Altice USA eyes mobile gains with bargain pricing - Mobile World Live

Altice USA eyes mobile gains with bargain pricing

29 MAY 2019

Altice USA could offer one of the cheapest wireless tariffs in the market as it aims for rapid growth of its anticipated mobile service, The Wall Street Journal reported.

Sources said the cable operator plans to offer unlimited data for between $20 and $30 per month for a single line, undercutting tier-1 mobile operators and other cable MVNOs.

For comparison, Verizon’s unlimited plan costs $80 per month, while AT&T and T-Mobile US offer the same for $70, and Sprint (Altice’s MVNO partner) is $60.

Fellow cable MVNOs Charter Communications and Comcast both offer unlimited data plans for $45 per month, in addition to usage-based tariffs.

On a recent earnings call, Altice USA CEO Dexter Goei said the company had settled on a price point and distribution strategy, but declined to provide specifics.

However, he hinted it benefited from favourable economics which could allow it to enter the market at a more aggressive price point with only a marginal impact to its financials.

“I said the last time that if we were doing a similar MVNO price point to other MVNOs out there that we would be profitable right out of the box. I think the question here is, if we are more aggressive, what could be the cash flow utilised to do that?”

Altice USA recently received assurances its MVNO deal with Sprint would survive the latter’s proposed merger with T-Mobile US.

It is currently pushing its mobile product through “heavy testing” ahead of an expected launch sometime before the end of the third quarter.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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