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Frontier CEO says she'll beat Google Fiber 'hype' with better prices [The Oregonian, Portland, Ore. :: ](Oregonian (Portland, OR) Via Acquire Media NewsEdge) July 30--You don't need a gig. That's the case Frontier Communications chief executive Maggie Wilderotter is making as Google Fiber readies a charge into the Portland area, perhaps as soon as next year. Google promises "gigabit" speeds for residential users -- 1,000 megabits per second, roughly 20 times a typical broadband Internet connection today. The company says it will decide by the end of this year whether to build a residential fiber-optic network to homes in Portland and five smaller cities nearby. Frontier, which has had a monopoly on residential fiber in Portland's suburbs since acquiring Verizon's FiOS service four years ago, says Google is pitching something consumers don't understand, and don't need. "Today it's about the hype, because Google has hyped the gig," said Wilderotter, in Portland this week for a meeting of her company's board. She said Google is pitching something that's beyond the capacity of many devices, with very few services that could take advantage of such speeds, and confusing customers in the process. "We have to take the mystery and the technology out of the experience for the user because it's a bit disrespectful to speak a language our customers don't understand," said Wilderotter, in Portland this week for a meeting of her company's board. Frontier's pitch: Better prices for more modest speeds. For most people, Wilderotter said, 10 to 12 megabits per second will be perfectly adequate for at least the next couple years. She said Frontier is upgrading its networks in rural communities where it doesn't offer FiOS to meet that benchmark. Frontier FiOS offers 15 mbps for $30 a month. That's a fraction of the speed Google promises, but less than half Google's $70 monthly charge. Frontier will offer gigabit packages, too, Wilderotter promises, within "the next several quarters," as services emerge that justify such speeds. But she said Frontier will also offer tiered services, with discounts for customers below certain thresholds. Some consumer advocates loathe the notion of a usage cap, but Wilderotter says it's a model subscribers are familiar with -- from cell phone plans -- and will accept if it comes with a corresponding discount. With its landline phone business in precipitous decline (see chart below), Frontier is moving aggressively toward broadband. Eventually, Wilderotter said, the company hopes to bundle video streaming services with its Internet plans -- an alternative to cable TV that would offer subscribers some favorite channels without paying full freight for dozens or hundreds of cable TV networks. Frontier offers fiber-optic service in a number of smaller cities in the metro area, including Beaverton, Hillsboro, Gresham and Lake Oswego. All are on Google Fiber's radar, too. (Frontier doesn't serve Portland itself, which is in CenturyLink's service territory. CenturyLink has begun offering gigabit service in select areas of the city.) Many markets have just one company offering broadband Internet and cable TV. This time next year, parts of the metro area could have three if Google Fiber jumps into the market with Frontier and Comcast. Satellite TV services offer more options. Frontier's strategy, at odds with Google's approach, suggests there may be some real differences in how companies market themselves and pitch their services. "You're going to get a lot of new, competitive options," said Donna Jaegers, telecom analyst for D.A. Davidson. "It should be good for consumers, at least, because you get more choice." Gigabit service is indeed overkill for most people, Jaegers said, noting that she has 6 mbps at home and does just fine. She said that Frontier's value-conscious pitch will appeal to consumers so long as the economy stays weak. Google has an enormously powerful brand, though, and has proven savvy about building public fervor for its top-shelf service. "Certainly you're going to have a part of the market," Jaegers said, "that just wants what's new and what's fastest." -- Mike Rogoway; twitter: @rogoway; phone: 503-294-7699 ___ (c)2014 The Oregonian (Portland, Ore.) Visit The Oregonian (Portland, Ore.) at www.oregonian.com Distributed by MCT Information Services |