Normally this story wouldn't qualify for an LPF comment but the implications for our community's fiber network turn out to be interesting....and heartening. The analysts think that winning at internet connectivity is the key. (And, hey, we think so here too.) The juicy parts:
As bandwidth-hungry applications like video downloads grow, customers prefer the generally faster speeds cable offers. Cable companies have also been marketing more aggressively in recent months, analysts say.The reason that internet subs are so strategically crucial?
"Phone companies can't just sit back and let cable companies take that much of the broadband market, or they will eventually cede everything," says John Hodulik, an analyst at UBS.Winning broadband customers has enormous strategic consequences for both cable and phone companies. It gives them a foot in the door to sell other services, such as pay-TV and phone service.
Mr. Hodulik says customers are most apt to get phone and TV services from the same company that provides them with their broadband connection. And broadband services are also the most profitable of the bundled services.So on this analysis, people are deciding which service to go with based on who can give them the best (and cheapest) broadband connection. Then they buy onto the other offered services.
That bodes well for LUSFiber which will have, without question, the best and cheapest data network in town.
Looking forward to January?