Market Overview

Is Wireless The New Cable?

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Is Wireless The New Cable?
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It's no secret that telecoms like Comcast Corporation (NASDAQ: CMCSA) are struggling to keep up as more and more customers opt to cut the cord and watch TV via streaming services.

Companies like Amazon.com, Inc. (NASDAQ: AMZN) and Netflix, Inc. (NASDAQ: NFLX) are typically touted as the biggest competition that telecoms are facing, but news that wireless provider T-Mobile US Inc (NYSE: TMUS) is moving to make streaming even more accessible suggests that there may be another firm lining up to take on the telecoms.

New Offering

T-Mobile recently revealed plans that will offer customers free wireless data for video for streaming services like Netflix and Hulu. The deal will be a blow to providers like Comcast that have been struggling to keep customers engaged in traditional cable, as it further supports the shift from paying for a bundled cable package to paying for a subscription-based streaming service.

Related Link: Wired: Cord-Cutting "Is Going To Suck" In 2016

Not only will T-Mobile's offering help customers do away with cable, but it may also cut down on the number of subscribers requiring an Internet connection as well.

A Boost For Subscription Services

T-Mobile's plan to offer customers free wireless data is a good thing for the subscription services themselves, as it further promotes their usage and gives people more of a reason to pay their monthly fees.

While T-Mobile's data wouldn't give people the same quality of Internet traditional providers could, it is a step toward wireless carriers' dominance in the market place. If the plans prove popular, other carriers may follow suit and further disrupt the telecom industry.

What's A Telecom To Do?

While traditional telecoms like Comcast still have the upper hand when it comes to browsing quality, they have noticed the shifting landscape and are trying to prepare. Comcast is reportedly planning to roll out its own mobile service in order to compete, though analysts are skeptical about whether such a service would be successful.

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