Charter Communications CEO Christopher Winfrey came out swinging against cable's fast-emerging fixed wireless access competition at a Morgan Stanley investor conference Wednesday, repeatedly calling the technology an “inferior product” and labeling it several times as “cellphone internet.”

“That’s what it is — cellphone internet,” Winfrey declared repeatedly, noting the cable industry “needs to do a better job of marketing” against its fast-rising wireless competitors. (You can access a replay of Winfrey's Morgan Stanley appearance here.)

"We need to articulate to the customer that the reason you're getting that incrementally low price point [on FWA] is because you're overpaying on your wireless line," he explained. 

Also read: Wireless Org Says Cable Lobbyists Are Trying To Block Allocation of 5G Spectrum To Stymie FWA

After launching their respective FWA platforms in 2021, T-Mobile and Verizon Communications have come to dominate customer additions for home internet service. 

“We’re in a lull right now from a net adds perspective,” Winfrey said, noting that consumers are moving less and that there's still a hangover from the massive uptake of high-speed internet service during the pandemic. 

And there’s new competition from FWA. 

“Any time you have a new competitor inside a marketplace, you're going to see disruption,” Winfrey said. 

Meanwhile, the Charter CEO was also asked about the so-called Spulu joint streaming venture announced recently by Disney, Fox and Warner Bros. Discovery. 

“We don't have a lot of the details, and I'm not sure the deal is final, but whether it’s 60% or 65% of sports content, I'm not sure it scratches the itch of the sports fanatic,” Winfrey said. 

In any case, he added: “You have three of the largest programmers who have decided that genre-based packaging is the way to go. I agree with that. We've been saying that for several decades. And when you step back, it's an admission from programmers that that’s the way to go … And I fully expect that we’ll have the ability to distribute content in the same way.”  

Ask any cable executive you happen to see about the threat of fixed wireless access to cable’s wireline broadband dominance, and you'll likely get some lame dismissal of how wireless network capacity isn't “sustainable” as FWA services scale. 

While speaking during AT&T’s Q3 earnings call Thursday, company CEO John Stankey engaged in the wireless industry’s cliched mirror response when asked how nascent mobile services launched over the last several years by cable companies factored into a 42.9% year-over-year slowing for AT&T postpaid wireless customer growth. 

“I've said before, I don’t think it's a sustainable strategy to be the low cost or price leader in a market when you're on a variable cost structure," Stankey said, referring to cable mobile’s reliance on “MVNO” arrangements to piggyback on wireless networks including Verizon's. (Seeking Alpha has AT&T's complete Q3 earnings transcript here.)

Stankey's narrative, however, bumps up against claims made by Christopher Winfrey earlier this week at SCTE Cable-Tec Expo in Denver. The Charter Communications CEO said that 87% of Spectrum Mobile traffic is now being transacted over Charter’s own converged wireless network. 

“There’s a misconception, even amongst the largest mobile network operators, that what we have is just a simple reseller agreement to compete on price,” Winfrey said. “We have a Wi-Fi mobile network, and we’ll have CBRS, so we’re the largest provider of mobile bits.”

As fate would have it, as Winfrey made his remarks during an Expo opening session, Ookla revealed that T-Mobile’s 5G FWA speeds accelerated to 227 megabits per second in Q3, even with the platform adding half a million new customers a quarter. 

Charter Communications CEO Chris Winfrey told equity analysts Friday that the cable operator will make the fruit of its TVOS joint venture with Comcast, Xumo, its "go-to-market platform for new video sales." 

The voice-enabled Xumo video operating system is rooted in Comcast's X1 platform. Earlier in July, the JV started rolling out 55- and 65-inch Xumo-powered smart TVs in retail locations including Meijer. 

Charter said it will begin deploying its own Xumo streaming devices in "late 2023." 

Also Read: Charter Second-Quarter Net Falls as 189,000 Subscribers Cut the Cord

Charter lost only 189,000 linear pay TV customers in the second quarter, a rate far below peers including Comcast, which bled 543,000 traditional pay TV souls over the same period. 

“We’re losing the least amount of video customers of any of our peers and competitors,” Winfrey declared. 

