Cable giants Comcast and Charter Communications have reportedly agreed not to make any mergers or acquisitions of wireless companies without the other’s permission. The agreement — as outlined by The Wall Street Journal — is set to be formally announced on Monday, and will run for one year, during which time the companies will still theoretically be able to make joint bids for other companies.
Both Comcast and Charter have already announced plans to offer their own wireless services, with the former’s expected to launch this year, and the latter’s in 2018. This new agreement is designed to help both companies find out the best methods for entry into the market, The Wall Street Journal says, allowing both to share information, technology, and partnership details in a bid to keep prices down.
The agreement could also be a prelude to a joint purchase of a carrier such as Sprint or T-Mobile. Under the terms of the agreement, neither Comcast nor Charter could try to acquire a carrier without the other’s consent, but both firms could work together to make their way into what is already a crowded and competitive market.