Page 30 - SAMENA Trends - February 2020
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REGIONAL & MEMBERS UPDATES  SAMENA TRENDS

        impact for the 17 Sustainable Development   CEOs believe business is playing a critical   at speed and scale across the globe.”
        Goals,”  said  Jennifer  Morgan,  co-CEO  of   role in contributing to SDGs. “The time for   The UN  Global Compact  Local Networks,
        SAP. “By inspiring our global ecosystems   increased commitment and action is now,   located  in more  than 60  countries, will
        and bringing together our respective areas   and SDG Ambition is a bold and practical   lead the  initiative’s  implementation. SDG
        of expertise, we can empower businesses   response  to this  timely and urgent  call   Ambition aims to engage more than 1,000
        around  the world to use ‘technology  for   to  action,”  said  Julie  Sweet,  Accenture’s   companies across industries in more than
        good’  and  provide  the  necessary tools   chief  executive  officer.  “We  are  proud  to   40 countries  to focus  their sustainability
        to accelerate  achieving the world’s  2030   stand with the UN  and SAP as partners   efforts  on high-impact strategies and
        Agenda  for Sustainable  Development.”   in  unleashing the massive  potential  for   business models.
        According to recent research by Accenture   innovation and disruptive technology to
        and  the  UN  Global  Compact,  just  21%  of   help address  and solve critical issues





                                             AT&T Banks on Fiber Build to Fuel its OTT Services




        AT&T  may  have  turned  in  dismal   we expect to exit 2022 with about three
        numbers  for its fourth quarter video   million  more  fiber  customers  than  we
        subscribers,  but  it’s  banking  on  fiber-  have today  or a  total  of about seven
        based broadband to fuel its  OTT   million.  This  will  be  a  significant  lift  in
        services.  For  the  fourth  quarter,  AT&T   market share compared to our traditional
        lost 1.16  million video  subscribers,   performance  in  our  legacy  hybrid  fiber
        which  included  945,000  premium  copper-based  footprint.”  Stankey said
        video subscribers from its DirecTV and   fiber-based  broadband  services  would
        U-verse businesses and an additional   increase the penetration of its HBO Max
        219,000  OTT  subscribers  for  its  AT&T   service,  which  is set to launch  in May,
        TV Now streaming video  service.   and  its  AT&T  TV  OTT  service.  After  an
        For  the  year,  AT&T  shed  3.43  million   initial  launch,  AT&T  TV  is  slated  to  be
        premium subscribers  and 665,000   available across the nation next month.
        OTT  subscribers.  On  the plus  side,   “When  you’re  able  to  put  AT&T  TV,  a
        AT&T added 191,000 fiber-to-the home   software-based  product  with  fiber,  it’s
        (FTTH) subscribers in the fourth quarter,   a much more natural combination than
        which was  down from the 318,000   a satellite dish and fiber,” Stankey said.
        in the previous quarter and from the   “And so, as we start to roll out AT&T TV
        259,00 in the same quarter a year ago.   now in markets and we move in, we’re
        AT&T  finished  out  the  year  with  3.88   going to see much stronger performance
        million  fiber  broadband  customers   on the fiber side.” AT&T’s fiber business
        after closing out 2018 with 2.76 million.   is part of its Entertainment Group, which
        During a Wednesday morning earnings   includes  its  video business. Using  its   the subscriber losses.” While AT&T added fiber-
        call,  AT&T’s  John  Stankey,  the  COO  of   broadband  fiber,  Stankey  said  AT&T   based broadband subscribers  in the fourth
        AT&T  and  CEO  of  WarnerMedia,  said   is able to offer software-based video   quarter, it lost 141,00 IP broadband customers,
        the telco expects its fiber-to-the-home   products  with  low  acquisition  costs,   which  included  fiber  and  U-verse  internet
        subscribers  will  grow  to  seven million   which will in turn lower its video churn   subscribers. On the DSL side of broadband, AT&T
        by 2022, which could include one or two   going  forward.  With  its  fiber  assets  in   lost 41,000 customers  in the fourth quarter.
        million more FTTH  capable  locations.   hand, Stankey said that AT&T will “lean   AT&T wrapped up the fourth quarter with 13.59
        Last  year,  AT&T  largely  halted  its  fiber   into video acquisition given the better   million IP internet subscribers and 521,000 DSL
        built out  after meeting  the  FCC’s 2015   economics  of our improved product   customers. AT&T’s total number of broadband
        conditions to add fiber as part of its deal   portfolio  including  AT&T  TV  and  HBO   subscribers came in at 14.1 million, which was
        to  buy  DirecTV.  “We have four million   Max.” “As we exit the year, our premium   down slightly from the previous quarter’s total
        fiber  customers  today  and  our  recent   video  subscriber  declines  will  be more   of 14.3 million. Thanks in part to the additional
        fiber  expansion  gives  us  14  million   in line  with overall video  industry   fiber  customers,  broadband  average  revenue
        locations  to sell into,”  said Stankey,   trends,”  Stankey said.  “Looking at  our   per user (ARPU) came in at $51.35 in the fourth
        according to a Seeking Alpha transcript.   total premium video customer base, we   quarter, compared to $51.25 in the third quarter
        “Based  on  our  fiber  sales  experience   expect year-over-year improvements in   and $48.83 in the same quarter a year ago.


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