With Charter’s MVNO, Spectrum Mobile, set to be launched real soon, analysts are already making fresh assumptions on how this new entry will set a standard in the industry. More importantly, analysts believe that it, together with Comcast’s Xfinity Mobile, could steal half of the wireless customer additions in the next two years.
The assumption was made by analysts at Morgan Stanley Research and revealed to investors this morning. According to the note, “Wireless executives had been dismissive of cable’s foray into wireless, and the economics of the MVNO model in an unlimited world; however, following Comcast’s early success, we think the companies, and investors, are more sensitive to this risk.”
To put it into figures, the Wall Street analysts believe that there will be a total of around 2.2 million mobile phone adds in 2020 for cable MVNOs. This figure is almost half of the entire net customer additions expected for the industry.
Although this is only an assumption made by analysts, it was dovetailed by another research presented by New Street Research. This study perceives that Xfinity Mobile will increase its number of customers this year and will only grow by 2 million customers per year.
This is further backed by another survey collected by Barclays wherein 40% of respondents answered they would dump their existing wireless provider in lieu of a wireless service that their current cable supplier offered.
With these figures, it’s an interesting time for the top cable operators in the country. Just a few months ago, Comcast reported that it had a total of 196,000 new subscribers sign up for service with its Xfinity MVNO brand during the first quarter alone. This brought its total customer base to 577,000. And with a June 30 launch date for Spectrum Mobile, things are about to get really exciting for the MVNO market.
Both MVNOs will be operating under Verizon’s network.
Source: Fierce Wireless