If AT&T makes good on its recent suggestion that it will have 50% U.S. market penetration for fiber-to-the-home services by 2023, it could poach around 1 million customers each from both Comcast and Charter, and another 200,000 from Altice USA.
This is the conclusion put forth in a report this morning by equity research company Cowen, which suggested that such a hit could also impact Comcast’s earnings before taxes, interest and depreciation (EBITDA) by around $1.1 billion. Charter would take an $885 million EBITDA hit, while Altice USA would be down $162 million under the model.
AT&T has deployed FTTH to around 3 million homes in each of the past two years, and company management recently suggested it could reach 50% market penetration in three years.
Of course, Cowen’s dire prediction entails there being no response by the cable industry.
Cable, Cowen noted, has a “solid track record” vs. fiber overbuilds. There will also be coming speed upgrades driven by new DOCSIS technologies; and an improved focus on the customer experience and in-home IoT.
“As we keep a watchful eye on broadband trends through the year, we remain confident that cable will manage the AT&T fiber pressure,” the firm said in its report.
The smarter way to stay on top of the multichannel video marketplace. Sign up below.
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.