As it rolls out its mobile product, Altice USA Inc. thinks it can tap a very broad customer base.
Altice USA CEO Dexter Goei said at a Sept. 18 investor conference that based on the cable operator's footprint and addressable rights around the service, which bowed earlier this month, Altice Mobile has the potential to reach 75 million people.
Earlier this month, Altice USA unveiled a $20-per-month service to existing customers in its 21-state footprint. Altice Mobile is also available to non-Altice subscribers for $30 per line, per month. The plan includes unlimited data, talk and text, as well as unlimited access to mobile hotspots, video streaming and international usage when traveling in or contacting people in more than 35 countries. The wireless network will include 5G services as they become available. 5G is set to offer download speeds many times faster than the current 4G LTE wireless networks.
In the past, Goei has said the mobile service is forecast to be profitable in about 12 months. At the conference, Goei reiterated the notion, saying the service will be profitable on a per-subscriber basis.
When asked why the company is offering a $20 price point, which is significantly lower than other mobile providers, Goei explained that it was profitable.
"If you think about the volume dynamics, it could get large," he said. He did not specify subscriber targets for the service.
Even without formal bundling with its existing video, broadband and telephony offerings, Altice Mobile will benefit from those services, as a number of new mobility customers will wind up adding one or more of the offerings, according to Goei.
Altice's mobile service operates on a mix of cellular infrastructure the company launched itself along with Sprint Corp. This will later include infrastructure owned by T-Mobile US Inc., should the carrier's pending merger with Sprint close. Altice also has a roaming agreement with AT&T Inc. and an extensive fiber and Wi-Fi network to support its service.
The nation's largest cable operators, Comcast Corp. and Charter Communications Inc., have mobile offerings that run on Verizon Communications Inc.'s network. Usage that occurs off the network results in payments to the telco.
