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Telecom Industry News - September 2016


August saw AT&T and HBO reaching a multi-platform agreement that will make HBO premium content available to DIRECTV and U-verse customers on any device screen and HBO and CINEMAX through the new DIRECTV NOW streaming service.

The other key personnel change was the replacement of outgoing chief technologist Scott Jordan with Henning Schulzrinne as Senior Advisor for Technology to help the commission tackle more complex technological challenges such as broadband privacy, spoofing, and robocalling.

The changing face of television

Just a few years ago, telecommunications and television would have made strange bedfellows. However, the rapidly evolving communications industry is morphing boundaries and removing barriers affecting how and where consumers watch video content.

Juniper Research released a new report this month predicting that 10 percent of U.S. residents will view video content on non-TV devices by 2021 and that adoption of 4K over-the-top (OTT) Internet TV and video content will soar.

In the meantime, a new study by the Leichtman Research Group revealed that the eleven largest pay-TV providers in the U.S. -- representing about 95 percent of the market -- lost about 665,000 net video subscribers in 2Q 2016, compared to a loss of about 545,000 subscribers in 2Q 2015.

The global mobile TV market is exceedingly fragmented, according to a new report this month from Transparency Market Research. The top 10 players, including Comcast, AT&T, MobiTV, Inc., Sky plc, Bell Canada, Verizon, Orange, and Charter Communications, among others, accounted for just over 23 percent of the market in 2015. However, the industry analyst firm predicts a massive surge of mobile TV subscriptions over the next eight years, with revenues expected to reach over $17 billion by 2024. 

Ericsson announced in August it will unveil its new ‘TV as a Service’ vision at IBC2016 and showcase a series of new TV and media innovations, including next generation playout solutions, augmented reality enriched experiences, and immersive sports technologies.

August saw AT&T and HBO reaching a multi-platform agreement that will make HBO premium content available to DIRECTV and U-verse customers on any device screen and HBO and CINEMAX through the new DIRECTV NOW streaming service. AT&T expects the new streaming service to roll out by the end of the year. The multi-year, strategic agreement will extend HBO’s award-winning content across all AT&T products and renews HBO’s existing contract with the AT&T DIRECTV and U-verse services.  

AT&T also announced it will be providing discounted DIRECTV subscriptions to over 24 thousand HealthTrust facilities including ambulatory surgery centers, physician practices, long-term care and alternate care sites.

Fraud: the ugly challenge

While network and data security news continue to take center stage, fraud, in particular, seems to plague consumers and communication services providers alike. 

The Federal Communications Commission’s Enforcement Bureau this month announced a $7.75 million settlement with AT&T Services to resolve its investigation into whether the company “crammed” unauthorized third-party charges on its customers’ wireline telephone bills.  AT&T allowed scammers to charge customers approximately $9 per month for a sham directory assistance service.  The scam was uncovered by the U.S. Drug Enforcement Administration (DEA) while investigating the scammers for drug-related crimes and money laundering.

In a separate AT&T-related fraud story, the law firm of Byrd Campbell, P.A., in conjunction with the telecommunications and utilities audit firm of Troy & Banks, announced an investigation into the Florida E-Rate Program practices of AT&T. The case is based upon the recent Notice of Apparent Liability for Forfeiture (NAL) issued by the FCC on July 27 which found that AT&T Southeast "apparently willfully and repeatedly violated" the Telecommunications Act of 1934, and the related FCC rules, by failing to offer and charge the "lowest corresponding price" (LCP) for certain telecommunication services to Orange County and Dixie County school districts in Florida.



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