Indie cable ops prep to launch mobile via NCTC pact

MINNEAPOLIS – THE INDEPENDENT SHOW – TVS Cable and Allo Communications, two "early adopters" of a deal that enables hundreds of independent cable operators and telcos to enter the mobile fray, are preparing to add mobile to the broadband bundle in the weeks and months to come.

Confirmation of their launch plans – linked to the National Content & Technology Cooperative's (NCTC's) agreements with AT&T and Reach – was discussed in some detail here this week at an annual event dedicated to hundreds of US operators that have access to programming and tech deals forged by the co-op on their behalf.

Allo, a company that has built and is overbuilding fiber networks in parts of states such as Nebraska, Colorado and Arizona, views mobile as a service that can be used to differentiate and help it hit the high service penetration numbers it's targeting for its residential, small business, enterprise and government-focused service businesses.

Building the new bundle

"You can't get there without a full product suite," Brad Moline, president and CEO of Allo, said here at a panel focused on how some operators are looking to execute on the NCTC's new mobile offering that's now available to more than 700 members.

TVS, a family-owned broadband company based in Kentucky, also believes it will need a mobile option to stay competitive.

David Thacker, TVS Cable's general manager, said it's expected that his company's rivals will eventually seek to bring mobile to the bundle. "We really want to beat them to the punch on it," he said.

And it's also clear that broadband with mobile is clearly becoming the bundle of choice among customers, Thacker added.

It also fits a wider trend. Speaking on a separate panel here, Parks Associates President and Chief Marketing Officer Elizabeth Parks cited research that the use of home Internet/mobile bundles have grown about 8% in the past five years, covering some 20 million households, and that such bundles are boosting operator net promoter scores.

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(Source: Parks Associates. Used with permission)

Timing-wise, Allo expects to start off with employees in early September and August for a period of 30 to 45 days before opening up access to mobile to other customers. During this time, Allo will analyze and verify AT&T's coverage maps.

Speaking on a separate panel about the NCTC agreement, Suzanne Hellwig, associate VP of partnerships and 5G ecosystems at AT&T, said her company is willing to work with NCTC members on filling coverage gaps. AT&T, she said, is committed to do a "deep dive" on coverage and add cell sites, if needed.

"It's going to be a fun ride; it's not going to be without its challenges," Moline said. "There is no 'easy button,' but hopefully we can take on those challenges so that others don't have to that are waiting a bit longer [to launch mobile]."

Both TVS Cable and Allo will largely rely on digital storefronts – in tandem with Reach – to sell mobile services. But they also realize that their customer reps and employees based at physical locations will need to be able to be trained about the offering and to be in position to direct customers on how to get mobile services from them.

Though Reach's platform will be used for microsites that sell and market the operator's mobile service, the operator's branding will be front and center. "It looks, feels and acts like TVS or Allo," Jared Baumann, VP of innovation and technology at NCTC, said.

Baumann said the vast majority of co-op members are taking the digital route, recalling that of the 150 members he's been in contact with about mobile, just one intends to put much focus on physical stores to sell mobile. He noted that the NCTC is also working with a third party that already works with more than 30 carriers to help NCTC members offer customers a range of "high-end" cellular accessories.

Start simple

Both operators have yet to announce pricing, but said they intend to offer both unlimited and by-the-gig options. TVS Cable, for example, intends to sell a 3-Gigabyte package that allows customers to add data incrementally, or go with a couple of unlimited options.

Allo will offer something similar, focusing initially on "very simplistic" packages and a "me-too" approach, Moline explained. "We'll naturally gravitate it to some bundling," he added.

Speaking earlier in the week here, NCTC CEO Lou Borrelli said the agreement puts co-op members in position to offer mobile profitably.

"Our deal has no loss leaders in terms of market plans. The market standard outside of promotional pricing ... is $30 per line," Borrelli said. "At $30 per line, anybody in this room can offer service and you will make money. There are no negative margins in our plans."

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— Jeff Baumgartner, Senior Editor, Light Reading