- Broadband is about to Crash and Burn
In the span of a week, three articles crossed my desk. One was Comcast looking to sell their ownership stake of MSNBC and Oxygen. Second was Comcast article seeking to spin off their cable television distribution business. Third was an article about over fifty CATV multiple system operators who might be going out of business. The rub is these companies all made billions of dollars beginning in the late 1970s. Upon implementing digital and Internet technology in the 1990s, they experienced massive consolidation which saw 1,000s of companies consolidate down to a fraction of this. In the 2000s, these companies used their broadband services for residential customers to deliver voice, video and internet based services. In the 2010s, these companies were able to consolidate via automation and telemetry to the amazing optimization of someone sitting in corporate headquarters automating a services call from a consumer without human intervention.
As with any business, each time you optimize the business it is only a matter of time until earnings growth and profitability growth start to slow down … or go the opposite direction. We are at this point in broadband.
The question is how will Americans continue to receive their broadband connectivity. Connectivity which now streams 100s of information services to the consumer. Connectivity which allows millions to work from home. Connectivity which allows for virtual meetings and visits with family, friends and co-workers. What is next?
