Tag Archives: cmcsa

Wheeler On FCC Privacy Proposal: This Is About ISPs And Only ISPs

Federal regulators moved forward Thursday with a proposal to require that Internet service providers get customer consent to collect data for targeted advertising  — a policy that ISPs claim would put them at a disadvantage vs. Internet companies such as Alphabet ’s ( GOOGL ) Google or Facebook ( FB ). The Federal Communications Commission, with three Democratic appointees and two Republicans, voted 3-2 along party lines to open a public comment period on the consumer privacy proposal. The agency could formally approve the rules by year-end. Comcast ( CMCSA ), AT&T ( T ) and Verizon Communications ( VZ ) are among ISPs that would be impacted by FCC Chairman Tom Wheeler’s proposal. “To be clear, this is not regulating what we often refer to as the edge — meaning the online applications and services that you access over the Internet, like Twitter and Uber,” said Wheeler in a statement. “It is narrowly focused on the personal information collected by broadband providers . . .  this is about ISPs and only ISPs. “And this proposal does not prohibit ISPs from using and sharing customer data — it simply proposes that the ISP first obtain customers’ express permission before doing so.” The FCC in early 2015 reclassified broadband services as a public utility, using Title II of the Communications Act of 1934.  AT&T, Comcast and industry trade groups are challenging the net neutrality rules in federal court, with a court ruling expected in April. The FCC’s new consumer privacy proposal seeks broadband authority under Section 222 of the Communications Act of 1934. Under the rules, providers would need to tell consumers what information is being collected, how it is being used and when it will be shared. While the Federal Trade Commission has rules to protect consumer privacy, the FCC says more regulation is needed. Commissioner Ajit Pai, a Republican, said Thursday that there is no good reason to single out broadband providers for regulations, while not regulating websites. The plan “favors one set of corporate interests over another,” he said.

Led by Verizon And AT&T, Telecom Tops S&P Sectors; Dividends Rule

With Verizon Communications ( VZ ) stock up nearly 17% and AT&T ( T ) soaring over 14%, the S&P telecommunications services sector is poised to lead the S&P 500’s 10 sectors in Q1 performance. As of afternoon trading in the stock market today , the S&P telecom services sector ranked tops, with utilities the only other sector posting a double-digit gain, for the first three months of 2016. “Absent some blow-away window dressing late in the session, that’s the way” the quarter will end up, S&P analyst Howard Silverblatt told IBD. The S&P telecom services sector is up over 15% in Q1. High dividend-paying Verizon and AT&T are among the best-performing stocks in the S&P 100 this year. Smaller phone companies also have outperformed, with CenturyLink ( CTL ) jumping 26%, Frontier Communications ( FTR ) up 20% and Windstream Holdings ( WIN ) gaining nearly 17%. Among wireless-only service providers, shares of   T-Mobile US ( TMUS ) are down about 2% and  Sprint ( S ) stock is near down 4.5%. Neither T-Mobile nor debt-laden Sprint pay dividends. Though they’re not in the S&P telecom services group, cable TV companies also posted solid returns in Q1. Shares of  Charter Communications ( CHTR )  and Time Warner Cable ( TWC ), which plan to merge, are both up 10% in Q1. Analysts expect the Charter-TWC deal to close in May. Comcast ( CMCSA ) stock is up 8% this year, and shares of  Cablevision Systems ( CVC ) have edged up over 3%. The Q1 laggards have been the financial, health care and consumer discretionary sectors. Craig Moffett, an analyst at MoffettNathanson, says Verizon and AT&T have benefited from global interest rates falling and “risk appetites withering.” “Whether the telco rally has legs will depend on fundamentals and growth and perhaps a change in industry structure,” Moffett said in a research report. Federal regulators, though, have been opposed to wireless consolidation, such as a Sprint and T-Mobile merger. AT&T has also been boosted by its purchase of satellite TV broadcaster DirecTV Group, analysts say. At Barclays, analyst Amir Rozwadowski in a report said that while the “flight to safety trade” isn’t showing signs of dispersing, investors may look at fundamentals more, going forward. IBD’s Telecom Services-Integrated group ranks No. 39 out of 197 industry sectors. AT&T is an IBD Leaderboard stock. Image provided by Shutterstock .

Baidu Video Unit Tops Alibaba, Becomes China’s Mobile Video Leader

Baidu ( BIDU ) video unit iQiyi has vaulted past Alibaba Group ( BABA )-backed Youku/Tudou as the new leader in China’s ultra-competitive online video space, an analyst said Wednesday. Baidu stock was up a fraction in afternoon trading in the stock market today , near 190. Alibaba stock was up 1%, near 79. Shares of China gaming firm  Sohu ( SOHU ) were up a fraction Wednesday afternoon, while  Tencent Holdings ( TCEHY ) was down a fraction. Baidu’s iQiyi “demonstrated strong growth momentum over the second half of 2015, overtaking Youku/Tudou as the leader in the mobile video market in mobile app penetration and mobile usage,” wrote ITG Investment Research analyst Henry Guo in an industry note Wednesday. “Our data suggests that, while iQiyi leads the space, Tencent Video has maintained its solid position, but Youku/Tudou has lost market share. “In contrast, Sohu Video is increasingly becoming a marginal player in the market, due mainly to its conservative content acquisition strategy over the last several quarters.” IQiyi and Baidu video service PPS together have “gained 8.1 percentage points in installation penetration” during the past year, Guo said. He says Youku/Tudou fell by 6.3 percentage points, and Sohu Video fell 3.9 percentage points, to 8.7%. In monthly active users, iQiyi and PPS together have gained 3.6 percentage points over the past 12 months, said Guo, while Tencent, Youku/Tudou and Sohu Video all saw declines. Viewer traffic from search leader Baidu, big spending to produce hit dramas, and iQiyi’s “aggressive content acquisition” strategies all contributed to growth, he said. In early December 2015, iQiyi disclosed that its paying subscribers nearly doubled to 10 million in six months. After recent shareholder approval, Youku/Tudou will become the online video segment of Alibaba and no longer will be listed on the NYSE as of early April. Guo says Youku/Tudou will be helped by Big Data sharing with Alibaba. Guo says that while iQiyi’s revenue doubled in both 2014 and 2015, “rapidly increasing costs of content and bandwidth significantly pressured the company’s profitability.” Tencent Video’s 2015 revenue also doubled, said Guo. Comcast ( CMCSA )-owned Universal Pictures late last year provided Baidu’s online video platform iQiyi with more ammunition in its battle against Alibaba and Tencent for streaming supremacy in China. Expanding an existing agreement, Universal last month signed a multiyear deal with iQiyi, which will handle Universal’s new film releases and library titles. Los Gatos, Calif.-based streaming media company Netflix ( NFLX ) has announced intentions to move into China.