The dynamics of the telecommunications industry are seeing a sea change, with increasing competition from fiber and fixed wireless access threatening cable operators' hitherto monopolistic control of the sector. As companies gear up for earnings, understanding the dynamics between these sets of players becomes critical to investors and stakeholders. This article examines what to watch in the coming earnings releases, highlighting key trends, challenges, and opportunities within the cable, fiber, and FWA markets.

Current Market Landscape

Declining Cable Earnings

Cable companies are in a difficult position as their subscriber bases shrink, putting pressure on revenue. Analysts anticipate that earnings will be thin for the cable industry since the business is losing customers to cheaper alternatives such as FWA and fiber. Valuation multiples for cable companies reside at "near all-time lows," according to Wolfe Research estimates.

This is likely to worsen, especially with the end of the US ACP, potentially worsening churn across all cable subscribers. Dell'Oro Group's Jeff Heynen estimated that cancellations due to ACP may result in heavier churn in the third quarter versus the second.

Growth in Fiber and Fixed Wireless

Companies offering fiber and FWA are on course for an expansion compared to the setbacks that cable will face. Verizon, AT&T, and T-Mobile are expected to post solid gains in their respective fiber and FWA segments. For example, Verizon added 354,000 FWA subscribers in one recent quarter, indicating strong demand for its services. On its part, T-Mobile is also expected to add significant FWA customers, focusing on lower-tier broadband users looking for cost-effective services.

This growth could partly be the result of some factors such as:

• Affordability: Most FWA services are cheaper compared to traditional cable broadband.
• Deployment Speed: Its technology deployment speed allows providers to add new customers faster than usual, particularly in underserved areas.
• Consumer Demand: With the growing demand for reliable internet access, many consumers have taken the route toward fiber and FWA.

Key Earnings Reports to Watch

Major Players

As reporting season gets underway, here are highlights from the most prominent players in the US telecom industry:

Earnings Expectations

• Cable service providers will likely report lower net broadband additions and increased churn due to competitive pressures from fiber and FWA services.
• Fiber providers are expected to demonstrate strong subscriber growth due to aggressive expansion plans and successful market penetration strategies.

Trends Influencing Earnings

Convergence of Services

A second driver of changes in the competitive environment involves convergence between mobile and fixed broadband services. Major telcos are leveraging their mobile networks to offer bundled wireless and broadband services, improving customer retention and positioning companies like Charter Communications and Comcast to compete effectively against traditional big telecom firms.

Impact of Infrastructure Investments

Infrastructure investments play an essential role and urgently need the growth of both the fiber and FWA sectors. The trend is that most companies are working on expanding their footprints while improving their wireless capabilities simultaneously. For example:

Regulatory Environment

The regulatory landscape could also determine the state of earnings outcomes. Recent discussions over rules governing net neutrality could change the future in which broadband ISPs will live and price their services. Companies must navigate these regulations while maintaining pricing and service quality competitiveness.

Future Outlook

Long-Term Growth Potential

Although the present outlook for cable might seem grim, there is a chance for a bounce-back as these operators correct their strategies. This suggests that the cable operators could bridge the gap between lost EBITDA from FWA customers and gained EBITDA from mobile products in each market. Fiber and

FWA operators, on the other hand, are very well positioned regarding continuous growth, backed by the following motives :

• Pools of growing customers due to areas where Fiber and FWA services have penetrated.
• A growing affinity towards higher speeds among customers.
• Leverage of existing investment in infrastructure

Technological Advancements

Advances in technology, too, will significantly shape earnings in the future. As the deployment of 5G continues, fixed wireless is likely to be further improved, enabling providers to offer customers faster speeds and higher reliability, both factors important for winning new customers.

Conclusion

With the relentless competition from fiber and fixed wireless access providers, cable operators are getting ready to confront dismal earnings reports. Stakeholders are on their toes to catch market trends and company strategies. Changes in the US telecommunications industry are both challenging and a boon for shaping its future. Keywords Used: Cable earnings, Fiber earnings, Fixed Wireless Access (FWA), Telecommunications industry, Subscriber growth, Affordable Connectivity Program (ACP), Verizon Communications Inc., AT&T Inc., T-Mobile US Inc., Market trends.