Comcast: The New Broadband KingPoised to surpass AT&T as nation's largest provider 12:47PM Wednesday Oct 29 2008 by Karl Bodetags: competition · business · bandwidth · cable · ComcastTipped by JSRoman  Comcast's third quarter earnings released today show that the company is weathering the economy rather well, losing 147,000 basic cable customers, but adding 417,000 digital cable subscribers. They also added 382,000 new broadband customers during the third quarter, more than AT&T (148,000) and Verizon (225,000) combined. Like last quarter, the numbers indicate that Comcast is winning the triple play battle. Why? VoIP. The cable giant continues its explosive VoIP growth, adding 483,000 VoIP customers on the quarter. Comcast was able to deploy VoIP more quickly than the telcos are able to deploy TV services, resulting in more customers looking Comcast's direction if they want a true triple play option. That may reverse itself in time as U-Verse and FiOS TV reach more customers, but for the time being, Comcast is the dominant player in the broadband industry. The cable company now lays claim to 14.7 million broadband customers, just a hair shy of AT&T's 14.8 million subscribers. One more potent quarter like this one, and Comcast becomes the largest broadband provider in the United States in addition to being one of the largest and fastest growing phone companies. The company's solidly positioned for the future as well, last week unveiling faster DOCSIS 3.0 speeds in a number of markets. The company is poised to deliver the faster speeds to twenty percent of their footprint by the end of this year, and all customers by the end of 2010. Their new 22Mbps/5Mbps and 50Mbps/10Mbps tiers match the fastest offered, and customers on existing tiers in those markets are seeing their speeds doubled (see forum discussion). As far as the struggling economy goes, Comcast CEO Brian Roberts this morning gave himself a pat on the back during a conference call with analysts and the media. About a year ago, Roberts claims he "saw our world beginning to change," with "a softer economy with slower growth rates and also more competion." Pre-emptive adaptation is something Roberts credits his father for. "“He trained me always to be ready for even the most unexpected future and I think that’s a big reason why Comcast in in such a strong position today." If Comcast has an Achilles' heel, it's that the company's immense size has so-far made quality control and customer service a real trouble spot. They're trying to address the issue by expanding support operations, and reaching out to annoyed customers before they become very angry customers. However, retention offers and a lack of competitive options help Comcast mitigate this problem. Another major question for Comcast is whether they can keep up on the wireless front, where incumbent telcos dominate.
Related:- Comcast Tells FCC To Butt Out
- Show Us Your 50Mbps!
- Comcast Gets Investigated While Cox Gets Free Pass
- Comcast Installs DOCSIS 3.0 In Two New Markets
- Comcast 50Mbps Coming To Florida
- Comcast Says They'll Play Nice With Vonage
- Comcast Promises WiMax Bundles
- Comcast: 50Mbps Now Available In 20% Of Markets
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N3OGH
Will it all be Obama's fault now?
Premium
join:2003-11-11
Philly burbs | Slowskis Man, people must like those turtles.... | |
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rahlquist
Redeye
join:2001-10-30
Villa Rica, GA | speeed Its the speed in most cases I would imagine. I would switch if I could. | |
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weekid
@comcast.net | AT&T users are also hopping onto the Comcast bandwagon for the speeds. | |
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TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
 ·Comcast
| Re: CEO Roberts isn't the only one with vision... said by Rick :I'll sum it all up and say I think we're witnessing an industry changing event. It's hard to find in history such a dominant industry losing their market share like this..and so many negatives now going against them. The thing saving the telcos is wireless - the biggest growth area for decades to come. Both Verizon & AT&T are gobbling users up by the millions and much of their lost landline business is going there. None of the cable companies have yet shown they can roll out a viable wireless strategy, though they are all starting to make noises like they will get serious in that arena.
The big question will be - what technology will become dominant in future years - fiber/cable or wireless?
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Rick
Premium,MVM
join:2001-02-06
Waterbury, CT
clubs: 
| Re: CEO Roberts isn't the only one with vision... I just don't see wireless competing with fiber/coax though.
they're distinct and different enough to serve two markets with wireless more for the mobile market.
Yes..cell phones do replace landlines for some..but that's not tv and hsi. and the bundling effects will keep landlines as part of the cable bundle equation for a long time to come.
