In this illustration, the Cox Communications logo is displayed on a smartphone screen.
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Cox Communications is welcoming the new year with the official launch of its mobile business.
The private internet and cable operator plans to announce the nationwide launch of Cox Mobile on Thursday at the Consumer Electronics Show in Las Vegas.
Cox has followed colleagues like Comcast, charter communication and United States Alticehave started offering mobile services to their customers in recent years and have been adding customers at a rapid rate.
Like Comcast and Charter services, Cox Mobile will be available to new and existing customers only. Cox has 7 million customers in 18 states and has quietly begun offering mobile service in certain markets in recent months.
Cable operators began offering mobile service with the aim of giving customers another reason not to ditch their broadband plans. This is more true than ever, as profits for these business units are in sight.
Cable companies have lost pay TV customers choosing streaming-only services, although that has accelerated recently. However, broadband subscriber growth has stalled in recent quarters as competition intensified and customer movement stalled as the housing market slowed.
“I think now they’re repurposing wireless as a way to bolster their broadband business. There hasn’t been much profit from this, but that’s not their concern. The focus is on retaining broadband customers,” said John Hodulik, an analyst at UBS. .
How did the contest come about?
Although wireless companies like AT&T, Verizon and T Mobile Holding the majority of wireless customers in the United States, Comcast and Charter’s mobile businesses have grown at a faster rate thanks to cheaper and more flexible plans.
Charter’s Spectrum Mobile offers a $30 or $14 unlimited data plan for gigabytes of internet used on a monthly plan. Similarly, Comcast’s Xfinity Mobile starts at $30 for unlimited data or $15 per gigabyte.
Cheaper options stem from the ability to rely heavily on home broadband Wi-Fi and hotspots for data usage. As their mobile customers move away from Wi-Fi and rely on the network, they will switch to the cable companies’ partner operator – Verizon for both Comcast and Charter – which still gives the wireless company a a piece of cake.
Cox Mobile will offer similar, unlimited plans at $45 a month or $15 per gig. Cox is also said to be using Verizon as its network partner, something the company is expected to confirm at Thursday’s event.
Cox’s plan to launch its mobile business ran into trouble when T-Mobile sued the company in 2021, saying Cox was obligated to pursue a partnership with them. Earlier this year, a Delaware court judge ruling report in favor of Cox.
Charter says it has 4.7 million wireless customers as of September 30, while Comcast said it reached 5 million.
“We started with this reimagined mobile service because we knew customers would spend a significant amount of time on Wi-Fi,” Danny Bowman, Charter’s chief mobility officer, added customers of Spectrum Mobile spend about 85% of their time on Wi-Fi Fi.
“By keeping the mobile package simple, we have exponential growth,” Bowman added. Charter and Comcast also allow customers to bring their own devices, an option that Cox has not yet offered. Currently, customers must purchase Samsung phones through Cox to use the service.
‘We need to do this’
Smaller cable operators are also seeing value in offering cellular plans to customers.
The National Content and Technology Cooperative, or NCTC, an industry group that includes more than 700 cable and broadband providers, discussed creating a mobile service for its members.
NCTC President Lou Borrelli said of mobile services: “It’s become a focal point. It’s what people seem to think is what you need to have.” “I’ve seen it called the new package. I’m not against that.”
Because NCTC’s membership includes small providers — many in rural areas — the cooperative began discussions with wireless operators last year on behalf of its entire facility. .
Borrelli said NCTC wasn’t in a rush to offer mobile devices until they saw how Charter and Comcast were doing in net additions in 2021. “I remember getting calls from some board members Our board said, ‘You know, maybe we should look at this,'” he said.
Borrelli said NCTC’s negotiations will conclude this year. Some have added cell phones. based in Colorado OH! Internet, Cable & Phone disclosure mobile package in July through a partnership with Reach Mobile.
Borrelli says consumer research in certain markets shows companies have no choice in this regard. “The members have told us that they don’t care what the outcome is, we need to do this.”
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
