Cable Giants Deploy Proprietary Infrastructure to Cut Verizon Network Costs

2026-01-15 companies

Philadelphia, Wednesday, 14 January 2026.
Charter and Comcast are reshaping the wireless landscape by deploying $922 million in CBRS spectrum to decrease operational reliance on Verizon. This strategic pivot targets the “3% geometry” of wireless usage, where a mere 3% of geographic coverage accounts for 60% of mobile traffic. By utilizing “strand-mounted” small cells attached to existing cable lines, these operators have achieved an 8-to-1 cost advantage over traditional tower deployments, dropping unit costs to approximately $2,500. As of early 2026, Charter has successfully offloaded 88% of its mobile traffic to owned infrastructure, reducing its dependence on Verizon’s macro towers by nearly 20%. This infrastructure push not only aims to meet the FCC’s 2030 buildout deadline but fundamentally transforms the economics of the MVNO model by capping variable wholesale costs.

Leveraging the “3% Geometry”

The core of this infrastructure pivot lies in what industry analysts call the “3% geometry” of wireless traffic. Comcast CEO Brian Roberts has noted that a mere 3% of the company’s geographic footprint generates 60% of its mobile traffic [2][3][6]. This usage concentration allows cable operators to engage in what has been described as “network jiu-jitsu,” turning their existing wired infrastructure into a competitive weapon against traditional carriers [3][6]. By focusing deployment solely on these high-density zones, Charter and Comcast can offload the majority of their data traffic onto proprietary networks while leaving the capital-intensive, low-return task of nationwide rural coverage to Verizon [1][3]. This approach addresses the fundamental flaw of the Mobile Virtual Network Operator (MVNO) model, where every gigabyte consumed historically represented a variable cost paid to a host carrier, effectively creating a ceiling on profitability [6].

Strand-Mounted Economics

To execute this strategy, the companies have collectively invested $922 million in Citizens Broadband Radio Service (CBRS) spectrum [1][2][3]. The technical rollout relies on “strand-mounted” small cells—compact wireless radios that attach directly to existing aerial cable lines [2][6]. Charter has deployed Nokia AirScale Kolibri units, which weigh approximately 6.8 kilograms and draw between 50 and 80 watts of power, while Comcast has commenced its rollout in Philadelphia utilizing Samsung equipment [1][2]. The economic advantages of this form factor are stark. While a traditional macro tower deployment can cost between $20,000 and $50,000, the cable operators are deploying these strand-mounted units for approximately $2,500 each [2][6]. This represents an 8-to-1 cost advantage, enabling a level of network densification that traditional carriers struggle to match on a per-subscriber basis [6].

Strategic Divergence and Financial Incentives

While both companies share the goal of reducing wholesale payments, their tactical approaches diverged over the last year. Charter pursued a growth-first strategy, targeting 23 markets for CBRS deployment by the end of 2025 to demonstrate service across 106 licensed counties [1][2][6]. The financial incentive for this aggression is significant; achieving a 30% traffic offload target is projected to generate roughly $530 million in annual wholesale savings for the company [6]. Conversely, Comcast has adopted a profitability-first approach, focusing its buildout strictly on high-return-on-investment (ROI) markets where it holds maximum spectrum capacity [6]. This discipline aligns with Comcast’s broader financial performance; in 2024, the company reported a net income of $16.2 billion on $124 billion in revenue, maintaining a focus on growing profitability despite a challenging stock performance the previous year [4].

Racing the 2030 Regulatory Clock

Beyond immediate cost savings, this infrastructure expansion is driven by a hard regulatory deadline. The Federal Communications Commission (FCC) requires that CBRS license holders actively use their spectrum by 2030 or face forfeiture [1][2]. To retain their licenses, Charter and Comcast must cover at least 30% of the population in their respective licensed areas by that date [2][6]. This requirement prevents spectrum warehousing and forces the operators to transform from virtual operators into physical infrastructure owners. For Charter, this involves covering major metropolitan areas within its 106 licensed counties, including Los Angeles and Dallas [2]. Comcast faces a broader compliance challenge, with a footprint spanning 200 counties, necessitating a sustained deployment pace over the next four years to secure its long-term wireless independence [2].

Sources

Telecommunications Wireless