Cable Broadband Growth Is Sputtering in the US, and No One's Sure Why
Something is slowing internet subscriber growth at Comcast and Charter, reports Bloomberg, "raising concerns about an end to what has been a huge growth business." But why? Explanations ranging from a slowdown in consumer spending to competition from phone giants. Slashdot reader JoeyRox shared this report from Bloomberg: Charter on Friday reported 25% fewer new broadband subscribers than analysts estimated and said the overall number of new customers would fall back to 2018 levels. Comcast, which had earlier cut its subscriber forecast, reported 300,000 new internet customers Thursday, less than half the number added a year ago. Analysts were expecting some slowdown in demand coming off 2020, a year when broadband sign-ups spiked as the pandemic shifted people to working and schooling from home. Still, with Charter echoing Comcast's gloomy picture from Thursday, suddenly there's a chill on the cable broadband front, which became the most prized segment of the business as consumers cut traditional TV service. Charter's shortfall raises "questions about whether this is the beginning of the end of the cable broadband story," said Geetha Ranganathan, an industry analyst at Bloomberg Intelligence... Both Charter and Comcast blamed a slower new home market for some of the slack in demand, leaving the companies to try and squeeze more business out of their saturated markets. Other factors could include a dropoff in lower-paying customers as government assisted broadband funds dry up... New competition from phone companies certainly doesn't help. AT&T Inc. is expanding its network and added 289,000 new fiber internet customers last quarter. Meanwhile, T-Mobile US Inc. and Verizon Communications Inc. are very excited about new wireless home broadband offers that aim directly at cable and outlying areas where cable could potentially expand. Changes in TV viewing may also be a factor. For decades, cable companies sold TV and internet in discounted bundles. With rise of streaming video "the cable promos aren't as appealing for broadband only," Lopez said. Even as Comcast and Charter deploy new faster network technology to attract more lucrative customers, cable's share of the market is starting to shrink, according to Tammy Parker, a senior analyst with GlobalData.
from Slashdot https://ift.tt/3brrLwE
Read more of this story at Slashdot.
from Slashdot https://ift.tt/3brrLwE
0 Response to "Cable Broadband Growth Is Sputtering in the US, and No One's Sure Why"
Post a Comment