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Comcast Passes 30 Million Customers, Still Growing Broadband Subscribers

Comcast has passed 30 million customer relationships, mostly from adding new broadband customers that continue to disconnect from phone company DSL service.

In the last quarter, Comcast added 363,000 new broadband customers, a number the company calls its best third quarter subscriber add in 10 years, growing revenue by almost 10%.

High-speed residential and business internet service are among Comcast’s highest-margin businesses. Combining fast growth with sky-high profitability, Comcast boasted its broadband revenue is now the largest contributor to the cable company’s continued overall growth, reaching $4.3 billion this quarter, an increase of 9.6%.

“We have added over 1.2 million net new residential broadband customers in the last 12 months, including 334,000 net additions in the third quarter,” said Michael J. Cavanagh, Comcast’s chief financial officer. “Our offering is resonating with customers, as our consistent innovation and investment in our network has enabled us to stay ahead of customer expectations for not just high speeds, but also wall-to-wall Wi-Fi coverage and the ability to manage the increasing number of devices attached to their home networks.”

Comcast CEO Brian Roberts praised Comcast’s achievement of rolling out gigabit download speed to more customers than any other telecommunications company in the country.

“Our 1 gigabit internet is now available to nearly all of the 58 million homes and businesses passed in our footprint,” Roberts said. “This is the fastest deployment of gigabit speeds to the most locations in the country by anybody.”

Roberts claims Comcast will continue to build many of its future products and services around its broadband platform.

“We are investing to harness the capacity and capabilities of our network and deliver innovative differentiated experiences, which we believe gives us a long runway for further growth,” Roberts told investors on a morning conference call. “We are competing really well in residential broadband by offering customers the fastest speeds, most reliable Wi-Fi coverage in the home, and industry-leading Wi-Fi management and controls. We’ve branded our holistic broadband product as xFi, and continue to add new features, and we’re rolling out our xFi gateways and pods to further enhance the service.”

Comcast’s growing reliance on broadband products comes at the same time it faces additional cable television cord-cutting activity.

Cavanagh blamed online video streaming competitors like Sling TV and DirecTV Now for poaching its “low value” subscribers, admitting Comcast lost at least 95,000 net residential video customers in the last three months.

Cisco Introduces Full-Duplex Ready Technology for Cable Broadband; Same Upload/Download Speeds

Cisco is helping cable operators get ready to finally end the wide speed disparity between upload and download speeds offered by most cable operators.

As cable operators continue to upgrade their cable systems to support DOCSIS 3.1 technology that makes it much easier to offer gigabit broadband speeds, Cisco is introducing the industry’s first “Full Duplex-Ready” GS7000 FDXi neighborhood node. It is an intelligent, remotely programmable piece of equipment that divides up broadband service to a number of households in a neighborhood. But unlike previous models, this one can offer customers the same upload and download speeds. Since the earliest days of cable modem technology, most bandwidth has been reserved for downloading, giving customers only a fraction of available speed for uploading content.

Cisco promises cable operators can provision its newest offering to deliver Full Duplex service in as little as two minutes. The equipment is expected to undergo field trials as early as this fall with sales widely expected to begin in early 2019.

Comcast reports it is already testing its own new network configuration combining Distributed Access Architecture with Full Duplex.

With remote surveillance cameras, video teleconferencing and virtual reality applications beginning to use significant amounts of upload bandwidth, cable operators expect an upswing in upstream traffic on their networks.

Comcast’s Robert Howald told attendees at a pre-SCTE Cable-Tec Expo event that the cable operator “wants to go symmetrical,” which means offering customers the same upload and download speeds. To manage this, Comcast needs to eliminate a large percentage of copper coaxial cable from its network and replace it with fiber, something the company has gradually been doing over the past few years. Comcast may be positioned to bring Full Duplex online earlier than many other cable operators because of its ongoing effort to push fiber optics closer to its customers.

Other cable operators, particularly smaller ones, may have a long way to go to be Full Duplex ready at high internet speeds. Some, like Altice’s Cablevision, have chosen to scrap traditional hybrid fiber-coax technology entirely, going all-fiber straight to the home. Other operators are hoping customers are not quite ready to demand identical upload and download speeds, and believe faster download speeds will satisfy customers for at least the next 5-10 years. If they are wrong, competitors offering fiber service could steal a lot of their business sooner than they think.

Comcast Invades Europe With Sky Satellite Takeover; Analysts Predict Big Rate Hikes are Coming

Comcast kicks the door open to the European television market.

