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The mobile phone market is growing exponentially and will continue to evolve for years to come. Why has the Cable Industry not moved into the lucrative mobile phone market? It could definitely be a revenue bonanza, as it currently is for telecom companies. See (The cable company will likely use WiMax to bring television shows to cell phones and smart phones.)
Verizon and AT&T’s revenues, as a percentage of stock price by division, attributes mobile phone service up to 40-42% of total revenues. This being a logical assumption as landline phone demand has forced incumbent Telco’s to rethink their business models to include cable, broadband, and cell phone. The mobile market has exploded with smart phone technology and related applications for consumers continually on the go while wanting the latest gadgets to keep up with friends, business, and news. Why has this not attracted at least, some interest from the major cable players like a Comcast, Time Warner Cable, Cox and others? See (TREFIS-Division as a % of Stock Price)
If you look at trending where the future of a Triple Play seems to be relegated to a future 2nd grade status behind the Quad Play, while seemingly logical that to compete in the telecommunications market for consumer dollars, a one-stop shopping model needs to be in place; one would think some indication of cable companies launching or acquiring mobile service would be on the immediate horizon.
Let’s think this through. The Telecom Industry saw the “writing on the wall” when landline phone service began to decline, and hence forth began to diversify into other markets such as mobile phones, broadband, and cable TV service. It is logical that their upside in both the mobile phone, broadband, and cable TV markets is solid. With cable operators now looking at a possible paradigm shift from traditional cable to other venues, would it not make good economics to put your business on the same playing field with competitors? It would seem logical to me. There is a definite upside in getting into the mobile market for incumbent MSO’s; as in “keeping up with the Joneses’”, or if you prefer, your close competitors. See (From Triple Play to Home Run: Why Your Cable Company Should Offer Cell phone Service)
The Cable Industry has positioned itself to offer a myriad of services within the cell-phone market to other providers, but unfortunately it does not include its own. However having a competitive cell-phone service is more true to a solid success. If businesses fail to see trends that will impact their bottom line, they are doomed to failure. That is why companies must always be looking for a competitive advantage or keep up with existing competitor offerings, while making the best decisions to affect stockholder equity in a positive manner. Yes, revenues and profits may be good in the short term, but a long term strategy is what really matters, and it seems this is too good of an opportunity not to indulge.