Charter Offers Freebies To Win More Customers

Charter Offers Freebies To Win More Customers
  • Charter Communications, Inc CHTR offered a free wireless phone line to some new and existing customers as the fight between cable companies, and their telecom rivals gained momentum.
  • Wireless customers who purchase a new mobile line for $30 a month will get a second line for free
  • Charter already offered Spectrum One, a $50-a-month plan that includes internet access and one mobile line. 
  • Also Read: Wireless Carriers T-Mobile, Verizon, AT&T And Broadband-Internet Providers Comcast, Charter Compete For Customers
  • Charter lowered the cost of its mobile service to $30 a month from $45 as part of the promotion, Bloomberg reports.
  • The leading cable TV provider will tout the new pricing in a media campaign starting this week. 
  • Charter, whose broadband growth collapsed at the hands of wireless home internet and fiber services, hoped the low-cost wireless offer would help stem some of the customer losses it's seeing in its 41-state territory. 
  • The promotion coincided with Charter sending out notifications to broadband customers that they would see a $5 rate increase on their following bills. Those price increases apply to internet-only customers in most markets.
  • The report noted Charter and Comcast Corp CMCSA each added more than 300,000 mobile subscribers last quarter thanks to their wireless service.
  • Charter executives said on an earnings call that packaging mobile and broadband promotions like Spectrum One is a way to revive broadband growth.
  • "Spectrum One has the opportunity to drive incremental internet growth," said Chris Winfrey, chief operating officer, who will take over as CEO when Tom Rutledge steps down in December. 
  • The Spectrum One bundle will compete directly with T-Mobile US, Inc's TMUS $50 wireless home internet and mobile phone package.
  • In June, Verizon Communications Inc VZ cut the price of its entry-level broadband service to $25 a month for wireless customers on top-tier plans.
  • Telecom groups pushed European regulators to consider a price for the companies that send traffic along their networks to help fund mammoth upgrades to their infrastructure.
  • Price Action: CHTR shares closed lower by 0.17% at $367.62 on Monday.

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