This week, Comcast announced Xfinity Mobile, their long awaited mobile carrier. It’s running on Verizon’s network, which is due to their deal from a few years ago where Comcast licensed out some spectrum to Verizon, and in exchange Comcast got an MVNO deal that they could activate at any time. Now since it is an MVNO deal, it’s not exactly the same as competing with Verizon, since it’s using the same network. But analysts do believe that Comcast could challenge companies like Verizon and AT&T in the coming years, if they make the right moves.
The announcement of Xfinity Mobile is actually to reduce the churn of Comcast’s users. They have been losing customers while also gaining new ones, for quite a while. As more and more people opt to cut the cord either on Internet or on Cable TV. The idea with Xfinity Mobile is that it can be bundled with their other products, and be offered at a cheaper price. Xfinity Mobile will cost $65/month for unlimited and for customers on their X1 platform, it’ll be $45/month. Which is an easy way to keep customers, and gain a few new ones. While this may not bring in huge customer numbers right away, analysts believe that it could in the long run.
Let’s not forget that Comcast does have some spectrum, not to mention they have Xfinity Wi-Fi Hotspots all over the country as well, and their huge wireline network. So Comcast could build out their own network, and just use Verizon for the areas where they don’t have coverage. Of course, that will take time to build out, but it is a possibility, and could be why analysts see Comcast as being a major competitor in the next few years. Additionally, Comcast’s pricing is actually really competitive. At $45 per line per month, it undercuts Verizon and AT&T, but doesn’t really undercut Sprint and T-Mobile just yet, but it does come close. Comcast does also offer up metered pricing for those that don’t use a ton of data, and it would be cheaper than getting an unlimited plan. So needless to say, Comcast offers more options at a better price. So as long as they make the right choices, they could become a force to be reckoned with in wireless in the near future.
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