How Cable is Outmaneuvering Traditional Mobile Network Operators

By bundling broadband with mobile, leveraging agile MVNO models, and personalizing the customer experience, emerging brands are transforming into dominant telecom players.

The mobile market has long been a stronghold for giants like Verizon, T-Mobile and AT&T. Recently, shifts in technology and consumer behavior are challenging the dominance of the “big” mobile network operators (MNOs) like never before. It’s blowing the market wide open while emerging brands vie for their slice of the action.

This disruption is by design, not by chance. The rise of high-speed wireless technologies, consumer demand for greater bandwidth and convenience, and a low barrier to entry for would-be service providers have reinvigorated competition in the market. Mobile virtual network operators (MVNOs) are typically small, agile businesses that lease network infrastructure from traditional carriers and offer unique, cleverly targeted services. They’re often classed as tech-first, digitally savvy businesses as opposed to their much larger and slower telco counterparts. This gives them a competitive advantage in the digital space, allowing them to carefully curate and bundle their service offerings and leverage customer data to target specific market segments intelligently.

Customers are now spoiled for choice regarding cellular plans, which often act as a gateway to multiple TV and streaming services they may have been interested in purchasing. As a result, the MVNO market has more than doubled¹ in size in the last decade and was valued at $85.1 billion in 2024. The market is projected to be valued at $146.3 billion by 2031.

The MNO stronghold is now under threat. The market is split, and cable companies are winning big. One recent market report by MoffettNathanson Research² revealed that in Q1 2024, cable companies secured three out of every four new post-paid mobile subscribers.

The Convergence of Fixed and Mobile Services

In the past couple of decades, connectivity has gone from being a luxury to a non-negotiable utility. We live in an age of remote working and high-resolution streaming, where network access is all but essential to our lives. Advancements in technologies such as fixed wireless access (FWA), 5G and satellite mean that this need for speed is increasingly being met wirelessly.

As a result, we’re now witnessing the convergence of traditional wired broadband and wireless connectivity play out in real-time. The number of connected devices that the average person uses is growing, and many of those devices—smartphones, tablets, fitness trackers and more—demand connectivity that extends beyond the home. Is it any wonder that mobility is overtaking fixed wireless as a consumer priority?

Enter cable companies. By leveraging their existing broadband infrastructure and wealth of customer data, they are becoming n-play service operators (MSOs). They’re offering consumers a compelling package that includes everything from high-speed home internet to mobile connectivity, not to mention the myriad TV and streaming service bundles, all under one roof. A single provider means a single bill, and that’s far more appealing to customers than setting up all those services on their own. 

By establishing MVNO agreements with MNOs and leveraging CBRS spectrum, cable companies are expanding beyond home-based services to offer seamless connectivity everywhere through a combination of wireless, fixed, Wi-Fi, and FWA technologies.

Charter and Comcast are leading this charge. Their mobile subscriber lines are projected to reach 28 million by 2028. They now sell mobile subscriptions alongside their home broadband packages, offering highly competitive deals and bundles to lure customers out of their existing mobile contracts. As more consumers recognize the benefits of these bundled offerings, the shift toward cable companies as the primary providers of both fixed and mobile services is accelerating, turning what was once a niche market for them into a powerful revenue stream.

Consumer Demand Driving the Shift

Mobile is a consumer’s market, and it always has been. Until recently, offerings were fairly simple and linear. So, when a consumer became a subscriber, there was very little reason for them to change. Now, things are different. In addition to the allure of having all their digital services, including their connectivity, available in one convenient and competitively priced bundle, they’re also on the lookout for other key differentiators.

For instance, cable companies, often more agile and willing to innovate than their traditional telco counterparts, have embraced technologies like eSIMs for easy onboarding, digital self-service platforms and data-driven personalization. These features resonate with a generation of consumers who have come to expect intuitive, hassle-free experiences.

And once consumers are subscribed, it’s far easier for an agile MSO/MVNO to retain them. These companies aren’t hampered by the legacy software their big telco counterparts use. They can adopt cloud-based business support systems (BSS) that allow them to predict customer churn, send personalized recommendations and suggest additional features and services to keep subscribers engaged.

For instance, if a subscriber uses only a fraction of their data allowance, a new plan can be recommended to save them money. If a customer’s usage has decreased and it looks like they’re about to leave, a free trial for a new streaming service can be offered to tempt them to stay.

In other words, mobile connectivity is no longer a siloed service. It’s part of the digital ecosystem. Win more of that ecosystem, and you win the market.

REFERENCES

1. MarketsandMarkets MVNO report, https://www.marketsandmarkets.com/Market-Reports/mobile-virtual-network-operator-market-233615600.html

2. MoffettNathanson Research report, https://www.moffettnathanson.com/.