Consolidated battles AT&T, Comcast, and Frontier for 1 Gig dollars in California

trench dug for fiber

Consolidated Communications has begun offering 1 Gbps internet speeds in selects areas of its California service territory, laying a further challenge to Comcast and Frontier, which expanded its presence in the state via its Verizon wireline network acquisition.

The service provider did not have to look to far in building out a Gbps service in Roseville, California, as it could leverage the existing FTTH network infrastructure laid by SureWest, which Consolidated purchased in 2012.

Following the pricing standard set by Google Fiber, Consolidated is offering the 1 Gbps service to 16,000 eligible FTTH customers in the Roseville area for $70 a month.


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Rob Koester, VP of consumer products for Consolidated Communications, said that the service provider plans to bring the 1 Gbps service into other parts of its California territory at a later date, but would not disclose a specific timeline.

“We’re starting with 16,000 homes in Roseville and will add new areas as regional facilities are upgraded,” Koester said.

The next challenge for Consolidated will likely be from Comcast and Frontier, which expanded its reach in the California market by acquiring Verizon's assets in the state. Frontier has indicated that it plans on enhancing and potentially expanding its FTTH and existing copper network footprints in the state. 

Consolidated will also face off against Frontier, which also operates in nearby Elk Grove, California. 

Besides the Roseville market, Consolidated rolled out 1 Gbps internet service in Kansas City, Kansas, in 2014, followed by its Houston market in 2015. Before launching the 1 Gbps service, Consolidated offered high-speed internet up to 100 Mbps over its FTTH network.

While 1 Gbps is certainly the key premium service, Consolidated has been also aggressively expanding its lower speed offerings. Over 89 percent of its customers can get 20 Mbps, and another 42 percent can get 100 Mbps or higher.

Like its ILEC peers CenturyLink and Hawaiian Telcom that offer 1 Gbps speeds, Consolidated is also seeing a halo effect where customers are switching from lower speed 10 or 25 Mbps to a 50 Mbps offering.

“The most popular speed is now 50 Mbps so we’ve seen that increase,” Chacon said. “As we have offered higher speeds, the average that our customers are taking continues to go up.”

As the service provider rolls out 1 Gbps, Consolidated Communications will work to educate customers as it implements it at each home. 

“We’re doing education with customers coming onto 1 Gig,” Chacon said. “You get a gig to the side of your house and then you get a wireless router and start connecting things to the wireless router and it’s interesting how many connected devices in the home eats up bandwidth.”

For more:
- see the release

Related articles:
Consolidated’s Udell: Tuck-in fiber acquisitions will further our strategic growth plans
Consolidated Communications completes CTC acquisition, adds 310 lit fiber buildings to network
Consolidated Communications acquires CTC for $13M, enhances fiber, on-net building reach
Consolidated makes 100 Mbps, greater speeds available to 42% of customer base

Suggested Articles

CUJO AI is using artificial intelligence (AI) and machine learning (ML) for its new online privacy and tracking platform, which is called Incognito.

CenturyLink has joined the Networking Managed Service Provider (MSP) Program for Microsoft Azure.

Columbus, Ohio-based Horizon announced a new connection to Equinix's Chicago data center, which is a major on-ramp for the Midwest.