|Why Cable Companies Are Still Interested In The Cutthroat Wireless Market
Cable and pay TV operators have expressed increasing interest in the wireless market in recent years. For instance, Comcast intends to launch an MVNO service in partnership with Verizon, while picking up some spectrum in the FCC’s recently concluded auction, potentially laying the groundwork for its own network. Comcast’s pay TV rival Dish Network has been amassing a spectrum hoard of its own, while cable major Charter Communications has also said it would introduce a wireless product in 2018. This interest seems odd on the surface, as growth in the wireless market has largely tapered off and the nationwide carriers are in the midst of a full blown price war. Below we take a look at why the wireless market remains attractive to cable companies, despite the current headwinds.
Mobile Content Consumption Poses A Threat To Cable Business Model
Cable and pay TV companies are essentially content delivery platforms, delivering video content to their subscribers’ homes via cable or satellite. However, people are spending less time watching television in general, while spending more time consuming video and other content on mobile devices such as smartphones and tablets. For perspective, the digital ad market (which is increasingly mobile-based) was projected to surpass the TV ad market in the United States in 2016. By having control of the wireless last mile, cable companies could effectively hedge the future of their businesses.
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This article originally appeared on Forbes.com. You'll find a link to the original after the post.
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