Charter Communications Inc.

We estimate that Charter faces fiber-based competition capable of delivering fast internet in roughly 30% of its footprint, broadly in line with the U.S. average. While this figure could approach 50% over the next 5-10 years as AT&T and other telecom providers build out more fiber, we believe the opportunities for growth in the remaining nonfiber markets will more than offset the negative effects of incremental competition. In the nonfiber markets, we believe penetration could increase to more than 70% over time whereas we expect Charter to maintain its existing market share in new fiber markets rather than continue to grow and take market share by converting DSL subscribers to cable. However, President Biden has also communicated a goal of

...We view the mix shift toward broadband and away from traditional video as positive. Charter's earnings and cash flow predictability has improved in recent years because broadband is not nearly as competitive as video (wherein Charter faces competition from satellite TV providers as well as a plethora of new online entrants). We believe Charter's broadband competitive advantage over incumbent phone companies will only be magnified in the coming years as consumers demand more bandwidth (which competing copper-based services are ill-equipped to handle). Therefore, we view favorably a larger, more stable pool of earnings in broadband despite higher concentration in a single service....

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