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Cable Companies Expand Broadband Lead in U.S.; Subscriber Adds Up 35%

Phillip Dampier November 15, 2018 Broadband Speed, Competition, Consumer News 2 Comments

Cable companies continue to dominate the U.S. broadband marketplace, and the gap between cable broadband and telephone company DSL continues to widen.

Leichtman Research Group reports the top seven cable companies together added 728,423 internet customers in the last three months, an increase of 35% over 2017. One of the biggest gainers was Comcast, which grew 363,000 subscribers during the third quarter. At the same time last year Comcast added 213,000 customers. Charter Spectrum grew by 308,000 customers in the third quarter, bolstered by speed upgrades in select areas and more aggressive promotions. At the same time in 2017, Spectrum added 285,000 customers.

Cable’s gains are phone company losses. AT&T, Frontier, CenturyLink, and Consolidated (formerly FairPoint) saw 159,974 customers disconnect service in the last three months. Phone company losses were buffered in part by government-funded rural broadband expansion campaigns, which typically introduce broadband service in rural areas for the first time. Where customers have a choice, they are increasingly choosing cable companies to supply internet service because speed and reliability are often better, especially compared to DSL service still prevalent in a lot of areas.

Broadband Providers Subscribers at end of 3Q 2018 Net Adds in 3Q 2018
Cable Companies
Comcast 26,872,000 363,000
Charter 24,930,000 308,000
Cox* 5,040,000 20,000
Altice 4,096,300 14,200
Mediacom 1,260,000 9,000
WOW (WideOpenWest) 755,100 7,300
Cable ONE 660,799 6,923
Total Top Cable 63,614,199 728,423
Phone Companies
AT&T 15,746,000 (26,000)
Verizon 6,958,000 2,000
CenturyLink^ 5,435,000 (71,000)
Frontier 3,802,000 (61,000)
Windstream 1,015,000 8,300
Consolidated^^ 781,912 (1,974)
Cincinnati Bell^^^ 310,700 200
Total Top Telco 34,048,612 (149,474)
Total Top Broadband 97,662,811 578,949

Sources: The Companies and Leichtman Research Group, Inc.

*LRG estimate
^CenturyLink only reported residential subscribers in 3Q 2018.  LRG estimate including non-residential subscribers
^^Consolidated includes a minor sale of a local exchange carrier
^^^Cincinnati Bell does not include the acquisition of Hawaiian Telecom
Company subscriber counts may not solely represent residential households. Top cable and telephone companies represent approximately 95% of all subscribers.

VIDEO: How Big Telecom Isolates Rural America

From the producers of Dividing Lines:

Across the country, state legislatures have created barriers to community involvement in expanding internet access.

In Tennessee, lobbyists from AT&T, Charter, and Comcast spread huge campaign contributions around the state legislature. AT&T’s influence is felt in the governor’s own broadband expansion legislation, which was tailor-written to allow the phone company to collect huge taxpayer subsidies to expand inferior DSL into rural parts of Tennessee.

Meanwhile, some local communities seeking to build state-of-the-art fiber to the home networks capable of delivering 10 gigabit service found that doing so would be illegal under state law.

Think about that for a moment.

A multi-billion dollar telecom company is allowed to expand its slow speed DSL network with taxpayer-funded grants while your local community is forbidden to bring fiber optic service to your home even if your community votes to support such a project. Exactly who is the governor and state legislature working for when it comes to resolving Tennessee’s rural broadband nightmare?

In part two of this series, watch State Senator Janice Bowling describe how much influence AT&T has over the Tennessee state legislature. (5:31)

VIDEO: Dividing Lines – Dialed Back to Dial-Up in Rural America

From the producers of Dividing Lines:

The online world is no longer a distinct world. It is an extension of our social, economic, and political lives. Internet access, however, is still a luxury good. Millions of Americans have been priced out of, or entirely excluded from, the reach of modern internet networks. Maria Smith, an affiliate of the Berkman Klein Center for Internet & Society and Harvard Law School, created Dividing Lines to highlight these stark divides, uncover the complex web of political and economic forces behind them, and challenge audiences to imagine a future in which quality internet access is as ubiquitous as electricity.

This is the first part of a series being deployed by organizations and community leaders across the country, from San Francisco to Nashville to Washington, D.C., in an effort to educate stakeholders and catalyze policymaking that elevates the interests of the people over the interests of a handful of corporations.

The fight for rural broadband in Tennessee pits a publicly owned electric utility against Comcast and AT&T and their allies in the state legislature. (5:25)

Say Hello to America’s Least-Taxed Corporation: Charter/Spectrum’s 2017 U.S. Tax Rate Was -883.95%

Phillip Dampier November 8, 2018 Charter Spectrum, Public Policy & Gov't No Comments

(Source: Wallethub)

When Charter Communications CEO Thomas Rutledge met with President Donald Trump in early 2017, he probably did not realize just how much the Trump Administration was prepared to reward America’s second largest cable company.

