Wall Street is Missing Cable's Big Wireless Opportunity, MoffettNathanson Says
The competitive threats to cable's broadband business are overstated, and cable's wireless growth opportunities remain undervalued, MoffettNathanson's Craig Moffett wrote investors Monday. Rather than market share loss, the big driver of the recent slowdown in cable broadband net adds is…
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likely due to market saturation, he said. Rather than the recent competition from fixed wireless, the big longer-term competitive threat to cable is from fiber, he said. Labor shortages and rising installation costs will moderate some fiber overbuilding, he said. Pessimism about the profitability of cable-offered wireless service ignores the opportunity cable has via offloading data traffic onto its own network, he said. Offloading onto Wi-fi "is but a warm-up for the coming main event, which is offload on CBRS small cells," he said.