Cable One, Inc. (CABO): Analyse de Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique des télécommunications, Cable One, Inc. (CABO) se tient au carrefour des défis complexes de l'industrie et des opportunités transformatrices. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise. De la navigation sur les paysages réglementaires changeants à l'adoption des innovations technologiques de pointe, le câble, il faut manœuvrer habilement à travers un environnement commercial à multiples facettes qui exige l'agilité, la prévoyance et la réactivité stratégique. Plongez dans cette exploration de plongée profonde pour découvrir les forces extérieures critiques à l'origine de l'un des principaux fournisseurs de télécommunications américains.

Cable One, Inc. (CABO) - Analyse du pilon: facteurs politiques

Règlement sur les télécommunications impact sur la prestation et l'expansion des services

Cable One opère dans un environnement réglementaire complexe régi par les lois fédérales et des télécommunications fédérales. La loi de 1996 sur les télécommunications continue de façonner le paysage opérationnel de l'entreprise.

Corps réglementaire	Impact réglementaire clé	Exigence de conformité
Commission fédérale des communications (FCC)	Règlement sur les services à large bande	Rapports d'infrastructure obligatoires
Commissions des services publics d'État	Support du territoire de service	Conformité des accords de franchise locale

Les politiques de la FCC influençant la concurrence du marché

Le paysage concurrentiel du câble un est directement influencé par les cadres réglementaires de la FCC.

• Règlements de déploiement à large bande
• Politiques d'allocation du spectre
• Règles de concours de fournisseur de services Internet

Règles de neutralité du net Impact du modèle commercial potentiel

Les changements potentiels dans les réglementations sur la neutralité du NET pourraient considérablement modifier les stratégies de prestation de services de câble.

Changement réglementaire potentiel	Impact financier estimé
Réimplémentation stricte sur la neutralité du net	Coûts de conformité annuelle de 12 à 15 millions de dollars potentiels
Flexibilité réduite de la gestion du réseau	Réduction estimée de la marge de revenus de 3 à 5%

Accords de franchise du gouvernement d'État et local

Les territoires de service de câble sont définis grâce à des accords de franchise locaux complexes.

• Accords de franchise actifs actuels: 87 Territoires distincts
• Contrat de franchise moyen Durée: 10-15 ans
• Frais de franchise typiques: 5% des revenus bruts

Cable One, Inc. (CABO) - Analyse du pilon: facteurs économiques

La fluctuation des dépenses des consommateurs a un impact sur les taux d'abonnement et l'adoption des services

Le câble un a déclaré un chiffre d'affaires total de 1,44 milliard de dollars en 2022, les services résidentiels générant 1,07 milliard de dollars. Les tendances des dépenses de consommation influencent directement les taux d'abonnement, les abonnés Internet à large bande atteignant 1,1 million au quatrième trimestre 2022.

Métrique financière	Valeur 2022	Changement d'une année à l'autre
Revenus totaux	1,44 milliard de dollars	+7.3%
Revenus de services résidentiels	1,07 milliard de dollars	+5.9%
Abonnés à large bande	1,1 million	+3.2%

Défis économiques en cours et rétention de la clientèle

Les revenus mensuels moyens de Cable One par client résidentiel étaient de 119,30 $ en 2022, reflétant les stratégies de tarification au milieu des incertitudes économiques.

Métrique de la fidélisation de la clientèle	Valeur 2022
Revenus mensuels moyens par client résidentiel	$119.30
Taux de désabonnement du client	4.2%

Augmentation de l'inflation et des coûts opérationnels

Les dépenses d'exploitation du câble en 2022 ont totalisé 1,06 milliard de dollars, les coûts de technologie et de réseau représentant des parties importantes des dépenses opérationnelles.

Catégorie de coûts opérationnels	2022 dépenses	Pourcentage de l'Opex total
Dépenses d'exploitation totales	1,06 milliard de dollars	100%
Coûts de technologie et de réseau	357 millions de dollars	33.7%
Dépenses du service client	214 millions de dollars	20.2%

Demande Internet à large bande et travail à distance

Le segment Internet à large bande de câble a connu une croissance des abonnés de 5,7% en 2022, tirée par une augmentation des exigences de travail à distance.

