Comcast 2012 Annual Report Download - page 15

Table of Contents
Cable Communications
Competition for the cable services we offer primarily includes direct broadcast satellite (“DBS”)
providers and phone companies.
These competitors offer features, pricing and packaging for cable services that are comparable to the pricing and services we offer.
Recently, new video services and devices have emerged that offer digital distribution of movies, television shows and other video
programming, some of which charge a nominal or no fee for access. The success of these new services could negatively impact the
demand for our video services, including for our DVR, premium network, On Demand and streaming services. Moreover, wireless
technology, such as 3G and 4G wireless broadband services and Wi-Fi networks, may compete with our video and high-
speed
Internet services, and our voice services are facing increased competition as a result of wireless and Internet-based phone services.
Video Services
We compete with a number of different sources that provide news, sports, information and entertainment programming to
consumers, including:
In recent years, Congress has enacted legislation and the FCC has adopted regulatory policies intended to provide a favorable
operating environment for existing competitors and for potential new competitors to our cable services. The FCC adopted rules
favoring new investment by certain phone companies in networks capable of distributing video programming and rules allocating and
auctioning spectrum for new wireless services that may compete with our video service offerings. See “Legislation and Regulation”
below for additional information.
Direct Broadcast Satellite Providers
According to recent government and industry reports, conventional medium
-power and high-
power satellites provide video
programming to 34 million subscribers in the United States. DBS providers with high-
power satellites typically offer video services
substantially similar to our video services. Two companies, DIRECTV and DISH Network, provide service to substantially all of these
DBS subscribers. DBS providers also have marketing arrangements with certain phone companies in which the DBS provider’
s
video services are sold together with the phone company’s high-speed Internet and phone services.
Phone Companies
Certain phone companies, in particular AT&T, Verizon and CenturyLink, have built and are continuing to build wireline fiber-optic-
based networks that provide video and high-
speed Internet services in substantial portions of our service areas. These and other
phone companies also may market video services from DBS providers in certain areas where they provide only high-
speed Internet
and phone services.
•
DBS providers that transmit satellite signals containing video programming and other information to
receiving dishes located on the customer
’
s premises
•
phone companies that have built and continue to build fiber-optic-
based networks that provide cable
services similar to ours, which now overlap a substantial portion of our service areas
•
other providers that build and operate wireline communications systems in the same communities that we
serve, including those operating as franchised cable operators
•
satellite master antenna television (“SMATV”)
systems that generally serve MDUs, office complexes and
residential developments
•
online services and devices that offer digital distribution of movies, television shows and other video
programming
Comcast 2012 Annual Report on Form 10-K
12