Home Blog 2018 Will 2018 See Growing Cable-Powered Mobile Plays?

The NPD Group Blog

Insights and Opinions From Analysts and Experts in More Than 20 Industries

Jan 15, 2018

The Cable Threat is More Real Than Ever

Brad Akyuz, Executive Director ;

Consumer Electronics , Connected Intelligence

When Comcast launched its Xfinity Mobile service in 2017, it wasn’t taken too seriously by the competition, due to its lack of retail presence and limited device/service portfolio. This perception changed rather drastically when Comcast announced it had a quarter million subscribers within the first five months of its pilot launch. Xfinity Mobile may not have a retail presence, but its mobile virtual network operator (MVNO) agreement to run on Verizon’s network, simplified service offerings, and an efficient device merchandising strategy (phone models offered by Comcast account for over 50 percent of all device activations in the U.S. market) make it a strong value proposition for households that are already invested in the Xfinity ecosystem.

We expect 2018 to be a much more productive year for Comcast, which is working on expanding its retail presence, alongside opening its service to bring your own device (BYOD). The cable giant has service contracts with over 30 million households in the U.S. and can potentially target all of these homes with its offering. The same goes for Charter Communications, which has announced its plans to launch a mobile service in 2018.

The cable industry’s unique composition, in which operators collaborate rather than compete, has already proven to be a strong differentiator for Comcast and Charter as they joined forces to explore operational efficiencies on mobile operations, such as procurement and network management. Charter has over 22 million broadband subscribers and over 16 million video subscribers, and like Comcast, it will have the opportunity to target all of these customers with a mobile offering. To add to the equation, Altice, the French-based telecom giant that owns Cablevision, has just recently announced an MVNO agreement with Sprint for a mobile play.

With traditional mobile carriers shifting focus to in-home and on-the-go entertainment (AT&T’s DirecTV and Time Warner acquisitions, T-Mobile buying Layer3, Verizon expanding content partnerships), cable companies had to react and in 2018 we will see these cable-powered mobile plays solidifying. With over 40 percent* of cellphone owners showing interest in an affordable mobile solution as part of a service bundle from their cable providers, the MSO threat is more real than ever.

 

*Source – NPD Connected Intelligence Mobile Connectivity Survey – August 2017



Stay current in your industry
SUBSCRIBE

Related Blog Posts


The Huawei Challenge
The Huawei Challenge

NPD’s Eddie Hold takes a look at the potential impact of the U.S.’s ban of Huawei, which will not only impact the network infrastructure side of the business, but also its ability to support Android smartphones.

Your Signal May Vary
Your Signal May Vary

Eddie Hold, Connected Intelligence President, evaluates the national coverage of U.S. mobile carriers as he travels across some of the more rural parts of America using prepaid devices. This blog is part of a series Eddie is creating while researching his upcoming Technology in Rural America Report.

The Broadband Challenge
The Broadband Challenge

Eddie Hold, Connected Intelligence President, looks at how broadband can provide access to jobs and educational tools that are not currently available in areas of the hearland.

Roaming America With Prepaid
Roaming America With Prepaid

Connected Intelligence President, Eddie Hold, recaps his experience purchasing prepaid smartphones from four carrier stores as he gets ready to hit the road to conduct research for his latest report.

Subscribe to our blog

Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice.

Follow Us

© The NPD Group, Inc.