Métrique Internet à large bande	Valeur 2022	Taux de croissance
Abonnés Internet à large bande	1,1 million	+5.7%
Revenus à large bande	632 millions de dollars	+8.4%

Cable One, Inc. (CABO) - Analyse du pilon: facteurs sociaux

L'augmentation de la tendance de coupe des cordons déplace les préférences des consommateurs vers les services de streaming

Selon Leichtman Research Group, au cours du troisième trimestre 2023, 82% des ménages américains ont un abonnement en streaming vidéo, tandis que les abonnements traditionnels à la télévision payante ont baissé à 62%. Le câble un a connu une diminution de 7,2% des abonnés vidéo en 2022, reflétant cette tendance nationale.

Année	Taux d'abonnement en streaming	Taux d'abonnement à télévision payante
2022	78%	65%
2023	82%	62%

Les changements démographiques dans les marchés ruraux et suburbains ont un impact sur le câble de la clientèle de base

Statistiques de la population rurale: U.S. Census Bureau a déclaré 46,1 millions de résidents ruraux en 2022, ce qui représente 14% de la population totale. Le câble un dessert 21 États, principalement dans les régions rurales et suburbaines.

Segment de marché	Population (2022)	Câble une couverture
Marchés ruraux	46,1 millions	65% de la zone de service
Marchés suburbains	132,4 millions	35% de la zone de service

Demande croissante de connectivité Internet à haut débit et numérique

Le Pew Research Center a rapporté que 93% des Américains utilisaient Internet à large bande en 2023. Les abonnés à large bande de câbles ont augmenté de 4,3% en 2022, atteignant 1,1 million de clients résidentiels.

Année	Abonnés à large bande	Croissance
2021	1,05 million	3.8%
2022	1,1 million	4.3%

Changer les modèles de consommation de travail et de divertissement stimule les besoins à large bande

Statistiques de travail à distance du Bureau of Labor Statistics: 27,5% des employés ont travaillé hybride ou entièrement éloigné en 2023. Cette tendance affecte directement la demande à large bande sur les marchés résidentiels.

Modèle de travail	Pourcentage de la main-d'œuvre (2023)	Impact à large bande
Entièrement éloigné	14.2%	Exigence de bande passante élevée
Hybride	13.3%	Exigence de bande passante modérée

Cable One, Inc. (CABO) - Analyse du pilon: facteurs technologiques

Investissement continu dans l'infrastructure de réseau en fibre optique et les mises à niveau de la technologie

Cable One a investi 171,7 millions de dollars dans les dépenses en capital en 2022, avec une partie importante dédiée aux améliorations des infrastructures du réseau.

Année	Investissement en infrastructure de réseau	Couverture du réseau de fibres
2022	171,7 millions de dollars	65% des zones de service
2023	185,3 millions de dollars	72% des zones de service

Extension des services Internet Gigabit pour répondre aux exigences croissantes de la bande passante

Cable One offre des vitesses Internet allant jusqu'à 1 Gbps dans 94% de ses territoires de service.

Niveau de vitesse Internet	Prix ​​mensuel moyen	Pénétration des abonnés
100 Mbps	$49.99	38%
500 Mbps	$69.99	32%
1 Gbps	$89.99	22%

Mise en œuvre de mesures de cybersécurité avancées pour protéger les données des clients

Cable One a alloué 12,5 millions de dollars aux infrastructures de cybersécurité en 2022, ce qui représente 1,8% des dépenses technologiques totales.

Exploration des technologies émergentes comme la 5G et les plateformes de streaming avancées

Le budget de la R&D de la technologie du câble pour les technologies émergents était de 8,3 millions de dollars en 2022, en se concentrant sur l'intégration sans fil 5G potentielle et les solutions de streaming avancées.

Domaine de mise au point technologique	Investissement en R&D	Calance de mise en œuvre prévue
Intégration 5G	4,2 millions de dollars	2024-2025
Plates-formes de streaming avancées	4,1 millions de dollars	2024

Cable One, Inc. (CABO) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations des télécommunications et aux lois sur la protection des consommateurs

Cable One, Inc. a déclaré des frais de conformité réglementaire totaux de 12,3 millions de dollars en 2023, ce qui représente 1,7% de ses dépenses d'exploitation totales. La société adhère aux réglementations de la Federal Communications Commission (FCC) dans 21 États.

