The cable TV operators agreed not to make a wireless deal without the other's consent for a year. As Fred Katayama reports, they see wireless service as a way to cut churn.
Comcast and Charter Communications say they'll work together as they get into the wireless market. The cable TV operators agreed not to make a wireless deal without the other's consent for a year. That would prevent either company from unilaterally tying up with or merging or acquiring a wireless carrier. Both cable operators see adding wireless service as a way to hold onto their customers by bolstering their bundle of cable TV, internet and landline phone services. Subscribers have been flocking to cheaper streaming services like Netflix and Amazon Prime Video. MoffettNathanson analyst Craig Moffett said, "The question people are asking this morning is: why would Charter agree to a deal that precludes it being sold? The short answer is because there was no realistic chance that either company was going to be sold in the first place." Under the partnership, the companies also agreed to create common platforms and develop technical standards together. Shares of Comcast rose at the market open, Charter lost ground.