Q & A – Market Analysis
Dated: July 2, 2020
Q: Does the internet subscription rate remain the same over 30 years and should we expect increases?
A: Historically, rates have not gone up for Internet service. And we don’t model rate increases unless its absolutely necessary. Most providers are looking to maintain current rates by adding functionality for the same price point or as was discussed, providers are adding in “white glove” type services to augment revenue. (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)
Q: How volatile is the market for internet?
A: Pricing generally remains consistent, unless you’re in a highly competitive area. Lucas will likely see rates drop further as Lucas finalizes its decision to move forward or not – this is something the competitors will likely try to drive. (Reference: Courtney Violette and Scott Moehnke, Magellan Advisors)