Tag Archives: chtr

How Charter Broadband Conditions May Set Bar For Comcast

Charter Communications ( CHTR ) will not be allowed  to charge data usage-based prices or impose data caps on broadband customers for seven years as part of proposed conditions set by federal regulators  for its acquisition of Time Warner Cable ( TWC ). Whatever conditions Charter agrees to might set the bar for Comcast ( CMCSA ) down the road, analysts say. The Department of Justice on Monday cleared Charter’s purchase of TWC, while the Federal Communications Commission moved closer to approval.  FCC Chairman Tom Wheeler is circulating proposed conditions to the five-member agency. California regulators are expected to green light the purchase in mid-May. Charter snapped up TWC after regulators thwarted Comcast’s takeover of Time Warner Cable in early 2015. Conditions set on the Charter-TWC deal might have implications for Comcast if it seeks another major acquisition, such as acquiring T-Mobile US ( TMUS ) or Sprint ( S ). Comcast has filed to be a possible bidder in a government auction of radio spectrum owned by local TV stations. That auction began in late March. Comcast has been testing data caps in an increasing number of markets. “New Charter will not be permitted to charge usage-based prices or impose data caps,” Wheeler said in a statement. “Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers.” Video streamer Netflix did not oppose Charter’s purchase of TWC, but it had lobbied against the Comcast-TWC deal. Charter can’t strike agreements with programmers that would make it more difficult for streaming services like Netflix ( NFLX ) to obtain content, according to a DOJ filing in federal court. Charter has also agreed to buy privately held Bright House Networks. The two deals would make Charter the No. 2 cable TV firm behind Comcast.

Comcast Q1: NBCU Film Weak, TV Ads Gain; Theme Parks Strong

Comcast ( CMCSA ) is expected to report flat Q1 EPS with revenue rising 4%, though analysts expect a strong quarter in video subscriber additions. At NBCUniversal, analysts say ad revenue could be a bright spot at TV broadcasting, though film revenue will fall from the year-earlier quarter amid a weaker slate of movies. Theme parks might get a boost from late March school breaks tied to Easter. Comcast stock has risen 7.5% in 2016, despite regulatory headwinds. The nation’s No. 1 cable TV firm is slated to release Q1 earnings before the open Wednesday. Comcast holds an IBD Composite Rating of 74 out of a possible 99. Cable TV firms have been squabbling with the Federal Communications Commission over broadband privacy issues as well as the agency’s plans to open up the set-top box market  to more competition. Some analysts say there could be more scrutiny of broadband pricing and data caps depending on the outcome of the 2016 election. In Q1, rival Verizon Communications ( VZ ) said it would expand its FiOS broadband and TV services to Boston, a Comcast market, though its timing is unclear. Analysts polled by Thomson Reuters expect Comcast to report profit of 79 cents, even with the year-earlier period, which would be its worst showing in at least 19 quarters. Analysts estimate revenue will rise 4% to $18.64 billion, its smallest percentage rise in four quarters. Comcast stock was down a fraction in afternoon trading in the stock market today , near 60.50. On Comcast’s earnings call, executives might discuss NBCU’s upcoming contract renewals with Dish Network ( DISH ) and Verizon Communications ( VZ ), and a programming dispute with 21 st Century Fox ’s ( FOXA ) ( IBD ) YES sports network. Charter Communications ( CHTR )  will be the No. 2 cable TV firm if federal regulators approve its acquisitions of  Time Warner Cable ( TWC ) and Bright House Networks. Both Charter and TWC report earnings on Thursday.

Cablevision-Altice, Charter-TWC Mergers Seen Advancing

Cablevision Systems ( CVC ) stock jumped Friday on a report that New York City will not block its acquisition by Europe’s Altice Group. In New York, Altice would compete against  Verizon Communications ( VZ ) and its FiOS services. Verizon said earlier this week it plans to expand FiOS services to Boston. Cablevision stock was up more than 2%, near 33.70, in morning trading in the stock market today , breaking out of a flat base at 33.45 buy point. Altice had been under scrutiny because of its debt. New York City, however, determined that former Mayor Michael Bloomberg gave away its authority in cable mergers to the state, the New York Post said in a report. Meanwhile, Charter Communications ( CHTR ) is awaiting the Federal Communications Commission’s approval for its acquisition of Time Warner Cable ( TWC ). An administrative law judge in California on Tuesday recommended that the Charter-TWC deal be approved with conditions, clearing a hurdle. The FCC thwarted Comcast ’s ( CMCSA ) proposed purchase of TWC in early 2015. If both the Charter-TWC and Altice-Cablevision deals go through, cable TV firms are likely to explore asset swaps of cable systems in different markets, a Barclays analyst has speculated. Comcast could be involved, says Barclays. Charter also plans to buy privately held Bright House Networks. Altice in May acquired a 70% stake in Midwest-based Suddenlink Communications. Altice agreed to pay about $10 billion, or $34.90 per share, for Cablevision, including $3 billion in cash.