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The Coyote captured the RR! Roadrunner Rick is now Comcastic! | |
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ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs:
·Metrocast Communic..
 ·AT&T DSL Service
 ·VOIPo
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| Re: CEO Roberts isn't the only one with vision... said by Rick :I just don't see wireless competing with fiber/coax though. they're distinct and different enough to serve two markets with wireless more for the mobile market. Yes..cell phones do replace landlines for some..but that's not tv and hsi. and the bundling effects will keep landlines as part of the cable bundle equation for a long time to come. Really?
»LTE Shows Its 100Mbps Chops
Those speeds are becoming quite impressive. Femto cells being rolled out by T-Mobile and soon by Verizon really blur the line.
Now if those speeds can be offered soon by wireless companies, TV would not be far behind.
The problem with many cable phone line bundles is after the first year the prices go up dramatically. And let's be honest, the states are going to try to find a way to get their paws deeper into the potential tax dollars. We saw it with indie VoIP, I would imagine the cable companies are not far off.
Personally due to monopolies I can't get a major ISP except AT&T where I live. Verizon if a few miles away in RI, Charter is one town away, and others are over the border in Mass.
All I care about is who can give me the fastest speeds at the best price. Right now that is DSL with their Elite speeds as Metrocast is more expensive for just a smidge more download. Now they are retooling their network, so that may change.
I do not have an allegiance to my ISP, I don't care about the CEO or the quarterly earnings nor do I have their name tattooed on my arm. Give me the fastest speeds at the most reasonable price, whether it's cable, DSL, fiber, wireless, whatever.
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| | | | | | | markofmayhem
join:2004-04-08
Pittsburgh, PA
| Rick, in your original post you made the statement that Telco's will have to play "catch-up" by converting to next generation delivery systems. The fact that Telco's have wireless revenue will subsidize the cost of the next generation systems to compete on the "level of four". It will not be a case of the dying paying for a cure. With FIOS's numbers looking very solid, other Telco's will eventually spend the capital to upgrade and be in competition with Cable. Within 10 years, telco and MSO will directly compete for telephone, HSI, and video in most markets (instead of the few markets today). If the MSO's decide to not compete in the wireless arena as well, then it will just be a few short years later that the foursome of telco will reign supreme yet again; for they can afford to subsidize their tele/internet/video packages just enough to out-price the MSO market by market. There will be many victims along the way (will Qwest survive? will U-Verse be the ultimate bridge to FTTH as predicted?), but the "triple play" is dead. Telco can no longer dismiss video; MSO's can no longer dismiss wireless.
Information/entertainment delivery is now four services, no longer 2-3. Satellite TV will continue to survive as long as they pander to niche and ultra-cheap packages (such as sports and $30 "family" tiers). Comcast and other MSO's have a LOT of catch-up to reach the Telco's; not the other way around. Not only do they have to remain the leaders in video (an area they have been slowly falling behind on in the last two years), but they have to enter the wireless market (doesn't have to be directly, but Four-Play bundles are a must over the next decade). It was very smart to release Docsis 3.0 now to receive as much capital as possible off of the new speeds. It was also extremely smart to aggresively price and roll-out voice. POTS and DSL are on their death beds, but they still have an extremely strong market. $24.99 1.5 DSL is a great value to many, if not most internet subscribers. I fear cable dismissing the price point and/or not competing directly with it may be a mistake that will eventually correct itself with the death of DSL, but how much potential revenue will be lost? | |
| | | | | | Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast
| said by TK Junk Mail :The big question will be - what technology will become dominant in future years - fiber/cable or wireless? We already know that Comcast and other cable companies are hedging their bets with Clearwire. I don't think they intend to sit on their hands there either.
I think the future will be a combination of both; they each have their place. Fiber will always be faster than wireless, and will be used in the home and workplace. Wireless will be everywhere else, and there will be seamless integration between the two.
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"The great inlet by which a colour for oppression has entered into the world is by one man's pretending to determine concerning the happiness of another." | |
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badtrip
East Bay
Premium
join:2004-03-20
Albany, CA
·Comcast
| said by TK Junk Mail :The big question will be - what technology will become dominant in future years - fiber/cable or wireless? Wireless without a doubt.