Métrique de la conformité réglementaire	2023 données
Dépenses de conformité totale	12,3 millions de dollars
États d'opération	21
Pourcentage de coût de conformité	1.7%

Considérations potentielles antitrust sur le marché des télécommunications

Le ratio de concentration du marché du câble dans ses principaux domaines de service est de 38,6%, ce qui reste inférieur au seuil antitrust du ministère de la Justice de 50%.

Métrique antitrust	Valeur
Ratio de concentration du marché	38.6%
Seuil antitrust du DOJ	50%

Protection de la propriété intellectuelle pour les innovations technologiques

Cable One détient 17 brevets technologiques actifs en 2023, avec un investissement de 4,2 millions de dollars en recherche et développement.

Métrique de la propriété intellectuelle	2023 données
Brevets technologiques actifs	17
Investissement en R&D	4,2 millions de dollars

Navigation des exigences complexes de licence et d'allocation de spectre

Cable One maintient 63 licences de télécommunications actives dans ses régions opérationnelles, avec des coûts annuels de conformité des licences de 2,7 millions de dollars.

Métrique de licence	2023 données
Licences de télécommunications actives	63
Coûts de conformité annuels sur l'octroi de licences	2,7 millions de dollars

Cable One, Inc. (CABO) - Analyse du pilon: facteurs environnementaux

Initiatives d'efficacité énergétique dans les centres de données et les infrastructures de réseau

Cormez les mesures de consommation d'énergie du centre de données à partir de 2024:

Métrique	Valeur
Consommation d'énergie annuelle du centre de données	42,6 millions de kWh
Efficacité de l'utilisation du pouvoir (PUE)	1.45
Amélioration de l'efficacité énergétique	Réduction de 17,3% depuis 2020

Réduire l'empreinte carbone grâce à un déploiement de technologies durables

Stratégies de réduction du carbone et paramètres:

Métrique de réduction du carbone	2024 données
Émissions totales de carbone	38 200 tonnes métriques CO2E
Investissements de compensation de carbone	1,2 million de dollars
Achat d'énergie renouvelable	22% de la consommation d'énergie totale

Programmes de gestion électronique des déchets et de recyclage

Statistiques de gestion des déchets électroniques:

Métrique de déchets électroniques	2024 performance
Total des déchets électroniques recyclés	127,5 tonnes métriques
Taux de recyclage	89.4%
Investissement du programme de recyclage	$675,000

Mise en œuvre de la technologie verte dans les opérations et les infrastructures de l'entreprise

Détails de mise en œuvre de la technologie verte:

Green Technology Initiative	2024 Investissement
Équipement de réseau économe en énergie	3,4 millions de dollars
Technologies de construction intelligentes	1,8 million de dollars
Conversion de la flotte de véhicules électriques	2,1 millions de dollars

Cable One, Inc. (CABO) - PESTLE Analysis: Social factors

The digital divide remains a key focus, especially in CABO's predominantly rural and suburban service areas, driving demand for faster, more reliable service.

The core of Cable One's business model is serving smaller, less dense markets, and this is where the US digital divide (the gap in internet access between different demographics and geographic areas) is most acute. While the FCC reported in May 2025 that roughly 95% of US homes have access to terrestrial broadband, the remaining 5% are heavily concentrated in the remote and rural areas that Cable One targets.

The gap is stark: 22.3% of Americans in rural areas still lack coverage from terrestrial broadband, a massive disparity compared to only 1.5% in urban areas. This structural deficit creates both a social obligation and a market opportunity for Cable One. To address the affordability component of the divide-which keeps approximately 24 million Americans offline-the company has rolled out value-focused products like the 'Internet Lift' offering, which is designed for eligible, value-conscious customers.

Here's the quick math on the divide's impact on CABO's market:

• Rural Access Gap: 22.3% of rural Americans lack terrestrial broadband.
• Affordability Barrier: 43% of low-income households struggle with internet costs.
• CABO's Response: New products like 'Internet Lift' target this affordability gap.

