Cable and Phone Companies Compete, but Both Thrive

CABLE AND PHONE COMPANIES COMPETE, BUT BOTH THRIVE
[SOURCE: New York Times, AUTHOR: Ken Belson]
The four Bell companies -- AT&T, BellSouth, Qwest Communications International and Verizon Communications -- reported higher revenue and profits, driven by mobile phone, broadband and television products. Even Qwest, the weakest of the four, said yesterday that it was on track to report its first profitable year of operations, excluding one-time gains. Things are equally rosy, if not rosier, at Comcast, Time Warner Cable and Cablevision, which have been signing up hundreds of thousands of new customers for their phone services. They have also enjoyed strong demand for digital video players and other extra services. No doubt, the Bell operating companies have been losing traditional phone customers by the fistful, and satellite companies and cable companies have been taking customers from each other. But as all of these companies sell a greater variety of products, they can generate more revenue even if their customer base shrinks. “Every type of communication service provider, whether it’s cable, satellite or phone companies, are basically all in a big firefight,” said Arnie Berman, the chief technology strategist at Cowen & Company. “But at the end of the day, you'll end up with these companies having small numbers of subscribers who will spend more per month."
http://www.nytimes.com/2006/11/01/business/media/01place.html
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* AT&T cable plan includes wireless
http://www.usatoday.com/printedition/money/20061101/3b_att01.art.htm