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Satellite TV Still in the Picture

By Steve Birenberg

About this article:
Over the past year, I've written many commentaries about the competition between the major cable and telco companies, including AT&T , Comcast , Time Warner Cable and Verizon . I've been bullish on all four stocks due to the likely resiliency of their businesses in a weak economic environment, their strong balance sheets and cash flow, and the lack of aggressive price competition, even as subscriber growth has slowed. Among this group, I like AT&T the best right now, which, along with Verizon, has the added benefit of a hefty dividend yield. One industry that is intimately involved in the competition between cable and telco is direct broadcast satellite. DirecTV and Dish Network have competed aggressively against cable TV companies for years and have consistently won significant market share. Over the past decade, the satellite companies mostly have been allies of the telcos, bundling...

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