We’ve been here before. Cables operators have been eyeing up opportunities to jump into the wireless game.
But is something different this time?
For the last 20 years, the cable industry has been fueled by three revenue streams: cable television, landline phones and high-speed broadband. But emerging technologies have meant fewer households require a landline, with millions shifting from cable TV to streaming platforms like Netflix, Disney+, or AppleTV. Not to mention the coming of 5G technologies, which some say will enable wireless broadband inside homes that sidelines cable companies.
Previous forays into wireless by cable operators have been hit or miss, with speculations that attempts have been mostly for retention tools for broadband and video offerings.
So, what's different this time?
However, with this go-around, we’re already seeing cable operators making successful moves into the wireless market, with big players pitching monthly mobile plans.
Interestingly, they aren’t just doing so to offset slowing traditional cable revenue – operators have found the right offerings that have turned their services from a retention tool to one that turns a major profit.
Cable is coming on strong, with growth accelerating faster than predicted. And if you’re considering entering the wireless market and needed a little nudge, consider this your proof: Cable operators stand to gain substantial ground, and revenue, by becoming a full-fledged wireless operator.
No longer just a retention tool
Entering the world of cellphone retail is a bold move but doing so will create a formidable and powerful network for cable, wireline, and multi-service operators.
Services that operators are offering have moved beyond a retention tool to one that turns a profit. And perhaps the biggest advantage up their sleeves is that they are posed to disrupt legacy networks with speed, flexibility, and connectivity of their network.
In the last five years, wireline carriers have lost seven points of market share in broadband access, mainly to cable operators. In fact, just two years after launching their respective wireless ventures, Comcast and Charter, cable legends, are seeing a major uptick in profit.
Comcast, first to launch its wireless service, Xfinity Mobile in 2017, grew mobile revenue by 31.2% to $1.167 billion last year.
Charter Communications crossed 1 million subscribers to its Spectrum mobile venture just last year.
Dish, the Denver-based satellite video provider, began 2020 as the fourth major nationwide facilities-based wireless operator, with a commitment to deploy a 5G broadband network that will be capable of serving 70% of the U.S. population by 2023.
You're ready. Is your software ready?
The signs are there. The market share gain is accelerating, and the competitive dynamics are shifting. If you were ever thinking about entering the cellphone retail space, now is the time to do so. Just be sure you have the right solution in place.
A POS won’t suffice for your new wireless stores – you need a full-scale retail management solution.You need something that is more than just a POS – you need an all-in-one retail management solution, one that can handle the complexities of wireless retail. And that's where we come in!