U.S. cable operator Altice USA and Sprint Corp. announced a MVNO deal on Sunday. The deal will allow the cable operator to sell mobile service on wireless carrier using Sprint’s network.
Under terms of the agreement, Sprint will use Altice’s broadband infrastructure to provide mobile voice and data services to customers, strengthening its nationwide wireless network. The Sprint will transmit cellular data and develop 5G services. Talks between Sprint’s majority owners, SoftBank Group Corp., to merge the carrier with T-Mobile US Inc. ended over the weekend after months of debates.
The agreement between Altice and Sprint points the latest cable operator who has entered the wireless business to compete with giants. Both Comcast and Charter have entered to compete with giants like Verizon Communications Inc. and AT&T Inc.
Comcast Corp., the nation’s largest cable operator, started mixing an MVNO arrangement with Verizon through their own Wi-Fi networks. The No. 2 cable operator, named Charter Communications Inc., is preparing to enter the wireless business next year.
Altice isn’t new to the wireless industry, it has 4.9 million customers. It also offers cellular service in some countries, including Israel, France, and Portugal.
For now, it is not clear that when the company will enter the wireless market, according to a company spokeswoman.
The company will assemble the unit through $26 billion in purchase Cablevision Systems and Suddenlink. And it is also planning to double its U.S. cable occupancy in the next five years.