Desktop computer's mainstream days are numbered. Desktops are expensive and wasteful (energy and space). Right now with the iPhone, G1 and ultra portable laptops, we are seeing the beginnings of a shift to portable computing and it will just snowball from here.
Portable computing needs wireless. | |
| | | | Kearnstd
Elf Wizard
join:2002-01-22
Mullica Hill, NJ
| Re: CEO Roberts isn't the only one with vision... said by badtrip :said by TK Junk Mail :The big question will be - what technology will become dominant in future years - fiber/cable or wireless? Wireless without a doubt. Desktop computer's mainstream days are numbered. Desktops are expensive and wasteful (energy and space). Right now with the iPhone, G1 and ultra portable laptops, we are seeing the beginnings of a shift to portable computing and it will just snowball from here. Portable computing needs wireless. i disagree, phones will change but i think the PC still has a place in the home. the iphone and ultra portable laptops have a fatal flaw and that is screen size. and the plasma in your living room might be good for gaming but surfing the web and sending emails and multitasking anything with text is still best done on a PC at the desk.
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badtrip
East Bay
Premium
join:2004-03-20
Albany, CA | Re: CEO Roberts isn't the only one with vision... Let's make a bet then. I say in less than a decade, Desktop PCs will be all but dead for mainstream applications. | |
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knightmb
Everybody Lies
join:2003-12-01
Franklin, TN
·Comcast
·Vonage
·Speakeasy
| Re: CEO Roberts isn't the only one with vision... said by badtrip :Let's make a bet then. I say in less than a decade, Desktop PCs will be all but dead for mainstream applications. Sure, I'll take the beat, I heard that in the 80's, 90's, and 2000's, it's almost 2010 and still we have plenty of desktop PC's.
The only thing that will happen is the term Desktop PC will evolve like it already has.
The desktop PC use to be this big 80 lb tower that had huge fans and boards to run the awesome 80286 16 Mhz processor and disk drives. Now, the desktop is either your laptop with a monitor and keyboard attached to it or a little tower system that is about 1/5 the size of the original desktop PC systems.
Phones are phones, no matter if they play music or video's, they are still just toys compared to a modern PC in both processing power and usability for the office/home.
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fruhead
join:2002-01-29
Montclair, NJ
| said by badtrip :Let's make a bet then. I say in less than a decade, Desktop PCs will be all but dead for mainstream applications. Where's my flying car? | |
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PGHammer
join:2003-06-09
Accokeek, MD
clubs:
·Comcast
| However, wireless is very cannibalistic, and especially so for Verizon (in addition to being the second-largest RBOC, VZW is the second-largest (in terms of subscribers) wireless carrier, and that is *before* digesting Alltel). Between VoIP services (from the cable companies, especially Comcast, and Vonage) and VZW (not to mention AT&T Mobility and T-Mobile), residential/SMB POTS is under assault like it has never been just in the past year. In AT&T Mobility's case, it is owned entirely by the parent, which isn't the case for VZW (which is a JV with Vodaphone plc, which has shown no inkling of selling any of their end to VZ); hence any customer that goes VZW-only is already halfway lost. (This explains VZ's reluctance in doing bundle discounts that include VZW.) | |
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Wills
join:2001-01-03
Port Charlotte, FL
| said by Rick :We just realistically have to ask ourselves..who will ever want dsl again when those tv ad's get running? Me.
DSL continioiusly gives me the things Comcast will not. Reliability, static IP and the ability to host my Web/FTP/Mail server without question.
I don't care if Comcast is willing to drop OC3 speeds to my front door, I'll stay with my DSL.
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djrobx
join:2000-05-31
Valencia, CA
 ·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
·RoadRunner Cable
·DSL EXTREME
| Re: CEO Roberts isn't the only one with vision... said by en102 :said by Rick :I do have to give kudos to Comcast and CEO Roberts for what they've done. It really is a stroke of business genius. I don't think Comcast or their CEO have done anything unique outside of what is technically a typical business requirement... profit and obtaining more customers. It's not like Comcast 'invented' Docsis 3.0. I think its more of a telco sleeping at the wheel (Verizon being the exception and taking what is a necessary risk). Comcast is probably the most aggressive cable company out there. For the most part, they don't wait around for their competition to one-up them. We've been through many cable companies in Valencia, and Comcast was by far the most impressive in terms of quickly modernizing the system and offering new services consistently across the LA footprint. Comcast got HD service and decent quality dual tuner HD DVR, and VOD out to us at lightning speed. That's precisely how they won us back from DirecTV, which I was very happy with at the time.
