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Link: Cable Digital News – Arris Slammed on Q4

Cable Digital News – Arris Slammed on Q4

It is clear that Cable capex is pulling back in a big way. Comcast appears to be talking out of both sides of their mouth – commiting to big DOCSIS 3.0 deployments while committing to cut capex and pay dividends. Not a good situation right now.


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  1. Brian and the street have been struggling with this for a couple of years. Brian’s public statements are pretty clear he believes investing more is better for the company in the long run (as I do.) The street is clearly even more short term oriented than usual, to the point I think it inevitable to partially reverse, but probably not soon.

    This creates a real problem for policy, because a carrier responding to the street will underinvest. This is directly inefficient as an economic model. If you believe as I do that broadband has important externalities, it’s even more of a problem.

    Which is one reason I am much more willing to accept government interventation than you are, but that’s an argument about religion and gets boring.

    Dave Burstein

    Posted by Dave Burstein | February 16, 2008, 4:12 PM
  2. It is very clear to me that Comcast is doing this to placate shareholders. I agree with you it isn’t the right thing – if anything the Cable guys have been good about getting capex returns in the long run.

    I see the case for govt. involvement in broadband… both paths have big uncertainties and my religion leads me to believe one path is better.

    Europe will be running the Great Broadband Society experiment. We’ll see how it turns out in 20 years. Thanks for commenting Dave!

    Posted by Andrew Schmitt | February 16, 2008, 11:10 PM