Rewiring the Future

Addressing Industry Challenges and Driving Transformational Growth: How MSOs and FTTH Providers Can Turn the Tide and Thrive

In an era of unprecedented change, the U.S. Cable and Fiber-to-the-Premises (FTTX) industry finds itself at a crossroads. The once undisputed gatekeepers of home entertainment and broadband connectivity, Multiple System Operators (MSOs), and cable providers face urgent and growing threats to their longstanding business models. Cord cutting, regional fiber disruptors, and emerging 5G offerings have combined to erode consumer loyalty and market share. The fragmentation of content and the loss of marquee live sports only add to the industry’s woes.

But a path forward requires immediate and creative strategies, bold investments, and a willingness to reimagine what a cable or FTTX provider can be.

Below is a deep dive into the industry's challenges, followed by transformational recommendations to help MSOs, cable companies, and large FTTX operators retain their relevance. These recommendations can pave the way for a return to organic growth, instilling hope and optimism in the industry.

The Challenges

Rampant Cord Cutting

For years, cable providers experienced virtual monopolies in their regions, selling large channel packages to subscribers with limited alternatives. However, the rise of standalone streaming services (Netflix, Disney+, HBO Max, etc.) has eroded the linear TV model, leading to record-breaking subscriber churn rates. The cost of traditional pay-TV bundles continues to climb, pushing even more consumers to cut the cord in favor of a more flexible, à la carte content experience.

Emergence of Smaller, Regional FTTX Players

The cost of deploying fiber has decreased steadily, leading to an influx of local or regional fiber providers aiming for cable’s “last mile” advantage. These disruptors often offer competitive pricing, faster internet speeds, and superior customer service, winning customers who might otherwise be locked into legacy coax-based services. As they scale, these FTTX players threaten to erode market share that once belonged exclusively to large cable MSOs.

MNO 5G and Fixed Wireless Access (FWA)

Mobile Network Operators (MNOs) are leveraging 5G to deliver Fixed Wireless Access broadband in areas historically served by cable or DSL. With 5G coverage continually expanding, this emerging technology provides an increasingly viable alternative to wired connections, especially for suburban and rural customers seeking plug-and-play broadband solutions without the overhead or commitment of traditional services.

Fragmentation of Content Distribution

Content is more distributed than ever, with studios, networks, and digital-native companies vying for consumer attention across multiple platforms. The days of a single cable subscription providing comprehensive entertainment are gone. Each additional app or OTT subscription further dilutes cable’s core value proposition of aggregating and curating content for the end consumer.

Loss of Live Sports

Live sports were once the glue holding pay-TV subscriptions together. However, as leagues and teams explore direct-to-consumer models or enter exclusive deals with streaming platforms, cable companies risk losing one of their most reliable revenue drivers. This siphons off viewers and, with them, vital advertising dollars.

Transformational Strategies to Return to Growth

“Back to the Future” Bundling

Embrace the Last Mile Advantage

Despite new competition, cable operators still possess valuable network infrastructure for delivering high-speed broadband. In many regions, a coax/fiber-based connection can achieve speeds and reliability that exceed wireless FWA. Bundling broadband with other services—video, streaming, home security, and mobile—cements the cable operator’s role as a one-stop shop.

One Bill vs. Many Subscriptions

The frustration of juggling multiple streaming subscriptions allows cable companies to revitalize their brand. By aggregating major streaming platforms into a single, simplified bill and user interface, cable providers can recast themselves as the ultimate content concierge, reducing the headaches of account management and password fatigue.

Mobile as the Third Screen

Many MSOs already offer mobile virtual network operator (MVNO) services. Taking mobile seriously as an integrated part of the content ecosystem can unlock new revenue streams and higher ARPU (Average Revenue Per User). With a “three-screen” approach—TV, laptop/tablet, and mobile—operators can deliver a seamless user experience across platforms, including unified advertising impressions and coordinated, multi-device marketing campaigns.

Rev Share & Syndicated Content

Cable companies can negotiate favorable revenue-sharing agreements by forging partnerships with major content creators—especially streamers who own production houses. Examples could include hosting exclusive premieres, localizing content for targeted regions, and developing syndicated deals that keep the content pipeline robust. Streamers gain a broader reach, and cable providers gain an additional revenue stream.

Prioritize High-Bandwidth, Low-Latency Applications

Multiplayer Gaming

Online gaming demands ultra-low latency and high throughput. Cable operators and FTTX providers that can guarantee these performance metrics could carve out a powerful differentiator. Building specialized gaming tiers—or partnering with game publishers—offers a premium upsell to dedicated gamers, complete with marketing hooks like exclusive game bundles, early releases, or eSports event access.

Augmented Reality (AR) and Virtual Reality (VR) Training

AR/VR simulations in aviation, healthcare, and manufacturing industries demand low latency to maintain immersion and prevent motion sickness.

Collaborative training in virtual environments relies on synchronized, high-speed data exchanges among participants.

