Friedman Billings Ramsey analyst Brian Coyne sees major system upgrades, and cable tech fortunes, spurred by a New York bankruptcy judge's decision Tuesday to allow Comcast and Time Warner to divvy up Adelphia's almost 5 million basic subs.
The FCC has pledged to move on its decision on the sale of Aelphia by the July 31 deadline. It will almost certainly approve the deal, though FCC Chairman Kevin Martin could favor putting some conditions on the merger.
Coyne notes that Comcast alone plans to spend $150 million to upgrade the Adelphia systems and Time Warner potentially more since it is getting more systems out of the deal.
He says cable equipment companies C-COR, CommScope, and Arris are the ones most likely to get a bottom-line boost from the ramped up capital spending.