Jonathan Make

Altice USA, reaping gains from network investments and other improvements, had its best Q1 in terms of video subscribers, with "just 10,000 net losses," CEO Dexter Goei told analysts Thursday. That was also more than some analysts said they had expected. Friday, the stock closed 6.8 percent higher at $24.50. Revenue grew in all business segments, with the highest-ever Q1 margin at 43.1 percent, and it would have been higher if not for some mobile and other costs, Goei said. "It is really cap ex light," said Chief Financial Officer Charlie Stewart said of the coming mobile product. Revenue grew 2.9 percent from the year-ago quarter to $2.4 billion, and the company has about 3.3 million video customers. Altice is "on track for a full commercial launch this summer" of wireless service, Goei said. Its partnership with Sprint led to 19,000 small cell rollouts in about a year, the "fastest rollout of its kind in the U.S.," he said. There are "major mobile handset partnerships" in place, the CEO said. "We are in a phase of heavy testing now." Altice doesn't expect wireless carriers to soon offer 5G targeted at residences where the company operates, he said. "We have seen no 5G fixed launches in our footprint." The ISP has been investing "in our own proprietary video set-top box and broadband router," better user interfaces and new features like voice control, Goei said. "We continue to see increased customer demand for higher broadband speeds and significantly growing data usage." Many customers use Netflix through their set-top, and many Altice subscribers are using voice control, he said: The average home the operator serves has about 12 connected devices. (See also page 7.) Earlier last week, Altice said it's buying Cheddar (see 1904300120).

An executive of a smaller cable operator called broadband service a utility, speaking alongside the head of America’s Communications Association about the importance of such ISP services. Although neither cable ally favored a common-carrier regulatory approach to broadband service such as Communications Act Title II net neutrality, the two may have -- perhaps inadvertently -- given a talking point to Title II advocates. That's according to later comments from such net neutrality proponents.

Frontier Communications stock closed down Wednesday 22 percent at $2.21 after reporting (see 1904300217) Q1 sales and operating income fell from the year-ago period as some customers departed. CEO Dan McCarthy said Tuesday the telco may add customers because of broadband buildouts it's doing, some with government subsidies such as through USF. It has about 30 percent penetration of Connect America Fund households, he told analysts: "We do like it. We think that there is more room to really drive that" trying to get customers "in different ways." The carrier likely will pursue what he called the CAF Phase III program. "We think there are opportunities to work with the" FCC for better targeting of such households and having higher speeds, McCarthy said. "You’ll see us actively participate with industry and industry groups." Frontier "should still be able to grow into that 50-60 percent penetration over time" of such dwellings, the CEO said. A $20-some billion Rural Digital Opportunity Fund would repurpose funding from CAF, FCC Chairman Ajit Pai said. The agency Tuesday assigned a docket to the proceeding (see 1905010029).

Though no FCC action on the matter is said imminent, the coming Rural Digital Opportunity Fund got a docket, 19-126. The Wireline Bureau, coordinating with the Rural Broadband Auctions Task Force and the Office of Economics and Analytics, opened the docket, captioned “Rural Digital Opportunity Fund.” On April 12, Chairman Ajit Pai announced the coming fund, to make available up to $20.4 billion in support via reverse auction to connect about 4 million rural homes and small businesses to broadband, recapped a public notice in Wednesday's Daily Digest. Agency officials told us Wednesday that no proposal seems imminent, which would accord with stakeholder expectations from when Pai disclosed the fund (see 1904150066). None was circulating, either, at the commission. "We hope to be able to launch that proceeding later this year," Pai told reporters last month. "We have to go through the notice and comment process, but we want to get this program stood up as soon as we can because we recognize the need to close that digital divide in rural America." A spokesperson declined to comment beyond Pai's statement, to which he pointed us.

Frontier Communications Q1 sales and operating income fell from the year-ago period as some customers departed, a trend seen at some other telcos. Revenue fell about 4 percent to $2.1 billion, and operating income was down about 9 percent to $339 million. Total customers including businesses fell about 7.8 percent to 4.39 million. Broadband, video and Dish Network subscribers declined. Consumer copper broadband sub losses “more than halved sequentially,” CEO Dan McCarthy said Tuesday. “Nonetheless we have substantial work ahead." About 496,000 locations are enabled with Connect America Fund Phase II broadband, the carrier reported. The company recently added CAF locations, interim Chief Financial Officer Sheldon Bruha told analysts. It's building fiber to the home to some 19,000 rural households, "leveraging state funding sources," Frontier said. "Fixed wireless broadband builds continue in CAF areas." Mead is "pleased that the FCC is beginning to move forward with planning for the next phase” of such subsidies (see 1904120008), he said. There were "substantial improvement in broadband unit trends," the company said. "Fiber improvements reflect stronger gross additions."

General Motors decided to ask the FCC to pull the company's waiver bid to not provide some real-time texting functions (see 1904250038) after deciding it wasn't necessary, GM confirmed Friday. The company's Cruise shared autonomous vehicles that continue being tested in three big cities lack some features that would have subjected them to the RTT rules, in this view.

FCC staff Friday afternoon approved SpaceX's plans for satellite broadband, over some industry opposition that was dismissed. The company's Nov. 8 application to modify its previously authorized 4,425 non-geostationary orbit satellite constellation using Ku- and Ka-band spectrum is greenlighted. Now, the company with its Starlink satellites can cut the NGSO satellites to 4,409 in what staff called "a very small reduction in the number of satellites initially granted." That was deemed "a fundamental element in assessing whether there would be significant interference problems" from the change, as others contended there would be.

The FCC routinely released public safety and emergency communications documents in the evening, outside the time frame that experts recommend. This trend, seen on many other issues at the commission over more than a decade, possibly deprived stakeholders from being fully and timely informed on important issues. From Jan. 1, 2018, until Oct. 25, when Communications Daily filed a Freedom of Information Act request and the practice ceased, four such items were made public later than 5:30 p.m. Eastern when the commission's business hours end. That's according to results from the FOIA request and our database.

The FCC routinely released public safety and emergency communications documents in the evening, outside the time frame that experts recommend. This trend, seen on many other issues at the commission over more than a decade, possibly deprived stakeholders from being fully and timely informed on important issues. From Jan. 1, 2018, until Oct. 25, when Communications Daily filed a Freedom of Information Act request and the practice ceased, four such items were made public later than 5:30 p.m. Eastern when the commission's business hours end. That's according to results from the FOIA request and our database.

NSA apparently recommending an end to a surveillance program created after the Sept. 11, 2001, terror attacks that collects information about Americans’ phone calls and texts drew a few cheers in the minutes after The Wall Street Journal report. The surveillance authority would make the recommendation to the White House, which reportedly hasn't made a decision. The NSA declined comment.