As soon as tomorrow, Congress may vote to open up a brand new market for cable and telecom providers that’s currently worth $60 billion in revenue. The vote is on rolling back rules imposed by the Obama administration’s FCC.
“The Senate passed something on it last week. The House is scheduled to vote on these rules tomorrow. We believe that President Trump will sign this, if it comes to him, by the end of the week,” says Hedgeye Telecom & Media Policy analyst Paul Glenchur.
Once these rules are off the books, companies like Comcast (CMCSA), Charter Communications (CHTR), Verizon (VZ) and AT&T (T) will be able to earn digital advertising dollars. This realm has been dominated by the likes of Facebook (FB) and Google (GOOG), which have upwards of 60% of the market, Glenchur said on The Macro Show this morning.
That may change. And fast. According to Glenchur:
“It’s a $60 billion plus market, so there’s a lot of revenue growth still to come for broadband providers,” Glenchur says. “There’s a good growth trajectory if they can just be freed of the regulatory problems that they’ve been dealing with over the last year.”
We’re watching this one closely.