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Now is the perfect time for this campaign and to really ratchet up the pressure on Comcast that would actually take a tangible step towards making them really “comcastic!”
Comcast says feeling telco, satellite competition
By Reuters
http://www.news.com/Comcast-says-feeling-telco%…
Story last modified Wed Sep 19 06:19:12 PDT 2007
Comcast, the top U.S. cable television operator, is feeling increasing competitive pressure from telephone operators and satellite TV providers, its chief operating officer said on Tuesday.
Stephen Burke said rivals like Verizon Communications and AT&T are more aggressively trying to win customers with offers such as free video as part of their triple-play packages of TV, Internet and phone services.
“We’re seeing a lot more competition. Verizon is taking video customers from us,” Burke told the Goldman Sachs Communacopia investor conference.
Comcast, which has more than 24 million subscribers, has been enjoying rapid revenue growth through triple-play packages. But telecommunication companies have been investing heavily in launching more advanced digital TV services and faster Internet access speeds.
“We do think competition is going to get worse, not better,” said Burke. “But we do think we’ve got our engine ready to deliver,” he added.
While Verizon has spent heavily on building its fiber network and on marketing, it remains to be seen if its business model was sustainable in the long-term, Burke said.
Verizon’s Fios fiber-optic digital TV service has so far been introduced in only about 5 percent of Comcast’s markets, according to Burke.
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He also said he expects heavy competition from satellite TV providers DirecTV Group and EchoStar Communications in the fourth quarter, particularly for high-definition TV subscribers.
Comcast has predicted continued double-digit growth, driven particularly by its digital phone service which it only fully launched in early 2006 and currently has around 3.5 million subscribers.
However, Comcast shares have fallen as investors worried the company’s cash flow will be hurt as the company needs to spend more to cope with stiffer competition from rivals.
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