PHILADELPHIA & STAMFORD, Conn.--(BUSINESS WIRE)--Comcast and Charter today announced that the two companies have formed a 50/50 operating platform partnership focused on the development and design of backend systems that support Comcast’s Xfinity Mobile and Charter’s Spectrum Mobile service.
The new partnership is the result of the continuing collaboration between Comcast and Charter in the mobile space, as each company continues to develop their respective mobile brands, products, and services. Through the agreement, Charter and Comcast will work together to cost-effectively develop an efficient and scalable software platform, and related backend systems, which will power each company’s mobile-related customer sales and support platforms, device logistics and warehousing, and billing. The operating platform developed by the partnership will serve as the systems interface for current and any future MVNO (mobile virtual network operator) partners.
Danny Bowman, Chief Mobile Officer for Charter, said, “Our new partnership will enable us to drive faster and more cost-effective mobile product and service enhancements and provide innovative and affordable mobile service to our customers. We are excited about the launch of Spectrum Mobile in the coming months.”
“We have built a best-in-class mobile platform for Xfinity Mobile that is resonating with customers,” said Sam Schwartz, Chief Business Development Officer for Comcast. “By collaborating with Charter, we will help drive operational and cost efficiencies for both companies.”
The partnership will leverage elements of the operating platform that Comcast initially developed for Xfinity Mobile, which Charter has modified for its upcoming mobile product and service platform launch. Charter will initially fund the joint venture to reflect certain development costs that Comcast has already made in mobile-related platforms and technology. Thereafter, the partners will equally fund the operations of the partnership.
Each company will continue to maintain their own relationships with device manufacturers. In addition, all customer-facing activities including customer service, marketing, sales, pricing and packaging will be handled individually by Charter and Comcast.
The partnership will be governed by a four-person board of directors, with two directors representing each of Comcast and Charter. The partnership will be based in Philadelphia and will utilize Comcast employees to support the development of the platform on behalf of both companies.
About Comcast
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is one of the nation’s largest video, high-speed internet, and phone providers to residential customers under the XFINITY brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the XFINITY brand. NBCUniversal operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts. Visit www.comcastcorporation.com for more information.
About Charter
Charter (NASDAQ: CHTR) is a leading broadband communications company and the second largest cable operator in the United States. Charter provides a full range of advanced broadband services, including Spectrum TVTM video entertainment programming, Spectrum InternetTM access, and Spectrum VoiceTM. Spectrum BusinessTM similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, business telephone, video and music entertainment services, and wireless backhaul. Charter's advertising sales and production services are sold under the Spectrum ReachTM brand. More information about Charter can be found at www.charter.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Charter and Comcast’s periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. Neither Charter nor Comcast undertakes any obligation to update any forward-looking statements.
