Moffett: Stimulus Could Help Maintain Broadband Boom

Cable operators, bracing for a slowdown after the robust broadband growth during the height of the pandemic may be in for a surprise. Federal money from the American Rescue Plan could help maintain, and in some cases spur, high-speed data additions in both urban and rural markets, according to MoffettNathanson principal and senior analyst Craig Moffett. Cable operators added more than 4 million broadband customers in 2020, the sector’s biggest growth spurt in a decade and one that occurred as penetration levels were in the 80% range. Operators across the board have warned analysts and investors to not expect the same growth rates in 2021 and, for the most part, they have complied, lowering forecasts over the next few years. But that pullback may be a bit premature given the scope and size of the federal stimulus bill, which has earmarked billions of dollars to make broadband service both more available and more affordable across the country. Taking those factors into account, Moffett ticked up his own subscriber growth estimates for the top publicly traded cable operators by nearly 5% over the next four years. Three programs that are part of the $1.9 trillion federal stimulus plan -- the Emergency Broadband Benefit Program, the Emergency Connectivity Fund and the Coronavirus Capital Projects Fund -- will provide a combined $20 billion in funding for broadband projects. But more importantly, a significant part of those funds will be targeted at affordability as well as availability.