U.S. Markets closed

Altice Takes On Verizon, AT&T In Cellular Space

Jayson Derrick

U.S.-based cable television provider Altice USA Inc (NYSE: ATUS) is preparing a launch into the mobile space by undercutting industry titans like Verizon Communications Inc. (NYSE: VZ), according to The Wall Street Journal

What Happened

Sources close to the matter told WSJ that Altice could offer customers unlimited data for their mobile phones at a cost of $20 to $30 per month. The service will likely rely on Sprint Corp (NYSE: S) to provide access to its mobile network in addition to in-home Wi-Fi and a network of hot spots.

Why It's Important

Cable companies like Altice are likely looking at the mobile market as an opportunity to convince existing customers not to cut the cord, WSJ said.

Rival cable companies like Comcast Corporation (NASDAQ: CMCSA) have already jumped into the mobile space: in 2017, it launched the Xfinity Mobile service with unlimited data for $45 a month.

Unlimited data plans from traditional mobile companies like Verizon start at $80 a month. Between Verizon and AT&T Inc. (NYSE: T), Altice has an opportunity to compete for 100 million wireless connections.

On the other hand, wireless carriers are likely looking at the upcoming 5G cycle as an opportunity to offer customers wireless broadband inside homes — which represents a new risk to cable companies.

What's Next

Altice's new service could undergo testing in the coming weeks, WSJ said.

An Altice spokeswoman told WSJ that confirmed pricing isn't set and "go-to-market plans are still in development."

Related Links:

Altice Buys Streaming Financial News Network Cheddar For 0M

Sprint Earnings 'Better Than Feared,' But T-Mobile Merger Limbo Still A Problem

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.