Charter® is reportedly inching closer to unveiling Spectrum Mobile®, their unlimited wireless service to be delivered over mostly Verizon Wireless® network, by the end of this June. Charter® has an MNVO agreement with Verizon®, but the cable operator will also provide the best internet service over existing wireless accent points in residences and business locations. Reports also indicate that the wireless service of Spectrum® is priced at $45 a month.
The wireless service or mobile network marketed by Charter Communications® takes cues from Comcast’s similar offering, titled XFINITY Mobile®. In other words, Philadelphia-based Telco giant also has an MNVO tie-up with Verizon Wireless®. In the first year of XFINITY Mobile’s operation, Comcast® has managed to win over half a million customers to the wireless network. Much like XFINITY Mobile®, even Charter’s best internet service is anticipated to be accessible to those who have a subscriber relationship with the cable operator.
Existing residential customers that rely on Spectrum® for cable or internet will be eligible to add their wireless service and the same goes for those who want to move to Spectrum® for cable or internet. Charter’s Chief Mobile Officer, Danny Bowman, recently announced a collaboration with Comcast® for backend systems and software required for supporting the two mobile networks. Still, both companies noted that Comcast® had made investments toward a working platform’s development, which they will share with Charter®. In exchange for that, Charter® is funding the collaboration, even though the company spokespeople said that they plan to invest in future.
The launch of Spectrum Mobile® is speculated to steal subscribers from some of the other major US carriers, but Verizon Wireless® will be able to cushion such threats through payments they will receive from Charter Communications® upon moving data through Verizon’s network. In other words, the cable operator will reportedly pay Verizon® $5 per GB of data, which Charter’s customers get to access through the wireless provider’s network.
As of now, it is unclear as to how United States Department of Justice will view mobile virtual network operators such as XFINITY Mobile® and Spectrum Mobile® when appraising competition in the nationwide wireless market. In fact, competition is an important factor that the DOJ will consider as and when they study the proposed merger between T-Mobile® and Sprint®.