This week MoffettNathanson conference, CEO of Charter Communications the parent company of Spectrum Chris Winfrey stated he is not concerned about competition in convergence wars across mobile providers as his company seamlessly offers both fixed broadband and mobile access. This is a feat no other provider currently offers nor has the ability to start offering dual services any time soon.
This comes as T-Mobile, Verizon, AT&T, and others have started to build out 5G home internet services. Spectrum CEO seems confident that their ability to offer both traditional cable TV home internet and wireless home internet will help them stand up against the new competition.
Chris Winfrey stated, “We have a convergence advantage. Mobile will be an extension of our footprint.” Charter’s Mobile Virtual Network Operator (MVNO), also known as Spectrum Wireless service, added 686,000 new mobile lines in the second quarter of 2023. Its Spectrum One bundle offers users broadband, wireless, and Wi-Fi.
And it’s a footprint that is squashing Charter Communication’s competitors, which has the ability to connect users to a wireline internet and mobile connection continuously at the same location. Along with Comcast, Charter Communications Mobile wireless plans are estimated to be approximately 70 percent over the cost of the product. Making these lines very profitable for cable TV companies.
Winfrey went on to add, “Our competitors are going to continue to have to sell them as a silo, as a separate product. So by definition, we have a structural advantage across our entire market. We can compete with a seamless connectivity product. We can also compete with standalone products as well, and we’ll continue to do that because there will be a portion of the market and they still want to do that.”
For example, Verizon recently announced the new myPlan bundle deals customizable to each subscriber but doesn’t include fixed wireless access, at least not yet. Charter Communications has been sharing its Wi-Fi networks with Verizon to divert traffic from its network.
The advantage other carriers have over Charter Communications at the moment is an established national footprint. Other companies, such as Verizon, T-Mobile, and AT&T, have branched out their services to include fixed wireless access though their 5G home internet offerings, competing with cable’s broadband capabilities.