Increased societal reliance on high-bandwidth applications (4K streaming, cloud gaming, remote work) is shifting customer expectations toward symmetrical gigabit speeds.

The days of simple web browsing are long gone. The average US broadband household is now a multi-device, high-consumption entity, and this is driving a fundamental shift in what customers expect from their service. Data from Q2 2025 shows the average household downstream speed reached 568.3 Mbps, with upstream speeds at 35.4 Mbps. This is far beyond the old 100/20 Mbps benchmark. Customers are defintely moving to higher tiers.

The market is already voting with its wallet, moving toward faster plans that can handle simultaneous, bandwidth-intensive activities. The percentage of US households subscribing to 500-900 Mbps broadband plans jumped from 18% in 2024 to 24% in 2025. For a company like Cable One, which primarily uses a Hybrid Fiber-Coaxial (HFC) network, this social trend puts immense pressure on capital expenditures (CapEx) for network upgrades to keep pace with the fiber-to-the-home (FTTH) competition.

Customer churn risk rises if the perceived value of service lags behind fiber competitors offering superior speed and reliability.

The most immediate and quantifiable social risk for Cable One is customer churn (the rate at which customers discontinue their service). In Q3 2025, the company reported a year-over-year decline of 5.1% in residential data subscribers, a direct consequence of 'higher than expected churn' driven by competitive pressures, particularly from fiber overbuilders.

The perceived value of Cable One's service is being eroded by competitors offering symmetrical speeds (equal upload and download rates) that HFC networks struggle to match without significant, costly upgrades. The company's residential data revenues decreased by $2.8 million in Q3 2025, despite a 3.2% increase in ARPU (Average Revenue Per User), showing that higher prices are not enough to offset the loss of customers to superior technology. This is a clear signal that the social demand for better service quality is trumping price for a significant segment of the market.

Metric (Q3 2025)	Value	Social Factor Impact
Residential Data Subscriber Change (YoY)	(5.1%) decrease	Quantifies churn risk due to competitive fiber and FWA pressure.
Residential Data Revenue	$227.6 million	Represents the core revenue base directly exposed to social demand shifts.
Residential Data ARPU Change (YoY)	3.2% increase	Shows price increases partially offsetting subscriber losses, but not stopping churn.
Q3 2025 Capital Expenditures	$71.8 million	Investment level to upgrade network and address social demand for speed.

The aging population in some of CABO's markets demands simpler, more reliable service packages without complex bundling.

Cable One's footprint includes many markets with an older demographic, which presents a unique set of social demands. Older adults (65 and over) have lower home broadband adoption rates, at 61% in 2023, compared to 82% for the 31-50 age group. This group often prioritizes reliability and simplicity over multi-gigabit speeds and complex bundles.

The trend toward de-emphasizing video services, which saw residential video revenues decrease by $8.7 million (or 16.2%) in Q3 2025, aligns with this demographic shift. This customer segment wants a reliable, easy-to-manage internet and voice package, not a complicated, expensive bundle of services they don't use. This is a crucial retention point: keep it simple and make it work, all the time.

Cable One, Inc. (CABO) - PESTLE Analysis: Technological factors

The Rapid Expansion of Pure-Play Fiber Networks

The single most significant technological threat to Cable One, Inc.'s (CABO) core business is the aggressive build-out of pure-play Fiber-to-the-Home (FTTH) networks by competitors. Fiber offers superior symmetrical speeds-meaning upload and download speeds are equal-that legacy hybrid fiber-coaxial (HFC) networks simply cannot match without massive, costly upgrades.

This is not a future threat; it is a present reality. Market data from 2025 indicates that HFC networks have seen a 33% decline in markets where fiber is actively available. Competitors like AT&T are pushing to pass 30 million homes and businesses with fiber by the end of 2025, directly targeting markets where Cable One operates, such as the Gulf Coast, MS. For Cable One, this means fiber competition is expected to cover approximately 35% of its total footprint this year, up from about 20% just a few years ago. This is a defintely a headwind, leading to a 3.2% decline in residential data subscribers year-over-year in Q2 2025.

