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Analysts Factor in Spectrum Mobile's Pricing and Lack of iPhone in New Subs Prediction

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Spectrum Mobile entered the smartphone market just a few days ago. During its launch, the Charter Communications MVNO unveiled its service plan options available to customers.

Prior to its entry into the smartphone market, analysts have made assumptions on how Spectrum Mobile, together with Comcast's Xfinity Mobile, could steal half of the wireless customer additions in the next two years. But it looks like this may not be the case for Spectrum Mobile after all.

Analysts at New Street Research recently wrote a note to investors clarifying an assumption it had previously made with Spectrum Mobile. The Wall Street firm previously assumed that Charter would be able to add subscriptions of 310k in 2018 and 1,620k in 2019. These numbers were based from the performance of Xfinity Mobile at the time of its launch.

Clarifying this, the analysts revealed that these numbers may not be the same for Spectrum Mobile. The analysts point to a "higher metered pricing and the lack of iPhone availability" as the reasoning for its new expectations. With Spectrum's recently announced pricing, the analysts believe that it could have a net add of around 60k in 2018 and 100k in 2019.

Spectrum Mobile's newly announced services have a strong resemblance to the service offered by Xfinity Mobile. This is to be expected since both cable companies inked a mobile partnership earlier this year. Both operate under Verizon's network.

Despite their similarities, however, there are some things that make each MVNO unique. One of those differences is the fact that Spectrum Mobile does not offer the iPhone. With the iPhone controlling about half of the smartphone market in the country, it is safe to say that it plays a big impact to the decision making process of customers. In addition to not offering iPhones, Spectrum Mobile has a slightly more expensive price tag compared with Xfinity Mobile; particularly for customers who decide to purchase data per GB.

The New Street analysts insist that the pricing announcement does not affect their thesis. They continue to believe wireless is a big opportunity for Charter.

Could it hold the same fate for the nation's fourth-largest cable company, Altice, with its plans to launch a wireless service under Sprint's network?



Source: FierceWireless

9 comments:

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  1. Xfinity Mobile SIMs are portable to other compatible phones, and I expect Spectrum SIMs to be as well. It’s worth a try; the LG only costs $7.50/month. My sister is considering this for her iPhone.
    Calls and sms to U.K. cost 5c, and Spectrum works in the U.K. for 10c/minute, sms or MB.

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  2. Spectrum Mobile? Uh... NO!

    ReplyDelete
  3. So the higher price AND lack of debt repayment plans has dropped expectations for '18 and '19 down to 20% and 7%, respectively.

    Still, I agree that higher pricing is a smaller factor than the lack of iPhone subsidization.

    In a fair market where all phones are sold at full retail, Apple doesn't stand a ghost of a chance.

    If consumers actually have to pay in full for an iPhone, they'll either flock to the next guy who'll cover their tab or, if there weren't any left and the industry "cut them off", they just wouldn't be buying iPhones anymore.

    It just goes to show how trash tier Apple's pricing is when loan sharking is what makes or breaks a carrier nowadays.

    RIP Spectrum and Altice, the latter of whom will be DOA until T-mobile and Sprint merge and deploy their unified 5G network.

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  4. My personal opinion, and I might be wrong, is that they won't go over 150K subscribers, at most. They don't have anything competitive in their pricing or phones.

    ReplyDelete
    Replies
    1. "They don't have anything competitive in their pricing.."
      Spectrum plan pricing is a close second to Xfinity, the best pricing on Verizon. If you don't agree, put up.
      Bring your own Verizon LTE phone, swap in the active SIM and resell the LG.

      Delete
    2. "Bring your own Verizon LTE phone, swap in the active SIM"

      unless it's an iPhone. Or any other phone: https://www.prepaidphonenews.com/2018/06/spectrum-mobile-launches-no-iphones-no.html

      Delete
    3. Once the Spectrum SIM is active you can BYO iPhone yourself. Just insert the SIM.

      Delete
  5. For $200, people who tell us things we already know.

    Analysts?

    The correct answer is "who are analysts?"

    ReplyDelete
    Replies
    1. Analysts are a meme.

      They don't actually exist.

      Delete
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