Cable’s Q3 subscriber numbers take a hit from ACP ending

While cable operators remain the largest broadband providers in terms of subscriber reach and revenues, the segment continued to see the FCC’s ending of the Affordable Connectivity Program (ACP) program impact their subscriber numbers during the third quarter. 

Alternatively, traditional telcos saw their broadband bases grow in fiber and fixed wireless access (FWA).

Regardless of the subscriber slump, it’s clear that cable is still poising itself for growth.

According to Dell’Oro Group’s third-quarter report, spending on DOCSIS infrastructure jumped 26 percent year-over-year.

The research firm noted “significant spending increases for both Remote PHY Devices (RPDs) and Virtual CMTS (vCMTS) platforms.”

Comcast, Charter ACP effect

Comcast and Charter, while still the dominant broadband providers in terms of subscribers and revenue, lost 87,000 and 110,000 subscribers during the quarter.

Comcast said its 87,000-subscriber loss in the quarter included an estimated net impact of 96,000 associated with the end of ACP.

“Excluding this ACP-related subscriber loss, we would have reported positive 9,000 broadband net additions in the third quarter,” said Jason Armstrong, CFO of Comcast, during its third-quarter earnings call.

Likewise, Charter felt similar pain. During the third quarter, Charter lost 110,000 Internet customers.

Christopher Winfrey, president and CEO, said that if ACP had not been an issue, the company would have expanded its broadband subscriber base.

“If it had not for the impact at the end of the ACP program in June, we would have grown our Internet customers during the third quarter,” he said, adding, "we've been successful in keeping low-income households connected.”

Amidst the losses, Charter reported that Internet revenues grew by 1.7% yearly to $5.9 billion. The cable MSO said that promotional rate step-ups and rate adjustments were partly offset by lower bundled revenue allocation and a decline in Internet customers last year.

Regional struggles

Regional cable providers also saw struggles in the third quarter.

Altice USA reported Q3 revenues of $2.2 billion, down 3.9% year over year. The company suffered a broadband subscriber net loss of 50,000 in the quarter, which was attributed to low activity levels and competitive pressure across the footprint.

However, fiber broadband remains a bright spot. Altice USA added 47,000 fiber net additions in the third quarter, ending with 482,000 fiber customers. Fiber migrations accounted for over 70% of fiber net adds.

“We achieved penetration of approximately 17% across our total fiber footprint, with some markets achieving closer to 30%,” said Dennis Mathew, CEO of Altice USA.

Other regional players, like Cable One, also saw the effects of ACP, losing 3,400 customers quarterly. Like Charter and Comcast, Cable One took measures to support its customers after ACP ended, which helped maintain its commitment to offering affordable service.

Meanwhile, WOW! lost over 4,000 subscribers during the quarter. The provider also continues expanding its FTTH footprint's reach, adding new markets in Florida and Michigan.

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