Still, with 14.1 million residential customers remaining in what he called a "devalued" linear pay TV market, Winfrey conceded that Charter is close to "indifference" in regards to chasing down more traditional TV subscribers in a cord-cutting era. 

Also Read: Charter Set to Surpass Comcast as the Biggest Remaining Linear Pay TV Supplier in America

Xumo will allow Charter to continue to offer bundled video options in an app-based format, sans pay TV set-top and truck rolls, existing side-by-side with third-party services including Netflix and Disney Plus. 

This will fit into a new more flexible video strategy for Charter and its Spectrum TV products, enabling the cable company to offer smaller, lower cost video options to customers.

Earlier in July, for example, Charter announced that it would end the practice of forcing base-tier pay TV customers to take pricey regional sports networks if they didn't want to pay for them. 

Charter Communications said Wednesday that it has named Christopher Winfrey president and CEO and that current chairman and CEO Tom Rutledge will become executive chairman effective December 1, ending a 10-year run as the chief architect of the cable giant’s strategy.

Rutledge joined Charter in 2012, after serving as chief operating officer of Cablevision Systems for about 10 years, and led the company through its biggest period of growth, engineering the 2016 purchase of Time Warner Cable that vaulted Charter into the No. 2 spot among cable operators in the country.  Rutledge will serve as Charter’s executive chairman and serve on its board of directors through 2023, where he will maintain oversight of government affairs and help with a smooth transition. He then plans to retire after a 50-year career in the cable industry. 

“It has been an honor and a pleasure to lead Charter and this incredible team over the past 10 years,” Rutledge said in a press release. “We have grown the company through innovation and strategic investments and have positioned Charter to provide the best-converged connectivity products and services available today. During my 50 years in this industry, I have witnessed first-hand its ability to continually evolve and change the world, and our opportunity today is greater than ever with ubiquitous connectivity being central to everything we do.”

Also: SCTE Cable-Tec Expo: Talent Gap Depends on What You’re Doing, Cable Chiefs Say

Rutledge can trace his cable roots back to 1972, when he served as a technician for Eastern Telecom while still attending college. His first permanent job in the industry came in 1977, when he joined American Television and Communications (ATC), a predecessor of Time Warner Cable, as a manager trainee. He eventually became president of Time Warner Cable, and in 2002 left to head up operations for Cablevision, joining Charter a decade later and steering it to its greatest period of growth. Under Rutledge’s watch, Charter’s annual revenue rose more than 600% while its customer base has increased 500%. Rutledge also oversaw the launch of the Spectrum brand, the company’s forays into mobile and 1-gigabit per second broadband. Today Charter has more than 32 million customer relationships, second only to Comcast. 

“When Tom was chosen to lead Charter in 2012, his reputation as a skilled operator was second to none, but we never anticipated the new heights to which he would take this company,” Charter’s lead independent director, Eric Zinterhofer, said in a press release. “He redefined and exceeded every measure of success, establishing Charter as a best-in-class U.S. connectivity provider. He grew the company both organically and through transformative acquisitions, which included Time Warner Cable, Bright House Networks and Optimum West (Bresnan). In addition, Tom has skillfully developed the next generation of leaders at Charter, including Chris. We are pleased Tom will continue to serve Charter and its shareholders as Executive Chairman of the Company and its Board in 2023.” 

Winfrey “has consistently demonstrated significant leadership and delivered an impressive track record of successes. He earned the respect and trust of his colleagues, the industry, the financial community and this Board,” Zinterhofer added. 

Winfrey joined Charter in 2010 as chief financial officer and was named chief operating officer in 2021. He has nearly 25 years of experience in the cable business, and before Charter served as managing director for cable operations, broadcasting and satellite entities at Unitymedia GmbH, Germany's second-largest cable operator. Earlier in his career, he served as senior VP, corporate finance and development at Cablecom GmbH, and was previously a director of financial planning and analysis and director of operations services of NTL’s Continental Europe operations, and a senior associate in the private equity group at Communications Equity Associates. 

