Altice USA and WideOpenWest (WOW) took Q3 hits to their broadband subscriber numbers from the June end of the affordable connectivity program, though both would have lost subscribers regardless of ACP, the companies said. Announcing results after the market's close Monday, WOW said it expected Q3 to mark the end of its ACP-related losses. Last week, Comcast and Charter said that if not for ACP losses, their Q3 broadband subscriber numbers would have been in the black (see 2410310013 and 2411010006).
The Tuesday congressional elections could lead to significant turnover on the Senate Commerce Committee even beyond ranking member Ted Cruz, R-Texas, with four other panel members facing tough or potentially competitive reelection fights. The outcome of Cruz’s reelection bid against Rep. Colin Allred, D-Texas, has the biggest potential to alter the Senate Commerce dynamic because Cruz is poised to become panel chairman if he's reelected and Republicans gain a majority in the upper chamber (see 2411040049). Late polls suggested both of these results are more likely than not. It's less likely there will be substantial turnover on the Senate Judiciary, House Commerce and House Judiciary committees, as only a handful of those panels’ members face competitive contests.
If not for the end of the affordable connectivity program, Charter Communications would have added broadband subscribers in Q3, CEO Chris Winfrey said Friday as it announced Q3 results. Comcast said the same about its Q3 broadband losses Thursday (see 2410310013). Charter said it lost 113,000 residential internet customers in the quarter. CFO Jessica Fischer said it retained the vast majority of subscribers who were previously receiving an ACP benefit. She said Q4 will likely see 100,000 internet subscriber disconnects for non-pay, as well as some voluntary disconnects, with ACP's end factoring in both. After Q4, the one-time impact from the end of the ACP program should be completed. Winfrey said Charter saw "significant" initial impact from hurricanes Milton and Helene due to power outages and downed poles and trees. He said all but roughly 10,000 customers have had their service restored. He said Charter is restoring service in the Asheville, North Carolina, area and pockets of Tampa Bay. Fischer said Charter anticipates 400,000 new subsidized rural passings in 2024 -- 35% more than in 2023, but lower than its original 2024 plan of 450,000 as it moved construction labor to storm-damaged areas. Winfrey said Charter now offers symmetrical, multi-gigabit speeds in eight markets, including Cincinnati, Dallas, Louisville and Rochester, New York, and is broadly marketing it. Network upgrades to bring symmetrical multi-gig speeds to other markets will be done by year's end. He said Charter's network upgrade should be done in 2027. Charter ended Q3 with 28.2 million residential internet subscribers, down from 28.6 million year over year; 12.4 million residential video subscribers, down from 13.8 million; 5.9 million residential voice subscribers, down from 7 million; and 9.1 million residential mobile lines, up from 7 million. It had revenue of $13.8 billion for the most-recent quarter, up from $13.6 billion the same quarter a year prior. MoffettNathanson's Craig Moffett wrote that going forward, Charter's broadband losses will be smaller "now that the worst of the ACP impact has been felt." He said fixed wireless access and fiber to the home competition also likely has peaked, "even if only slightly so."
With more than $1.8 billion in federal cash from the broadband equity, access and deployment (BEAD) program on the line, USTelecom asked the California Public Utilities Commission to reconsider its rules for implementing the state’s BEAD initial plan volume 2. In a rehearing application (docket R.23-02-016) posted Friday at the CPUC, the national ISP association said it “cannot stand by and risk the Commission’s adoption of a collective set of requirements that will severely limit participation in and the overall effectiveness of California’s BEAD Program.” The commission should deny USTelecom's application, a consumer advocate urged.
Comcast is considering spinning off its cable networks -- though not streamer Peacock or its broadcast assets -- into a separate, publicly traded company, President Mike Cavanagh said Thursday as Comcast announced Q3 financial results. In addition, he noted Comcast is open to streaming partnerships with Paramount Global. The company said that, absent the impact of the end of the affordable connectivity program (ACP), it would have been in the black with broadband net adds.
