In this photo illustration, the Cox Communications logo is displayed on a smartphone screen.
Rafael Henrique Image SOPA | Lightrocket | Getty Images
Cox Communications rings in the new year with the official launch of its mobile business.
The privately held cable and internet operator plans to announce the national launch of Cox Mobile on Saturday at the Consumer Electronics Show in Las Vegas.
Cox has trailed no peers like that Comcast, Charter Communication and Altice USAwhich started offering mobile services to its customers in recent years and has been increasing its customers rapidly.
Like Comcast and Charter services, Cox Mobile will only be available to new and existing customers. Cox has 7 million subscribers in 18 countries, and has quietly started offering mobile services in certain markets in recent months.
Cable operators are starting to offer mobile service with the goal of giving customers another reason not to abandon their broadband plans. This is more true than ever, as the profits for these business units are visible.
Cable companies have been losing pay-TV customers who opt for streaming-only services, although that’s fast. However, broadband subscriber growth has stalled in recent quarters as competition has intensified and subscriber moving activity has stalled as the housing market has slowed.
“I’m currently using wireless as a way to strengthen the broadband business. There has not been much profit, but it is not a concern. The concern continues for broadband customers,” said John Hodulik, analyst at UBS.
How the competition shapes up
Although wireless companies like AT&T, Verizon and T-Mobile capturing the majority of wireless subscribers in the US, Comcast and Charter’s mobile business has grown rapidly thanks to cheaper and more flexible plans.
Charter’s Spectrum Mobile offers a $30 unlimited data plan, or $14 per gigabyte of internet used on a monthly plan. Additionally, Comcast’s Xfinity Mobile starts at $30 for unlimited data, or $15 per gigabyte.
The cheaper option comes from its 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’ll be sent to cable company partner carriers — Verizon to Comcast and Charter — still giving wireless companies a piece of the pie.
Cox Mobile will offer a similar, unlimited plan for $45 per month or $15 per gig. Cox is also reportedly using Verizon as a network partner, which the company is expected to confirm at Thursday’s event.
A key was thrown in Cox’s plans to start a mobile business when T-Mobile sued the company in 2021, saying Cox should pursue a partnership with them. Earlier this year, a Delaware court judge reportedly ruled in Cox’s favor.
Charter said it had 4.7 million wireless customers on September 30, while Comcast said it reached 5 million.
“We started with a redesigned mobile service because we knew our customers would spend a lot of time on Wi-Fi,” said Danny Bowman, chief mobile officer at Charter, adding that Spectrum Mobile customers spend 85% of their time on Wi-Fi. Fi.
“By keeping our mobile packages simple, we’ve had exponential growth,” added Bowman. Charter and Comcast also allow customers to bring their own devices, an option Cox doesn’t yet offer. Currently, customers must purchase a Samsung phone through Cox for service.
‘We have to do this’
Smaller cable operators also see the value in offering mobile plans to customers.
The National Content and Technology Cooperative, or NCTC, an industry group made up of more than 700 cable and broadband providers, has been in discussions to create a mobile offering for its members.
“It’s become the focal point. It’s what everyone thinks you should have,” NCTC President Lou Borrelli said of the mobile offering. “I’ve seen what they call a new bundle. I don’t dispute it.”
Since NCTC’s membership includes small providers – many in rural areas – the cooperative began discussions with wireless carriers last year on behalf of the entire base.
Borrelli said that NCTC is not in a rush to offer mobile until it sees how Charter and Comcast do net additions in 2021. ,'” he said.
NCTC negotiations should be completed this year, Borrelli said. Some have added mobile. based in Colorado WOW! Internet, Cable & Phone launched a mobile plan in July through a partnership with Reach Mobile.
Borrelli says consumer research in certain markets shows that companies don’t have a choice in the matter. “Members have told us that we don’t care what the outcome is, we have to do this.”
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.