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In this photo illustration, the Cox Communications logo appears on a smartphone screen.
Raphael Henrique | SOPA Images | Lightrocket | Getty Images
Cox Communications is ringing in the new year as it officially launches its mobile business.
Privately held cable and Internet operator Cox Mobile plans to announce the national launch Thursday at the Consumer Electronics Show in Las Vegas.
Cox followed his peers. Comcast, Charter Communications And Altis AmericaIn recent years they have started offering mobile services to their customers and are adding customers at a fast clip.
Like Comcast and Charter services, Cox Mobile will only be available to new and existing customers. Cox has 7 million customers in 18 states, and has quietly begun offering mobile service in select markets in recent months.
Cable operators began offering mobile services with the goal of giving customers another reason not to ditch their broadband plans. This is more true than ever as the profitability of these business units is on the horizon.
Cable companies are losing television customers who opt for streaming-only services, though that has accelerated recently. However, broadband subscriber growth has stalled in recent quarters as the housing market slows as competition increases and customer activity slows.
“I think they’re now using wireless again to bolster their broadband business. There’s not a lot of profitability yet, but that’s not a concern, the concern is catching up with broadband customers,” said UBS analyst John Hodulik. .
How the competition is created
Although the wireless companies like it AT&T, Verizon And T Mobile Holding the largest number of wireless customers in the US, Comcast’s and Charter’s mobile businesses have grown rapidly thanks to affordable and flexible plans.
Charter Spectrum Mobile offers a $30 unlimited data plan or $14 per month per gigabyte of internet used in the plan. Similarly, Comcast Xfinity Mobile starts at $30 for unlimited data or $15 per gigabyte.
Cheaper options stem from their ability to rely heavily on home broadband Wi-Fi and hotspots for data usage. As mobile customers abandon Wi-Fi and rely on the network, they turn to cable companies’ partner operators — Verizon for Comcast and Charter — still giving the wireless company a piece of the pie.
Cox Mobile offers similar unlimited plans for $45 per month or $15 per gig. Cox is reportedly using Verizon as a network partner.
T-Mobile founded the company in 2010. When the lawsuit was filed in 2021, a wrench was thrown in Cox’s plans to launch its mobile business, saying Cox was obligated to partner with them. Earlier this year, a Delaware court judge reportedly ruled in Cox’s favor.
Charter in 2010 Comcast said it had 4.7 million wireless customers as of Sept. 30, while Comcast said it had reached 5 million.
“We started with this rethinking of mobile because we know customers spend a lot of time on Wi-Fi,” said Danny Bowman, chief mobile officer at Charter Mobile, adding that Spectrum Mobile customers spend 85% of their time on Wi-Fi. F.
“We’ve made great progress simplifying the mobile package. Charter and Comcast allow customers to bring their own devices, an option Cox doesn’t yet offer. Currently, customers must purchase Samsung phones through Cox for service,” Bowman added.
‘We have to do this.’
Smaller cable operators are also seeing value in offering mobile plans to customers.
The National Content and Technology Cooperative, or NCCC, which is made up of more than 700 cable and broadband providers, has been discussing creating mobile coverage for its members.
“It’s become such a focal point. It’s something that everyone thinks is a must-have,” NCTC President Lou Borrelli said of mobile offerings. “I see it’s called the new pack. I won’t argue.”
Because NCTC’s membership includes smaller providers — many in rural areas — the cooperative began discussions with wireless operators last year on behalf of the entire base.
Borelli said the NCCC is in no rush to offer mobile until it sees how Charter and Comcast do on net additions in 2021. “I remember getting a call from some of our board members saying, ‘You know, maybe we should look at this,'” he said.
NCTC negotiations should be completed this year, Borelli said. Some have already added mobile. Based in Colorado Wow! Internet, cable and phone It launched a mobile plan in July in partnership with Rich Mobile.
Borelli has shown that in certain markets, consumer research companies have no choice in this matter. “Members have told us they don’t care what the outcome is, we have to do this.”
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
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