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Comcast Gets More Bullish On VoIP

Prudential Equity Group said it has "gained renewed confidence" in voice over Internet protocol (VoIP) being a new incremental growth driver for Comcast (nasdaq: CMCSA - news - people ) and sees marketing as a better way to stimulate growth than price cuts. The firm said Comcast is more bullish on VoIP, citing comments from the company and potential backhaul deals with Sprint (nyse: FON - news - people ) and/or Level 3 Communications (nasdaq: LVLT - news - people ). Prudential said Comcast missed the research firm's estimate for operating income before depreciation and amortization by about 3% in the third quarter, but the miss was narrower excluding one-time events such as hurricanes. The firm said Comcast's data and digital subscriber additions in the quarter were "well ahead of expectations" while basic subscriber additions were in line. Prudential noted that advanced video products were taking hold, with Comcast adding about 10,000 new digital video recorder (DVR) customers and 15,000 high-definition customers per week; the company began offering DVR service to Motorola (nyse: MOT - news - people ) markets this month, bringing DVR service to 100% of the footprint. Prudential rates Comcast at "overweight" with a $39 target price.

Source: Forbes


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