New Street Research now expects both Comcast and "maybe" Charter to launch nationwide U.S. mobile service mobile service using their MVNO agreements with Verizon, as early as this year.
"We expect cable companies to launch commercial wireless offerings over the next twelve months, with Comcast likely leading the charge," New Street Research predicts.
Cable operators could provide wireless services to 20 percent of their residential customers in the next five years, New Street said in a "very conservative" prediction, stealing 35 million customers from incumbent cellular companies, Fierce Wireless reports.
That would give cable operators 13 percent of the U.S. wireless market, leading to slower growth for T-Mobile US and a one percent decline in Sprint subscribers over perhaps five years.
"We would expect them to roll the product out gradually at the outset; however, once they get going, they could take share pretty rapidly."
Carriers could lose between $1.8 billion and $3.8 billion in EBITDA to cable companies during that time, New Street said, with Verizon and AT&T seeing a seven percent to nine percent reduction in EBITDA in 2021.
T-Mobile would see EBITDA growth fall from 13 percent to 9 percent, while Sprint would see growth fall from five percent to roughly zero.
No comments:
Post a Comment