“Chris’s leadership and expertise in both operations and finance have been pivotal to Charter’s growth and success,” Rutledge said in a press release. “He has repeatedly demonstrated innate strategic insight and keen market and industry awareness to drive an organization to perform at the highest level. Having worked closely with Chris for more than 10 years, he is the right choice to be our next CEO and will serve Charter’s customers, employees and shareholders with integrity and skill, leading the company to new and extraordinary heights.” 

Also: Texas Judge Cuts Charter Damages Bill to $1.15 Billion in Case of Customer Murdered by Installer

Currently, Winfrey is leading Charter’s rural construction initiative including its $5 billion investment associated with the Rural Digital Opportunity Fund (RDOF), making gigabit broadband connectivity available to more than 1 million currently unserved locations. He also will lead the company’s path to a fully converged broadband offering with symmetrical and multi-gigabit speeds across its entire network. As CFO, he spearheaded Charter’s transformative M&A activity, played an integral role in the Time Warner Cable and Bright House Networks integrations and managed Charter’s financial activities through a period of significant growth. 

“I am grateful to Tom and the Board for entrusting me with this appointment and the incredible opportunity to lead this top-flight management team and company,” Winfrey said in the press release. “I am deeply committed to Charter’s success and will continue our track record of delivering the best connectivity products and service to our customers, investing in the careers of our employees and building long-term value for shareholders.” ■

Charter Communications said it has promoted long-time chief operating officer John Bickham to vice chairman, ahead of his previously announced retirement at the end of 2022, and said it will move chief financial officer Christopher Winfrey to COO, and EVP of finance Jessica Fischer to CFO. In addition, chief product and technology officer Rich DiGeronimo will add oversight of Charter’s Network Operations to his responsibilities. The changes are effective immediately, with each executive reporting to chairman and CEO Tom Rutledge. 

Other Charter executives — senior EVP David Ellen; EVP government affairs Catherine Bohigian, and EVP, general counsel and corporate secretary Rick Dykhouse — will also continue to report to Rutledge. 

Bickham, a 35-year veteran of the cable industry, joined Charter in 2012 from Cablevision Systems (now Altice USA) where he worked with Rutledge. Rutledge had been COO of Cablevision and was named Charter CEO in December 2011. The two had also been colleagues at Time Warner Cable. In February, Bickham said he planned to retire at the end of next year. 

“I have worked with John for three decades and at every turn, his knowledge, leadership and steady hand have not only contributed greatly to the success of the companies we led, but made a profound impact on the growth of our industry,” Rutledge said in a press release. “I am grateful that John will continue to serve Charter in this new capacity as a strategic advisor to me and the executive team, and his guidance will help ensure a successful transition for Chris into the COO role.”

Winfrey joined Charter as CFO in 2010 from German cable operator Unitymedia GmbH.  As COO he will oversee all of Charter's cable operations across its 41-state footprint, including field and customer operations, and retain management of marketing, sales, and Spectrum Enterprise. 

“Over the past 11 years Chris’ influence on Charter has expanded far beyond that of a typical CFO; he has been actively involved in our business operations and that deep knowledge, combined with his previous operational experience in Europe, will serve us well as Charter’s next chief operating officer,” Rutledge said in the press release. 

Fischer joined Charter in 2017 as a group vice president, and was promoted to EVP of finance in February.  As CFO, she adds oversight of Charter’s accounting, reporting and corporate budgeting and planning functions to her current responsibilities leading procurement, investor relations, internal audit, treasury, acquisitions and capital market activities and the tax and risk management functions. 

“Jessica’s leadership and financial expertise has benefited Charter for many years, both in her roles at Charter and while at EY where she was a key advisor during our 2016 transactions,” Rutledge said in the release. “In this role, Jessica will have an even greater impact on Charter’s success as we continue to seize the many opportunities before us.” 

DiGeronimo adds oversight for network and software operations to his current responsibilities as chief product and technology officer. He joined Charter in 2008 as vice president of product management and most recently added responsibility for Spectrum Reach, Charter’s advertising sales business, to his current position. Prior to Charter, DiGeronimo served as VP and general manager of the Cable Markets Group at Level 3 Communications. 

