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Why T-Mobile Isn't Concerned about Cable MVNOs – Market Realist

Why T-Mobile Isn't Concerned about Cable MVNOs – Market Realist

T-Mobile at Citi European & Emerging Telecoms Conference PART 2 OF 11

MVNO agreement with Verizon

Cable companies such as Comcast (CMCSA) and Charter (CHTR) continue to remain upbeat about the prospects for their MVNO (mobile virtual network operator) business with Verizon (VZ). The relationship between Verizon and Comcast dates back to 2011.

According to a FierceCable report, in 2011, Verizon purchased an AWS-1 (Advanced Wireless Services) spectrum from Comcast, Bright House Networks, Cox, and Time Warner Cable. As part of the agreement, Verizon offered access to the company’s wireless network in a possible MVNO offering.

On March 21, 2017, at the Citi European & Emerging Markets Telecoms Conference in London, Neville Ray, T-Mobile’s chief technology officer, spoke about competition since Comcast and Charter are planning to offer mobile services. He said that T-Mobile isn’t concerned about cable MVNOs as competitors and that it would be interesting to see what they do in 2017.

Earlier, Comcast announced that it will be renting spectrum from Verizon to provide its own wireless service in 2017. Charter has also activated an MVNO agreement with Verizon and plans to launch a mobile offering in 2018 under the agreement. As MVNOs, Comcast and Charter will get access to Verizon’s network services at wholesale rates and sell those services to its customers.

Rise in video traffic

According to Cisco’s (CSCO) VNI (Visual Networking Index) at the end of 2015, video constituted ~61.0% of mobile data traffic in the United States. It’s anticipated that by the end of 2020, that figure could expand to ~77.0%.

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