Comcast unveils mobile phone service as customers turn away from cable
Comcast customers can now stream video anytime, anywhere, if they sign up for mobile service through the internet and cable provider.
Dubbed Xfinity Mobile, the venture marks Comcast鈥檚 first foray into cellphone service, a market already crowded with established providers fighting for customers. The move, which the cable giant announced Thursday, comes as more customers opt out of traditional cable packages in favor of streaming services such as Netflix or Hulu, and increasingly use mobile devices on the go rather than TVs to get their daily news and entertainment fix.
"We鈥檙e doing mobile differently by bringing our customers the best networks and a product designed to in an increasingly data-driven world," Greg Butz, president of Comcast Mobile, said in a statement. "Mobility is more important than ever to consumers, so we鈥檝e designed Xfinity Mobile the way mobile should be 鈥� a simple solution for internet and entertainment in and out of the home."
The service is expected to launch after undergoing additional testing among Comcast employees.
Comcast isn鈥檛 the first company to consider such a shift. Disney has begun to consider future efforts in streaming, and Twitter has capitalized by streaming high profile events such as the presidential debates or football games, drawing viewers to its service rather than cable channels.
The company is entering the game at a time when customers have already won in a sense. Price wars have forced networks to drop overage fees for data used while streaming, and Comcast鈥檚 low-billed plans will provide further competition to carriers such as Verizon and AT&T.
But the perk of Comcast鈥檚 plan is likely its low price. The Philadelphia-based company will offer service that unlimited data starting at $45 a month for existing TV and internet customers and $65 for internet customers. To cover customers, Comcast plans to partner with Verizon鈥檚 4G LTE network along with more than 15 million Xfinity wifi hotspots to provide the coverage.
That combination is what could allow the Company to . Verizon and AT&T, the nation鈥檚 two largest mobile networks, have mobile packages starting around $80 and $90 monthly, while smaller networks Sprint and T-Mobile offer services around $50 and $70.
But that also requires Comcast to move its customers from wifi to data seamlessly, as they travel between different coverage areas, a task which could prove challenging and bring service interruptions.
鈥淲i-Fi today is ,鈥� Comcast Cable president Dave Watson said, according to The Verge. 鈥淲e have room to improve. But I would say this: one of the things that I talked about today is, just like X1, just like other product areas, our aspirations are to constantly improve the Wi-Fi experience.鈥�
