TDS Telecom is transforming
itself to meet customers’ growing communications
needs, whether for telephone service, online access
or entertainment options.
People are communicating more than ever, and TDS
Telecom aims to be the single source for customers
for all of their communications needs, whether voice,
online access or video entertainment. Long the leader
for telephone service in its ILEC markets, where
the company continues to have 98 percent of the
market for local service, TDS Telecom is transforming
the company to be the preferred broadband service
provider in its markets, too.
Of particular importance to fixed-line communications companies is providing customers the “triple-play” offering of voice, data and video. TDS Telecom currently offers customers a video service offering through its partnership with direct broadcast satellite provider EchoStar. However, TDS Telecom wants to be able to provide a video entertainment option through its own network as well, as it is firmly convinced that broadband is the key to future success for fixed-line communications.
Advancements in broadband technology enable the transmission of the high density of data required for video. But there are many options, and some require significant infrastructure investment.
TDS Telecom is actively considering how best to offer the triple-play offering over its network and launched three video trials in 2004, each with different network configurations. Trialing the different configurations will help TDS Telecom determine how to best leverage its existing network with the new technologies, as well as to address the different geographical composition of its markets. The trials will also provide feedback as to what most resonates with customers, a key consideration that will help TDS Telecom refine its triple-play offering.
A major focus of the trials is Fiber-to-the-Premises (FTTP), a fiber-optic technology with bandwidth capabilities for transmitting video. TDS Telecom is assessing the use of blended FTTP and copper Digital Subscriber Line (DSL) technologies as well. While the company plans to deploy FTTP for new subdivisions, in other areas a blended fiber-copper technology might be more appropriate.
A significant development in TDS Telecom’s triple-play strategy was the announcement in June 2004 that the company received approval for a 15-year franchise agreement to provide video entertainment services to homes in the city of Farragut, Tenn. TDS Telecom plans to have the network up and running within three years to support the video service offering. The build-out and market development of television video services in Tennessee should provide an excellent framework for TDS Telecom to determine the best way to bring video to markets similar in composition.
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