Altice USA to venture into the wireless business
In November 2017, wireless service provider Sprint (S) announced a strategic MVNO (mobile virtual network operator) deal with Altice USA (ATUS). As part of the agreement, Altice would be allowed to access Sprint’s nationwide cell phone network to launch its own wireless service. Altice, the fourth-largest cable company in the US, would be able to provide mobile voice and data services to customers across its national footprint using Sprint’s network.
Sprint believes that the coordination between the Altice and Sprint teams is strong and that the agreement is moving extremely well and very quickly. Altice aims to leverage its capabilities and footprint to support Sprint’s network densification program and build out its 5G (fifth-generation) services. Sprint’s management noted, “We have a buckling agreement with Altice. So we are leveraging their infrastructure to back not only our small cells but also our macro cells.”
Growth in mobile video traffic
The growing focus on the wireless business from media and telecom companies has been primarily due to the rise in overall mobile video traffic. Cisco Systems’ (CSCO) VNI (Visual Networking Index) forecasts that video could comprise ~77.0% of mobile data traffic in the US by the end of 2020.
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