Millennials don't want traditional TV any more

  • Posted on: 19 February 2015
  • By: admin

Young people in the 18 to 34 age group continue to ignore traditional cable and satellite TV packages in favor of Internet-based Over The Top (OTT) packages like Netflix and Hulu, among others. With ESPN and HBO joining the OTT revolution, cable and satellite TV are dead, dead, dead, as live sports and specialty programs (think HBO offerings like the hugely popular Sopranos) are now available without that bloated and over-priced cable TV subscription.

The cable companies response to losing market share has been to simply switch their tired old "annual rate increase" strategy to their Internet package, while trying to cram more bandwidth onto the creaky old 20th century copper coax cable.

We have a different strategy: Build modern fiber networks and operate them as a Local Transport Provider (LTP). We are separating the infrastructure from the services completely, which opens the local network up to multiple providers and hundreds of commodity and niche services--customers pick and choose the provider and the services they want. It's called shopping for the best product at the best price. Cable TV and telephone companies are offering the 1950s Soviet economy style of business: "One product, take it or leave it, and we'll tell you what you are going to pay us."

Old model: command economy run by the giant incumbent companies with mediocre service.

New model: free market economy where the customers decides what they want to buy and how much they want to pay.

How can we do that? It's simple. The key concept is the switch to understanding the local network as the Local Transport Provider, completely separate from the Service Provider. We are unbundling the network, completely and unequivocally, which was the original goal of the 1984 and 1996 Telecom Acts.

Trust me...it's finally here, and we are revolutionizing broadband.

Welcome to the world where the Local Transport Provider puts customers first.