Comments on: Tough Times For Cable Cos, Phone Cos & Dish Guys http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/ Trusted Insights and Conversations on the Next Wave of Technology Wed, 25 Nov 2009 20:27:55 +0000 http://wordpress.com/ hourly 1 By: 10 Stories That Defined Broadband in 2008 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-920018 10 Stories That Defined Broadband in 2008 Wed, 31 Dec 2008 23:08:09 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-920018 <p>[...] the U.S., we started to see the asphyxiation of unlimited broadband. Limited by imagination and slowing growth prospects, and with their video franchises threatened, newly independent Time Warner Cable and Comcast [...]</p> [...] the U.S., we started to see the asphyxiation of unlimited broadband. Limited by imagination and slowing growth prospects, and with their video franchises threatened, newly independent Time Warner Cable and Comcast [...]

]]> By: Time Warner Reaps $9.25B From Cable Split - GigaOM http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-879353 Time Warner Reaps $9.25B From Cable Split - GigaOM Wed, 21 May 2008 14:32:47 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-879353 <p>[...] out its Time Warner Cable division seemed to believe that saddling a cash-generating business in an increasingly competitive market with a lot of debt is good. It’s good for Time Warner Cable shareholders (including Time [...]</p> [...] out its Time Warner Cable division seemed to believe that saddling a cash-generating business in an increasingly competitive market with a lot of debt is good. It’s good for Time Warner Cable shareholders (including Time [...]

]]> By: Comcast Defying The Broadband Slowdown… For Now - GigaOM http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876398 Comcast Defying The Broadband Slowdown… For Now - GigaOM Thu, 01 May 2008 14:22:49 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876398 <p>[...] Another astonishing number: Comcast added 639,000 Comcast Digital Voice (CDV) customers during the first quarter - penetration reached 12% or 5.1 million customers with revenues of around $587 million in the first quarter of 2008. Time Warner Cable also posted similar kind of growth, adding 280,000 phone customers and 304,000 high speed customers in the first quarter. In comparison, the phone companies keep losing landline customers. No wonder phone companies are worried. [...]</p> [...] Another astonishing number: Comcast added 639,000 Comcast Digital Voice (CDV) customers during the first quarter – penetration reached 12% or 5.1 million customers with revenues of around $587 million in the first quarter of 2008. Time Warner Cable also posted similar kind of growth, adding 280,000 phone customers and 304,000 high speed customers in the first quarter. In comparison, the phone companies keep losing landline customers. No wonder phone companies are worried. [...]

]]> By: Time Warner Begins Death by 1,000 Cuts - GigaOM http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876257 Time Warner Begins Death by 1,000 Cuts - GigaOM Wed, 30 Apr 2008 14:02:45 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876257 <p>[...] off its growing cable division and use the capital to buy back shares. While the cable business brought some stability to Time Warner’s bottom line, it’s an awkward asset for a content company to hold onto, [...]</p> [...] off its growing cable division and use the capital to buy back shares. While the cable business brought some stability to Time Warner’s bottom line, it’s an awkward asset for a content company to hold onto, [...]

]]> By: Bill http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876191 Bill Tue, 29 Apr 2008 23:52:42 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-876191 <p>I'd only like to add that I don't see cable co's being capable of retaining a vast swath of their outlying suburban and rural customers over the next several years. They just can't afford to perpetually add bandwidth in low population density area's. 2 years from now 50% or more of Americans will have HD TV's in their homes. The largest portions of the population who currently own HD tv's are already better served by direct tv in that regard. That fact will become more and more evident very quickly amongst consumers coming into this summer and the third quarter as current LCD tv prices continue to drop.</p> <p>That being said, I'm far more interested in seeing what comes of the recent spectrum sell off. Depending on who actually bought it, multiple advanced services via that spectrum could show up much sooner than anyone at direct tv or Comcast would like to think.</p> I’d only like to add that I don’t see cable co’s being capable of retaining a vast swath of their outlying suburban and rural customers over the next several years. They just can’t afford to perpetually add bandwidth in low population density area’s. 2 years from now 50% or more of Americans will have HD TV’s in their homes. The largest portions of the population who currently own HD tv’s are already better served by direct tv in that regard. That fact will become more and more evident very quickly amongst consumers coming into this summer and the third quarter as current LCD tv prices continue to drop.

That being said, I’m far more interested in seeing what comes of the recent spectrum sell off. Depending on who actually bought it, multiple advanced services via that spectrum could show up much sooner than anyone at direct tv or Comcast would like to think.

]]> By: Eric http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875922 Eric Mon, 28 Apr 2008 21:19:21 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875922 <p>Mine would be DirecTV's campaign. Seems they hit the pulse of Comcast's @comcastcares on Twitter philosophy to "blog it out" rather than as Om says, focus on keeping their overall customer base happy.</p> Mine would be DirecTV’s campaign. Seems they hit the pulse of Comcast’s @comcastcares on Twitter philosophy to “blog it out” rather than as Om says, focus on keeping their overall customer base happy.

]]> By: Chris http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875399 Chris Mon, 28 Apr 2008 17:03:58 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875399 <p>I like my cable company, for the most part, my internet is up 99.9% of the time (20/1.5 connection), cable always works, going on 8 yrs now.</p> <p>The downside is not a lot of HD, 23 channels if you purchase everything (HBO, SHO, etc.) and most of them are sports/nature, which I don't really care about, also the package bundling, that every TV company does, making me pay for 20+ sports channels that I will NEVER watch to get the 10 channels in that package that I want.</p> I like my cable company, for the most part, my internet is up 99.9% of the time (20/1.5 connection), cable always works, going on 8 yrs now.

