What's Causing Comcast Slowdown?

Comcast has cut it outlook for 2007 citing “an increasingly challenging economic and competitive environment.” Cable revenue growth will be 11 percent, off from the 12 percent predicted just six weeks ago, representing 500,000 fewer revenue generating units.

Comcast now projects adding six million to 57 million, versus previous guidance of 6.5 million additions. Cable cash flow growth will also be off about a percent from prior guidance at 12 percent.

That isn't what is so interesting. In the past, cable has claimed to be recession resistant, and analysts generally have agreed. In fact, the argument has tended to be that in a tougher economic climate, cable represents even more entertainment value for the price.

To be sure, cable now has many more lines of business, and perhaps some users will consider some of them optional. Perhaps the more advanced video services will be seen as optional if choices have to be made. Perhaps customers will consider trading down from higher-speed broadband packages to slower speeds.

But the larger issue is a matter of weighing the importance of economic and competitive factors. Is it the economy driving the shortfall or is it competition? Maybe consumers are making some tough budget choices.

But what if some of the slowdown is defections to telco services? And how much to Verizon? Is FiOS now a growing factor driving defections?

To be sure, we might not be able to assess the relative competitive impact until there is simply no question that economic softness is causing the slower growth.

Comcast Won't Bid for 700-MHz Spectrum

Some financial analysts and investors had been worried that Comcast would do so, further depressing its battered stock price.

30,000 Orange iPhones Sold in Less than a Week

France Telecom's subsidiary mobile carrier Orange saysit has sold 30,000 Apple iPhones since they debuted in France less than a week ago. In addition, nearly half of the sales are resulting in new subscribers for the carrier. Orange has a year-end target of 100,000 unit sales.

"Bulk Up or Sell" Key for Telcos, Media

The big global media and telecom companies face very similar business issues in some of their key lines of business. International calling rates are getting so competitive that only large players with scale will have the mass to make a go of it, says Stephan Beckert, Telegeography head of research.

Likewise, media comapnies such as like Vivendi, Time Warner and News Corp. are investing very heavily in gaming. In fact, some observers suspect that gaming will grow to be the biggest media business in time, and will and supplant older media to a significant degree. That is sort of the same position telephone companies find themselves facing with their core voice businesses.

Gaming is set to grow 40 percent in two years, many project. And bulk really confers advantages in game publishing, which has massive scale economics. A publisher that can guarantee over a million sales, with global distribution and quality marketing, has an immense advantage over a publisher that struggles to get to half a million sales.

Much the same sort of thing is happening in the U.S. competitive local exchange carrier industry as well, where scale has started to assume a key role as well. Basically, every executive has to decide whether to be a strategic seller or buyer.

Integrated Google Apps for iPhone

Google has launched a new iPhone application that ties together its various services, including search, Gmail, Calendar, Reader and Maps, into one interface. If you’re an iPhone user you can see the interface at Google.com.

700-MHz Auction: EchoStar to Bid; DirecTV Won't

EchoStar Communications will bid for wireless spectrum in the Federal Communications Commission's auction of cho8ice 700-MHz spectrum on Jan. 24. DirecTV won't be bidding. Though the opening bids are set at $4.6 billion, the final price could range between $10 billion and $15 billion, some observers suggest, making an EchoStar win an unlikely event.

The fact that both at&t and EchoStar are bidding in the auction prohibits both of them from discussing a potential merger, so it isn't clear where the rumored at&t purchase of EchoStar might stand. The only thing that is certain is that any such talks must be on hold at the moment.

No Rate Deregulation in 6 Verizon Markets

The Federal Communications Commission had concluded that there is not sufficient competition in six Verizon markets to lift rules regulating special access pricing. Essentially, the FCC concluded that the level of competition in those markets did not approach the threshold set by market conditions in Omaha, Neb. at the point Qwest was allowed to deregulate its special access prices.