Telecom Stock Roundup: Big Cable MSOs To Hike Price In 2018, FCC To Auction CAFII Subsidy
Zacks Investment Research | Dec 26, 2017 09:40PM ET
The U.S. telecom industry did not witness much activity last week. Nevertheless, a few developments are worth taking note of.
Per a recent FierceCable report, cable and satellite television companies are gearing up to hike prices of their packages. Major pay-TV operators like Comcast Corp. (NASDAQ:CMCSA) , DISH Network Corp. (NASDAQ:DISH) and Cox Communications Inc. have notified their customers about the increase in programming package rates, effective 2018. U.S. telecom behemoth, AT&T Inc. (NYSE:T) has also announced monthly price increase for it’s over the top (OTT) online streaming service, DirecTV Now.
Leading wireline and wireless service providers that are interested in extending their reach in rural United States with high-speed broadband services will get a chance to bid for an additional $2 billion in government’s Connect America Fund II (CAFII) subsidy. In 2015, a number of large wireline operators including AT&T, CenturyLink Inc. (NYSE:T) , Frontier Communications Corp. (NYSE:T) and Windstream Holdings Inc. (NASDAQ:WIN) accepted $9 billion over a period of six years from Phase II of the Connect America Fund to expand broadband in their rural service areas.
Moreover, AT&T has requested for a Special Temporary Authority from the Federal Communications Commission (FCC) to conduct 5G tests on the 3.5 GHz frequency band. The company plans to conduct tests for one month, commencing Feb 1, 2018, using L. M. Ericsson’s (NASDAQ:ERIC) equipment inside a closed building in Washington, D.C. AT&T currently carries a Zacks Rank #3 (Hold). You can see Original post
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