Comcast, Charter Blase About Fiber, Fixed Wireless Competition

Neither Comcast nor Charter Communications considers fiber overbuilders or fixed wireless significant competitive challenges now, the companies' CEOs said Wednesday during a MoffettNathanson tech conference. Comcast's Brian Roberts said there's increased competitive pressure from fiber and fixed wireless, but Comcast's penetration rate is growing in the areas it serves. He said record-low churn is a mixed blessing because it means fewer customers leaving, but it also means fewer opportunities to get customers who are leaving another provider: "Jump balls will continue to be good for cable." He said about 41% of Comcast's footprint is overbuilt by fiber, and that likely will grow to at least the mid-50s. He said fixed wireless competitors could face congestion problems. "We will see how their services stand up," he said. "They have a lot of trade-offs they will have to sort through." He said Comcast expanded its network by about 813,000 new passings last year, mostly in residential developments, and likely will do about the same in 2022. Comcast is "very confident" in its strategy of DOCSIS 4.0 as a route to multi-gig speeds rather than fiber in most cases, though it will likely use fiber in some areas, said Roberts. While 38% of Charter Communications' footprint has a fiber overbuilder, CEO Tom Rutledge dismissed concerns about fiber being a major competitive threat. "The landscape is littered ... with failed builders" faced with the challenge of getting returns on their investment, he said. He said lack of skilled labor could be a challenge for Charter and other companies considering rural expansions. That labor has to be trained, and rural areas have low population, requiring bringing in crews, he said: "It's challenging. Right now, there is no labor force for any jobs anywhere. We have thousands of unfilled positions."