Monday, February 29, 2016

A Look at Some Numbers

I was surprised to see that Cogent only does $400M in revenue. Then I was thinking at those prices, how could revenue be more? It can't.

And it is a problem that all telcos are facing. I say telcos because for cable the business-to-business market is new. All that revenue is increasing (from zero starting at about 2006). Yet for telcos, business and ILEC revenue has been declining. Those revenues have transferred to ITSPs, cable and in some cases just written down as the price per MB of data and Internet continues to decrease at the same time the demand and consumption is increasing.

Windstream broke down their revenue. I am not looking at EBITA, just revenues.

  • Total revenues and sales were $1.40 billion in 4Q - flat YoY.
  • Total annual rev was $5.63 billion a decline of less than 1% YoY.
  • Consumer and small business ILEC revenues were $397 million in 4Q, down 3% YoY.
  • Carrier service revenues were $171 million in 4Q, up $2M from 3Q.
  • Enterprise service revenues - any account over $1500 -- were $498M in 4Q, also up $2M from 3Q.
  • Enterprise revenue for the year was $1.95 billion, an increase of 4% YoY. 
  • Small business CLEC service revenues were $132 million in 4Q, a decrease of 14 percent from the same period a year ago, and $559 million for the year, a 15 percent decrease year-over-year. [Cable is hammering this market sector]

On the cable front, Mediacom Loses 7,000 TV Customers, Fewest Losses Since '08. DSLR says that cable is offering TV for almost free with a broadband pack to bolster their TV numbers (and avoid the problem that ESPN and its parent company, Disney, are facing.) Another piece of those numbers that I have not seen suggested is that the small business triple play includes TV for lobbies, etc. These are TV subscribers that are NOT broken out separately.

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