Offload is Becoming a Bigger Issue

Bandwidth offload is becoming a bigger issue in the telecommunications business. Traditionally, Wi-Fi has been the primary method used by either fixed or mobile Internet access providers to enable off-network connectivity.

But carrier Wi-Fi and small cells also are ways to offload traffic from the mobile network, or increase the capacity of the network. Likewise, licensed assisted access is a way to augment Long Term Evolution licensed bandwidth capacity with Wi-Fi capacity.

Some observers might argue that among AT&T’s reasons for buying DirecTV

is the ability to offload linear video, freeing up more bandwidth for high speed access.

There is some truth to that notion, but AT&T also says the amount of potential bandwidth savings are  “not competitively material.”

AT&T argues there is an advantage to “offloading” linear video to DirecTV delivery, reserving nearly all the rest of the bandwidth for high speed access,

“For bundle customers that choose that option (DirecTV for video and U-verse for high speed access and voice), there will be no need to reserve a fraction of the line capacity for U-verse video service, freeing up more of the line’s capacity for broadband service,” AT&T said.

Cable operators face a similar issue, as bandwidth required for video operations displaces bandwidth that otherwise could be used to support faster high speed access.

Still, some potential bandwidth savings are not, as AT&T argues, material, compared to the other reasons for the acquisition of DirecTV. Lots of free cash flow is the main attraction, though some savings on content costs are expected. Also an advantage is the ability to compete nationwide with a bundle including linear video, high speed access and voice, for the first time.