Cable One, Inc. (Cabo): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico das telecomunicações, a Cable One, Inc. (Cabo) fica na encruzilhada de desafios complexos da indústria e oportunidades transformadoras. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa. Desde a navegação de paisagens regulatórias de mudança até a adoção de inovações tecnológicas de ponta, o cabo é que se deve manobrar de maneira adequada através de um ambiente de negócios multifacetado que exige agilidade, previsão e capacidade de resposta estratégica. Mergulhe nessa profunda exploração para descobrir as forças externas críticas que impulsionam um dos fornecedores significativos de telecomunicações da América.

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores Políticos

Os regulamentos de telecomunicações afetam a prestação e expansão de serviços

O Cable One opera dentro de um ambiente regulatório complexo governado pelas leis de telecomunicações federais e estaduais. A Lei de Telecomunicações de 1996 continua a moldar o cenário operacional da empresa.

Órgão regulatório	Impacto regulatório -chave	Requisito de conformidade
Comissão Federal de Comunicações (FCC)	Regulamento de serviço de banda larga	Relatórios de infraestrutura obrigatórios
Comissões de utilidade estatal	Supervisão do território de serviço	Conformidade de contrato de franquia local

Políticas da FCC que influenciam a concorrência do mercado

O cenário competitivo do cabo One é diretamente influenciado pelas estruturas regulatórias da FCC.

• Regulamentos de implantação de banda larga
• Políticas de alocação de espectro
• Regras de concorrência do provedor de serviços de internet

Regras de neutralidade da rede potencial modelo de negócios impacto

Mudanças potenciais nos regulamentos de neutralidade da rede podem alterar significativamente as estratégias de prestação de serviços do Cable One.

Mudança regulatória potencial	Impacto financeiro estimado
Reimplementação estrita de neutralidade da rede	Custos de conformidade anuais potenciais de US $ 12 a 15 milhões
Flexibilidade reduzida de gerenciamento de rede	Redução estimada de 3-5% da margem de receita

Acordos de franquia do governo estadual e local

Os territórios de serviço do Cable One são definidos por meio de acordos de franquia locais complexos.

• Acordos atuais de franquia ativa: 87 territórios distintos
• Duração média de contrato de franquia: 10-15 anos
• Taxa de franquia típica: 5% das receitas brutas

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores Econômicos

Os gastos que flutuam o consumidor afetam as taxas de assinatura e a adoção de serviços

O Cable One registrou uma receita total de US $ 1,44 bilhão em 2022, com serviços residenciais gerando US $ 1,07 bilhão. As tendências de gastos com consumidores influenciam diretamente as taxas de assinatura, com assinantes de banda larga na Internet atingindo 1,1 milhão no quarto trimestre 2022.

Métrica financeira	2022 Valor	Mudança de ano a ano
Receita total	US $ 1,44 bilhão	+7.3%
Receita de serviços residenciais	US $ 1,07 bilhão	+5.9%
Assinantes de banda larga	1,1 milhão	+3.2%

Desafios econômicos em andamento e retenção de clientes

A receita mensal média do Cable One por cliente residencial foi de US $ 119,30 em 2022, refletindo estratégias de preços em meio a incertezas econômicas.

Métrica de retenção de clientes	2022 Valor
Receita mensal média por cliente residencial	$119.30
Taxa de rotatividade de clientes	4.2%

Crescente inflação e custos operacionais

As despesas operacionais da Cable One em 2022 totalizaram US $ 1,06 bilhão, com os custos de tecnologia e custos de rede representando partes significativas de despesas operacionais.

Categoria de custo operacional	2022 Despesas	Porcentagem de Opex Total
Despesas operacionais totais	US $ 1,06 bilhão	100%
Custos de tecnologia e rede	US $ 357 milhões	33.7%
Despesas de atendimento ao cliente	US $ 214 milhões	20.2%

Demanda da Internet de banda larga e trabalho remoto

O segmento da Internet de banda larga de Cable One sofreu um crescimento de 5,7% do assinante em 2022, impulsionado pelo aumento dos requisitos de trabalho remoto.

Métrica da Internet de banda larga	2022 Valor	Taxa de crescimento
Assinantes de Internet de banda larga	1,1 milhão	+5.7%
Receita de banda larga	US $ 632 milhões	+8.4%

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores sociais

O aumento da tendência de corte de cordões muda as preferências do consumidor para serviços de streaming

De acordo com o Leichtman Research Group, a partir do terceiro trimestre de 2023, 82% das famílias dos EUA têm uma assinatura de streaming de vídeo, enquanto as assinaturas tradicionais de TV paga diminuíram para 62%. O cabo um sofreu uma queda de 7,2% nos assinantes de vídeo em 2022, refletindo essa tendência nacional.

Ano	Taxa de assinatura de streaming	Taxa de assinatura de TV paga
2022	78%	65%
2023	82%	62%

Mudanças demográficas nos mercados rurais e suburbanos afetam o cabo de base de um dos clientes.

Estatística da população rural: O Bureau do Censo dos EUA registrou 46,1 milhões de residentes rurais em 2022, representando 14% da população total. O cabo um serve 21 estados, principalmente em regiões rurais e suburbanas.

Segmento de mercado	População (2022)	CABO UM Cobertura
Mercados rurais	46,1 milhões	65% da área de serviço
Mercados suburbanos	132,4 milhões	35% da área de serviço

Crescente demanda por Internet de alta velocidade e conectividade digital

O Pew Research Center informou que 93% dos americanos usam a Internet de banda larga em 2023. Os assinantes de banda larga do Cable One aumentaram 4,3% em 2022, atingindo 1,1 milhão de clientes residenciais.

