In a strategic sense, one might argue that the value of a fixed telecom network (cable TV, telco, ISP, metro fiber specialist) is backhaul for mobile traffic. That obviously is most true for consumer apps and customers, less true for enterprise apps and customers.
One anecdotal way of illustrating that concept: “There are some industry experts who have said that for a 4G LTE network, about 90 percent of the communication path is wired, and for a 5G millimeter-wave communication path, it could be 95 percent or more of the path is actually wired,” said Steven Nielsen, Dycom CEO.
Still, any changes in access platform choices (use of fixed wireless instead of fiber to home; small cell architectures) should materially affect Dycom’s prospects.
Dycom's main business is contracting services (network construction, principally) for telecommunications providers and enterprises.
The company's five largest customers are AT&T, Comcast, CenturyLink, Verizon and a “customer who has chosen to remain anonymous.” Most everyone believes this customer is Alphabet (Google Fiber).
AT&T represents 28.1 percent of total revenue or $221.6 million. Revenue from Comcast was $112.7 million or 14.3 percent of revenue.
Revenue from CenturyLink was $110.7 million or 14 percent of revenues.
Verizon was Dycom's fourth-largest customer for the quarter at 12 percent of revenue or $95.1 million. Revenue from Windstream was $43.5 million, or 5.5 percent of revenue.
Charter Communications was sixth largest, at 4.8 percent of revenue. Customer seven (believed to be Google Fiber) drove 3.6 percent of revenue.
Frontier Communications was the eighth-largest customer at 1.4 percent of revenue.
Without question, gigabit Internet access services are driving current business activity.