Interactive Streaming Events and Immersive Content

Live, interactive shows (e.g., sports broadcasts with multi-angle views and interactive fan participation) require low latency to create engaging, real-time experiences. 

Double Down on MDU and Community Aggregation

Lock in Residential Multi-Family Deals

MDUs (Multi-Dwelling Units), HOAs, and other residential community clusters represent lucrative opportunities to secure captive subscriber bases. By negotiating bulk agreements or facilitating community-wide upgrades to fiber, cable providers can ensure steady, long-term revenue streams and protect market share from emerging regional FTTX players.

Community and Campus Partnerships

 HOAs, Municipal Broadband Universities, and extensive business campuses often have unique connectivity needs spanning housing, recreation, classrooms, and research facilities. Proactive deals to install or upgrade community campus-wide networks can lock out competing technologies and position cable MSOs as essential partners.

Beyond Voice, Video, and Data: B2B Service Expansion 

Cable and FTTX providers operate some of the largest fiber networks in the country, a resource that can power advanced services well beyond traditional broadband. Cable operators can diversify revenue sources by evolving into a comprehensive service provider for small and medium businesses (SMBs) and enterprise clients.

Cloud Computing and AI

The explosion of artificial intelligence and data analytics has created a booming demand for edge and cloud computing resources. With well-positioned infrastructure, MSOs can offer managed services that host AI workloads or data analytics in localized nodes, delivering reduced latency and enhanced reliability.

Edge Computing and Networking

As applications like Connected, Autonomous Vehicles, and IIoT proliferate, edge computing will become a mission-critical element of modern infrastructure. Cable providers can deliver the networks, data centers, and local nodes required to ensure millisecond-level latency. Self-driving cars, drone deliveries, and robotaxis need ultra-low latency to process real-time sensor data and communicate with edge computing nodes. High bandwidth is essential to handle the massive data streams generated by vehicle cameras, LiDAR, and other sensors.

Getting Serious About Mobile: Acquire or Launch

If MVNO partnerships are too restrictive, acquiring a mobile network asset—such as EchoStar Mobile Network—can catapult an MSO from a minor mobile player to a serious contender. Vertical integration into mobile creates more room for innovation, control over costs and pricing, and synergy with existing broadband and content offerings. A fully converged network enables unique bundling opportunities (home broadband + mobile + streaming) with significant savings and revenue growth potential.

Leveraging Converged Data for Precision Marketing

One of the most underutilized assets in the cable/MSO environment is the trove of anonymized data generated by broadband, mobile, and video usage. Cable operators can develop predictive models for consumer behavior by aggregating and analyzing these data streams while maintaining strict consumer privacy. This advanced data analytics approach allows operators to:

Microsegmentation of Audiences: Tailor content recommendations, marketing offers, and ad delivery.

Predict Churn: Identify subscribers at risk of canceling and proactively offer incentives to retain them.

Optimize Network Upgrades: Pinpoint geographic and demographic needs, focusing on capital expenses, significantly impacting service quality and profitability.

Implementation Considerations

Technology Upgrades

Cable operators must accelerate the shift to next-generation DOCSIS-based coax to fiber or hybrid solutions to handle increasing bandwidth requirements. This is a CAPEX game.

Investment in modern subscriber management and billing platforms is crucial for seamless bundling and one-bill consolidation.

Strategic Partnerships

Collaborate with streaming companies, sports leagues, content creators, and tech firms to build a robust content portfolio and strengthen brand positioning.

Forge alliances with specialized edge computing, cloud services, and AI technology providers.

Regulatory Navigation

Spectrum licenses for mobile services are complex. Acquisitions or mobile network partnerships require diligent regulatory oversight and a well-crafted compliance strategy.

Bulk agreements for MDUs often involve local regulations and property management deals that require specialized negotiation.

Marketing & Brand Evolution

Marketing efforts must move from selling “cable TV” to showcasing a comprehensive, tech-forward connectivity and content services portfolio.

A new generation of customers—especially Gen Z and millennials—seeks flexibility, transparency, and customization. Convey these values in all brand communications.

Retention and Customer Experience

Implement robust loyalty programs, incentivize long-term contracts, and provide a frictionless user experience across billing, customer support, and product upgrades.

Invest in advanced self-service portals and customer service AI to reduce operational costs and raise satisfaction.

Conclusions

The U.S. Cable and FTTX industry is undergoing a pivotal transformation. Consumer preferences, technological disruptors, and shifting competitive dynamics have forced MSOs and cable operators to confront challenging realities. However, the industry can rebound with decisive action and emerge more potent.

By reinvesting in bundled offerings, leveraging their last-mile infrastructure, and expanding into high-value services—from advanced B2B solutions to converged mobile—cable providers can reestablish themselves as indispensable partners in consumer and enterprise markets. The time for incremental updates is over; what’s needed is a holistic, forward-thinking strategy that capitalizes on existing assets, embraces new opportunities, and recommits to delivering unparalleled value to end users.

With the right moves, U.S. Cable and FTTX companies can save themselves and thrive in the future's connectivity landscape.

~ Clayton W. LiaBraaten