John Malone sizes up the threat to cable posed by fiber

US cable operators are increasingly threatened by the vast sums of money being plowed into fiber overbuilders, but cable industry legend John Malone believes that multiple-system operators (MSOs) such as Charter Communications are well-prepared to handle the hazards of more capable competition. Malone, whose Liberty Broadband unit holds 26 percent of Charter and owns Alaska's GCI, remains upbeat about Charter's prospects in the face of new and emerging competition from fiber overbuilders. "I believe they can defend their territory quite effectively," Malone said. To amplify that point, he said Charter has done well defending against AT&T's surge in fiber to the premises (FTTP) buildouts and network upgrades. He also likes Charter's position with mobile services, and its ability to "step on the accelerator" with aggressive pricing and extract a premium when mobile is bundled with high-margin home broadband service. Meanwhile, he believes the threat posed by fiber overbuilders will vary by market and be gauged in part by how committed they and their investors are to the long game.