Time Warner seems to be much more of a reactive company rather than an active innovator. It's been over two years since Time Warner took over, but for the most part the TV service is still Comcast's, rebadged with a Time Warner logo on it. Two years later - you can't even sign into Time Warner's support page without picking "Former Comcast" on a drop-down menu!  And we're back to waiting months and months for things like a handful of HD channels. Comcast wouldn't have let this system fall behind like this.
This is not to say Comcast is perfect, but compared to other cable companies, they seem to work pretty hard at staying competitve, which I suppose falls on Roberts' choices.
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| | | | | | | | Sammer
join:2005-12-22
Pittsburgh, PA
| said by djrobx :said by en102 :said by Rick :I do have to give kudos to Comcast and CEO Roberts for what they've done. It really is a stroke of business genius. I don't think Comcast or their CEO have done anything unique outside of what is technically a typical business requirement... profit and obtaining more customers. It's not like Comcast 'invented' Docsis 3.0. I think its more of a telco sleeping at the wheel (Verizon being the exception and taking what is a necessary risk). Comcast is probably the most aggressive cable company out there. While more aggressive than Time Warner Cable, they don't really seem more aggressive than Cox or Cablevision. While I wouldn't have expected them to completely upgrade the 750 MHz former Adelphia systems they took over in the Pittsburgh area yet there are still some local systems they took over from AT&T Broadband a number of years ago that are still in bad shape. | |
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dogtech
Let Us Build It
join:2002-06-08
Monroe, MI | The Telco's game now is wireless....not landline anything. Wireless is their cash cow. Comcast is light years behind them in this reguard. | |
| | Kearnstd
Elf Wizard
join:2002-01-22
Mullica Hill, NJ
| FiOS is the only telco deployment that even can challenge Comcast and its still very limited in area. Uverse is already Obsolete.
another major advantage for Comcast and cable in general is they can TOTALLY trash a Service like Uverse with minimal capitol, DOCSIS 3.0 has got to be less costly then new networks.
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guhuna
The Raiders SUCK Should move back to LA
Premium
join:2001-03-31
Discovery Bay, CA | yawn. Pissing contest anyone? | |
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contractor01
@comcast.net
| numbers dont lie Karl no matter how many negative links you post, or even links to negative links, the numbers dont lie. Its simple why Comcast signs up more customers. Who wants the mad whacker on their property just to get FIOS???
»consumerist.com/5031593/verizon-···salesman | |
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Morac
join:2001-08-30
Riverside, NJ | Re: numbers dont lie Actually the main reason Comcast signs up more customers than FIOS is because it's available in more locations than FIOS. | |
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hopeflicker
Capitalism breeds greed
Premium
join:2003-04-03
Long Beach, CA
| Re: numbers dont lie said by Morac :Actually the main reason Comcast signs up more customers than FIOS is because it's available in more locations than FIOS. QFT  | |
| | | kirk1233
join:2003-08-15
Pittsburgh, PA | With FiOS now having over 100 HD channels I don't know how anyone could stick with Comcrap... | |
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contractor01
@comcast.net
| said by Morac :Actually the main reason Comcast signs up more customers than FIOS is because it's available in more locations than FIOS. EXACTLY !!! thats always been verizons problem with DSL too. 1 street could get it and around the corner couldnt. Silly way to do business | |
| b10010011
Whats a Posting tag?
