Charter Earmarks $5.5B On Internet Speed Upgrade: Report - Charter Communications (NASDAQ:CHTR)

Leading U.S. cable TV provider Charter Communications, Inc (NASDAQ:CHTR) looks to spend $5.5 billion on its network to introduce higher-speed broadband connections.
The overhaul will likely cost about $100 per home passed and will be over by the end of 2024, CEO Chris Winfrey said at an investor event, Bloomberg reports.
Cable, phone, and satellite companies contested for $100 billion in federal funds to expand broadband service to poorer and more rural parts of the country.
Also Read: Wireless Carriers T-Mobile, Verizon, AT&T, And Broadband-Internet Providers Comcast, Charter Compete For Customers
Charter and Comcast Corp (NASDAQ:CMCSA) replaced their coaxial wires with DOCSIS 4.0 technology that uses amplifiers to allow existing cable systems to offer multigigabit speeds.
In November, Comcast shared plans to spend $200 per home passed to upgrade its systems using amplifiers.
That number compared to about $1,000 per home for installing new fiber optic cable lines.
Charter reported third-quarter FY22 revenue growth of 3.1% year-on-year to $13.55 billion, missing the consensus of $13.68 billion.
Free cash flow totaled $1.5 billion, down by 39.1% Y/Y, primarily due to the capex associated with Charter's rural construction initiative. The company held $480 million in cash and equivalents.
Comcast reported a third-quarter FY22 revenue decline of 1.5% year-on-year to $29.85 billion, beating the consensus of $29.71 billion.
Comcast generated $3.4 billion in free cash flow and held $5.7 billion in cash and equivalents.
Price Action: CHTR shares traded lower by 5.90% at $369.50 in the premarket on the last check Wednesday.
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