“With the expanded responsibility of Network Operations, Rich will both shape the customer experience and lead our network's critical evolution into the 10G future, delivering to our customers a superior broadband connectivity experience,” Rutledge said in the press release.  

Charter Communications Chairman and CEO Tom Rutledge picked up where his CFO, Chris Winfrey, left off last week, explaining to CNBC Thursday why 5G isn’t an existential threat to cable’s connectivity business.

“We have a better platform to deploy [5G] technology, I think, than the cellular industry does because we are fully distributed from a high-capacity wireline perspective,” said Rutledge, who was making public-speaking rounds while appearing at the Goldman Sachs Communicopia Broker’s Conference.

Related: Charter’s Winfrey: 5G ‘Not Comparable’ to DOCSIS 3.1

“If you think about what 5G is, it is small cells,” Rutledge added. “Small cells mean you needs lots of wired line connectivity to make the small cells work. We think we are actually in a better position to do that than traditional cellular companies. Yes, 5G can be used to compete against us. It is very capital intensive. It requires essentially a wireline network like Fios to support the small cells.

“If you look at [Verizon’s] forecast, they will build 30 million homes over a 10-year period,” Rutledge noted. “Ten years from now, there will be 140 million homes in the United States. They will have 20% of the homes. Our footprint would represent 8% of the homes.”

In 10 years, the Charter executive predicted, the cable company will have widely deployed 10 Gbps symmetrical internet service.

Rutledge’s comments extrapolated on those made at another investment bank conference last week by Winfrey, who said, “I don’t see anything about 5G that ever makes it comparable to DOCSIS 3.1 or DOCSIS 3.1 Full Duplex, or any capability we have through fixed line service.”

The competitive positioning by the No. 2 cable operator comes as the wireless industry this week made 5G the front-and-center topic at its big Mobile World Conference Americas trade show in Los Angeles.

Verizon has announced that it will launch its 5G fixed wireless service in four cities on October 1, challenging Comcast and Charter in metropolitan areas including Los Angeles, Houston, Indianapolis and Sacramento/Stockton.

Verizon is promising peak speeds of 1 Gbps, but users will average only around 300 Gbps. 

Charter Communications CFO Chris Winfrey is not in the camp that suggests that upcoming fixed 5G services from wireless operators represent an “existential threat” to the cable industry.

“I don’t see anything about 5G that ever makes it comparable to DOCSIS 3.1 or DOCSIS 3.1 Full Duplex, or any capability we have through fixed line service,” Winfrey said, speaking at the Bank of America Merrill Lynch Media, Communications & Entertainment Conference Thursday.

“When I look at 5G and what it takes to deliver 5G, when it finally becomes real … we have it,” Winfrey added, noting that cable companies have vital infrastructure that wireless operators will need to fully deploy the technology.

In order for 5G to work, he added, "you have to be relatively close to the home with fiber, and you need to have power. And to replicate that without cable infrastructure, you really need to be a cable over-builder…I don’t see any rationale for someone to do that.”

Speaking on a wide variety of subjects, Winfrey said the summer launch of Charter’s new mobile service, Spectrum Mobile, was really just a soft launch.

“The marketing machine didn’t get turned on until Tuesday,” he said, noting that the bulk of activations in the third quarter will have come after Labor Day, when the wireless service finally got deployed across Charter's footprint.

Winfrey reiterated Charter’s position that mobile, first and foremost, fills the role of helping Charter more effectively bundle and sell fixed-line broadband services. “We think it’ll result in more internet and more connectivity going into the home,” he said.

Winfrey conceded Charter’s desire for “core control” of its MVNO deal with Verizon, which is the foundation of Spectrum Mobile. But he said that 80% of the traffic for the service occurs over Wi-Fi. Over time, he explained, a portion of the 20% of traffic that is handled by leasing network services from Charter will be handled by services enabled through licensed and unlicensed spectrum.

Meanwhile, while also addressing the topic of video, Winfrey also described an existential theme that relates to connectivity.

“Video does matter to what we do in internet and mobile and overall package of connectivity services,” he said. “It doesn’t really matter if we lose or grow video subscribers. I can’t name one mobile operator not trying to get into the video space.”