If you’ve been following the announcement of the latest Charter Spectrum deal, you’ll probably be wondering what the deal is all about.
It’s a $15.5 billion deal to buy up to 20 percent of the popular cable and satellite TV provider’s business, according to a Bloomberg report.
While the exact terms of the deal haven’t been released, it will include Comcast, Charter’s cable and digital TV division.
The deal, which Charter says will save the company $1.2 billion a year, is expected to close by the end of 2019.
While Charter will likely still retain control of its cable TV and broadband businesses, the deal will allow the cable company to offer customers a wide range of services in addition to cable TV.
Charter’s TV service is currently the third-most popular internet service in the US behind Netflix and Hulu.
While Charter has historically been a relatively small player in the internet space, with a market share of just 5 percent in 2014, the company has taken a lot of heat for a number of reasons.
Charter was recently caught in a class-action lawsuit alleging that the company unfairly discriminates against minorities in its internet service.
In 2018, Charter was accused of violating the Fair Housing Act by offering its customers “subprime” internet service with an average speed of 50Mbps and with no caps or throttling.
The FCC is currently investigating the matter.
In an interview with Bloomberg, Charter CEO Tom Rutledge said that the deal with Comcast will “open up an entirely new class of opportunity for Charter to compete with other ISPs, particularly in the area of broadband.”
In the meantime, Charter is offering customers a variety of deals, including a new tier of its internet called “Ultra Internet” that will offer speeds of up to 1Gbps and “a faster, higher-speed Internet service with no cap or throttles.”
Charter also said that it’s in discussions with other US cable companies for an “Ultra-Ultra” service that will be available in “major metropolitan areas.”
Charter also announced plans to expand its mobile broadband offering with plans to offer “the first national mobile broadband service,” which is said to be faster than what most US internet users can get.