Friday, December 15, 2017

Are We at the End of Broadband Growth?

Are We at the End of Broadband Growth? is a blog post from Doug. Nut it leads me to speculate that one reason the Duopoly fought so hard to repeal Net Neutrality was that all their pies are full - voice, video/TV, broadband, and cellular. There isn't much growth left.

It is a game of take away now. That is an expensive game for customer acquisition.

Every recast contract is a write down since customers now want twice the speed for less money than they did 3 years ago.

The Duopoly (AT&T, Verizon, Comcast, Charter/Spectrum, Frontier, Altice) want to increase ARPU, but in cellular there is too much competition. T-Mobile and Sprint bring too much price pressure to bear. And they have to spend billions on 5G build out.

Despite having to lay tons of fiber, broadband rates are stagnant as well. Hence, the reason for all the hidden fees.

Something to think about.

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