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Why Charter’s High-Speed Internet Customer Base Is Growing

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Charter’s high-speed Internet customers

Charter Communications (CHTR) is optimistic about the growth trajectory of its high-speed Internet business, as demand is growing for high-speed Internet connections as people are dropping traditional pay-TV plans for over-the-top (or OTT) video streaming services.

In the third quarter, Charter gained 266,000 residential broadband net customers as compared to the 250,000 net customers it gained in the third quarter of 2017 and above the consensus estimate of 234,000. The company’s residential broadband customers rose ~4.9% YoY to 23.3 million at the end of September 30. Its residential broadband revenue increased ~7.1% YoY to $3.8 billion in the third quarter.

Charter is aggressively deploying 1 Gbps (gigabits per second) speeds via DOCSIS 3.1 technology. As of September 30, the telecom company offered gigabit services for nearly 95% of its footprint. The company is looking forward to completing its full upgrade to DOCSIS 3.1 by the end of 2018.

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US broadband market

At the end of September 30, Comcast (CMCSA) was the largest cable operator and had the largest Internet customer base in the US with 24.8 million residential broadband customers. AT&T (T) had 15.7 million broadband subscribers in the US, while Verizon (VZ) had 7 million broadband customers.

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