The downside is not a lot of HD, 23 channels if you purchase everything (HBO, SHO, etc.) and most of them are sports/nature, which I don’t really care about, also the package bundling, that every TV company does, making me pay for 20+ sports channels that I will NEVER watch to get the 10 channels in that package that I want.

]]> By: Chuck http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875397 Chuck Mon, 28 Apr 2008 16:58:10 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875397 <p>Who cares? With TiVo/DVRs who watches commercials anymore? Not me.</p> <p>Except for the few entertaining commercials, most either push poor values or are so annoying its more like torture to sit through them.</p> <p>These companies are run by a bunch of greedy monkies who can create new business models.</p> Who cares? With TiVo/DVRs who watches commercials anymore? Not me.

Except for the few entertaining commercials, most either push poor values or are so annoying its more like torture to sit through them.

These companies are run by a bunch of greedy monkies who can create new business models.

]]> By: Marl Balou http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875395 Marl Balou Mon, 28 Apr 2008 16:39:56 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875395 <p>I believe that this is a result of the mindset and DNA of these carriers. They view themselves as building roads but are myopic to other solutions (or competitors). Hence the emergence of Skype, Instant Messaging etc that provide alternate connectivity. This same issue pervades the traditional device manufacturers who have been upended by the IPhone and are now scrambling. The last mile is still a quasi monopoly and keeps these folks in the game.</p> I believe that this is a result of the mindset and DNA of these carriers. They view themselves as building roads but are myopic to other solutions (or competitors). Hence the emergence of Skype, Instant Messaging etc that provide alternate connectivity. This same issue pervades the traditional device manufacturers who have been upended by the IPhone and are now scrambling. The last mile is still a quasi monopoly and keeps these folks in the game.

]]> By: Andy Abramson http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875361 Andy Abramson Mon, 28 Apr 2008 09:57:52 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875361 <p>Interesting question Om.</p> <p>If you look at how the cable MSO's keep carving up and consolidating the USA the cable landscape starts to look like the old Bell Map. We're also rapidly getting down to fewer and fewer players. Time Warner, Comcast, Cox, Cablevision, Charter pretty much run the major markets.</p> <p>As for who I prefer? I think at the end of the day I'd go with Cable. There response time is quicker. They also are less prone to finger pointing as to why something is not working. Lastly, when you are a business customer, no matter how small you get better attention. Try that with your phone company.</p> Interesting question Om.

If you look at how the cable MSO’s keep carving up and consolidating the USA the cable landscape starts to look like the old Bell Map. We’re also rapidly getting down to fewer and fewer players. Time Warner, Comcast, Cox, Cablevision, Charter pretty much run the major markets.

As for who I prefer? I think at the end of the day I’d go with Cable. There response time is quicker. They also are less prone to finger pointing as to why something is not working. Lastly, when you are a business customer, no matter how small you get better attention. Try that with your phone company.

]]> By: Sidharth http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875358 Sidharth Mon, 28 Apr 2008 08:03:12 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875358 <p>Dear Mr. Om Malik</p> <p>I am a regular reader of your blog and find it very informative. Just to bring to your attention the recent results of Bharti Airtel Limited, India's biggest Mobile Service operator. They have very low ARPU's of around $9 - 10 per month but enjoy very high EBITDA and Net Profit margins. We dont see the same margins with any of the US or European operators inspite of them charging much higher prices than in India. What could be the reason. You can download the complete results from their website airtel.in</p> Dear Mr. Om Malik

I am a regular reader of your blog and find it very informative. Just to bring to your attention the recent results of Bharti Airtel Limited, India’s biggest Mobile Service operator. They have very low ARPU’s of around $9 – 10 per month but enjoy very high EBITDA and Net Profit margins. We dont see the same margins with any of the US or European operators inspite of them charging much higher prices than in India. What could be the reason. You can download the complete results from their website airtel.in

]]> By: Mitchell Kertzman http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875337 Mitchell Kertzman Mon, 28 Apr 2008 05:31:14 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875337 <p>I've observed for some time that competitive corporate communications was becoming more and more like political communications - not a good development for either world!</p> I’ve observed for some time that competitive corporate communications was becoming more and more like political communications – not a good development for either world!

]]> By: Jon http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875336 Jon Mon, 28 Apr 2008 05:28:59 +0000 http://gigaom.com/2008/04/27/tough-times-for-cablecos-phone-cos-dish-guys/#comment-875336 <p>It would be nice if they'd actually try to something in the way of a value-add. In my case, DirecTV is worth it because they're the only ones offering Setanta Sports, for strategic soccer and Gaelic sports purposes. It seems like all cable and Baby Bells are interested in is looping you into a triple-play however they can and to hell with what happens once you're under contract...which is why I've avoided that. DirecTV, Speakeasy DSL, and I'd rather eat asphalt than have Comcast.</p> It would be nice if they’d actually try to something in the way of a value-add. In my case, DirecTV is worth it because they’re the only ones offering Setanta Sports, for strategic soccer and Gaelic sports purposes. It seems like all cable and Baby Bells are interested in is looping you into a triple-play however they can and to hell with what happens once you’re under contract…which is why I’ve avoided that. DirecTV, Speakeasy DSL, and I’d rather eat asphalt than have Comcast.

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