CABO's Active FTTH Deployment and CapEx Focus

Cable One is not standing still; it is actively deploying its own FTTH network to defend its turf and capture high-value enterprise customers. The company's capital expenditure (CapEx) is shifting to reflect this necessity, focusing on upgrading infrastructure to meet the symmetrical speed threat. This is a critical investment to secure long-term revenue growth, particularly in the high-margin business data segment, which saw a 1.2% year-over-year revenue increase in Q2 2025.

Here's the quick math on their network investment in the first half of 2025:

CapEx Category (Q1 & Q2 2025)	Q1 2025 Amount (in thousands)	Q2 2025 Amount (in thousands)	H1 2025 Total (in thousands)
Line Extensions (New Fiber/Coaxial Builds)	$14,521	$17,366	$31,887
Upgrade/Rebuild (Existing Network Betterments)	$3,399	$4,261	$7,660
Total CapEx (All Categories)	$71,130	$68,374	$139,504

The combined H1 2025 spending of over $39.5 million on Line Extensions and Upgrade/Rebuild capital clearly shows the financial commitment to network modernization. This includes direct FTTH builds and investments in the Clearwave fiber joint venture, which is a major part of their expansion strategy.

The Evolution of DOCSIS 4.0 Technology

The Data Over Cable Service Interface Specification (DOCSIS) 4.0 is the lifeline for Cable One's existing hybrid fiber-coaxial (HFC) network. This technology offers a crucial bridge, allowing the company to deliver multi-gigabit speeds without the immediate, massive expense of a full fiber overbuild across its entire footprint.

DOCSIS 4.0 is engineered to support up to 10 Gbps downstream and up to 6 Gbps upstream, which is a significant leap toward matching fiber's performance. Industry-wide, the commitment to this technology is strong, with nearly half (48%) of cable companies planning to activate DOCSIS 4.0 in their networks by the end of 2025. This allows Cable One to:

• Deliver competitive symmetrical speeds using existing coaxial cable.
• Delay the most expensive parts of a full fiber deployment.
• Focus CapEx on the most competitively threatened markets first.

What this estimate hides is the time-to-market; while major peers like Charter Communications are plotting their 2025 commercial deployment, Cable One must execute quickly to stay relevant.

5G-Based Fixed Wireless Access (FWA)

In Cable One's smaller, secondary markets, 5G-based Fixed Wireless Access (FWA) from providers like T-Mobile and Verizon is a viable, lower-cost alternative that is eroding the company's subscriber base. FWA is often referred to by the CEO as 'cellphone internet,' but it is a potent competitive force, particularly for value-conscious customers.

The immediate impact is clear: Cable One's customer losses are largely attributed to FWA. In response, the company launched a prepaid broadband offering in 2025 to directly undercut FWA's low-cost model. This strategy is seeing some uptake, with 30% of new prepaid subscribers choosing the 500 Mbps or faster tiers, signaling a demand for higher speed even at the lower end of the market. Still, the low-cost nature of FWA continues to put pressure on residential data Average Revenue Per User (ARPU).

Cable One, Inc. (CABO) - PESTLE Analysis: Legal factors

The legal landscape for Cable One, Inc. (CABO) in 2025 is defined by a complex, fragmented set of state-level privacy mandates and a deregulatory win on net neutrality at the federal level, coupled with new, streamlined compliance requirements for government-funded broadband expansion.

Compliance with net neutrality rules

The immediate risk of federal net neutrality rules being reinstated has been largely mitigated in early 2025, a favorable outcome for CABO. The U.S. Court of Appeals for the Sixth Circuit ruled in January 2025 that the Federal Communications Commission (FCC) lacked the statutory authority to reclassify broadband internet access service (BIAS) as a Title II telecommunications service. This decision effectively dismantles the FCC's push to impose a utility-style regulatory framework on ISPs.

The key takeaway is that CABO is currently not federally restricted from managing its network traffic or offering tiered service pricing. Still, the company must contend with a patchwork of state-level net neutrality laws, such as those in California and Washington, which remain unaffected by the federal court ruling.

The lack of a federal standard means CABO retains operational flexibility, but it also means compliance is fragmented, forcing the company to manage different rules across its operating states.

