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Your Cable Company Wants You to Cut the Cord and Why They Will Regret It!

In a recent investor conference call, the CEO of Charter was asked about his thoughts on the growth of cable based customers. His response was not what you would expect from a company built on cable TV subscriptions. He stated that he was indifferent and that they were not a material driver of the business anymore.

Comcasts CFO made the statement that their ideal customer "Really values video and our bundle despite the increases in prices,” and has “the wallet for a fuller video experience.” Basically saying they only want customers who pay for their top tier cable packages and who don't care about 40% bill increases. Wow!

Cable subscriptions have become a much smaller share of cable companies business models and profits over the past few years. The one product that they are now selling more and more of is internet packages. Even if you cut the cord you still need the internet to stream content and to use the internet in general. So they kind of know that you have to buy something from them and Internet actual costs them less to provide then a cable package. So it's more profitable for them and they don't foresee too many internet cord cutters anytime soon.

Sounds pretty bleak huh? Even if you cut the cord you still have to pay the same company for internet, and as you have most likely seen the prices are not going down.

But there may be heavenly savior floating around in the air waiting to save us from this monopoly! 5G wireless from your cell phone company. You are probably familiar with 4G wireless from your cell phone provider. It is the technology that gives you mobile data on your phone. 5G is the next generation of wireless mobile data, and it is FAST! How fast? Some cell phone company employees have run speed tests and getting speeds over 700Mbps. Probably faster than your home internet.

Now cell phone providers have not been all of our best friends when it comes to contracts and prices, but here me out. Although 5G wireless data will make for a better mobile data for their customers, companies like Verizon and AT&T aren't building out million dollar network upgrades so you can play Candy Crush without any lag. They are investing millions of dollars so that they can be an option for your home internet. If your cell phone gets a decent signal at your house, then your cell phone company has a cell phone tower near you. If they upgrade that tower to 5G, they will be able to provide solid internet speeds to your house. 

If you choose to get 5G internet from them, they will simply need to plug in a 5G based Wifi router in your house and you are good to go. No wires to install. Just plug and play.

While you may be jumping from one money hungry conglomerate to another. At first these cell phone companies will need to offer aggressive pricing in order to motivate people to jump ship. This will most likely last for a few years and then the prices will start to increase. However unlike traditional cable and internet providers, there will be much more competition. For 90% of Americans, they only have one company to choose from in their area for internet. However multiple cell phone carriers all serve many areas. This is because they share cell phone towers.

So if you are in an area where you can receive mobile data from Verizon, AT&T, Sprint and T-Mobile. You will have the option to choose 5G home internet from any of them. So hopefully the stiff competition will keep the prices from being jacked up on your each and every year.

Fingers Crossed!