Wednesday, May 1, 2013

How Much “Dumb Pipe” Revenue Does Comcast Have?


Comcast’s first quarter 2013 earnings report sheds some light on the value of “dumb pipe” revenues earned by Comcast's cable segment. In its cable segment, Comcast booked revenue of $10.22 billion.


Assume that voice, video entertainment, advertising and all other revenue is a “service,” not dumb pipe Internet access.  

Of the amount, some $5.1 billion came from video entertainment. Comcast earned $900 million from consumer voice. Comcast also earned $940 million in advertising and other revenue.

Comcast earned about $2.5 billion in consumer Internet access revenue.

Comcast earned $741 million from business services, presumably a mix of high speed access and voice services. For the sake of argument, assume half of that revenue is high speed access, half hosted voice. So assume Comcast can attribute $370 million in the quarter as Internet access revenue.

That implies about $7.3 billion in smart pipe or service or application revenue. That also implies
“dumb pipe” revenue of about $2.9 billion. So dumb pipe directly represents 28 percent of revenue.

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