Selling data and voice service to companies “is the...
Selling data and voice service to companies “is the cable industry’s largest growth opportunity,” as “broadband growth will wane as broadband penetration (currently around 78 percent) in the US approaches full capacity,” Moody’s analysts wrote investors Tuesday. They said “some…
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growth will continue over the medium-term as cable takes share from telco DSL connections” and that the pay-TV business has reached “maturation.” The debt-ratings agency expects cable system consolidation, because current holdings are “often inefficient or insufficient to serve multi-location commercial customers compared to most telecom competitors.” Time Warner Cable “particularly” and Comcast also may buy systems, “but given their considerable scale they will likely focus on swaps and portfolio rationalization,” Moody’s said. Mid-sized operators like Charter Communications and Cox Communications “stand to benefit the most from consolidation,” the report said: “While they are spread over numerous states,” such companies “have low average footprint penetration, suggesting that sizeable strategic acquisitions could make them more competitive in the commercial markets that they consolidate."