- Altice USA rebrands to Optimum after losing more broadband subs than expected in Q3
- The change makes sense since customers already know the Optimum name
- The operator’s ‘disciplined’ financial turnaround is still a work in progress
After a lackluster third quarter, Altice USA decided a rebrand is in order. Starting tomorrow, November 7, Altice USA will be known as – no surprise – Optimum Communications, matching its internet and mobile brand.
CEO Dennis Mathew noted in the announcement the name change is the latest step in the company’s multi-year plan to modernize its network and streamline operations. “It’s a reflection of who we are and where we are going,” he said.
The rebrand “makes so much sense,” according to Recon Analytics Principal Roger Entner. Customers are already familiar with the Optimum name, so the company is just consolidating its messaging and communications.
“In the world of media fragmentation, companies should also avoid message and naming fragmentation. This is especially true for ‘smaller’ companies like Optimum,” he told Fierce.
Altice’s name change is probably another way to distinguish itself from Altice Group, which owns the European operator Altice France. Altice USA used to be part of Altice Group until it spun off in 2018.
Consolidated Communications undertook a similar change, as it rebranded in September to Fidium – the name of its fiber service.
Altice remains ‘disciplined’ despite Q3 losses
Altice’s turnaround plan kicked off three years ago when Mathew took the helm as CEO. Yet its broadband base continues to dwindle amid rising costs. Analysts have also wondered if Altice will be the next operator up for acquisition.
The company in Q3 lost 58,000 broadband customers, compared to 50,000 losses in Q3 2024. Capital expenditures of $326 million were “substantially higher than expected,” said New Street Research, and Altice also saw “lower revenue across the board” with a total of $2.11 billion, down 5.4% year-over-year.
Far from ideal. But Altice leadership stressed “discipline” is still the name of the game as the operator tries to get back to stability, and execs mentioned the word multiple times throughout the call when talking about finance and operations.
Despite competition from fiber and fixed wireless, “we maintain margin discipline in managing subscriber acquisition costs during this time, prioritizing quality growth and returns over uneconomic volume,” Mathew stated. “Looking ahead in this environment, we intend to maintain this discipline.”
Altice’s fiber footprint is largely concentrated in the New York tri-state area, where it faces stiff competition from Verizon Fios. Now that Verizon is buying Starry, Altice could see further pressure from fixed wireless in urban markets.
That being said, fiber results weren’t too shabby, as Altice gained 40,000 customers in the quarter and now has more than 703,000 fiber subscribers, plus it continues to see traction with its Lightpath long-haul fiber biz. In its Optimum West footprint, Altice keeps making mid-split upgrades to its HFC network and expects to launch 2-gig speeds there later this month.
Could mobile be the key?
Mobile growth, however, is lacking in comparison to Charter and Comcast, which both posted better-than-expected Q3 mobile adds. Altice’s 38,000 wireless net adds “were just shy of consensus estimates,” New Street said, while Mathew noted only 35% of its mobile customers use more than one line.
But he hinted that could soon change – and perhaps ease Altice’s comeback path.
“Specifically, we have a heightened focus on driving multi-line adoption, strengthening broadband convergence, and enhancing pricing and offer competitiveness,” he said. “We expect this evolved mobile go-to-market approach to roll out in late Q4, which we believe could position us for improved performance heading into 2026.”