Competition/Antitrust

Is the broadband industry reaching maturity? There was still significant growth in broadband over the last few years. In 2019, national broadband subscribers grew by 2.6%. That leaped to 4.5% in the 2020 pandemic year. In 2021, broadband growth slowed to 2.8% but rebounded to 3.3% in 2022. The 2022 growth rate is likely inflated by rural broadband growth, as practically all the overall industry growth for the year came from cellular fixed wireless access (FWA) broadband provided by T-Mobile and Verizon. What would a mature broadband market look like?

Fiber-focused Frontier Communications and cable giant Charter Communications each took some hits and scored some points in a series of clashes over marketing claims related to their respective broadband products. Frontier scored a key win as the National Advertising Division (NAD) recommended Charter qualify some of its speed claims to note they’re not symmetrical, while Charter prevailed in challenges related to Frontier’s claims around availability and reliability.

Community decision-making is the foundation of Maine’s DNA. Town meetings, volunteer school boards, and local planning efforts are all central to what makes this Maine. Dozens of communities have started this process with local people identifying locations and groups needing better service to develop plans addressing these gaps. But these community-led efforts are under threat from big monopoly internet service providers, who fear competition will lose customers.

AT&T is on a quest to deploy fiber broadband to 30 million locations by the end of 2025. But if comments from COO Jeff McElfresh are any indication, its ultimate goal could be much, much higher. McElfresh said that despite a choppy economic environment, demand for fiber remains high and its rollout is still delivering the right level of returns. With that in mind, he added, the 30 million target AT&T set in May 2021 is “not the entirety of what I think the market opportunity is there.” “We're going to be on this journey for a while.

I fully expect high-quality wireless internet service providers (WISPs) to be able to compete against fiber networks. While the industry lately seems to be fixated on broadband speeds, there are customers that value other aspects an internet service provider (ISP), such as trust and reliability. I think WISPs (and every other ISP) will have a hard time competing against a cooperative that builds fiber, particularly one that sets low prices like $50 or $60 for a gigabit.

Competition in the broadband industry continues to pick up, which means providers can’t solely rely on high speeds to stand out in the market, according to Calix CEO Michael Weening. Weening explained that due to the emergence of fiber, the difference between a cable company and a telephone company is really “no longer relevant.” “Everybody’s starting to think differently,” he said.

President Joe Biden’s administration has set an ambitious goal to deliver Internet for All using $42.5 billion in funding from the Broadband Equity, Access, and Deployment (BEAD) program. It’s not entirely clear how realistic that goal is.

West Des Moines (IA) is making steady progress on a $60 million open-access fiber-optic conduit system to expedite the delivery of affordable fiber citywide. And they’re doing it with the help of Google Fiber. West Des Moines is a suburb of Des Moines with a population of 67,000. Like so many US communities, locals have long complained of high broadband prices, spotty coverage, and terrible customer service by the area’s entrenched local monopolies.

With Altice USA revamping its management with a slew of Comcast veterans, investors are wondering if the latter might be eyeing an acquisition of the former.

Frontier Communications is all heads down as it works to reach its target of deploying fiber to 10 million locations by the end of 2025. That said, it’s also got an eye on the horizon beyond that goal, with executives saying that subsidy dollars or a potential joint venture (JV) could help it expand further. CEO Nick Jeffery added it would also entertain an open-access network deal to reach more locations. “In terms of open access infrastructures generally, if there is one available that we could use, yes, we’d look at it,” he said. “It can be a capital smart way of operating.