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Analyst Firm Believes Xfinity Mobile Subs Will Grow in Two Years' Time

Over the weekend, New Street Research released a lengthy report indicating how it believes Xfinity Mobile will be growing marginally within the next couple of years.

The Wall Street analyst firm predicts that the Comcast-owned MVNO will have twice as much customers by Q4 this year as compared to the number it had last year. Another prediction by the firm is that the MVNO could have up to 2 million customers per year.

During the first half of the year, the analyst firm believes the net adds of the wireless company will be sluggish. But in the second half of the year, the company believes this will result to a quick rise.

Apart from Xfinity Mobile, the analyst firm believes Charter will also receive the same growth once it has launched its Spectrum Mobile MVNO service. This service is expected to be launched in the later part of the year. The analyst believes the company could add around 450,000 subs by the fourth quarter of this year.

In its report, the firm also released some important conclusions, such as:
  • Verizon charges Comcast $5 per GB for the data that Xfinity Mobile customers use. This rate is not fixed but tied to retail rates. 
  • Roughly 15% more data is being consumed by Xfinity Mobile customers compared to similar customers on other carriers.
  • In general, up to 15% of postpaid customers will be acquired by cable companies in their target footprints by 2020. This lessens the number of customers that traditional carriers like T-Mobile and AT&T can gain.
These are notable findings pointed out by the analyst, especially since there has been 380,000 customer lines counted by Xfinity Mobile before 2017 ended. This number has grown from October's 250,000 count. Despite this, it still is below what the analysts expected. The executives from Comcast, however, believe that the business is on the right track and that they like their game plan.

A CEO for Comcast shared that it's still too early for the business to feel any pressure, especially since their branding is just kicking in and that they are continuing to expand distribution across existing retail stores.

Source: Fierce Wireless


Comment Page :
  1. I find xfinity mobile to be a great bargain and I was with Att for 13 years and get coverage in places I didn’t with Att. I hope Xfinity has a tablet and stand alone hotspot plan soon.

  2. There is no way Comcast is paying $5/GB considering they're supposed to be getting an special rate. That's speculative since rates often depends on on activation figures and wholesale down payment. This is why you don't trust analyst figures.

    1. They pay $5/GB and charge the consumer $12/GB, plus they are paying Verizon very little, if anything for talk/text, so what's not to believe??

  3. They're just puffing up Comcast and Charter.

    After all, analysts and journalists are generally in bed together with the industries they cover.

    Maybe they know people, get gifts from PR, or even have stock/investments in certain companies.

    Whatever it is, I'm skeptical of any analyst that tells me something is taking off like a rocket when I know it doesn't have much actual value relative to a declining economic outlook.

    Maybe they'll rake in some suckers, but that whole "don't worry guys, of course it'll be sluggish for a while" business doesn't exactly breed trust or confidence if their positive forecast is essentially an IOU redeemable after 2 more years, and only if their prediction turns out to be correct.

    That's just too far off and unbrlievable to ever take seriously, although I'm sure the "rich beyond common sense" investor class will eat it up because what the hell do they even know about smartphones.

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