Connectivity Chronicles #20240927

Media Trend: Amazon’s AI Video Creator

Amazon has introduced Video Generator, an AI-powered tool that creates short product showcase videos using a single product image for advertisers. The tool, currently in beta for U.S. advertisers, produces 6-9 second videos with customizable fonts, music, and logos . Another feature, Live Image, generates animated GIFs from still frames, expanding Amazon's AI marketing capabilities. While Amazon promises to protect users from copyright issues with AI-generated media, concerns remain about the potential misuse of copyrighted content. Generative AI is expected to significantly impact the entertainment industry, with job disruptions anticipated in the coming years.

Telecom Market Analysis: Qualcomm Eyes Intel Takeover

Reports suggest Qualcomm is considering a takeover of Intel, sparking industry speculation. While Qualcomm's interest likely centers on Intel's PC market assets, regulatory hurdles in the U.S., U.K., and China make a full acquisition unlikely. A merger would create a 5G powerhouse, combining Qualcomm's dominance in mobile chipsets with Intel's strong presence in 5G infrastructure. However, such a deal could negatively impact open Radio Access Network efforts, where Intel is a key player. Analysts argue that Intel, despite recent struggles, isn't ready for a fire sale and could thrive with a sharper focus. The potential merger raises concerns about market concentration in 5G technology.

Media News: YouTube Enhances AI Tools

At YouTube's "Made On YouTube" event, the company introduced its integration of Google DeepMind's AI video generation model, Veo, into YouTube Shorts. Veo allows creators to generate high-quality backgrounds and six-second video clips, enhancing the capabilities of YouTube’s previous AI-powered Dream Screen feature. The Veo model can edit and remix existing footage, enabling creators to produce more cinematic and seamless content. YouTube also announced new features like "Jewels" and gifts for livestreams, expanded its automatic dubbing tool with support for more languages, and improved community interaction through expanded Community hubs. Additionally, creators will soon be able to brainstorm ideas, create thumbnails, and respond to comments using AI within YouTube Studio.

Telecom News: T-Mobile Expands into Fiber

T-Mobile reports over 1 million customers waitlisted for its 5G fixed wireless access (FWA) service due to capacity constraints. To address this, T-Mobile is expanding into fiber through joint ventures to acquire Lumos and Metronet. These pure-play fiber providers will operate as open-access networks with T-Mobile as the anchor tenant. The fiber expansion will allow T-Mobile to serve waitlisted FWA customers and pass 12-15 million homes. When FWA customers upgrade to fiber, it frees capacity for new FWA customers. T-Mobile plans to leverage its existing marketing capabilities, brand recognition, and 126 million wireless customer base to drive fiber adoption. T-Mobile's FWA business has grown to become the fifth-largest ISP in America, serving 5.6 million customers.

Media Insights: CTV Viewership on the Rise

Connected TV (CTV) viewership has grown 7% since 2020, with hours of viewing (HOV) nearly reaching pandemic peak levels, showing a 5% year-over-year increase through July 2024. Following a rise during COVID-19 and a slight decline afterward, daily HOV is rebounding this year. Churn rates have stabilized, while reality TV has emerged as the most popular genre in ad-supported CTV, followed by drama and documentaries . Despite increased engagement, challenges like content discoverability persist. CTV advertisers are focusing on targeting viewers with genre-specific ads for better relevance.

Telecom Insights: FCC Extends EchoStar Deadlines

The FCC swiftly approved EchoStar's request to extend its 5G buildout deadlines, granting more time in exchange for accelerated deployments in certain markets. The new deadlines extend to December 2026 and June 2028 for various spectrum blocks. This quick approval, likely pre-negotiated, demonstrates the FCC's willingness to support a fourth national facilities-based competitor. EchoStar committed to covering 80% of the U.S. population by 2024, deploying 24,000 towers by 2025, and offering affordable nationwide 5G plans. The extension allows EchoStar to reduce immediate capital expenditures, potentially extending its financial lifeline. However, some analysts still predict eventual bankruptcy for the company, which faces $2 billion in debt due in November.

Media Spotlight: Universal Studios’ Halloween Horror Nights

Universal Studios' Halloween Horror Nights is a highly anticipated annual event held at various locations worldwide, including Orlando, Hollywood, Japan, Singapore, and Beijing. Each park offers unique experiences with haunted houses, scare zones, and live shows. Special features this year include "The Weeknd: Nightmare Trilogy" in Hollywood and the "Chainsaw Man" attraction in Japan. Beijing adds its own "Scares @ Universal" with family-friendly daytime activities and terrifying night mazes. The event has become a must-see for horror fans and continues to grow in popularity globally.

Telecom Spotlight: T-Mobile Targets Public Safety

T-Mobile is aiming to grow its public safety business, currently minor compared to Verizon and AT&T, by securing a key contract with New York City for its new T-Priority service. This 5G network slicing solution prioritizes first responders' communications and leverages T-Mobile's robust 5G standalone network, offering up to 40% more capacity and 2.5 times the speed of competitors. T-Mobile's strategy involves addressing the needs of major agencies like the NYPD, with the belief that success there can be replicated nationwide. While established players dominate the market, T-Mobile's entry could disrupt traditional public safety communications, especially if it competes effectively on price and service quality.

Telecom Focus: FWA Dominates Broadband Additions

Fixed Wireless Access (FWA) continues to show strong growth in the US market. T-Mobile leads with 5.6 million subscribers, adding 406,000 in Q2 2024. Verizon follows with 3.815 million subscribers, adding 378,000 in the same quarter. AT&T's Internet Air service reached 350,000 subscribers, while UScellular has about 134,000. The Leichtman Research Group reported that FWA accounted for 104% of total net broadband additions in 2023, up from 90% in 2022 and 20% in 2021. FWA added 3.67 Million subscribers in 2023, while cable and telcos saw losses. A Recon Analytics survey of Starlink customers in rural areas showed fewer service outages compared to cable and DSL, though fiber broadband had the fewest outages overall.

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