of when it would deliver these services to these other Los Angeles-area communities.

Similar to other markets where it offers the 1 Gbps service, eligible customers will be able to choose from two speed tiers: 1 Gbps for $110 a month or speeds up to 300 Mbps for $80 a month.

Being able to provide 1 Gbps service in Los Angeles is important for AT&T as the service provider gains an even larger lead over TWC.

Today, TWC can provide up to 50-100 Mbps over its existing HFC plant. Charter and TWC, which are both mired in the regulatory approval process for the deal, have not indicated whether they will follow Comcast and Cox in delivering a 1 Gbps service.

Los Angeles is just one metro area it is building as part of a broader plan to deliver FTTH services to more parts of its wireline service territory.

AT&T GigaPower is available in 20 of the nation's largest metros areas, and it announced plans to expand its 1 Gbps Internet service in parts of 36 additional metro areas -- which will total at least 56 metros served.

For more:
- see the release

Related articles:
AT&T expands 1 Gig service in four new markets
AT&T hints at further FTTP expansions beyond 14M premises goal
AT&T sees uptick in consumer, business IP services in two Southeast markets
AT&T brings 1 Gbps FTTH service to Jacksonville, Fla., sets focus on broader state expansion
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