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Analysts Believe Cable MVNOs Will Get 50% Mobile Phone Adds in Two Years

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With Charter's MVNO, Spectrum Mobile, set to be launched real soon, analysts are already making fresh assumptions on how this new entry will set a standard in the industry. More importantly, analysts believe that it, together with Comcast's Xfinity Mobile, could steal half of the wireless customer additions in the next two years.

The assumption was made by analysts at Morgan Stanley Research and revealed to investors this morning. According to the note, "Wireless executives had been dismissive of cable's foray into wireless, and the economics of the MVNO model in an unlimited world; however, following Comcast's early success, we think the companies, and investors, are more sensitive to this risk."

To put it into figures, the Wall Street analysts believe that there will be a total of around 2.2 million mobile phone adds in 2020 for cable MVNOs. This figure is almost half of the entire net customer additions expected for the industry.

Although this is only an assumption made by analysts, it was dovetailed by another research presented by New Street Research. This study perceives that Xfinity Mobile will increase its number of customers this year and will only grow by 2 million customers per year.

This is further backed by another survey collected by Barclays wherein 40% of respondents answered they would dump their existing wireless provider in lieu of a wireless service that their current cable supplier offered.

With these figures, it's an interesting time for the top cable operators in the country. Just a few months ago, Comcast reported that it had a total of 196,000 new subscribers sign up for service with its Xfinity MVNO brand during the first quarter alone. This brought its total customer base to 577,000. And with a June 30 launch date for Spectrum Mobile, things are about to get really exciting for the MVNO market.

Both MVNOs will be operating under Verizon's network.




Source: Fierce Wireless

14 comments:

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  1. Assume
    to make an ass out of u and me.

    ReplyDelete
  2. Welcome to the future, where one largely unaccountable company protected by an army of lawyers and lobbyists will control all your methods of communication and media consumption.

    Except for snail mail, which Amazon will rule over once they gobble up the soon to be privatized post office.

    Just another day in the corporatocratic totalitarian techno-dystopia we now live under.

    ReplyDelete
  3. My phone isn't Verizon compatible, so I won't be one of the 50%. The AT&T based MVNOs should be OK for this reason.

    ReplyDelete
    Replies
    1. People in Xfinity areas need to do some simple math. The $150 rebate card pays for a new phone if you need one, or gives a big discount on any replacement phone. Especially after you resell your current one. Then virtually everyone will enjoy the lowest cost service on the best network.
      So tired of winning?

      Delete
  4. Cable operators are the kings of "loss leader" cross-promotions, introductory pricing scams, and hidden fees.

    They're going to make Carlos Slim look like a saint.

    ReplyDelete
    Replies
    1. Agree . Cable companies have terrible customer service.

      Delete
    2. XFINITY Mobile has their own customer service. It's US-based, and very good.

      Delete
    3. @Anon1135, they're good probably because they're small right now. Let them reach Comcast-level subscribership (or even Tracfone level) and you'll change your tune.

      Delete
  5. Waiting to see what intro deals Charter Spectrum Mobile offers.

    ReplyDelete
  6. Charter and Xfinity will not kill off:

    - the smaller MVNOs that sell from the mom and pop strip mall stores selling to ethnic communities, who prefer dealing with the corner store guy than with a big cable company

    - the Carlos Slim / America Movil empire refill cards and SIM kits available at 7-Eleven, Walgreens, CVS, Target, and Walmart, for casual users who pick up refills when they want

    - the niche MVNOs that appeal to the absolute bargain hunter

    - the carriers' own prepaid brands that have stores everywhere.

    Will Xfinity and Spectrum steal from postpaid? Yes. Will they pick up a slowly increasing number of steals from other MVNOs/prepaids? Sure

    But is this the end of the world for everyone else? No.

    ReplyDelete
    Replies
    1. We will get Xfinity Mobile. $300 back, $4/month for two lines, $12/GB to share. It's the best deal for us, and it's still the best if we dump Xfinity home service and pay an extra $20/month.

      Delete
  7. Verizon network is about to get very full!

    ReplyDelete
  8. Charter Spectrum Mobile launched - www.spectrummobile.com .

    Nothing there for me. Verizon Prepaid and Verzon MVNOs better suit my needs.

    ReplyDelete
    Replies
    1. Charter Mobile basic plan NOT the same as Xfinity Mobile (reported earlier).
      - Data costs $14/GB, vs. $12
      Charter only sells three Samsung phone series now.

      Delete
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