Altice USA’s share price on Wall Street is down more than 55% so far this year — including nearly 5% on Tuesday. And the cable operator has lost nearly 87,000 home broadband customers through the first three quarters of 2023 as T-Mobile and Verizon have jointly added around 2.7 million fixed wireless access subscribers. 

But speaking at a UBS TMT conference Monday, Altice’s (relatively) new CEO, Dennis Mathew, said his struggling cable company is beginning to compete more effectively against FWA for customers.

“Fixed wireless remains a competitor across our footprint wherever it’s available,” Mathew said. “Availability is really tied to the capacity they have on the network, but they market broadly and then they have to adjust based on where the sales are happening. ”

Mathew said Altice USA experienced a 4% improvement in ”win share“ — a term borrowed from baseball sabermetrics to describe progress in head-to-head competition — against FWA opponents. The improvement, he said, is coming not through upgrades of Altice’s fiber or DOCSIS 3.1 offerings — products he remains “bullish” on as they are — but from better ”execution“ of sales strategy. 

“I think that’s due to two things,” he added. “One is just stronger sales channel performance. As I mentioned, we’ve brought in new sales channel leaders — a new leader of inbound sales, a new leader of direct sales and a new leader of [business-to-business]. Across the board, we’re seeing better performance management. On B-to-B, we're seeing a stronger sales culture, which is yielding a better conversion and better productivity. And then we're going on the offensive a bit in our marketing, as well. We have a story to tell fixed solutions vs. fixed wireless — we have a great product and great value. And that’s helping us make progress.”

Mathew said that more than 60 new VP-and-above-level executives have been hired since he took over for Dexter Goei in September 2022. 

He described Altice USA as still being in the “early innings” of an overall turnaround that he believes will boil down to just simple business execution across channels. 

“Fourteen months later, we have vastly more capabilities,” Mathew said. “To be able to drive or more effectively go to market. To be able to deliver higher quality. To be able to manage our base more effectively. But yes, there is more work to do.”

Fueled by an accelerated fiber rollout across its footprint, Altice USA, which has endured four consecutive quarters of broadband subscriber losses, should turn the corner in Q4 and beyond, outgoing CEO Dexter Goei told an industry audience Tuesday.

But that means that Altice USA investors will likely see continued declines in Q3. At the Goldman Sachs Communacopia + Technology conference in San Francisco, Goei said while the company has made strides in deploying its fiber network -- it expects to finish 2022 with up to 2.3 million homes passed with the technology -- it is still seeing customer declines in its former Cablevision and Suddenlink footprints. 

In Altice’s former Cablevision systems in metropolitan New York City, gross additions are lower, there is less move activity and churn levels are low, but the company also is competing against a telco -- Verizon Communications -- that has been extremely aggressive on price. In its Suddenlink markets mainly in the Midwest, gross addition activity is high but churn is high, especially in markets where it is being overbuilt.

“We’re still losing subs in both markets but for different reasons,” Goei said. “We feel good about the fourth quarter turning around and looking better next year.”

Altice USA lost about 3,000 subscribers in 2021 -- the only major cable operator to do so -- and shed more than 50,000 broadband customers in the first half of this year.  

Altice began accelerating its fiber rollout last year, with a goal of passing 6.5 million homes by 2025. At the Goldman conference, Goei said the company expects to end 2022 with 2.2 million to 2.3 million homes passed with fiber (an increase of about 1 million homes), and should add another 1.6 million to 1.8 million households by the end of 2023. 

While other cable operators have seen an increase in competition from fixed wireless access providers from telcos, Goei said most of Altice USA’s telco competition is replacing slower DSL lines with fiber, hence the acceleration of its own fiber buildout plans. But he shared his peers’ disdain for fixed wireless access (FWA), agreeing with some pundit predictions that the technology will reach a performance and penetration plateau in the next two or three years.

Goei announced his intention to step down as CEO earlier this month, and will become executive chairman of Altice USA on October 3. In his place the company named Comcast executive Dennis Mathew as CEO, also effective October 3. Mathew has 17 years of experience with Comcast, most recently as senior VP of its Freedom Region (Southeast Pennsylvania, New Jersey and Northern Delaware). He earlier served as senior VP for its Western New England Region (Connecticut, Vermont, Western Massachusetts and areas of New York and New Hampshire) and has extensive experience in running cable businesses. 

Goei said at the Goldman conference that his main motivation for stepping down was a desire to return to Europe, where he spent his childhood and most of his professional career, with his family. He added that he notified the Altice USA board of his decision about a year ago, starting the search process for a replacement about six months ago. He believes he’s leaving Altice USA in capable hands. 

“I interviewed many, many people during the process; Dennis fits the bill across the board,” Goei said, adding that Mathew has a proven track record in operations, running one of Comcast’s most high-profile regions (the Freedom Region) and will fit in well with the Altice team. “He’s just a great guy, a team player, will focus on the prize and is someone who would do very well with the executive team at Altice USA.” ■

After four straight quarters of broadband subscriber losses, a 38% decline in its stock price and the possible sale of its former Suddenlink Communications systems, Altice USA said it has named a new CEO -- Comcast executive Dennis Mathew -- while its longtime chief executive Dexter Goei becomes executive chairman.

The move will become effective as of October 3. Mathew is a 17-year veteran of the telecom industry, and has served in several operational roles at Comcast over the years. According to Altice USA, Mathew was most recently senior VP of its Freedom Region (Southeast Pennsylvania, New Jersey, Northern Delaware) responsible for strategic, financial, and operational performance at those systems. He earlier served as SVP for its Western New England Region (Connecticut, Vermont, Western Massachusetts, and areas of New York and New Hampshire) and has extensive experience in running and transforming cable businesses.

