- The US wireless industry is undergoing significant structural changes.
- Cable companies have been expanding their wireless subscriber base over the last few years, while traditional wireless carriers are dealing with declining device upgrade rates.
- Cable and wireless players are banking on service and content bundles to acquire and keep subscribers while minimizing customer churn.
Cable companies like Charter (Spectrum) and Comcast (Xfinity) have continued to expand their presence in the US wireless market, capitalizing on opportunities to bundle services and offer competitive pricing. By leveraging their existing broadband infrastructure and operating as Mobile Virtual Network Operators (MVNOs), these companies have been able to reduce costs and offer wireless services as add-ons, attracting new subscribers and reducing churn. This growth comes at a time when traditional wireless carriers are grappling with declining smartphone sales and elongating device replacement cycles.
According to Counterpoint’s US Monthly Channel Share Tracker Report, pricing competitiveness, bundling of multiple services and an installed base with compatible devices in hand will be key drivers for cable companies expanding in wireless.
However, cable companies’ strong wireless subscriber growth momentum has slowed. Additionally, there are potential challenges that could further constrain growth like service quality issues stemming from network congestion and competitive responses from incumbents.
Nevertheless, cable companies still have a largely untapped subscriber base to expand into. With continued focus on pricing, service bundling and network quality, cable companies are well-positioned to further grow their wireless market share and, more importantly, limit churn rates.
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