Spectrum Mobile sees a big boost following 2018 Q4 additions.

Late last year Charter added up to 113,000 mobile lines for Spectrum Mobile following the signicance in the role the services plays in how the telecommunications operator markets and sells a triple-play bundle complemented by broadband and video. Charter Communications Inc. ‘s wireline voice product is starting to be downgraded to value-add/sell-in status, as the purchase price on that product was dropped to $9.99 per month last year September.

“With wireline voice as a $9.99 value-added service going forward, mobile is now positioned to be the triple-play value driver for connectivity sales, similar to what wireline voice did for cable over the last decade,” Charter CFO Chris Winfrey said on Thursday morning’s earnings call.
“Charter’s updated view of wireline voice is that it’s a “bolt-on product to a triple-play with mobile,” added Tom Rutledge, Charter’s chairman and CEO.

The change in selling strategy followed after the decline in Charter’s wireline voice product. Charter lost 83,000 residential wireline voice subs in Q4 and lost 289,000 for the full year, ending 2018 with 10.13 million wireline voice subs. Via its MVNO deal with Verizon Wireless, Charter launched Spectrum Mobile across its markets last September. It ended 2018 with 134,000 mobile lines in service, with a general mix of those customers taking the MSO’s unlimited and By-the-Gig options. (See Charter’s Spectrum Mobile Goes Full Market.)

“Spectrum Mobile is ramping up,” Rutledge said, noting that Charter began to allow customers to transfer their existing handsets to Charter’s service in December at some of the MSO’s retail stores. Charter expects to expand its bring-your-own-device program to include a larger group of devices and enable customers to conduct that process without having to visit a Charter retail outlet, the exec added.



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