Verizon and AT&T’s Q2 broadband results could mean cable can prolong its recent...
Verizon and AT&T’s Q2 broadband results could mean cable can prolong its recent success, UBS said in a report. The Bells, as UBS referred to the two companies, lost a net 94,000 broadband subscribers during the quarter. They added a…
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net 50,000 a year ago. UBS estimated that cable companies gained a net 240,000 broadband subscribers. “We expect DSL losses to increase at Verizon as the company recently stopped selling stand-alone DSL service throughout its territory and stopped taking orders for DSL at all within the FiOS footprint,” UBS said. AT&T and Verizon also fared worse year-over-year in video, with net gains down to 275,000 for the quarter, according to the report. “Verizon announced on its call that it expected to add fewer subscribers each quarter going forward, largely as a result of price increases given the company’s focus on the profitability of the service,” UBS said. “This reinforces our continued belief that telco TV net adds peaked in 2009 and will continue to decline going forward.” Verizon and AT&T slowed voice line losses to a net 720,000, vs. a 839,000 loss this time last year. Cable’s voice growth slowed, with 181,000 net adds -- down from 253,000 a year ago, according to the report. “We expect cable voice adds to continue to decline over time due to higher penetration rates, wireless substitution and the slow housing recovery."