Comcast (NASDAQ:CMCSA) and Charter Communications (NASDAQ:CHTR) have formed a 50/50 operating platform partnership focused on the development and design of backend systems to 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 its respective mobile brands, products and services. Through the agreement, Charter and Comcast will work together to develop a 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 its 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.
In other Comcast news, the company is providing the technology backbone for the new Xfinity CNET Smart Home in San Francisco. The 2,952-square-foot single-family home is intended to serve as the foundation for CNET's new "Guide to Smart Living" content, to teach consumers how to use technology to create a personalized and efficient lifestyle. CNET is an online source of consumer technology news and reviews.
"The concept of a smart home is about technologies working together for the consumer - video, mobile, WiFi, automation and security - and we are proud to work with CNET to have created a space that shows how different digital experiences can complement one another in a way that's simple and easy to use every day," said Todd Arata, senior vice president of brand marketing and communications, Comcast Cable.