Senate Intelligence Committee Chairman Mark Warner, D-Va., said during a Thursday Punchbowl News event he would prefer the chamber pursue a middle-ground between the Spectrum and National Security Act (S-4207) and 2024 Spectrum Pipeline Act (S-3909) as a legislative package for renewing the FCC’s lapsed airwaves auction authority. He also voiced concerns about the Biden administration’s implementation of $65 billion in broadband money from the Infrastructure Investment and Jobs Act, echoing criticisms congressional Republicans raised about how long it has taken for funded projects to come online.
NTIA approved more than $12 million in Digital Equity Act state digital equity capacity grant program funding to Minnesota Wednesday. The state plans to use the funding for launching a digital opportunity leaders network pilot program and exploring potential models for a program similar to the FCC's affordable connectivity program. "For the first time, every state in the nation has a digital equity plan in place to promote widespread adoption of high-speed internet services," said NTIA Administrator Alan Davidson: "Minnesota can now request access to the funds to put its digital equity plan into action." The agency also approved more than $9 million for Connecticut. That award "comes at a perfect time" to further the state's existing initiatives addressing the digital divide, said Gov. Ned Lamont (D): "We are grateful for this investment." Connecticut plans to use the funding to create an urban and rural digital navigator pilot program and build digital literacy and equity resources.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, will likely redirect the panel's airwaves legislative focus toward a version of his 2024 Spectrum Pipeline Act (S-3909) next year should Republicans control the Senate after the Nov. 5 elections and he becomes chairman. Cruz could face continued headwinds from DOD's staunchest Capitol Hill backers if he pursues legislation similar to S-3909, lobbyists and others predicted. Current Senate Commerce Chair Maria Cantwell, D-Wash., hopes she can attach her rival Spectrum and National Security Act (S-4207) to an end-of-year omnibus package (see 2409170066).
AT&T will pay a nearly $2.3 million fine under a settlement with the FCC for violations in the emergency broadband benefit program and affordable connectivity program. A Friday order said an Enforcement Bureau investigation found that AT&T sought and received funding for improperly enrolled non-subscriber benefit qualifying persons between "at least" May 2021 and December 2023. AT&T violated rules that require in-store sales personnel to obtain a representative accountability database identification number. The bureau also found that the ISP collected funds for subscribers who had not used their service for at least 45 days. Providers can receive reimbursement for "offering the ACP benefit when the subscriber has used the service at least once every 30 days or has cured their non-usage during a subsequent 15-day cure period."
T-Mobile’s Q3 2024 was the company’s “best Q3 in a decade,” said CEO Mike Sievert on an earnings call Wednesday. The company recorded the highest number of new postpaid phone subscribers for Q3 in 10 years, and also showed the lowest Q3 postpaid phone churn in T-Mobile’s history, executives said on the call. The company reported $16.7 billion in total service revenue in Q3, a 5% increase over the same quarter in 2023. CFO Peter Osvaldik said the carrier expects a “trough” in 2025 from the loss of the affordable connectivity program and Tracfone's transition to Verizon. However, he also said Q4 sales will likely top Q3's due to “holiday seasonality.” Asked about T-Mobile’s plans for supplemental coverage from space, Sievert said the company tested the service through a grant of special temporary authority during the recent hurricanes in Florida and North Carolina. The tech will be “off to the races soon,” Sievert said. Executives said the company had “optionality” for its 800 MHz spectrum. T-Mobile sought to auction off that spectrum earlier this year but didn’t receive qualifying bids. The spectrum isn’t currently part of its financial predictions or spectrum plan, Sievert said. DOJ gave T-Mobile’s proposed purchases of Lumos and Metronet the nod, but it awaits FCC approval, said General Counsel Mark Nelson. T-Mobile’s purchase of U.S. Cellular isn’t as far along, but Nelson said all three deals are expected to close in 2025.