Mobile and Cable Operators Are Eating Each Other’s Lunch
What happened in the U.S. in 2022 is now spreading to many markets worldwide. According to analysts at New Street Research, cable and 5G mobile operators in the U.S. have reached a stalemate — “Both companies are offering each other’s core product at $30,” they noted, referencing T-Mobile’s bundle versus offerings from cable companies.
This trend was underpinned by the fact that cable providers experienced the fastest growth in mobile subscriptions through MVNO arrangements. At the same time, Fixed Wireless Access (FWA) subscriptions from T-Mobile and Verizon, which deliver broadband via 4G/5G modems, surged from 190,000 net adds in Q3 2021 to 920,000 in Q3 2022. Conversely, cable companies saw their net broadband additions drop sharply, from 590,000 down to just 40,000 during the same period.
Cable and mobile operators in the US are eating each other’s lunch. This convergence trend presents a significant opportunity for Internet Service Providers (ISPs), particularly those with a Wi-Fi footprint, enabling effective mobile data offloading. However, in an increasingly competitive market, ISPs must also focus on maximizing revenue and reducing costs to stay profitable.