The research analysts of Wall Street at Morgan Stanley predicted that the cable players like Charter, Comcast and Altice are expected to collectively sign up 1.6M new mobile customers next year.
The firm gave a written statement to the investors this week saying that “Comcast represents the majority of the cable market (90% in 2018 and 66% in 2019) though we expect Charter and Altice to increase their share moving forward. We’d note that cable companies could get a boost if Sprint/T-Mobile agreed to new MVNO terms and them as part of any merger approval conditions”
Having launched the Xfinity Mobile MVNO service last year, Comcast is leading the industry. The company reported 228,000 Xfinity net line additions, reaching up to a total of 1 million lines of mobile service.
According to a Seeking Alpha transcript of his remarks. “We feel very comfortable in what we’re doing and the response and what brings customers to T-Mobile, but there are clearly two additional players in the wireless space now in Comcast and Charter, and I’m sure others to follow.”
As for Charter, the company entered the mobile game just this summer with its Spectrum Mobile MVNO. The analysts predict that the company will net customer additions of 488,000 by next year. In October, Charter reported the addition of 21,000 service lines in its MVNO during its first quarter of selling the offer.
While Altice, that is about to launch its MVNO next year, is expected to gain net addition of 64,000 customers by next year and 136,000 by 2020.
The T-Mobile CEO, John Legere said that “It makes for a very competitive environment”. In addition, he stated that “We feel very comfortable in what we’re doing and the response and what brings customers to T-Mobile, but there are clearly two additional players in the wireless space now in Comcast and Charter, and I’m sure others to follow.”
Considering Legere’s attitude these comments are noteworthy towards the threats from cable. Earlier this year, he described the Xfinity Mobile of Comcast to be “very irrelevant” and the mobile plans of Charter to be “irrelevant squared”.
In April, the T-Mobile signed a merger agreement with the Sprint. It is based on the argument in favor of the new cable companies coming in the market which would increase the overall market competition.
However, the Altice, Charter, and Comcast are working clearly to take away the customers from companies like T-Mobile and Verizon. In the latest Spectrum Mobile ads, the Charter company is seen to directly aim at these operators.