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SureWest Touts Aggressive Last Mile Strategy

Carrier Eyes Glass, HD As New Year Arrives

      

For SureWest Communications, fiber is the best way to cover the distance between any two points. While the Northern California-based competitive provider assembled its business with a jumble of technologies including copper and coax, it has laser-focused its future on glass.


“We’re moving away from what little hybrid fiber/coax (cable plant) we have,” said Bill DeMuth, SureWest’s CTO noting that fiber is the only way to meet the company’s goal of delivering 100 megabits of bandwidth to each subscriber home. “It’s just a continual movement with increased bandwidth. I don’t know why they’re buying it, but they do acquire it.” SureWest can use the big pipe to skip over interim steps like VDSL and MPEG-4 and go right to advanced IPTV offerings like multiple channels of high definition (HD) programming.

“We rolled out our HD early (last) year and since then we’ve added additional video channels and things like subscription-on-demand,” said DeMuth. “We spent more time around the packages, the content. We’ve increased data speeds.”

Twenty of the 100 megabits are dedicated to high-speed data (HSD), leaving plenty for enhanced services that differentiate the carrier from its cable, telco and satellite competitors.

“In the past we’ve spent a lot of time making sure we had content, quality and reliability,” DeMuth said. “Now we really want to step up the effort to differentiate the services. The IPTV industry as a whole has been a little too much of a me-too type of service.”

So even as other carriers prepare to carry video over IPTV, SureWest looks for ways to enhance it with digital video recorder (DVR) capabilities and more synergies with its HSD and voice offerings.

“People come to us because of our high-speed data. Voice consumers are usually looking for price and reliability,” he said. “IPTV, we’ve lagged with DVR products so we need to get into that space. The localized content issues add a really strong line-up of video channels.”

It helps, he said, that fiber is getting cheaper – both for the glass and the equipment to drive signals over it.

“The other thing with fiber is that you cut down on the operational costs because you’re not maintaining copper,” he said. “Cable companies have to deal with coaxial linkage and stuff like that on their plant. Those kinds of things are eliminated with fiber.”

The biggest stumbling block SureWest faces is the same one that’s confronting everyone in the industry: the IPTV equipment is not quite there yet.

“Service providers need to be aware that while IPTV gives you a lot of flexibility, that flexibility comes with an additional challenge of integration,” DeMuth said. “The integration of the various vendor solutions … you don’t want to underestimate that.”

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