Dexter Goei, CEO of cable operator Altice USA, advocated for more tie-ups between fixed and mobile operators in the country, arguing they stand to reap significant efficiencies across infrastructure, distribution and marketing by joining forces.
“The synergistic [benefits] purely, forget about the revenue, become massive. And when you look at the churn enhancements that you’ve seen throughout the world, it becomes even much more clear why it should happen,” he said during an investor conference.
Goei (pictured, right) said the US is the only market where consolidation between fixed and mobile has not yet occurred. However, he predicted M&A activity will pick up over the next few years as operators increasingly encroach on one another’s territory.
T-Mobile US already unveiled plans to use its 5G service to offer a replacement for home broadband, while cable operators Comcast and Charter Communications struck MVNO agreements with Verizon.
Likewise, Altice USA is planning to introduce a mobile product in 2019 through an MVNO deal with Sprint, albeit one under which Altice USA will access only Sprint’s RAN, handling elements including OSS and BSS itself.
Goei said the company had already invested $50 million in capex to its mobile project. But he added Altice USA believes the work will swiftly pay off: “We believe it’s a standalone profitable business in year one, in the first 12 months.”Subscribe to our daily newsletter Back