Rural Cable Broadband Buildouts May be on the Rise, Thanks to RDOF and Other Govt Funding

Coverage Type: 

MoffettNathanson researchers say funding through the upcoming Rural Digital Opportunity Fund (RDOF) auction and other government programs could play a key role in fueling rural cable broadband footprint growth. To date, cable footprint growth has been minimal, according to the researchers, who note that Comcast’s footprint has grown at an average rate of 1.1% annually since 2016 and that Charter’s has grown an average of .7% per year over the same period. That’s likely to change, however – at least for Charter, as the company plans to bid in the RDOF auction, as does Altice USA, the researchers note.

As MoffettNathanson notes, deployment costs are higher in rural areas, but competition is less, which means that government-supported buildouts could be a means of “de-risking” broadband and creating a longer “runway” for sustained broadband subscriber growth for the cable companies. The MoffettNathanson researchers see a strong likelihood of additional government funding being made available for rural broadband buildouts moving forward. They also note that they expect cable companies, driven by the allure of cable footprint growth, to be “significant players in all rural broadband buildouts going forward.”


Rural Cable Broadband Buildouts May be on the Rise, Thanks to RDOF and Other Govt Funding