Advertisement
Canada markets open in 4 hours 20 minutes

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7314
    +0.0016 (+0.22%)
     

  • CRUDE OIL

    82.98
    +0.17 (+0.21%)
     

  • Bitcoin CAD

    87,641.70
    -3,189.69 (-3.51%)
     

  • CMC Crypto 200

    1,358.84
    -23.73 (-1.72%)
     

  • GOLD FUTURES

    2,339.50
    +1.10 (+0.05%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,495.25
    -169.25 (-0.96%)
     

  • VOLATILITY

    16.17
    +0.20 (+1.25%)
     

  • FTSE

    8,098.19
    +57.81 (+0.72%)
     

  • NIKKEI 225

    37,628.48
    -831.60 (-2.16%)
     

  • CAD/EUR

    0.6816
    -0.0003 (-0.04%)
     

Charter Communications (CHTR) Wireless Plans on Track

Zacks Equity Research
Updated

On Sep 23, we issued an updated research report on cable multi service operator (MSO) Charter Communications Inc. CHTR. The company announced plans to foray into the wireless service business next year, following the footsteps of rival Comcast Corporation CMCSA.

Wireless Plans

Charter Communications will utilize the Mobile Virtual Network Operator (MVNO) agreement that Time Warner Cable had signed with Verizon Communications Inc. VZ in 2012. Notably, Charter Communications acquired Time Warner Cable this year to form the second largest cable MSO in the U.S. after Comcast. The company plans to provide its wireless network services through the MVNO deal with Verizon. This process involves utilizing Verizon’s wireless network to provide mobile phone service in lieu of paying a lease. Additionally, Charter Communications intends to install Wi-Fi hotspots across cities to expand its network.

Ethernet Boom

Interestingly, the rapidly developing business services division has become a major growth driver for cable MSOs in the U.S. and Charter Communications has been targeting this space. Recently, it became the third largest player in the U.S. Ethernet market post its merger with Time Warner Cable and Brighthouse Networks. We believe cost synergies and takeover of fiber assets will help Charter Communications carve a formidable position for itself in the Ethernet space.

ADVERTISEMENT

Cautionary Note

Online video streaming service providers like Netflix Inc. NFLX and Hulu.com pose severe competitive threat to cable TV operators. Online video services provide extremely cheap source of TV content which is much in vogue, even amid volatile economic conditions. Moreover, the impending launch of AT&T Inc.’s over the top service – DIRECTV Now – will mount more pressure on Charter Communications.

CHARTER COMM-A Price

 

CHARTER COMM-A Price | CHARTER COMM-A Quote

Charter Communications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NETFLIX INC (NFLX): Free Stock Analysis Report
 
VERIZON COMM (VZ): Free Stock Analysis Report
 
COMCAST CORP A (CMCSA): Free Stock Analysis Report
 
CHARTER COMM-A (CHTR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research