Bundled Services Remain Popular as Broadband and Video Penetration Rise
Broadband and video penetration of voice connections has been on the rise for the last few years, and 2010 was no exception. On average, broadband penetration reached 40.4% of voice connections during 4Q10, up from 32.4% in 4Q09. At the high end, Shenandoah Telecom (Nasdaq:SHEN) reported broadband penetration of 142.4% at December 31, 2010, while Ntelos (Nasdaq:NTLS) reported only 19.5%.
Similarly, video penetration reached 28.5% during 4Q10, on average, up from only 19.3% during 4Q09. Shenandoah Telecom (Nasdaq:SHEN), which closed on its acquisition of JetBroadband’s cable operations on July 31, 2010, reported video penetration of 224.1% during 4Q10! The company’s video subscribers have long outnumbered its voice connections. There are a still a handful of ILECs that do not offer video services, including Alaska Communications (Nasdaq:ALSK), FairPoint Communications (Nasdaq:FRP), Hawaiian Telcom and Telephone & Data Systems (NYSE:TDS).