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Cable's Wireless Play Faces Pricing, Quality Hurdles, Macquarie Analyst Says

Consumers generally don't seem interested in wireless offerings from cable operators, Macquarie analyst Amy Yong wrote investors Sunday. Citing a proprietary Macquarie survey of 100 consumers, Yong said 66 expressed disinterest in such an offering. A wireless acquisition is inevitable, she said, with likely scenarios being Verizon/Charter Communications or some T-Mobile combination with cable. Seventy-three percent of those surveyed said the most they would spend for a Comcast- or Charter-branded service was less than their current wireless bill, with 72 percent naming savings as the biggest persuader that could get them to switch from a current provider. Given the Sprint and T-Mobile price wars, Macquarie said, "We believe the barriers to entry remain high for new players." Half said the biggest hurdle to switching to a Comcast- or Charter-branded service is perception of network quality, Macquarie said, calling the Verizon mobile virtual network operator agreements "somewhat of a Catch-22: on the one hand, it will alleviate fears of network quality, but on the other, it would enable a competitor."