This is going to be the weakest quarter of the year for the company.
The phone companies have the advantage of wireless today, but they have to build video and that's going to be very expensive. In the near term, the cable industry is far enough ahead of the competition.
As a company they look to continue at this pace of cash flow growth and should be able to exceed its guidance for the year.
That is a good transaction for the company to get out of a low-growth business.
Investors have had low expectations for NTL and the company was able to meet these expectations for the first time in a while. Talking about the dividend and returning cash to shareholders was new and it's appropriate for a company with strong free cash flow.
I believe that it is too early to introduce regulation on key issues such as a al carte packaging [for cable TV] and on 'Net neutrality,' as the market is still in its early stages.
This is an overall strong quarter.
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