Cable Makes Comeback With Digital Phone

by Mike Bevel, CollectionIndustry.com

Cable operations, long thought to be headed the way of reel-to-reels, Beta Max, unmaligned carbs, and print journalism, has received a second wind, of sorts, thanks to the revolution of digital phones and cable Internet.

“We have gained more basic subscribers in the last three quarters than we did in the same three quarters of last year and the reason for that is purely and simply because of triple play,” — television, Internet and digital phone, said John Alchin, co-chief financial officer of industry-leading Comcast Corp.

Shares of the leading cable operators have grown even more sharply. Comcast has seen its stock add nearly 63 percent year-to-date. Charter Communications Inc., owned by Microsoft co-founder Paul Allen, has more than doubled and Cablevision Communications added 20 percent, not including a hefty one-time dividend.

The growth is being driven by increased penetration of broadband, which enables voice and Internet service.