Ano	Assinantes de banda larga	Crescimento de assinantes
2021	1,05 milhão	3.8%
2022	1,1 milhão	4.3%

Mudando os padrões de consumo de trabalho e entretenimento conduzem as necessidades de banda larga

Estatísticas de trabalho remoto do Bureau of Labor Statistics: 27,5% dos funcionários trabalhavam híbridos ou totalmente remotos em 2023. Essa tendência afeta diretamente a demanda de banda larga nos mercados residenciais.

Modelo de trabalho	Porcentagem de força de trabalho (2023)	Impacto de banda larga
Totalmente remoto	14.2%	Alto requisito de largura de banda
Híbrido	13.3%	Requisito moderado de largura de banda

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em infraestrutura de rede de fibra óptica e atualizações de tecnologia

O Cable One investiu US $ 171,7 milhões em despesas de capital em 2022, com uma parcela significativa dedicada às melhorias na infraestrutura de rede.

Ano	Investimento de infraestrutura de rede	Cobertura de rede de fibras
2022	US $ 171,7 milhões	65% das áreas de serviço
2023	US $ 185,3 milhões	72% das áreas de serviço

Expansão dos serviços de Internet de Gigabit para atender aos requisitos crescentes de largura de banda

O Cable One oferece velocidades da Internet de até 1 Gbps em 94% de seus territórios de serviço.

Nível de velocidade da Internet	Preço médio mensal	Penetração de assinantes
100 Mbps	$49.99	38%
500 Mbps	$69.99	32%
1 Gbps	$89.99	22%

Implementação de medidas avançadas de segurança cibernética para proteger os dados do cliente

O Cable One alocou US $ 12,5 milhões à infraestrutura de segurança cibernética em 2022, representando 1,8% do total de gastos com tecnologia.

Explorando tecnologias emergentes como 5G e plataformas avançadas de streaming

O orçamento de P&D de tecnologia da Cable One para tecnologias emergentes foi de US $ 8,3 milhões em 2022, com foco na potencial integração sem fio 5G e em soluções avançadas de streaming.

Área de foco em tecnologia	Investimento em P&D	Linha do tempo de implementação projetada
Integração 5G	US $ 4,2 milhões	2024-2025
Plataformas avançadas de streaming	US $ 4,1 milhões	2024

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores Legais

Conformidade com regulamentos de telecomunicações e leis de proteção ao consumidor

A Cable One, Inc. relatou despesas totais de conformidade regulatória de US $ 12,3 milhões em 2023, representando 1,7% de suas despesas operacionais totais. A Companhia adere aos regulamentos da Federal Communications Commission (FCC) em 21 estados.

Métrica de conformidade regulatória	2023 dados
Despesas totais de conformidade	US $ 12,3 milhões
Estados de operação	21
Porcentagem de custo de conformidade	1.7%

Potenciais considerações antitruste no mercado de telecomunicações

O índice de concentração de mercado do Cable One em suas áreas de serviço primário é de 38,6%, que permanece abaixo do limiar antitruste do Departamento de Justiça de 50%.

Métrica antitruste	Valor
Taxa de concentração de mercado	38.6%
Limiar antitruste do Departamento de Justiça	50%

Proteção de propriedade intelectual para inovações tecnológicas

O Cable One detém 17 patentes de tecnologia ativa a partir de 2023, com um investimento de US $ 4,2 milhões em pesquisa e desenvolvimento.

Métrica de propriedade intelectual	2023 dados
Patentes de tecnologia ativa	17
Investimento em P&D	US $ 4,2 milhões

Navegando requisitos complexos de licenciamento e alocação de espectro

O Cable One mantém 63 licenças de telecomunicações ativas em suas regiões operacionais, com custos anuais de conformidade de licenciamento de US $ 2,7 milhões.

Métrica de licenciamento	2023 dados
Licenças de telecomunicações ativas	63
Custos anuais de conformidade de licenciamento	US $ 2,7 milhões

Cable One, Inc. (Cabo) - Análise de Pestle: Fatores Ambientais

Iniciativas de eficiência energética em data centers e infraestrutura de rede

As métricas de consumo de energia do Data Center de Cable One a partir de 2024:

Métrica	Valor
Consumo anual de energia do data center	42,6 milhões de kWh
Eficácia do uso de energia (PUE)	1.45
Melhoria da eficiência energética	17,3% de redução desde 2020

Reduzindo a pegada de carbono por meio de implantação de tecnologia sustentável

Estratégias e métricas de redução de carbono:

Métrica de redução de carbono	2024 dados
Emissões totais de carbono	38.200 toneladas métricas
Investimentos de compensação de carbono	US $ 1,2 milhão
Compras de energia renovável	22% do consumo total de energia

Programas eletrônicos de gerenciamento e reciclagem de resíduos

Estatísticas de gerenciamento de lixo eletrônico:

Métrica de lixo eletrônico	2024 Performance
Total de lixo eletrônico reciclado	127,5 toneladas métricas
Taxa de reciclagem	89.4%
Investimento do programa de reciclagem	$675,000

Implementando a tecnologia verde em operações e infraestrutura da empresa

Detalhes da implementação da tecnologia verde:

Iniciativa de Tecnologia Verde	2024 Investimento
Equipamento de rede com eficiência energética	US $ 3,4 milhões
Tecnologias de construção inteligentes	US $ 1,8 milhão
Conversão de frota de veículos elétricos	US $ 2,1 milhões

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.