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How Charter Views Its Wireless Strategy

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Charter’s focus on its wireless business

Charter Communications (CHTR) is concentrating more and more on its wireless business. The telecom (telecommunications) company intends to launch its wireless service in the second quarter of 2018 using its mobile virtual network operator (or MVNO) agreement with Verizon (VZ). It will follow in the footsteps of Comcast (CMCSA), which recently launched Xfinity Mobile, its wireless service. Charter has also formed a wireless partnership with Comcast to accelerate each company’s ability to compete in the wireless space.

According to a FierceCable report on October 26, 2017, “Elaborating on Charter’s wireless partnership with Comcast, Rutlged said the two companies share most of the same vendors for their respective mobile businesses. We’re using their experience today to make our customer experience better.”

The two top cable companies, Comcast and Charter, have a reseller agreement that empowers them to introduce their own wireless operations with the help of Verizon’s network. Comcast’s Xfinity Mobile wireless service is based on Verizon’s infrastructure.

Growth in mobile video traffic

The growing focus on the wireless business from telecom and media companies has been mainly driven by growth in mobile video traffic. According to Cisco Systems’ (CSCO) VNI (visual networking index), it is anticipated that by the end of 2020, video could comprise approximately 77% of mobile data traffic in the United States (SPY).

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