join:2004-09-07
Bellingham, WA | Well they do have a monopoly in many areas In my area for TV its cable or satellite as OTA will get you all of two channels from the US and three or four from Canada. Satellite does not offer locals (ABC, CBS, NBC FOX) in HD unless you can receive them OTA. | |
| BF69
join:2004-07-28
Camden, TN
| what about caps? Maybe right now not an issue but as watching TV online becomes more popular and if/when networks actually start streaming SD shows in real SD( as in 2.5 Mbps not 1.2 Mbps ) and real HD( as in 6 Mbps not 2 Mbps for 720p and 12 Mbps for 1080p ) then 250 GB won't be much at all. | |
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anon6969
@comcast.net | Twin Cities? Call me dumb..but where is the "twin cities"? Does that include Chicago? | |
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cypherstream
Is decent HD service too much to ask for
Premium
join:2004-12-02
Reading, PA
clubs:
| More digital subs good So with larger growth toward digital, do you think we can cut the analog soon? I'd really like some more HD channels at full quality. And we know that Comcast isn't going to upgrade to 1 GHz... that's not in their vocabulary (only in Cox). So lets get rid of all this analog! | |
| | markofmayhem
join:2004-04-08
Pittsburgh, PA
| Re: More digital subs good There's a bit of danger in those numbers. Comcast's stock DROPPED on this news due to analysts predicting better numbers than Comcast posted. While I would love to see the orange take over the green on those bar charts, unless analysts back off a little, these numbers may slow analog reclamation.... God I hope not! | |
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Rick
Premium,MVM
join:2001-02-06
Waterbury, CT
clubs:
| Re: More digital subs good said by markofmayhem :There's a bit of danger in those numbers. Comcast's stock DROPPED on this news due to analysts predicting better numbers than Comcast posted. While I would love to see the orange take over the green on those bar charts, unless analysts back off a little, these numbers may slow analog reclamation.... God I hope not! Comcast beat earnings estimates..24 cents versus 22 cents estimates.
It's stock probably dropped because it was up so much yesterday. It had a big run at the close. The company also said they might trim back their stock buyback plan somewhat.
Other than that..nothing negative that I saw in the press release.
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The Coyote captured the RR! Roadrunner Rick is now Comcastic! | |
| | | | markofmayhem
join:2004-04-08
Pittsburgh, PA
| Re: More digital subs good quote:
Sanford Bernstein analyst Craig Moffett said the third-quarter's results were ''good but not great,'' but he said cable stocks remain a good place to hide in an uncertain economy.
quote:
Still, the company, mindful of the tight credit market, said it won't use all the funds its board has approved to buy back shares by the end of 2009. Instead, it will proceed more cautiously depending on market conditions. Comcast has $4.1 billion remaining on the repurchase program.
quote:
The company affirmed its fiscal 2008 outlook for an 8 percent to 10 percent increase in revenue and operating cash flow and a reduction in capital spending to 18 percent of revenue.
Comcast missed revenue estimates by $40 million on the quarter and has become much more conservative on the future quarter. The reduction in capital spending is pretty large. By missing revenue and exceeding earning estimates, it indicates more cuts to spending; not encouraging for the crowd who whats expansive upgrades now. I didn't see anything negative either, but for a company to aggresively return to cash spending while lowering future earning estimates; massive spending in upgrades will most likely not be part of the game plan. I'm just using a round-a-bout way to say "Don't expect too many HD additions in the next quarter". | |
| | Kearnstd
Elf Wizard
join:2002-01-22
Mullica Hill, NJ
| the main issue is that atm a cable provider has the FCC against them likely for full termination of analog and going fully switched digital. the whole must carry thing i bet says everybody on the system must be able to get those.
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| iampedro
join:2005-02-12
Houston, TX | Great But still lacking lots of features and services I am going to jump ship as soon as UVerse comes b/c better DVR and services... Comcast is great with the speed at times but it seems that they are still running 586 DVR's v. Uverse which is a AMD X4 DVR's type comparison. | |
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cypherstream
Is decent HD service too much to ask for
Premium
join:2004-12-02
Reading, PA
clubs:
edit:
October 29th, @02:37PM
| Re: Great But still lacking lots of features and services I agree. But I'll never see U-Verse as long as I live in Berks County, PA. If anything, maybe I'll see FIOS in 10 years from now.
That's so stupid you have to move to get good service. If anything Verizon should pay me relocation fees to move to an area to get Fios. Or AT&T should pay me relocation fees to move to an area that has U-Verse. It's a shame you have to jump through all of those hoops just to get rid of the Comcast stranglehold. | |
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CUBS_FAN
Wait 'til next year. Again
join:2005-04-28
Chicago, IL | Really? I thought Comcast already was the "King of broadband". Or was I listening to a room |
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You can see the presentation made to investors here
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