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Charter Communications’ Outlook on Its Wireless Service

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Aug. 21 2018, Updated 9:00 a.m. ET

Charter Communications launches its wireless service

On June 30, Charter Communications (CHTR) launched Spectrum Mobile, its wireless service, with the help of its MVNO (mobile virtual network operator) agreement with Verizon (VZ). The company is now offering mobile services to new and existing Spectrum Internet subscribers at attractive prices. It’s offering two packages as a part of its wireless service: unlimited mobile data for $45 per month, and an option to pay for data usage at a rate of $14 per GB (gigabit) of mobile data. Both packages offer unlimited texting and talking, and subscribers can change between packages mid-month.

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This move follows in Comcast’s (CMCSA) footsteps. The leading US cable operator launched its wireless service, Xfinity Mobile, in 2017. Charter and Comcast, which have formed an alliance to boost their competitiveness in the wireless market, have a reseller agreement that empowers them to introduce their own wireless services with the help of Verizon’s network. Charter’s Spectrum Mobile is based on Verizon’s infrastructure.

Rise in mobile video traffic

Media and telecom operators’ growing focus on wireless has been mainly due to mobile video traffic rising. Based on Cisco Systems’ (CSCO) Visual Networking Index, at the end of 2015, video accounted for ~61.0% of US mobile data traffic. By the end of 2020, analysts estimate this number could expand to ~77.0%.

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