Comcast Says It's Progressing Toward Symmetrical 1-Plus Gbps

Symmetrical broadband is a "focus" for Comcast "for the next several years," Comcast Cable CEO Dave Watson said Thursday as the company detailed progress toward offering multi-gigabit symmetrical speeds while announcing Q1 results. Company CEO Brian Roberts said it's moving toward trials on offloading mobile traffic in dense areas using its spectrum: "That really will prove to be a cost savings if we get it right."

Comcast live-tested 1.25 Gbps symmetrical speeds in October, Roberts said, and earlier this month, it did a lab test of DOCSIS 4.0, which opens the door to multi-gigabit symmetrical speeds. Watson said Comcast's upstream broadband traffic is a tenth of downstream. "Over time, I think we can address symmetrical issues," he said. The White House's proposed redefinition of broadband to 100 Mbps symmetrical is seen by many as facing cable opposition (see 2104140023).

Roberts said the operator's other major initiative is virtualizing its network using AI and machine learning, as it moves functions into the cloud. He said that also involves automating core network functions. The cable ISP has spent close to $30 billion over the past decade building its 191,000 route-mile fiber network, he said. The company ended the quarter with 28.8 million residential broadband subscribers, up 1.9 million year over year. Chief Financial Officer Mike Cavanagh said broadband growth momentum is continuing into Q2, and Comcast expects mid-single-digit 2021 percentage growth in broadband.

Comcast's broadband business could get further juiced by the federal dollars "being thrown at connectivity" in the Cares Act, MoffettNathanson analyst Craig Moffett wrote investors. Broadband benefited during the pandemic, and that growth isn't slowing, he said: "COVID 'winners' aren't suddenly becoming post-COVID losers. They're still winning."

Comcast lost 1.3 million residential video viewers, ending Q1 with 18.6 million subscribers. Cavanagh said the decline was due largely to the residential rate increase at 2021's beginning, with larger losses expected for Q2. Programming expenses rose 5.9% due to contract renewals and annual escalators, and it should further increase in Q2, he said. “We are back in business” in TV series production, Roberts said. He said the Peacock streaming service has had 42 million sign-ups, and users consume more hours monthly than standard NBC viewers. He said Comcast is looking at ways to expand Peacock internationally.

Comcast has 3.1 million wireless lines, up 836,000. It said its wireless business hit breakeven for the first time, and wireless revenue was up 50%, driven by increased lines and device sales. It has 9.53 million residential voice customers, down 307,000. Revenue was $27.2 billion, up 2.2%. The stock closed Thursday at $56.40, up 4.25%.