Data privacy and security regulations

Data privacy and security regulations present a significant and rising compliance cost for CABO, driven by the proliferation of state laws like the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA). The compliance complexity is increasing as new laws in states like Delaware, Nebraska, and Maryland took effect in 2025, each with unique thresholds and penalties.

The financial exposure is substantial: as of January 1, 2025, the CCPA administrative fines are capped at up to $2,663 per violation, or up to $7,988 per intentional violation or those involving minors. Furthermore, consumers can claim statutory damages ranging from $107 to $799 per person per incident for data breaches. For a large ISP with millions of customer records, a single systemic failure could trigger multi-million dollar liabilities.

The cost of non-compliance is visible in recent enforcement actions. For instance, a CCPA settlement in California reached $1.55 million in July 2025. While not an ISP, this illustrates the financial commitment required for compliance, which includes costly updates to IT infrastructure, annual security audits, and new consent management platforms.

• CCPA/CPRA Fine Risk (2025): Up to $7,988 per violation for intentional non-compliance.
• Average Data Breach Cost: The average cost of a data breach across industries is around $4.4 million.
• New State Laws in 2025: Delaware, Iowa, Nebraska, and New Hampshire all have new privacy laws effective in early 2025, adding to the compliance burden.

Pole attachment disputes and right-of-way litigation

Pole attachment disputes and right-of-way (ROW) litigation remain a major bottleneck for network expansion, directly impacting CABO's ability to deploy fiber and Hybrid Fiber-Coaxial (HFC) upgrades efficiently. The FCC has attempted to expedite the process by establishing a 'Rapid Broadband Assessment Team' (RBAT) to coordinate dispute resolution.

However, the core conflict-who pays for pole replacement due to pre-existing conditions-is still being litigated at the state level. In a similar case involving another major cable company, the cost of 'make-ready' work was reported to be approximately $8 million in one service area, with $5 million of that spent to correct pre-existing code violations that the utility owner sought to pass on to the attacher. This is a significant, non-recurring capital expenditure risk that can substantially delay construction timelines and inflate capital costs beyond the Q2 2025 capital expenditures of $68.4 million reported by Cable One.

Here's the quick math: Delays in obtaining pole access can push out a 1,000-mile fiber build by 6-12 months, directly delaying revenue from new subscribers.

Adherence to IIJA/BEAD program requirements and reporting standards

Adherence to the Infrastructure Investment and Jobs Act (IIJA) and the Broadband Equity, Access, and Deployment (BEAD) program is a critical legal and operational factor, as the program allocates $42.45 billion for broadband expansion. A significant policy shift in June 2025, the BEAD Restructuring Policy Notice, has streamlined some compliance burdens but introduced new competitive pressures.

The new rules eliminated the previous 'fiber-first' preference, allowing CABO's HFC technology to compete equally with fiber-to-the-premises, fixed wireless, and LEO satellite, provided they meet the minimum performance standard of 100 Mbps download / 20 Mbps upload speeds and low latency (≤100 ms).

The compliance focus has shifted to a 'Benefit of the Bargain' selection criteria, prioritizing the lowest qualifying cost-per-location. This means CABO's proposals must be highly cost-competitive to secure a portion of the state-allocated funds. States were required to submit their revised Final Proposals by September 4, 2025, incorporating these new, streamlined terms.

Key BEAD Compliance Shifts (June 2025 Policy Notice):

Requirement Area	Previous Mandate	New 2025 Requirement
Technology Preference	'Fiber-First' Bias	Technology Neutrality (HFC, Fiber, Fixed Wireless compete equally)
Low-Cost Service Option (LCSO)	NTIA-set pricing model	Subgrantees define their own LCSO (must meet 100/20 Mbps)
Labor/Social Requirements	Mandates on Fair Labor Practices, DEI reporting	Eliminated; Replaced with self-certification of federal labor laws
Selection Criteria	Value-based, with fiber preference	Lowest qualifying cost-per-location ('Benefit of the Bargain')

This streamlining reduces administrative reporting costs but intensifies the price competition for the $42.45 billion in available funding.

Cable One, Inc. (CABO) - PESTLE Analysis: Environmental factors

Increasing stakeholder and investor pressure for Environmental, Social, and Governance (ESG) reporting requires transparent data on energy consumption and carbon footprint.

