Broadband Capex Rebound Appeared to Strengthen in 2018, USTelecom Says
USTelecom said early data show broadband investment continued to grow in 2018, bolstering a 2017 turnaround when the FCC signaled its plan for Title I Communications Act net neutrality deregulation. Based on initial review of financial releases, the six largest…
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broadband providers increased capital expenditures 3.6 percent to $66.3 billion, blogged Patrick Brogan, vice president-industry analysis, Thursday. He said Sprint's capex jumped 50 percent, T-Mobile's 5.8 percent, Charter Communications' 5.1 percent and AT&T's 3.9 percent, while Verizon's dropped 3.4 percent and Comcast's 3 percent. Many providers haven't reported and USTelecom hasn't completed its full analysis, but the six ISPs typically account for 80-85 percent of annual broadband capex, he said. A previous report showed overall broadband investment dipped 4 percent 2014-16 to $75 billion and rebounded to $76 billion in 2017 (see 1810180029). "Previous US Telecom efforts to divine politically convenient conclusions from investment data have been thoroughly debunked by industry analysts and reporters," emailed Timothy Karr, Free Press senior director-strategy and communications, who didn't comment on its latest findings. "Investment cycles in tech rarely if ever swing on any single FCC policy. ... But that hasn't stopped industry lobbyists and trade groups from repeatedly boasting that [FCC] Chairman [Ajit] Pai’s decision to gut Net Neutrality has magically transformed the broadband industry into an investment-and-innovation fantasyland."