After collecting a $98 million dollar compensation package for himself by successfully pulling off acquisitions of Time Warner Cable and Bright House Networks, Rutledge today presides over America’s least taxed corporation. In fact, the American people owe Charter a significant ‘refund’ after the company achieved a negative overall U.S. tax rate of -883.95%.

WalletHub analyzed annual reports for the S&P 100 — the largest and most established companies on the stock market — in order to determine the federal, state and international tax rates they paid in 2017.

Charter’s tax accountants took full advantage of the Trump Administration’s permanent corporate tax cuts, which lowered corporate tax rates from 35% to 21%. But Republicans who supported the corporate tax cuts left intact most of the generous corporate deductions, offsets, and other credits that ensured few of America’s top corporations ever paid anything close to 35%. As a result, the lowered tax rate combined with what critics call “corporate welfare and giveaways” allow a growing number of companies to not pay a penny in taxes. In fact, many will be in the enviable position of avoiding taxes and still getting an effective ‘refund’ worth billions.

Companies that are required to regularly invest in their businesses and buy equipment, hardware, and other tangibles as part of the cost of doing business are often the most generously rewarded. Tax deductions originally intended to inspire corporate spending during tougher economic times are great news for companies that have significant capital investments. Most of these companies planned on making those investments with or without a tax break, but all are welcome to the idea of using those investments to reduce their effective tax rate to zero. Charter’s acquisitions of Time Warner Cable and Bright House came with the understanding both systems needed substantial upgrades — spending Charter is using to offset taxes not just this year, but several years in the future.

The next least-taxed company was Kraft Heinz, which was taxed at -98.7%. Other big winners are AT&T (-98.36%), Comcast (-55.59%), and Verizon (-51.36%). AT&T and Verizon are frequent winners of an effective tax rate of 0.00% because of the substantial deductions available to both as a result of continually upgrading their highly profitable cellular networks.

Source: WalletHub

U.S. Supreme Court Upholds Obama-Era Net Neutrality That Republican-Dominated FCC Repealed

WASHINGTON (Reuters) – The U.S. Supreme Court on Monday refused a request by the Trump administration and the telecommunications industry to wipe away a lower court decision that had upheld Obama-era net neutrality rules aimed at ensuring a free and open internet, though the justices’ action does not undo the 2017 repeal of the policy.

The high court decision not to throw out the 2016 U.S. Court of Appeals for the District of Columbia Circuit ruling leaves a legal precedent in place that could help net neutrality supporters in any future legal battle if that policy is ever re-introduced.

The rules championed by Democratic former President Barack Obama, intended to safeguard equal access to content on the internet, were opposed by President Donald Trump, a Republican.

The Trump administration and the telecom industry had wanted to erase the 2016 ruling even though the Republican-led Federal Communications Commission in December voted to repeal the net neutrality rules. The policy reversal went into effect in June.

The Supreme Court’s brief order noted that three of the court’s conservative justices – Clarence Thomas, Samuel Alito and Neil Gorsuch – would have thrown out the appeals court decision. Neither Chief Justice John Roberts nor new Trump appointee Brett Kavanaugh participated in the decision.

Industry trade group USTelecom, one of the groups that challenged the 2015 net neutrality rules, said the high court’s action was “not surprising.” USTelecom said it would “continue to support” the repeal “from challenges in Washington, D.C. and state capitals.”

Rosenworcel

FCC Commissioner Jessica Rosenworcel, a Democrat who backed the net neutrality order in 2015, said on Twitter that the commission had “actually petitioned the Supreme Court to erase history and wipe out an earlier court decision upholding open internet policies. But today the Supreme Court refused to do so.”

The Justice Department also has filed suit to block California’s state net neutrality law from taking effect in January. The state agreed in October to delay enforcement of the law pending appeals of the net neutrality reversal.

The FCC voted 3-2 in December along party lines to reverse the rules adopted under Obama that had barred internet service providers from blocking or throttling traffic, or offering paid fast lanes, also known as paid prioritization.

The new rules, which gave internet service providers greater power to regulate the content that customers access, are now the subject of a separate legal fight after being challenged by many of the groups that backed net neutrality.

The net neutrality repeal was a win for providers like Comcast Corp, AT&T Inc and Verizon Communications Inc. It was opposed by internet companies like Facebook Inc, Amazon.com Inc and Alphabet Inc, which have said the repeal could lead to higher costs.

Reporting by Lawrence Hurley; Additional reporting by David Shepardson; Editing by Will Dunham

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  • lon wing: This is a very good reporting. I hope every cable cutter reads it before they purchase an antenna .I am on the board of directors of a local UHF Trans...
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  • Phillip Dampier: It is broadband at 3am when nobody is using it. Satellite internet may eventually get better, but not in the near future. DSL is dead technology and g...
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