Cablevision Quells Bells' DSL Dream

Cablevision (CVC Quote) on Tuesday reported strong results for advanced services in the first quarter, and weak but improving numbers for basic cable service.

The company's results, along with company comments on a conference call with analysts, once again call into question the threat Cablevision and other cable TV operators face from Verizon (VZ Quote) and other telcos cutting prices as part of a bid to gain share in the high-speed Internet service business.

Verizon and SBC Communications (SBC Quote) have gained attention in recent weeks for plans to increase their share of the broadband market with the help of aggressive pricing.

But on Tuesday, Cablevision's cable and communications president, Tom Rutledge, said, "We've seen no effect yet in terms of any increased competition."

The company's comments and results mirror information earlier this month from Comcast (CMCSA Quote), the nation's largest cable operator, which said reports of broadband competition from DSL were greatly exaggerated.

Furthermore, Cablevision's strong results for advanced services resemble similar first-quarter reports from Charter Communications (CHTR Quote) and Cox Communications (COX Quote).

Shares in Cablevision, which operates systems with 3 million subscribers in the New York City area, fell 71 cents to $21.09 by midday Tuesday.

Superiority Complex

In reporting results for the first quarter ended March 31, Cablevision said it added 184,900 digital video customers, about 50,000 more than it added in the fourth quarter. Analysts had expected little, if any, pickup in the pace for advanced video services.