Reuters logo
Comcast, Charter announce wireless partnership
May 8, 2017 / 10:37 PM / 6 months ago

Comcast, Charter announce wireless partnership

(Reuters) - Comcast Corp (CMCSA.O) and Charter Communications Inc (CHTR.O) on Monday announced a wireless partnership, as the cable providers seek to add more services in a bid to reduce customer churn.

The deal will also help speed up their entry into the highly competitive and over-saturated market for mobile service in the United States.

Comcast is moving into wireless as cable companies seek to offset customer attrition, as younger viewers increasingly shun high-priced subscriptions in favour of cheaper online options.

The move could affect wireless carriers including AT&T Inc (T.N) and Verizon Communications Inc (VZ.N), which could be hurt by additional subscriber losses, said New Street Research analyst Jonathan Chaplin.

AT&T and Verizon already face stiff competition from smaller rivals T-Mobile US Inc (TMUS.O) and Sprint Corp (S.N).

A technician's vehicle sits in the parking lot at a Comcast facility in Lawrence, Massachusetts, U.S. January 25, 2017. REUTERS/Brian Snyder

As part of the agreement, Charter and Comcast cannot make “material” transactions in the wireless space for a year without the other’s consent, Comcast said in a filing with regulators.

FILE PHOTO - A Charter Communications company store sign is pictured in Long Beach, California, U.S., January 26, 2017. REUTERS/Mike Blake/File Photo

The material transactions may include acquisitions, investments or joint ventures that have a value of more than $200 million (£154.5 million).

The agreement could help pave the way for a merger between Charter and Comcast in the future, New Street Research’s Chaplin said.

“(The partnership) will also enable us to provide more competition and drive costs down for consumers at a similar national scale as current wireless operators,” Charter Chief Executive Tom Rutledge said in a statement.

Charter’s shares were down 2 percent at $328.03 in early trading, while shares of Comcast were slightly higher at $39.10.

Reporting by Rishika Sadam in Bengaluru; Editing by Sai Sachin Ravikumar

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below