A new player is about to enter the crowded U.S. wireless market, pitching monthly unlimited data that costs half as much as rivals
Altice USA has bolstered its Wi-Fi network in advance of its new mobile-phone service and aims to push some mobile traffic onto those hot spots when consumers are away from home, reducing the amount of cellular data they use. Photo: Michael Nagle/Bloomberg News By Sarah Krouse and Lillian Rizzo May 28, 2019 5:30 a.m. ET .Altice USA Inc. ATUS -0.37% is preparing to launch a mobile service likely to cost between $20 and $30 a phone, according to people familiar with the matter.
Cable providers are hoping wireless service will make their existing customers less likely to cut the cord and generate additional revenue. Wireless carriers like Verizon Communications Inc. and AT&T Inc., meanwhile, are betting the advent of faster, 5G networks will enable them to offer wireless broadband inside homes that sidelines cable companies.
Related Reading Comcast said it has signed up 1.4 million subscribers to its mobile service as of the end of March, compared with 577,000 a year earlier. The majority of its customers are on plans in which they pay per gigabyte. Charter said it had 310,000 mobile customers as of late March. Charter said at an analyst conference in May that it was exploring building its own small cell antennas to boost its network of Wi-Fi hot spots, which would allow it to unload some traffic in areas with heavy data demands and help it save on costs.
As part of the arrangement, the broadband provider controls its customers’ wireless traffic and billing, and Sprint is able to build out its own network within Altice’s footprint. “If you’re able to save customers $800 a year on their mobile bill and you add that into their existing cable service, then I think that you’re going to have a happier customer relationship at the end of the day,” said Christopher Winfrey, Charter’s chief financial officer, at an analyst conference in May. Advertising those potential cellphone savings also can help attract new broadband customers, he added.
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