Europe is about to get a taste of Comcast, the cable company most Americans abhor, after the Philadelphia-based cable giant won control of Sky, Europe’s largest satellite TV provider.

Comcast, criticized in some circles for overbidding, easily eclipsed 21st Century Fox’s bid to win control of the television provider that is a household name in the United Kingdom.

Sky customers are being groomed to think highly of the deal by Comcast’s PR department, promised a healthy increase in original programming, expansion into more European markets beyond the UK and Ireland, Germany, Austria, Switzerland, and Italy, and a richer selection of American and European programming owned or controlled by Comcast, which also owns NBCUniversal.

Analysts expect European customers will soon get the bitter taste of what their American counterparts have endured for decades — frequent and steep rate hikes widely expected from Sky’s new owner.

Comzilla

Comcast sees the American television market as saturated, but Europe is wide open for more television services. Comcast believes Sky is not meeting its value potential, giving the company plenty of room for hike rates as new programming and channels are introduced, especially on the European continent. British viewers already benefit from the consolidation of English language global media brands, bringing most American network fare to British and Irish audiences. But there is plenty of room to grow in Italy and Germany, where state public broadcasters are hardly meeting their audience potential and pay television networks are still lacking.

Sky currently has 27 million subscribers across Europe. Just 5.2 million of those subscribers are in Germany, a country with nearly 83 million people. Most are attracted to Sky’s ad-free movie service and sports networks. Sky has traditionally lacked the deep pockets necessary to compete effectively with global streaming providers like Netflix, which have scooped up a considerable amount of foreign language content.

These days, Sky is typically a co-partner in original programming ventures, but it rarely comes away with key ownership rights. Comcast’s ownership of NBCUniversal is expected to dramatically change that, with NBC and Universal Studios capable of aggressively entering the original programming business on behalf of Sky, keeping rights in-house.

European regulators will be watching how the Comcast-owned venture develops. Many countries already have concerns about the American “invasion” of entertainment programming, often a mainstay on the lineups of European networks. Comcast’s involvement will only escalate the amount of American content seen on European televisions, either in its original English, subtitled, or dubbed.

Currently, UK customers subscribing to the full Sky HD package, including the Sky Q set-top box, pay up to $119 a month. In Germany, the smaller “full package” costs $82 a month after promotional pricing expires. Comcast is likely to raise prices significantly over the next few years, possibly reaching $150 a month in the UK and $100 in Germany. In contrast, Netflix is building a giant market share in Europe keeping pricing low. A 4-screen subscription to Netflix currently costs $13 a month in the UK, with Netflix’s new Ultra subscription priced at $19.96 in Germany.

Despite potential price increases, few believe Sky will lose many subscribers, at least as long as it continues to hold the rights to must-have sports programming, notably the English Premier League soccer matches in the UK and Bundesliga matches in Germany, which Sky Deutschland shares with public broadcaster ZDF and Eurosport.

 

Comcast & Spectrum Open Up Free Wi-Fi Service in Georgia and the Carolinas

Hurricane Florence

Comcast and Charter Communications are providing free and open access to more than 12,000 Wi-Fi hotspots in Georgia and the Carolinas as Hurricane Florence begins impacting the three states.

“In response to Hurricane Florence, we have opened up more than 5,100 Spectrum Wi-Fi hotspots in North and South Carolina. These hotspots are open to all users until further notice in coastal communities like Wilmington, N.C., and Myrtle Beach, S.C., as well as inland to the Charlotte, Raleigh-Durham, Fayetteville and Greensboro areas,” Charter said in a statement.

To connect your device, look for the “SpectrumWiFi” network under your device’s WiFi settings in Charter service areas, “xfinitywifi” in Comcast country.

“It’s critical that impacted residents are able to communicate during challenging weather events such as Hurricane Florence,” said Doug Guthrie, regional senior vice president for Comcast.

As a result, Comcast is opening up almost 7,000 hotspots in Augusta and Savannah, Ga., and Charleston, S.C. Both cable companies are welcoming subscribers and non-subscribers alike.

Hurricane Florence, although currently downgraded to a Category 2 hurricane, remains a vast hurricane with a large wind field of hurricane force winds, and will likely pummel the region until Saturday. Combined with intense rainfall and catastrophic storm surges, devastation is likely along coastal regions of all three states. Duke Energy, which serves North and South Carolina, anticipates extended outages for at least three million customers during Hurricane Florence.

As of 5 p.m. ET Thursday, the center of Florence was 100 miles east-southeast of Wilmington, N.C. and 155 miles east of Myrtle Beach, S.C. The hurricane has slowed to just 5 mph.

