May 8 (UPI) -- Comcast Corp. and Charter Communications Inc. will announce a wireless partnership on Monday, a source close to the negotiations said.
The companies, the two leading cable providers in the United States, will share information about wireless phone services each intends to roll out in their respective markets, and will negotiate together with suppliers.
As part of the arrangement, Comcast and Charter will not acquire any wireless company for one year; it would delay the rumored purchase of Verizon by Charter, and accelerate speculation the two companies, together, could move to purchase wireless companies like T-Mobile or Sprint Corp., The Wall Street Journal reported Monday.
Charter and Comcast will retain separate businesses, including storefronts for customers, and mobile plans.
The agreement comes as wireless carriers are involved in a price war and cable companies face a saturated pay-television business, as well as cord-cutting customers and the availability of programming on other platforms. Cable companies such as Charter and Comcast view a move into wireless carriers as a way of creating new products, and hope a bundle of cable television, home Internet, landline telephone and wireless service will be attractive to customers.
The new agreement will also offer Charter more opportunity to integrate Time Warner Cable, which Charter purchased in 2016, into the company, Deadline reported Monday.