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The Cable Industry Should Rebrand Itself the Broadband Industry

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Despite constant worry about the state of the video business, the cable industry investment story is increasingly focused on broadband.

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Not that long ago, a worry existed that wireline broadband would be displaced by wireless broadband. This remains a long run risk, but consumers and businesses continue to demand more and more from the Internet such that the capacity and speed of wireless networks cannot keep up with the remarkable advances of mobile devices and applications. Wireline networks remain well ahead in the speed and reliability game. The news is even better for cable investors as cable networks remain well ahead of telco networks except in the geographically limited markets where Verizon (VZ) offers FiOS.

Keep an eye on over-the-top trends, cord cutting, programming expenses, and seemingly ever growing affiliate fee and retransmission fee battles. Just don't lose sight of the bigger picture in cable: Resilient albeit slow growth, high free cash flow being returned to shareholders, and the best high speed network in the land.

Comcast is a net long position in the Entermedia Funds. Entermedia is a long/short equity hedge fund focused on media, entertainment, communications, and related technologies. Steve is co-portfolio manager of Entermedia, owns a stake in the funds' investment management company, and has personal monies invested in the Funds.

This column was previously published by SNL Kagan on www.snl.com.
No positions in stocks mentioned.
Entermedia is a long/short equity hedge fund focused on media, communic= ations, and related technologies. Steve Birenberg is co-portfolio manager o= f Entermedia, owns a stake in the Funds' investment management compan= y, and has personal monies invested in the Funds. CBS and Discovery Communi= cations are widely held by Northlake Capital Management, LLC, including in = Steve Birenberg's personal accounts. Steve is sole proprietor of Nort= hlake, a long only registered investment advisor.

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