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Increasingly Competitive Market For New Mobile Service Of Comcast


Comcast is all set for its new mobile service and for the new challenges that this service and Comcast will face in the competitive market. The way for Comcast will not be so easy. Let’s check out what type competition will this new service have to face.

Finally, Comcast is ready to unveil its new mobile phone service but the market has shifted dramatically and gotten more intensively more competitive since the cable giant first got started with the offerings two years ago.

Comcast said recently in a meeting with financial analysts that it Is announcing the wireless service that will go along with its cable TV, internet, and phone bundles. For more information, you can take Comcast 24 7 support.

Based on what the executives of Comcast have said publicly, the analysts are not expecting the service to pose a significant threat to the four major wireless carriers immediately. The cable giant doesn’t own its own license of wireless airwave, so, the new service relies on a 2011 deal. Comcast struck to Verizon to lease cellular airwaves. Comcast first made its intentions public to offer wireless when it activated the Verizon agreement in October 2015.

Comcast may be augmenting its leased wireless coverage from Verizon with its extensive network of millions of wi-fi hotspots, creating a hybrid form of cellular and wi-fi phone service and that has not proved to be so effective and popular among user so far according to analysts. The emphasis of the company seems to be on bundling wireless service for its phone, Tv, and Internet service customers instead of on focusing on a standalone mobile pitch.

About 70% to 80% of Comcast’s 28 million customers bought the bundle of two or more services. This was explained by CEO Brian Roberts at an investors conference last year. He also said the company can sell more products with wireless. In January, the CEO was, even more, clearer and he said that the goal of the business is to have a better handling with some of the customers who want to save some their bill and get a world class product. He further said that the bundling reduces the defecting to other companies. If we will achieve that we will see economics really works and this is the goal.

A lot has changed in the wireless market over the years. Back at the end of 2011, Verizon and AT &T were solid, but smaller competitors Sprint and T-Mobile were losing customers. Lately, the smaller companies roar back to life as significant competitors.  At the same time, the revenue growth of the wireless service for the entire industry slowed to 2% last year from 6% in 2011.
The analysts say that cable company may find it economically difficult to keep up with the major carriers unlimited plans because Comcast has to pay Verizon for every gigabyte of data that will be consumed by its wireless customers.


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