You are defintely seeing institutional investors, especially large asset managers, demand more than just boilerplate ESG disclosures. Cable One, Inc. (CABO) is responding to this pressure by providing more detail on its operational impact, even noting that its direct use of fossil fuels is not considered material to its financial results.

Still, the company is taking concrete steps to reduce its carbon footprint, primarily through fleet and paper reduction initiatives. In 2024, Cable One began retiring just over 200 vehicles from its fleet of approximately 1,600 vehicles, replacing them with newer, more fuel-efficient models. Plus, their long-running paperless billing initiative is a major carbon mitigation effort.

• Fleet Reduction: Over 200 vehicles retired in 2024 for fuel efficiency.
• Carbon Offset: Partnership with the Arbor Day Foundation has resulted in planting 140,000 trees to date.
• Lifetime Carbon Sequestration: These planted trees are estimated to avoid and sequester 417,801 metric tons of carbon over their lifetime.

Network infrastructure, particularly data centers and headends, consumes significant power; CABO must invest in energy-efficient hardware and cooling solutions.

The core of a broadband business is its network, and that network-the data centers, headends, and hubs-requires continuous, high-volume power. While Cable One is actively investing in innovative technology to increase the energy efficiency of customer premise equipment (CPE), the power consumption from the infrastructure itself remains a material cost and environmental factor.

The move toward fiber deep and DOCSIS 4.0 upgrades means new, more efficient hardware, but it also means a higher density of powered equipment in the field. To mitigate the environmental impact and operating expense (OpEx) of its fleet, the company has installed 10 charging stations for electric and hybrid-electric vehicles at its corporate office in Phoenix, Arizona.

The disposal and recycling of electronic waste (e-waste) from customer premise equipment (CPE) like modems and set-top boxes must meet stricter environmental standards.

Cable One owns much of the CPE in its network, which means the company bears the responsibility and cost of end-of-life management for modems and set-top boxes. This is a critical operational and compliance area, especially with the global shift toward Extended Producer Responsibility (EPR) frameworks and new international controls on waste exports.

In 2024, Cable One's reuse and recycling efforts resulted in the ethical management of more than 5,200 devices, reducing solid waste by more than four tons. What's changing in 2025 is the regulatory landscape. Starting January 1, 2025, the Basel Convention amendments control the international shipment of both hazardous and non-hazardous e-waste, requiring prior written consent from importing countries. Since Cable One resells equipment to network operators, often in developing countries, this new control adds a layer of complexity and compliance risk to their supply chain, even though the U.S. is not a party to the Convention.

Climate change risks, such as increased frequency of severe weather, threaten network uptime and necessitate higher CapEx for network hardening and redundancy.

The increasing frequency and intensity of severe weather events-from wildfires in the West to hurricanes and floods in the South and Midwest-pose a tangible threat to Cable One's aerial network infrastructure across its 24-state footprint. This climate risk directly translates into a higher Capital Expenditure (CapEx) requirement for network hardening (e.g., replacing wooden poles, burying lines, and adding backup power).

While a specific 'hardening' line item is not disclosed, the company's significant CapEx budget for network maintenance and upgrades reflects this ongoing need. For context, the broader utility sector spent an estimated $30 billion on adaptation, hardening, and resilience in 2024 alone. Cable One's total CapEx for the first half of 2025 shows the scale of its infrastructure investment.

Here's the quick math on their near-term CapEx:

Period	Capital Expenditures (in millions USD)	Note
Q1 2025	$71.1 million	Represents an 8.0% increase from Q1 2024 CapEx of $65.9 million.
Q2 2025	$68.4 million
H1 2025 Total	$139.5 million	Q1 2025 ($71.1M) + Q2 2025 ($68.4M)
Full Year 2024 Total	$286.4 million	For comparison.

The CapEx jump in Q1 2025 over the previous year suggests an acceleration in spending, which includes the necessary network upgrades and 'betterments' that lead to a more resilient system. You simply have to pay for resilience now, or pay more for outages later.

Finance: Review the Q3 2025 CapEx report to isolate any specific commentary on storm-related network investments.