In a major move to counter the competitive threat from other communications service providers, Comcast Corp. (CMCSA) recently launched its WiFi services called “Xfinity WiFi” on its home turf of Philadelphia, New Jersey, and northern Delaware. Comcast’s existing Xfinity Internet subscribers will be able to access all indoor and outdoor WiFi hotspots installed by it without any additional charge. Xfinity WiFi will support download speeds of 6 Mbps – 8 Mbps.
Cable MSOs throughout the U.S. are facing increasing competition from both telecom service providers and satellite TV providers. Wi-Fi connectivity is likely to become a huge opportunity for communications service providers. Several industry sources have predicted that Wi-Fi enabled wireless devices like phone, computer and consumer electronics may cross one billion by 2012. Telecom giants Verizon Communications Inc. (VZ) and AT&T (T) both have strong Wi-Fi presence. Recent WiFi deployment will help Comcast get a foothold against the telecom giants.
Last April, the three largest cable operators in the U.S. — Comcast, Time Warner Cable Inc. (TWC) and Cablevision Systems Corp. (CVC) entered into an agreement for free Wi-Fi platform sharing. Subscribers of all three MSOs have unlimited access to fast and free wireless Internet connection at several locations in the New York City region.
We maintain our long-term Neutral recommendation for Comcast. Currently it is a short-term Zacks #3 Rank (Hold) stock.
(We are republishing this blog due to an error. The original release, published earlier today, is no longer to be relied upon.)
COMCAST CORP A (CMCSA): Free Stock Analysis Report
CABLEVISION SYS (CVC): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
Zacks Investment Research
