Last week, at this year’s MWC Americas wireless conference, Charter updated us on their wireless strategy for their entry next year. If successful, wireless could play an important role in helping the company evolve to the next level. They face many of the same challenges as Comcast with their Xfinity Mobile. However, they also face a larger challenge.
Craig Cowden, SVP of wireless technology discussed a more detailed view of Charters wireless plans. This was welcomed by the marketplace, since there has been little from the company after their initial announcement. This open talk will be helpful to the company with regards to workers, customers and investors, but this is just the first step. I hope they continue to be this open as they progress. If so, it will certainly be more helpful to them than keeping quiet.
The reason is simple. You see, stories will be written, investments will be made, opinions will be formed, with or without Charter’s input. The only question is, will the view of Charter going forward be positive or negative? The answer, in large part, comes from their simple choice to either be part of the conversation, or let others direct its path.
Bottom line, marketplace opinions about Charter going forward, positive or negative are what’s at stake. They have the choice to play a role and help direct thinking and conversation, or to stay quiet and let others direct the discussion. There is clearly a benefit to only one of these approaches.
As a wireless analyst and strategic advisor over the last thirty-years, I have seen many companies succeed and fail based on this reality. Either they play a role, or they stay quiet. Either they direct the thinking and the conversation and benefit from it, or they let it take on a life of its own. This hopes the marketplace will figure things out on its own.
Unfortunately, that never happens. Somebody is always steering the ship, either the company or its competitors. Companies either succeed or fail based on this reality.
Charter plan is wireless with Wi-Fi, and an MVNO service using Verizon Wireless by next summer. They are also testing fixed wireless and mobile services in certain markets.
Charter should reach out to wireless industry thought leaders
It has been concerning to me that they have not done the same kind of outreach that other companies have done. The difference in whether a company is successful or not in many ways depends on how well they reach out to thought leaders in the industry. Whether they are a participant in the conversation, or not.
Cowden surprised many when he said Charter is already a wireless company. He said they already carry up to 80 percent of wireless traffic in customer homes and offices in their region. He also said they don’t monetize this traffic.
I agree with Cowden that Charter does offer Wi-Fi connectivity to their network within a home or an office, and that this is an important part of their story. However, as a wireless analyst, I don’t think this makes them a wireless company.
Is Charter a wireless company yet?
Using this kind of language will not be helpful to them going forward. These words simply do not feel right. And like it or not, how we feel about a company plays a large role in their success or failure going forward. Think Apple as one obvious example. They are almost bullet-proof. Almost.
The marketplace is sophisticated today. They understand when a company is or is not a wireless carrier. Today, Charter is not a wireless carrier. They may be using wireless technology to connect their cable television customers and Internet customers to their service, but they are not a wireless carrier.
They do not yet offer a wireless phone or a wireless service that works outside the home or office where they have a hard wire TV or Internet connection. Saying that they are a wireless company raises the wrong kind of questions in the minds of customers, workers and investors.
They are asking, does Charter not understand what a wireless carrier is? Or do they think we don’t understand? Either way, there is no good that comes from discussing wireless in this fashion. It will only hurt Charter in the long run.
It would be better for them to simply say they are a cable television company that is transforming itself into a pay TV company including IPTV, fixed wireless and MVNO for wireless smartphones and tablets for customers to use anywhere in the USA. This is simply where Charter is today and where they want to head tomorrow.
Charter wireless needs marketing strategy
I would even recommend Charter follow Comcast which seems to be doing a good job so far with their Xfinity Mobile marketing strategy. Reselling Verizon Wireless service as in an MVNO agreement is a good plan for a cable television company to potentially transform itself for growth going forward. Next, having this new wireless service interact with the Wi-Fi already in homes is another good step tying everything together.
Charter wants to make sure most of their wireless traffic goes over their Wi-Fi and not the MVNO agreement. This is a light MVNO agreement as opposed to a full agreement. The reason is simply economics. It will save them lots of money. The only question is if this can be seamless and high quality. This same idea has been tried before, with smaller wireless companies, without the kind of success that Charter hopes for. This has always been a stumbling block.
What is Charters marketing strategy? Is it to market wireless phones and service to the entire marketplace? Or just within their cable television region? Or just to limit their wireless to their cable television customers to keep them from leaving to competing services like AT&T DirecTV which also sends TV over the AT&T Mobility network to customers smartphones and tablets?
Can Verizon Wireless and Charter make this approach work? I don’t know. They don’t know. But that’s their plan. We will have to keep our eyes on them going forward.
I hope they are successful. Charter needs to transform from a cable television company of yesterday to a pay TV and wireless leader going forward. However, today there are many competitors and competition is something they never faced before. Can they compete? We just won’t know for a while. The very earliest will be a year from now, after the launch next summer.
