Cox Launches Mobile Service in 19 US States to its 7 Million Subscribers - Counterpoint Research

• Cable subordinate contention successful the mobile work arena has accrued successful the US with Cox Communications announcing its Cox Mobile offering during CES 2023.
• Cox Mobile is launching nationwide to its 7 cardinal broadband subscribers successful 19 states with a by-the-Gig $15 program and an unlimited $45 program per line.
• Cox Mobile volition usage Verizon’s web arsenic an MVNO portion besides offloading to its 4 cardinal hotspots.
• Cable net-adds volition proceed to turn powerfully arsenic customers look to bundle and prevention money.

America’s third-largest cablegram net supplier Cox Communications announced its Cox Mobile work during CES 2023. The work volition tally connected Verizon’s web and beryllium disposable for its 7 cardinal broadband customers nationwide. Cox covers astir 7% of US households, parts of 19 states and Washington DC. Cox is pursuing the footsteps of different cablegram players, similar Comcast’s Xfinity Wireless, Charter’s Spectrum Mobile and Altice’s Optimum. June 2022 saw the motorboat of WOW! Mobile, which runs connected Reach Wireless.

Cable’s increasing mobile presence

Cable companies person steadily accrued their mobile subscriber penetration implicit the years. When looking astatine combined nett adds, they person captured the highest magnitude of postpaid net-adds successful Q3 2022, with 734,000 altogether betwixt Xfinity, Spectrum and Optimum. Postpaid carriers similar Verizon, AT&T and T-Mobile, portion initially not concerned, are present starting to wage person attraction to cablegram players arsenic they proceed to person beardown subscriber growth. This inclination is being boosted by the US’ existent socio-economic conditions, arsenic customers are trying to prevention wealth wherever they can. Cable players utilize a bundling attack for their mobile services by combining the deals with their net services. This provides outgo savings and less work providers to negociate each month.

Source: Verizon, T-Mobile, AT&T, Comcast, Charter, Altice net statements, Counterpoint Research interior data

Cox Mobile launches 2 work plans and Samsung instrumentality lineup

Cox Mobile is offering 2 plans, conscionable similar different cablegram providers. The archetypal program is simply a by-the-Gig program for $15 per month, portion the different is an unlimited offering for $45 per month. During a property event, Cox Mobile Assistant Vice President of Marketing Catherine Borda de Castro and Vice President Tony Krueck emphasized the unrestricted quality to power betwixt the 2 plans to connection the astir flexibility and savings possible. For a azygous line, erstwhile you comparison Verizon’s lowest 5G unlimited plan, “Welcome Unlimited”, astatine $65 per period (that is with car wage and paper-free billing), with Cox Mobile’s $45 per period unlimited plan, yearly savings magnitude to $240, making a precise compelling lawsuit for consumers looking to trim monthly work costs.

Source: Cox Mobile website

The existent mobile telephone offerings are limited, but Cox says it volition motorboat much flagship devices successful the coming months. Currently, Samsung is the lone marque being offered, with devices similar the A13 5G disposable for $199.99 ($50 off) and the S22 for $499.99 ($300 off) until January 31. The apt crushed for this is Cox’s request to person devices power seamlessly betwixt Wi-Fi and the cellular networks it supports, which whitethorn necessitate immoderate changes to existing instrumentality infrastructure and software. Another imaginable crushed is that smaller OEMs mightiness beryllium hesitant to articulation astatine the commencement arsenic the portion economics and ROI inactive request to beryllium proven retired for a institution that wants to interruption into the mobile space. Cox already tried to participate the marketplace successful 2011 but shuttered the efforts arsenic it recovered it was not capable to beryllium competitory wrong the marketplace backmost then.

Leveraging networks, betwixt CBRS and Wi-Fi calling

While Cox does clasp immoderate spectrum successful the CBRS space, it has not deployed oregon utilized the assets yet. Like Comcast, Cox could perchance statesman installing tiny cells successful cardinal metropolitan areas to offload postulation from Verizon’s network, which would prevention the caller MVNO millions implicit the agelong run, arsenic it wouldn’t request to wage to usage Verizon’s web for connectivity. Along the aforesaid lines, Cox volition usage its implicit 4 cardinal hotspots to offload postulation from Verizon’s network. Cox does not ain each these hotspots, alternatively it collaborates with different cablegram and net work providers including Optimum, Spectrum and Xfinity to execute nationwide coverage.

Before the nationalist launch, Cox Mobile was tested successful Hampton Roads, Virginia, Omaha, Nebraska and Las Vegas Nevada, with immoderate CBRS tract investigating done successful Las Vegas arsenic well. The results looked precise affirmative according to Cox and provided assurance to unfastened the work to its 7 cardinal customers successful 19 states. The existent mobile offering is lone disposable for consumers, though Cox Mobile does admit that concern subscriptions is different lever it is looking into.

Cox Mobile to spell large connected selling – Annie the sheep and Super Bowl

Cox promised to heavy statesman selling its offerings during large sporting events, specified arsenic upcoming NFL games and the Super Bowl. It showcased its selling campaign, which volition revolve astir Annie the sheep, not lone a practice of Cox Mobile’s marque and imaginativeness but besides an embodiment of its lawsuit basal and values.

Annie the sheep volition correspond @CoxComm arsenic it's mobile mascot, representing the brands values and lawsuit voice. @TheGEICOGecko ticker out! pic.twitter.com/bRXkvhbF3o

— Maurice Klaehne (@MKlaehne) January 5, 2023

What Cox Mobile means for mobile industry

Cable players volition apt proceed increasing their mobile subscriber base, particularly successful these recessionary conditions arsenic radical look for worth and outgo savings. This volition enactment further unit connected postpaid carriers, which person been bleeding subscribers to cablegram players implicit the past years. There is hesitancy successful the industry, particularly OEMs, to spell all-in connected partnerships with Cox Mobile, arsenic it is simply a caller marque with nary mobile lawsuit base. The US smartphone marketplace is already facing weakness owed to the economy, inventory glut, and COVID-19 closures of factories successful China. This makes further investments into caller markets challenging for galore OEMs.

Source: Comcast, Charter, Altice net statements, Counterpoint Research interior data

The archetypal quarters aft the motorboat volition beryllium the cardinal for Cox Mobile to statesman getting mobile subscribers and beryllium to the marketplace that further investments and collaborations volition beryllium fruitful successful the agelong run. Strong Q4 net announcements and net-adds from Comcast, Charter and Altice volition assistance Cox Mobile. It volition apt payment from a halo effect, arsenic Xfinity and Spectrum are showing bully mobile penetration already, astatine 15% of their subscriber base. Operating margins volition besides beryllium a cardinal origin to ticker since it volition uncover however good Cox tin utilize its wireless hotspots to offload cellular traffic. Look for Cox Mobile to travel akin playbooks of different cablegram players successful 2023, but with immoderate chiseled differentiation specified arsenic seamless complaint program switching and a cleverly thought-out selling campaign.