Cable MSOs will use AT&T's (NYSE: T) usage-based broadband pricing model as "air cover" to initiate their own plans in the near future, Sanford Bernstein Senior Analyst Craig Moffett said in a research note.
Moffett predicted that cable operators will introduce pricing plans that include caps for low end packages and overage surcharges with first movers Charter Communications (Nasdaq: CHTR), Cox Communications and Time Warner Cable (NYSE: TWC-WI) while Comcast (Nasdaq: CMCSA) is "the least likely to move in the short term."
AT&T's move, he said, is "good news for all the terrestrial broadband operators."
- see this story
Streaming mad: AT&T sets DSL, U-Verse bandwidth caps
For cable operators, being a dumb pipe may be a smart idea