How CenturyLink’s Broadband Subscriber Base Is Trending
CenturyLink’s broadband customer acquisitions in 2Q17
In 2Q17, cable companies continued their solid momentum in the broadband market, with Charter Communications (CHTR) and Comcast (CMCSA) adding the most broadband customers, given the faster speeds. Let’s look at the performance of CenturyLink’s (CTL) Broadband segment, which is a key growth driver for the company.
In 2Q17, CenturyLink lost 77,000 broadband subscribers. In 2Q17, the company served ~5.9 million broadband customers, an ~2.0% reduction year-over-year (or YoY). However, the company’s management plans to address these losses with new lifetime pricing offers and faster speeds.
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CenturyLink’s focus on bundling and retention
CenturyLink has been refocusing its efforts acquiring higher-value bundle users and putting less emphasis on standalone broadband customers. Bundled offerings provide a net positive net present value (or NPV) due to lower churn characteristics.
During the recent CenturyLink’s 2Q17 earnings conference call, the company’s management noted that it anticipates positive broadband and video subscriber net additions during 2H17. The company’s CEO, Glen Post III, noted, “We are confident our continued investment in high-quality, high-bandwidth broadband network infrastructure positions CenturyLink well for long-term growth.”