Key Updates from Charter at Goldman Sachs’s Communacopia PART 3 OF 8
Charter’s focus on its wireless business
Charter (CHTR) is increasingly concentrating on its wireless business. Charter and Comcast (CMCSA) have a reseller agreement with Verizon (VZ), which empowers them to launch their own wireless operations with the help of Verizon’s network. Additionally, Charter has formed a wireless partnership with Comcast to explore ways to cooperate in driving additional value for wireless customers.
During the Goldman Sachs Communacopia Conference held on September 12, 2017, Tom Rutledge, Charter’s chief executive officer, spoke about the company’s long-term wireless strategy. Rutledge stated that Charter has activated its MVNO (mobile virtual network operator) agreement with Verizon and is intending to roll out commercial wireless service in 2Q18, following in the footsteps of Comcast, who recently launched Xfinity Mobile, its wireless service. The Xfinity Mobile wireless service is based on Verizon’s infrastructure.
Rise in mobile video traffic
The increasing focus on the wireless business from telecommunication (or telecom) and media players has been due to the expansion in mobile video traffic. Cisco’s (CSCO) Visual Networking Index forecasts that by the end of 2020, video could make up nearly 77% of mobile data traffic in the United States.