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To Beat T-Mobile and Comcast, Charter Bets on Larger Call Center

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May. 28 2019, Published 1:38 p.m. ET

Expanded call center to open next spring

Charter Communications (CHTR) is expanding its national call center facility in Rotterdam, New York, according to a report by the Daily Gazette. The expanded facility is expected to open next spring, and the additional staff there will serve customers of Charter’s Spectrum Mobile, the mobile phone service that the company launched last year, as it seeks to diversify outside its cable roots. Spectrum Mobile provides wireless call, text, and data to customers in Charter’s cable footprint.

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Charter is one of the major US cable companies that have sought to diversify into the wireless business. In 2017, Comcast (CMCSA) launched a wireless phone service under the Xfinity Mobile brand. Altice USA (ATUS) is gearing up to join in with its own mobile service, which is expected to launch this summer.

Charter seeks better customer service

Charter’s goal in expanding its Rotterdam call center is to better serve its mobile customers. The move comes as the company anticipates increased competition for wireless customers given that T-Mobile (TMUS) and Sprint (S) are seeking to combine their operations to bolster their competitive position. Altice and Dish Network (DISH), which are also building wireless networks and may enter the business of selling mobile phone services, are opposed to the proposed merger of T-Mobile and Sprint, claiming it would stifle wireless competition.

Charter added 176,000 customers to its Spectrum Mobile service in the first quarter and finished the quarter with 310,000 customers on the service. Charter’s revenue rose 5.1% year-over-year to $11.2 billion in the first quarter.

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