Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

Blog Feed Post

Comcast’s Final NBCU Stake: Vertical Integration Complete

BROADBAND CONVERGENT - Business News Broadband-Mobile-Cable-Telecom Markets

NBC-Universal-Comcast (NBC Building Sign)

Comcast’s Final NBCU Stake: Vertical Integration CompleteComcast’s acquired the final stake in NBCU creating a vertical integration of both content and delivery of news and entertainment to U.S. consumers. Divestiture as a remedy should be viewed as a real possibility for Comcast now as its market power moves to dominate competitors. Although Wall Street analysts gave this deal a “thumbs up”, they continue to deny the overlying impact of how market dynamics will change as a result.

Inherently, the deal puts Comcast on a vertically integrated path of controlling both content and delivery of consumer news and entertainment. That should trigger a tipping point of more scrutiny from regulators as the giant moves to eliminate competition by gaining more control of external costs and distribution metrics.

Cable TV and/or Broadband Divestiture Seems Reasonable

It should be reasonable that with market domination of broadband, cable TV and content within the U.S., creating a clear business advantage, might inevitably raise more questions about the giant’s intentions toward competitors. Controlling those three markets, distinctly integrated with one another vertically, can only be construed as dangerous to consumer interests, as well as future market competition. Therefore U.S. regulators must take a harder look at how this recent transaction can benefit the public. Divesting is an answer that seems reasonable for Comcast whether it be its Cable TV Business or Broadband holdings.

Prevention of Monopoly

“There are times when companies are compelled to divest because of legal issues. In order to maintain fair trade and prevent monopolistic practices, anti-trust commissions in various countries mandate divestment. In the United States, the government agency responsible for determining if a company needs to sell or release its non-core asset is the Federal Trade Commission (FTC).” Read more: http://www.finweb.com/investing/6-reasons-to-divest.html#ixzz2Ku7dKf3p

 
Comcast Subscriber Metrics        

Customers

Net Adds

(in thousands)    

YE11

   

YE12

   

4Q11

   

4Q12

   

2011

     

2012

 
Video Customers    

22,331

   

21,995

   

(17

)    

(7

)    

(459

)    

(336

)
High-Speed Internet Customers    

18,144

   

19,367

   

336

     

341

     

1,159

     

1,223

 
Voice Customers    

9,342

   

9,955

   

146

     

168

     

732

     

613

 
Combined Video, HSI and Voice Customers

49,817

   

51,317

465

   

503

   

1,432

   

1,500

See (Comcast Reports 4th Quarter and Year-End 2012 Results)

By far Comcast has more triple play subscribers than any of its cable counterparts. Direct TV and Dish Network are primarily video distributors lacking the vertical integration to compete effectively with a Comcast. Let us not make a mistake of believing there is not a clear market advantage. Clearly, having large content reserves, a mega distribution pipeline for broadband and cable TV is a disadvantage for any competitor.

Top 25 Multi-channel Video Distributors September 2012

Rank

MSO

BasicVideoSubscribers

1

Comcast Corporation

22,002,000

2

DirecTV

19,981,000

3

Dish Network Corporation

14,042,000

4

Time Warner Cable, Inc.

12,344,000

5

Cox Communications, Inc.1

4,595,000

6

Verizon Communications, Inc.

4,592,000

7

AT&T, Inc.

4,344,000

 

A Lack of Competition

This multi-channel video distributor list in the U.S. indicates the divide in sheer video customer domination. Although Satellite DBS customers are most closely aligned with Comcast numbers, there is a lack of overlap in various markets. Understandably, consumers are not left with clear choices in every market, nor are those consumers advantaged with a DBS delivered broadband competitor in most markets.

As can be seen in this chart the potential competitors of Comcast via both Verizon and AT&T, have long ago began to discontinue their direct competition efforts due to the inherent costs of building new infrastructure. Although Google Fiber and FreedomPoP have made insignificant in-roads in a few markets, the majority of content, broadband, and video distributors remains non-existent. The true danger here is the scope of a Comcast vertically integrated control of such a large market area. The advantage is clear in that controlling both internal and external costs and distribution metrics represents and unfair market distinction.

Image via CNNMoney

Comcast’s Final NBCU Stake: Vertical Integration Complete

Read the original blog entry...

More Stories By Leonard Grace

Leonard Grace is the founder of Broadband Convergent, an industry leader tech news and analysis for Broadband, Cable, Mobile, Wireless, and Telecom markets providing strategic direction, business trending, sprinkled with lots of opinion. Technology executives must focus on key business indicators with fast, effective and researched analytics to provide leading edge decisions that propel their organizations ahead of the competition. Broadband Convergent researches the latest trends, strategy, and analysis to deliver the results executives and managers depend on to make strategic business decisions. Whether it is (to-market-strategy), the latest competitive advantage, leading edge technology or legislative updates; Broadband Convergent is on top of intelligence gathering and reporting to make industry leaders comfortable with making decisions based on our findings. Our company is a leader in providing fast, efficient, and economical insights into competitive markets, business strategies, market trends and the future outlook of the legislative landscape. Leonard has produced 250+ highly researched articles providing a unique perspective on current Broadband issues including Cable, Mobile, Wireless and Telecom sectors. His insights dig down to find the why’s and why-not’s of industry decisions and how those effect the commerce of broadband.

@ThingsExpo Stories
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.