Home - , , - Analyst Believes Altice's Wireless Service Will Be Profitable Despite Affordable Price

Analyst Believes Altice's Wireless Service Will Be Profitable Despite Affordable Price

Just a few days ago, it was reported that Altice's mobile service could cost less than its competitors. A new report shows that although the service will be cheap, it will be profitable for the company.

The report comes from Alex Besen, the Besen Group's founder and CEO. Besen's consulting firm focuses on MVNOs. The analyst expects Altice will have a better wholesale pricing from Sprint since it is an infrastructure-based MVNO. This means it will be using the radio access network (RAN) of Sprint alone.

Unlike its other cable counterparts, Altice will be the one to provide voice messaging, billing, customer care, SIM, and even negotiate roaming partnerships.

Altice's competitors, Charter and Comcast, are making use of a reseller model for its MVNO service under Verizon's network. Essentially, this means that they have less control over the experience of the user. This also means they have to pay a higher price to use the network.

By having better wholesale pricing, Altice will be able to enjoy a higher profit margin. This is because it will no longer have to rely on Sprint for its infrastructure needs.

A better wholesale pricing also allows Altice to offer more affordable options for its customers. The Wall Street Journal has reported that Altice could be charging between $20 to $30 per month for the service. Comparing with the $45 per month price tag on wireless service offered by Xfinity Mobile and Spectrum Mobile, it is definitely more appealing to customers.

According to Besen, the low monthly rate that Altice could charge its customers still gives it room to earn a decent profit. The one area that Altice should be worried about is limited territory. Sprint has certain regions in the country wherein coverage gaps are frequently experienced.

Source: Fierce Wireless 

Tags: , ,


Comment Page :
  1. Strange idea to compare MVNO service under Verizon's network with potential Sprint MVNO service.

  2. Sprint provides service every day to over 50 million today. Verizon 93.

Comment Page :

All comments must be approved before they will appear. The following types of comments will not be approved: off topic comments, insults or personal attacks directed at other commenters, bigotry, hate, sexism and profanity.