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Comcast Getting Into the Wireless Mobile Business; Relies on Wi-Fi, Verizon Wireless

Phillip Dampier September 20, 2016 Comcast/Xfinity, Competition, Consumer News, Verizon, Wireless Broadband 1 Comment
(Image courtesy: FCC.com)

(Image courtesy: FCC.com)

Comcast is getting into the wireless mobile business.

Comcast CEO Brian Roberts made the surprise announcement at this morning’s Goldman Sachs Communacopia investor conference, telling attendees Comcast will offer service beginning in mid-2017.

Roberts added the service will depend heavily on Comcast’s installed base of 15 million Wi-Fi hotspots, mostly from cable modem/gateways already installed in customer homes. When away from a hotspot, Comcast’s cellular service will depend on Verizon Wireless.

The deal with Verizon Wireless was expected, because Comcast has maintained an agreement with Verizon since 2011 that allows both companies to sell each other’s services to consumers. The agreement allows Comcast to obtain service from Verizon Wireless at fixed wholesale prices.

That means Comcast can introduce its wireless service without having to build wireless infrastructure like cell towers.

“We believe there will be a big payback with reduced churn, more [customer] stickiness and better satisfaction,” Roberts said.

Comcast will continue the cable industry’s tradition of not directly competing with other cable operators and will not accept customers outside of an existing Comcast service area. Comcast will likely offer the service in a bundle with other services. This will result in a quad-play package for Comcast, bundling cable TV, internet, phone, and cellular service.

Roberts did not talk about pricing.

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Bryan Cummings
Bryan Cummings
7 years ago

So..In an era when the market is moving away from bundling, Comcast is doubling down on the practice?

File that under, what the heck is comcast’s board smoking?

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