Mobile Industry News for the Week of May 8, 2017
Mobile data is in high demand, yet a new study shows that wireless carriers are struggling to increase revenue and win over subscribers. To make matters even more competitive, cable companies Comcast and Charter Communications struck a deal this week that will help propel their own wireless services into the market. The stories on our minds are below.
Mobile Data On The Rise — New findings from CTIA reveal that Americans are using more mobile data than ever before. According to Fortune, mobile data usage rose by 42 percent last year, which is 35 times more than data used in 2010. While carriers profited from this mobile data boom originally, subscriber growth is now evidently slowing even though mobile data consumption is still rising. Carriers are trying to differentiate themselves by offering competitive prices, but even so, CTIA data confirmed that service revenue for wireless plans and phone sales fell 2 percent in the last three years. With a Sprint and T-Mobile merger possible, the wireless industry could see some significant restructuring as carriers try to stay afloat.
Cable Steps Into Wireless — Earlier this week, Comcast and Charter Communications made an agreement to collaborate on wireless efforts and avoid independent mergers with major carriers such as T-Mobile or Sprint. The Wall Street Journal reports that this partnership also allows the two cable companies to share technology as they build out their own wireless initiatives. In an effort to address cord-cutting, cable companies like Comcast are hoping to retain customers by offering bundles of cable TV, home internet, landline phone, and now wireless service. This partnership will streamline the process of introducing cable companies to what is already a very busy wireless space.
What news stories are on your minds this week? We’d love to hear what stories you’re dialing into.