When WOW! launched gigabit Internet speeds in Auburn and Huntsville, AL; Evansville, IN; and Knoxville, TN, last week, the company wanted to make sure the offering was not just about speed, but also about a disruptive price point.
"To make it available is one thing. To do it at a price point customers can and will afford is a big part of the strategy. (We have) a bullish position overall and (will make sure) as many markets get deployed in as short a timeframe as we can," said Cash Hagen, WOW! COO.
New WOW! customers can subscribe to 1 Gbps service for $70 a month with a two-year contract.
The DOCSIS 3.1-based service uses the ARRIS (NASDAQ:ARRS) E6000 CMTS and ARRIS modems. The two companies have worked together about a year on lab testing and field trials.
"(We) got here faster than anticipated. 2017 was teed up as the timeframe to roll out," Hagen said.
The four markets were targeted first by WOW! because of the readiness of the outside plant, which needs to be capable of utilizing RF spectrum 860 MHz or greater, so there is enough capacity to deploy DOCSIS 3.1 carriers.
"(The work) was more a testing of the plant. There were no rebuilds or upgrades, just line testing of the higher frequencies that were not being used," Hagen said.
Competition also played a factor in deciding where to roll out gigabit service first. Google Fiber (NASDAQ:GOOG) and AT&T (NYSE:T) both have deployed gigabit in Huntsville.
"I would be lying if I didn't say it was an offensive/defensive move in putting Huntsville on our list," Hagen said.
The next WOW! gigabit market will be Grosse Pointe Shores, MI, which should be ready for launch by the end of the year. This deployment will be different, however, in that this region is WOW!'s first sizeable fiber-to-the-home (FTTH) build, Hagen said. The gigabit service, therefore, will be over fiber and not DOCSIS 3.1.
Additional WOW! markets that are 1 Gig-capable, or will be soon, will be announced early next year. The rollout plan will depend on capital availability as some infrastructure investment is required. "We are spending a lot of time right now in analysis of our remaining markets," Hagen said.
Industry-wide, gigabit news continues to come out fast and furiously. This month alone, service providers released deployments or plans for numerous cities:
- AT&T announced gigabit availability in southeast Michigan under its AT&T Fiber brand (formerly GigaPower). The service covers four cities in Wayne, Oakland, and Macomb counties and will expand to an additional four cities, mid-2017.
- October also will mark the launch of AT&T Fiber in metro areas including Columbus, OH; Detroit; Huntsville; Augusta, GA; Bakersfield, CA; Ft. Smith/Northwest Arkansas, AR; Louisville, KY; Lubbock, TX; Memphis; and Mobile, AL.
- AT&T also announced 11 additional metro areas targeted for gigabit service, including Gainesville and Panama City, FL; Columbus, GA, Central Kentucky; Lafayette, LA; Biloxi-Gulfport and Northeast Mississippi; Wilmington, NC; Southeastern Tennessee and Knoxville; and Corpus Christi, TX.
- Cable One (NYSE:CABO) expanded its GigaONE Internet footprint in Arizona, expanding to Globe and Miami.
- Altice (Euronext:ATC) launched gigabit broadband in four former Suddenlink markets in New Mexico, Texas, and Louisiana.
- RCN announced plans to deploy gigabit in Chicago communities, including Skokie and Lincolnwood.
