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Analysts Believe Xfinity Mobile Will Have 3.3 Million Customers in Two Years

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Back in April, Wall Street analysts released a lengthy report on how they believe Comcast's Xfinity Mobile will grow marginally in the next couple of years. This was further exemplified by another analyst report on how MVNOs owned by cable companies will gain 50% mobile phone additions in the same timeframe. It looks like that Wall Street analysts are now viewing the mobile efforts of these MVNOs as careful instead of being aggressive towards that growth.

Recently, Comcast reported that Xfinity Mobile gained 204,000 customers in Q2 2018; bringing to a total of 781,000 mobile customers. In the same report, however, the cable company revealed that it spent $185 million during the quarter.

Using these figures, analysts at Oppenheimer foresee that the cable-owned MVNO could increase its customer base to 1.3 million before the year ends. The prediction also included a growth of 2.3 million by 2019 and 3.3 million by 2020.

Although most analysts looked at Xfinity Mobile's growth positively, not all showed the same prediction. BTIG analyst Walter Piecyk wrote in a post: "We estimate Comcast's cumulative cash EBITDA losses from its wireless business have topped $1.2 billion since the launch in May of last year, while subscriber growth has stagnated at 200,000 per quarter, below the pace that would enable the company to top the 1 million subscribers additions that investors expected in 2018."

Despite this, it's clear that cable-owned MVNOs are rocking the industry right now. Comcast's competition in this field, Charter's Spectrum Mobile, recently entered the smartphone market in June. In addition to this, Altice USA has expressed its plans to venture into mobile and has even talked about their plans and how they don't intend to lose money in their strategy with their MVNO service.

With the interest in cable-owned MVNOs, Xfinity Mobile won't be far from fulfilling the 3.3 million customers that analysts predict the company to grow to by 2020.



Source: Fierce Wireless

15 comments:

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  1. Approach anything any analyst expert says about any industry over any longer term length of time. They are going by pure speculation that everything will continue exactly as they are and are generally basing it on that assumption. Other variables like REALITY never factor in. That's why you see Dow Jones at 50000, Bitcoin at $100,000 projections that have never come to pass in the time period alloted. Once in a while they get it right but predicting the future has never been a reliable sport. Doesn't matter if you're a gambler or an analyst. All odds all the time are 50/50. And it skews depending on what random events of reality dane to bless it or curse it. Your guess is as good as theirs as is mine. And ONCE in a while, they get lucky and get it right. Then again, even a broken clock is right twice a day...

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  2. If analysts were more right then wrong, they'd be multi millionaires, not analyists.

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    1. Analysts also had a buy rating on Moviepass from the moment it started hemorrhaging money, even when the unsustainability and futility of its business model were obvious from the start.

      They're basically the financial sector's answer to psychic consultants.

      The irony is that "actual" psychic consultants might be cheaper and more accurate.

      Why analysts are shown more respect than Miss Cleo is beyond me.

      They're not even entertaining, at least not as much as the notion that they're taken seriously.

      Delete
  3. Charter Spectrum Mobile is a mess so far (which ino surprise for people familiar with their cable service).

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    1. Charter Spectrum should concentrate on getting their cable working before they even think about mobile.

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  4. