Cable, Telco Diversification Spooks Wall St.: MoffettNathanson
Cable and telecom stocks are hurting from growing investor sentiment telcos' expansion into fiber and cable's play in wireless will force incumbents to cut pricing amid shrinking subscriber numbers, MoffettNathanson's Craig Moffett wrote Thursday. He said telco fiber overbuilding of…
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cable systems will go from about 30% of U.S. homes now to 55% over the next decade or so. He said Charter's new mobile service family plan makes it more competitive than any telco, and it and Comcast are competing nationally with mobile carriers. Telcos' strategy is riskier because payback on their fiber investments becomes more difficult if prices or penetration falls or if deployment costs rise, said Moffett.