Other states likely to be impacted by flooding rains, storm surge, and winds are Maryland and Virginia.

Actual landfall of Florence is not expected until at least Friday afternoon, according to Neil Jacobs at the National Oceanic and Atmospheric Administration (NOAA).

Cable outages are often a result of power outages. If electricity goes out in an area, cable services will go as well, and remain unavailable until power is restored. If cable infrastructure is also damaged, service won’t return when electricity does and outages should be reported to the cable company. Traditional landline service is powered independent of the electric grid. Report any service outages to the telephone company.

If infrastructure is severely damaged, it could take several weeks to restore electric, phone, and cable service after a major hurricane.

Mass. Taxpayers Give Comcast $4 Million to Expand Monopoly Broadband Service

State and local officials gather to welcome Comcast’s state-funded service expansion in western Massachusetts. (From left to right: MBI chairman Peter Larkin; Carolyn Kirk, deputy secretary of the Executive Office of Housing and Economic Development; Michael Parker, senior vice president for Comcast’s Western New England region; Lt. Gov. Karyn Polito; Kevin Hart, former chair of the Montague Broadband Committee; and Rep. Stephen Kulik, D-Worthington.) (Image: MBI )

Two years after Republican Massachusetts Gov. Charlie Baker imposed a state-mandated “pause” on WiredWest, a collaborative, multi-community, publicly owned fiber to the home broadband network for western Massachusetts, Comcast is celebrating the introduction of expanded service in the towns of Buckland, Chester, Conway, Hardwick, Huntington, Montague, Northfield, Pelham and Shelburne, made possible with a $4 million taxpayer-funded grant to the nation’s largest cable operator.

While state officials continually questioned the economics of WiredWest, which by that time enrolled more than 7,000 eager would-be customers with $49 deposits, Comcast repeatedly declared it was “uneconomic” to provide broadband service to most rural western Massachusetts communities, at least until state officials paid the cable giant millions of dollars to reach 1,089 previously unserved homes and businesses in the nine towns, effectively giving Comcast a broadband monopoly.

“We were pleased to work with Comcast, who met the two-year timeline we set to deliver critical 21st-century broadband connections to more homes and businesses,” said Lt. Gov. Karyn Polito in a press release this week. She called the project “a great example of a public-private partnership” that would help resolve rural Massachusetts broadband problems.

WiredWest could not have met Polito’s two-year timeline, primarily because the collaborative has been blocked and ambushed repeatedly after Democratic Gov. Deval Patrick left office. State officials in Boston and the Massachusetts Broadband Institute (MBI), responsible for funding broadband initiatives, began a campaign of fear, uncertainty, and doubt about the project shortly after Gov. Baker took office, culminating in recommendations from then-MBI director Eric Nakajima imploring towns not to sign agreements with WiredWest, and eventually withholding critical funding from the broadband cooperative, questioning its governance and operating model.

It soon became clear Gov. Baker preferred an industry solution to the rural broadband problem, which caused broadband advocate Susan Crawford to slam the decision in early 2017.

“This is the story of a dramatic failure of imagination and vision at the state level: Governor Charlie Baker’s apparent insistence that Massachusetts relegate small towns to second-rate, high-priced, monopoly-controlled (and unregulated) communications capacity,” Crawford wrote. “It’s a slow-rolling tragedy that will blight western Massachusetts for generations.”

A divide and conquer campaign to peel off communities from the WiredWest project has been underway for years. Earlier this year, MBI dangled $3.1 million in grants available exclusively to Charter Communications to build out its network in several towns in the region. When asked if those taxpayer dollars would be available to publicly owned broadband projects like WiredWest, Peter Larkin, MBI’s current board chairman, responded “no.”

Despite the roadblocks, many of the communities staying loyal to the WiredWest concept have hired Westfield Gas & Electric’s ‘Whip City Fiber’ division to help design and construct their own fiber to the home networks, which will be superior to what Charter or Comcast plans for the region.

For exasperated residents and businesses who have waited more than four years for broadband, the politics and constant delays have become secondary issues to getting broadband… from somewhere. That may explain why Kevin Hart, who frequently objected to Comcast’s proposal to build an inferior copper-fiber network while chairing the Montague Broadband Committee, suddenly switched sides and praised the Comcast project this week for its timely introduction of broadband service.

In contrast, Montague Broadband Committee member Robert Steinberg in 2016 called Comcast’s cash infusion from taxpayers “corporate welfare.”

WWLP in Springfield reports several towns are getting expanded cable and broadband service from Comcast. (1:21)

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