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.

Securities In This Article
Comcast Corp Class A
(CMCSA)

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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About the Author

Neil Macker, CFA

Senior Equity Analyst
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Neil Macker, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers media/entertainment and video game publishers.

Before joining Morningstar in 2014, Macker was a senior equity research associate for FBR & Co., where he covered the telecommunications services sector. Previously, he was an associate equity analyst for R.W. Baird and completed the summer associate rotational program at UBS Investment Bank. Before attending business school, Macker held analytical roles at Corporate Executive Board and Nextel.

Macker holds a bachelor’s degree from Carleton College, where he graduated cum laude, and a master’s degree in business administration from The Wharton School of the University of Pennsylvania. He also holds the Chartered Financial Analyst® designation.

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