Welcome!

Search Authors: Jnan Dash, Shelly Palmer, Carmen Gonzalez, Lori MacVittie, Liz McMillan

Blog Feed Post

Comcast’s Final NBCU Stake: Vertical Integration Complete

BROADBAND CONVERGENT - Business News Broadband-Mobile-Cable-Telecom Markets

NBC-Universal-Comcast (NBC Building Sign)

Comcast’s Final NBCU Stake: Vertical Integration CompleteComcast’s acquired the final stake in NBCU creating a vertical integration of both content and delivery of news and entertainment to U.S. consumers. Divestiture as a remedy should be viewed as a real possibility for Comcast now as its market power moves to dominate competitors. Although Wall Street analysts gave this deal a “thumbs up”, they continue to deny the overlying impact of how market dynamics will change as a result.

Inherently, the deal puts Comcast on a vertically integrated path of controlling both content and delivery of consumer news and entertainment. That should trigger a tipping point of more scrutiny from regulators as the giant moves to eliminate competition by gaining more control of external costs and distribution metrics.

Cable TV and/or Broadband Divestiture Seems Reasonable

It should be reasonable that with market domination of broadband, cable TV and content within the U.S., creating a clear business advantage, might inevitably raise more questions about the giant’s intentions toward competitors. Controlling those three markets, distinctly integrated with one another vertically, can only be construed as dangerous to consumer interests, as well as future market competition. Therefore U.S. regulators must take a harder look at how this recent transaction can benefit the public. Divesting is an answer that seems reasonable for Comcast whether it be its Cable TV Business or Broadband holdings.

Prevention of Monopoly

“There are times when companies are compelled to divest because of legal issues. In order to maintain fair trade and prevent monopolistic practices, anti-trust commissions in various countries mandate divestment. In the United States, the government agency responsible for determining if a company needs to sell or release its non-core asset is the Federal Trade Commission (FTC).” Read more: http://www.finweb.com/investing/6-reasons-to-divest.html#ixzz2Ku7dKf3p

 
Comcast Subscriber Metrics        

Customers

Net Adds

(in thousands)    

YE11

   

YE12

   

4Q11

   

4Q12

   

2011

     

2012

 
Video Customers    

22,331

   

21,995

   

(17

)    

(7

)    

(459

)    

(336

)
High-Speed Internet Customers    

18,144

   

19,367

   

336

     

341

     

1,159

     

1,223

 
Voice Customers    

9,342

   

9,955

   

146

     

168

     

732

     

613

 
Combined Video, HSI and Voice Customers

49,817

   

51,317

465

   

503

   

1,432

   

1,500

See (Comcast Reports 4th Quarter and Year-End 2012 Results)

By far Comcast has more triple play subscribers than any of its cable counterparts. Direct TV and Dish Network are primarily video distributors lacking the vertical integration to compete effectively with a Comcast. Let us not make a mistake of believing there is not a clear market advantage. Clearly, having large content reserves, a mega distribution pipeline for broadband and cable TV is a disadvantage for any competitor.

Top 25 Multi-channel Video Distributors September 2012

Rank

MSO

BasicVideoSubscribers

1

Comcast Corporation

22,002,000

2

DirecTV

19,981,000

3

Dish Network Corporation

14,042,000

4

Time Warner Cable, Inc.

12,344,000

5

Cox Communications, Inc.1

4,595,000

6

Verizon Communications, Inc.

4,592,000

7

AT&T, Inc.

4,344,000

 

A Lack of Competition

This multi-channel video distributor list in the U.S. indicates the divide in sheer video customer domination. Although Satellite DBS customers are most closely aligned with Comcast numbers, there is a lack of overlap in various markets. Understandably, consumers are not left with clear choices in every market, nor are those consumers advantaged with a DBS delivered broadband competitor in most markets.

As can be seen in this chart the potential competitors of Comcast via both Verizon and AT&T, have long ago began to discontinue their direct competition efforts due to the inherent costs of building new infrastructure. Although Google Fiber and FreedomPoP have made insignificant in-roads in a few markets, the majority of content, broadband, and video distributors remains non-existent. The true danger here is the scope of a Comcast vertically integrated control of such a large market area. The advantage is clear in that controlling both internal and external costs and distribution metrics represents and unfair market distinction.

Image via CNNMoney

Comcast’s Final NBCU Stake: Vertical Integration Complete

Read the original blog entry...

More Stories By Leonard Grace

Leonard Grace is the founder of Broadband Convergent, an industry leader tech news and analysis for Broadband, Cable, Mobile, Wireless, and Telecom markets providing strategic direction, business trending, sprinkled with lots of opinion. Technology executives must focus on key business indicators with fast, effective and researched analytics to provide leading edge decisions that propel their organizations ahead of the competition. Broadband Convergent researches the latest trends, strategy, and analysis to deliver the results executives and managers depend on to make strategic business decisions. Whether it is (to-market-strategy), the latest competitive advantage, leading edge technology or legislative updates; Broadband Convergent is on top of intelligence gathering and reporting to make industry leaders comfortable with making decisions based on our findings. Our company is a leader in providing fast, efficient, and economical insights into competitive markets, business strategies, market trends and the future outlook of the legislative landscape. Leonard has produced 250+ highly researched articles providing a unique perspective on current Broadband issues including Cable, Mobile, Wireless and Telecom sectors. His insights dig down to find the why’s and why-not’s of industry decisions and how those effect the commerce of broadband.

@ThingsExpo Stories
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.