In a bid to increase its market share and lure customers away from cable giants Time Warner Cable (TWC) and Comcast, AT&T will be offering U-verse TV, Internet and VoIP phone service to 33 million homes and increase the maximum speed of its Internet service to 75 Mbps.
The Texas based telecom giant will be investing $14 billion to upgrade and enhance its wireline and wireless networks, which currently includes about 24.5 million homes in its network territory. Unlike Verizon, which cannot expand its network without significant prohibitive overhead (Verizon uses a fiber to the premises, or FTTP system whereas AT&T uses a fiber to the node, or FTTN system), AT&T can increase its service territory at a much faster pace with comparatively lower costs. This means that AT&T U-verse service territories will be expanded to include regions that are normally serviced by Comcast and/or TWC.
Comcast and TWC are the 2 largest cable providers in the nation, and offer the complete suite of digital TV, internet, and home phone services. While Verizon has opted to not expand its FiOS TV, internet, and phone service territories, their wireless division has partnered with Comcast and TWC to offer each other’s products in bundle service packages. So while Verizon’s FiOS division won’t be competing with AT&T U-verse in many areas, Verizon will be working to attract and maintain TWC and Comcast subscribers by offering deals and specials on their smartphones and wireless plans bundled with TWC or Comcast services.
Will AT&T counter by throwing in their wireless services with their U-verse bundles? For now, we’ll just have to wait for AT&T to finish their expansion to see.