A friend of ours pointed out that his local cable provider, Cablevision, called and offered telephony and broadband service for $14.95 a month for each of those services. Cablevision lists the two services at $29.95 a month each on their website. This aggressive marketing could be just Cablevision trying to steal more market share from Verizon, but it doesn’t make sense to discount the service so steeply.
Add this to the fact that in the fourth quarter of 2006, Comcast added 508,000 telephony customers, a number that was below the 525,000-to-600,000 subscribers Wall Street had estimated. Is it time to raise a little red flag?
Comcast CEO Brian Roberts recently told Bloomberg, “Right now it’s all clicking, the business is on fire.” Maybe something changed in last three months, at least for Comcast, which currently has 1.9 million subscribers, for Roberts to make such bullish comments. Voice-subscriber additions should be the key metric to watch this earnings season. If you are getting aggressive marketing offers from your cable company, please let us know.