Thursday, February 5, 2009

Telcos gaining ground over Cable

Fourth Quarter earnings were reported by Time Warner Cable today. One very interesting stat was AT&T's U-verse service has encroached an estimated 21% of TWC's territory.

“Telco competition has expanded to a more significant fraction of our footprint,” said TWC's CEO Glenn Britt on today’s earnings conference call. “As they enter new areas, they have initial gains in net subscribers. You’ll remember we benefited from the same phenomenon as we rolled out digital phones two years ago.”

While Britt claims that this just may be beginner's luck, There may be other conclusions to draw. As reported in IPTV news (I'm still looking for the article to cite), IPTV is growing rapidly. Both AT&T and Verizon came off their best ever quarters in terms of net TV adds. AT&T added 264,000 new subs and (while not technically IPTV) Verizon added 975,000. This in the face of a reverse trend in the cable industry.

I'd like to see if this remains consistent, but all indicators so far suggest that investing in IPTV is the correct move

Telcos put the squeeze on TWC - Telephony Online

Posted using ShareThis

No comments: