Yesterday, Free State Foundation President Randolph May and I filed public comments with the U.S. Department of Justice regarding its proposed settlement for the T-Mobile/Sprint merger. Our comments addressed the dynamic communications market context of the proposed merger, including existing and potential competition to wireless carriers:
Wireless market entry by Comcast and Charter Communications using hybrid Wi- Fi/cellular mobile wireless networks further diminish the likelihood of significant price increases or other anti-competitive conduct post-merger. Traditional cable operators are established providers of bundled voice, video, and data services. They are well suited to provide competitive mobile wireless services by leveraging their existing broadband network capacity and nationwide deployment of Wi-Fi hotspots and leasing network capacity for out-of-area voice and data transmission. As of the second quarter of 2019, Xfinity Mobile reportedly served 1.6 million subscribers and Spectrum Mobile reportedly served 518,000 subscribers. Those subscriber numbers are widely expected to increase.
Close attention ought to be paid to future subscriber numbers for both cable wireless entrants. But there are other indications that these new entrants will further increase the market's competitiveness for mobile wireless services. According to reports, Xfinity Mobile and Spectrum Mobile are both increasing mobile data traffic offloads from leased Verizon network capacity onto their cable Wi-Fi networks. This competitive strategy reduces their lease payments. Also, both Xfinity Mobile and Spectrum Mobile reportedly have plans in the works to offer 5G wireless network services in future. And the largest multi-regional wireless carrier has reportedly acknowledged publicly competitive pressures by cable wireless entrants.
(H/T to LightReading's Mike Dano for his incisive reporting and analysis.)
Posts
