Instead of Comcast buying TWC, why not force it to break up and ban the Roberts family from Cable forever.
Comcast is a cyst on the world stage..
It is hard for most to understand the competitive position Comcast is going to have to start taking over enterprise businesses. Consumer and Content provides the casflow/capital well beyond the competitiion where they can improve their infrasture with next gen converged Ethernet Infrastructure. Comcast is not dragging a lot of ineffiecint legacy TDM infrastructure. The ability to compete in the carrier space is access. Comcast growth is going to give US based mid and large enterprise an alternative to the VZ ATT access malstrum. This is going to be very impactful to VZ and AT&T annuity Stream and is going to put Value Carriers like XO, LVLT, WIN and Cogent under duress with their leveraged balance sheets. Comcast delivery model is much more affordable to businesses and business want inexpensive services. Mid to Small business will flock to Comcast because of the value. A deal will be done within the next 2 years for one of the formentioned players to round out some of the enterprise offerings. Most likely a deal will favor a company with a high end evolved Hosting/Sass infrastructure. Possibly a Winstream, following their spin off of the their Consumer group and existing enterprise employee base. Oh and a 65% reduction in current dividend payout.. Enterprises don't value carriers. Ethernet is the game and Comcast owns and is growing it significantly. EOM
exactly only fools think of Comcast as cable tv.
....lvtl, win, xo, etc will fail in that they lack the attachment rights on the last mile. Much of the fiber is old, IRUd and limited in use. Unlike Comcast wich owns the strand [600,000 miles] and can simply upgrade their fiber for reasonable cost if fiber is limited. Also CLECs have invested heaviliy in expensive tdm technology that is functionally obsolete. Comcast can buy very reasonably priced Carrier Ethernet gear [like ciena] that's prepackaged to be placed on the wall for minimal installation costs. This stuff is 1/20 the price of the Futitsu and other legacy TDM equipment. . Its autoloads a configuration from a server and is functional in minutes with minimal tech time.
they are going to mop the floor with these incumbent CLECs in the lucrative biz space. The incumbent CLECs days are numbered. Comcast makes higher margins at a fraction of the price of their competitors.
the perfect play....go long Comcast, long ciena, hedge the broader market by going short LVLT, TWTC, XO, WIn.
also short T as its cellular biz is in a price war and Comcast will eat their lunch on business services. Comcast has a non union duopoly in the local market. Its the best cash generating machine in the space.
for those not alive back when AT&T was split up, the gov did it to keep them from being the monopoly they were... like comcast... who owns the wires in their areas... and controls through that who gets the internet and the tv cable. Just too much power. Think doctors, drug companies and hospitals... another monopoly which is almost bankrupting america now... because of their damned greed. If a content provider like comedy central wants to give us The Daily Show for free on the internet... no cable company ought to have the power to stop them. I saw CNBC disappear off the net... seems you HAVE to subscribe to cable tv AND have the broadband internet... THIS IS PAYING TWICE FOR THE SAME DAMNED PROGRAM. Once for the broadband and once for the cable TV. And way back when... all everybody had was a roof antenna with a rotor on it or a dish... a #$%$ dish... not a little two foot Direct TV dish... and you paid nobody for it... it was free.
Sentiment: Strong Sell
they werent trying to keep ATT from being a monopoly...ATT was a monopoly. the govt gave them the monopoly to prevent competition that would cause the communications network to be fragmented and thus not allow for optimal service to the consumer. once the network was built and in place the single monopoly was no longer considered necessary and ma bell was broken up into the baby bells.
COMCAST IS THE BUGGY WHIP SELLER OF THE 21ST CENTURY. NO ONE NEEDS CABLE ANYMORE FOR ANYTHING. CABLE IS DEAD. LONG LIVE THE INTERNET. Right now, COMCAST is actually a parasite on the engine of progress. There is no need for comcast. Therefore, strong sell. Agree totally. They are attempting to force all Americans to pay for that which is broadcast free over the air waves. Put a satellite dish in your back yard ... a real satellite dish... and pull in 400 plus channels for absolutely free forever... right off the satellite. Screw comcast... organized legalized crime mob bosses of the airwaves. They need to go.
Sentiment: Strong Sell
Cable is like a buggy whip? Lets see. 1) Most Americans access the internet through some form of wire connection. Even Wifi and Cell service much connect to wires. Comcast has both Wifi and sells Cell Backhaul services to Phone Carriers along with Fiber and Cable services to the customer. 2) Without cable many channels would not exist such as Syfy, NFL, MLB, NBA, MTV, VH1, ESPN, FOX Business News, FOX News, MSNBC, CNBC, CNN, TNT, USA, HBO, Cinemax, Showtime, Starz, Disney, Nick, etc... So most viewers would see NBC, CBS, ABC, FOX, PBS, Spanish channels. Sounds boring to me. 3) Companies like Netflix like to stream content to the customer. To get those high speeds the customer would need to either have Cable or fiber to the home because Wifi via satellite feed is more expensive than cable.
So I think Companies like Comcast will be around for quite awhile.