“I am honored to accept the role of CEO at this important juncture for Altice USA,” Mathew said in a press release.  “As Altice USA advances its position as a converged fixed and wireless player, I see immense potential to further connect with and serve customers in new ways while elevating the company as the connectivity provider of choice.  I look forward to leading such an innovative company that has the right vision and long-term strategy centered on investments in fiber infrastructure and a superior customer experience.”

Mathew will be based in Altice USA’s Long Island City, New York headquarters.

“I am pleased to welcome someone of Dennis’ caliber and mindset to Altice USA,” Altice USA founder and chairman Patrick Drahi said in a press release.  “He has an impressive track record at Comcast, driving transformation and success in highly competitive markets and redefining the role of telecommunications services for customers through a superior service experience, all of which will serve us well.  With our fiber network deployment well underway, I am confident that Dennis is the right leader to build on the momentum we have made as we bring the most advanced fiber broadband services to our customers across the country.  Dennis’ leadership approach, along with his commitment to our people, our customers, and our communities, will have a tremendous impact on Altice USA today and into the future.”

Goei, who intends to return to Europe with his family and helped in the selection of a new CEO, was Altice USA’s first CEO, taking over the company that was formed when European telecom giant Altice N.V., burst on the U.S. cable scene after its purchases of Suddenlink  Communications and Cablevision Systems. Goei, a longtime Altice N.V., executive, was tasked with implementing its parent’s strict cost cutting strategy, steering the operations to an initial public offering in June 2017. 

For a while, the strategy worked -- in 2019 Altice USA was one of the top performers in the cable business. But a footprint that was largely saturated -- its New York systems had some of the highest broadband penetration in the industry -- stiff competition from Verizon Fios (which operated in about two-thirds of its footprint) and the pandemic took its toll on subscriber growth. Altice USA lost 13,000 broadband customers in 2021 -- the only major cable operator to do so -- and has lost more than 50,000 high-speed data customers in the first half of 2022.  

In August, Goei acknowledged that the company was seeking a buyer for its Suddenlink systems, with some reports speculating that it expected $20 billion from a sale.  While no deal appears imminent, most analysts believe that Suddenlink will attract considerably less. .   

Drahi praised Goei for his stewardship of the assets, adding that the executive “has effectuated a business and cultural transformation at Altice USA over the past seven years, building the company into what it is today with passionate employees who are committed to our customers and to each other.  Given his intention to return to Europe with his family, Dexter has been involved in our search for a new CEO and I am grateful for his partnership to ensure Altice USA has the best leader to advance the company into its next phase of growth.  I have the highest respect for Dexter as a business partner and confidant and am pleased that he has agreed to serve as Executive Chairman of the Board of Directors while also supporting Dennis in his transition to CEO and working on key strategic initiatives.”

As executive chairman, Goei will support Mathew in the transition and work on key strategic initiatives. 

“Leading Altice USA has been the most rewarding experience in my career,” Goei said in a press release. “From our fiber network deployment and launch of multi-gig fiber broadband offerings to our diversity and inclusion programs and local community engagement efforts, I could not be prouder of what we have accomplished together thanks to the leadership team and the thousands of dedicated employees across the country who enthusiastically serve our customers and communities every day.  In the months ahead, my focus will be on ensuring a smooth leadership transition and working closely with Dennis on our key strategic initiatives.  I welcome Dennis to the Altice USA family and have the utmost confidence in him as we continue to accelerate and deliver on our fiber strategy and embark on the next chapter of our story.”■

Comcast confirmed that Dan Herscovici, the former SVP and GM of Xfinity Home, has left the company.

Comcast didn’t elaborate on Herscovici’s exit from the company, which happened earlier this month, but also confirmed that Dennis Mathew, who has held roles such as president, wholesale and VP of new business at Comcast, now leads the Xfinity Home business and reports to Matt Strauss, EVP of Xfinity Services at Comcast Cable.

The Philadelphia Business Journal first reported that Herscovici had left Comcast.

Herscovici was with Comcast for more than 10 years in exec roles that included VP of new business and VP of the MSO’s high-speed internet services, and was a key player in the rollout of Xfinity WiFi. Prior to Comcast, Herscovici was a product and operations exec with Motorola.

Under Herscovici, Xfinity Home, Comcast’s home automation and security service, grew to about 1.1 million subscribers and expanded its ecosystem of third-party product support via its "Works With Xfinity Home" program. During his tenure, Comcast also deepened its expertise in home security technology and services via the acquisition of a piece of Icontrol. Comcast has since rebranded that as Xfinity Home Wholesale. 

RELATED: Why Comcast Is Buying Icontrol

Herscovici’s departure also comes amid a shift and broadening of Comcast’s service and technology strategies involving the smart home and home automation.

For example, Comcast last month announced that it had extended home automation services and functionality to more than 15 million customers, centered on the company’s xFi Wireless Gateway and the xFi Advanced Wireless Gateway, along with plans to extend those capabilities across multiple services, including X1, Xfinity Home, Xfinity Mobile and xFi, its new home WiFi management service.

RELATED: Comcast Scales Home Automation Services to 15M Subs

Oversight of those automation-facing functions has been moved to Eric Schaefer, SVP and GM, communications, data and mobility, Comcast Cable; and Patti Loyack, the company’s VP of IP services.