Higher broadband speeds help telcos compete with cable, analysts say

As telcos like AT&T become more aggressive with high-speed broadband buildout, the better those companies can compete with cable companies and the more market share they can capture, analysts say. Researchers at Moffett Nathanson reduced their expected cable market share rate from 55 percent to 51 percent nationwide given telcos’ plans to upgrade their networks to provide customers with more competitive speeds.

The researchers predict that telco fiber-to-the-home and other services offering gigabit speeds will cover about 32 percent of the country, up from 23 percent, while 20 percent of homes will have speeds between 50-100 Mbps. This increase will lead to telco-cable competition in 33 per percent of cable territory.

Speed matters for customers, and union telco companies upgrading their network to better compete with nonunion cable is a good business strategy and good for customers.

 

Links:

Moffett: Telcos May Get Some Revenge Over Cable in Broadband Wars (Telecompetitor, Nov. 8, 2017)