Can Xfinity Mobile Move the Needle for Comcast?
If the wide-moat company gains any significant traction, expect the four major carriers to improve the relative attractiveness of their offerings.
While the company was vague about a potential launch date, management did provide significant details around the network, pricing, phone availability, and marketing for its new service. Xfinity Mobile will operate on Verizon’s network as a byproduct of the sale of AWS spectrum by Comcast and other cable firms to Verizon in 2012. Comcast claims to be receiving favorable pricing on data from Verizon which will make the service profitable even at low subscriber levels. The service will also aggressively use the firm’s 16 million Wi-Fi hotspots to offload data usage, and the phone will switch over to Wi-Fi with no user input. Unlike the four major wireless carriers, Xfinity Mobile will not zero rate data from its own video services or any other service.
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