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| Address URL | http://www.alleyinsider.com/ Registered: 22-Mar-2008 |
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 Send to email | Cable Cos Winning Broadband War: Beating Telcos 2-to-1 For New Subs in TQTWCVZCMCSA |  By Silicon
el 07-Nov-2008 |  The cable industry continues to dominate the phone industry in the race to sign up broadband subscribers.
Most public phone and cable companies have reported Q3 results, and so far, cable companies signed up 64% of new broadband subscribers last quarter, while telcos signed up 36%. (See chart below for details.)
Why are cable companies -- led by Comcast (CMCSA) and Time Warner Cable (TWC) -- dominating?
- In most areas, cable Internet is significantly faster than phone companies' DSL services.
- As people use more bandwidth for stuff like Web video, we think they're upgrading to cable Internet for faster speeds, especially when they move.
- Cable companies have attracted millions of digital phone subscribers via "triple play" deals, many of whom came from phone companies -- and probably signed up for cable Internet, too.
Yet the phone industry -- led by AT&T (T) and Verizon (VZ) -- is actually doing better than last quarter, when it only took 27% of the market. How?
- Building out faster, fiber optic-based networks to compete with cable. Verizon's "FiOS" and AT&T's "U-Verse" are both helping keep existing subscribers -- and attract customers away from cable. In Q3, Verizon attracted 225,000 net new FiOS broadband subscribers, and reported a net loss of 96,000 DSL subscribers. Similarly, Qwest (Q) said about two thirds of its new broadband subscribers in Q3 bought access via its fiber-based network.
- Starting to offer additional perks, like free wi-fi access. AT&T offers many of its broadband subscribers free wi-fi access at Starbucks and McDonalds stores, and just spent $275 million on 10,000 more wi-fi hotspots. (Cablevision is building out wi-fi service, too.)
We expect phone companies to continue losing share to cable companies until they build out their fiber-based services into more markets and upgrade their DSL service for faster speeds.
One caveat: Cable's performance is probably better than indicated here, as Cox -- a large cable provider -- is private, and doesn't report quarterly results.
See Also:
Time Warner Cable Broadband Lone Q3 Bright Spot, 'Dramatic Slowdown' In October
Comcast's TiVo Service Coming To Chicago Early Next Year
Verizon Q3 Strong, Now 7th-Biggest U.S. Cable TV Provider
AT&T's Broadband Growth Recovers, But Cable Should Still Dominate Market
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| Comcast Q1 Earnings; Cable Subs Slowing, Phone Subs Up (CMCSA) | | Comcast delivered the Q1 numbers the Street was expecting: Revenue up 14% to $8.39 billion (actually a touch better than the consensus of $8.17B) and adjusted EPS of 19 cents. Operating income was up 23%, and free cash flow was up59%. Its customers spent more on cable TV, but less on phone and Internet connections.
During the 8:30 conference call, we'll be trying to figure out what to m [..] Read complete article | | Published 01-May-2008 by Silicon in CMCSA
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| AT&T hits Reno, NV with tiered broadband trials | | AT&T is taking cues from Time Warner Cable and Frontier Communications by implementing a tiered broadband service for customers in Reno, NV - whether they like it or not. Lucky them, eh? Broadband customers will be limited with certain caps depending on their tiered pricing plans and will be charged per gigabyte exceeding their plan. [...] [..] Read complete article | | Published 05-Nov-2008 by Marc Flores in
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 | Nerdblog |  Blogger | Provides news about hardware, software, notebooks, laptops, PCs, Mac, PDAs
Nerdblog.Net |
| Cable broadband shines in Virgin Media Q2 | | 50Mbit/s by the end of the year
Virgin Media’s recent move to push broadband to the centre of its offering is paying off. The firm announced strong underlying profits today and said it expects its forthcoming 50Mbit/s network upgrade to further distinguish it as a premium/expensive ISP.
TheRegister [..] Read complete article | | Published 07-Aug-2008 by Nerdblog in General
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