Comcast to lead doubling of consumer broadband pricing, analyst says

US cable operators, led by the biggest one of all, Comcast, are about to make a lot more on residential and business broadband. That’s the conclusion of New Street Research, which just released a rather bullish report this morning on the cable industry.

Led by analyst Jonathan Chaplin, New Street concedes that the previously torrid pace of cable broadband marketshare growth has slowed a bit in recent quarters, due to factors such as aggressive triple-play promotions by AT&T. But those headwinds will soon clear, the investment research firm concludes, and with that will be increased ARPU for cable operators. “We have argued that broadband is underpriced, given that pricing has barely increased over the past decade while broadband utility has exploded,” New Street said. “Our analysis suggested a ‘utility-adjusted’ ARPU target of ~$90. Comcast recently increased standalone broadband to $90 (including modem), paving the way for faster ARPU growth as the mix shifts in favor of broadband-only households. Charter will likely follow, once they are through the integration of Time Warner Cable.” New Street added that “broadband pricing could double from current levels.”