Two of the largest cable companies in the US announced plans to work together on Monday to compete with other giants on providing wireless services.
Comcast and Charter hope that their combined size will help them to negotiate better contracts that will allow them to provide more choice, more products and more competitive prices to customers.
Comcast and Charter already have agreements in place with Verizon that allow them to resell the company’s wireless services in their respective regions. But if in future they agree deals with other providers they have to do so together.
The two companies believe the partnership will allow them to become competitors with the likes of Verizon and ATT, as well as boosting innovation by getting their engineers to work closely together. It will also increase their joint potential for making money as the demand for cable TV packaged decline.
Tom Rutledge, chairman and CEO of Charter, said in a statement that the company has “tremendous opportunity in front of us in the wireless space.”
“Both of our companies have regional wireless businesses using the same 4G LTE network, and by working together our goal is to create even better experiences for our customers,” added Brian L Roberts, chairman and CEO of Comcast.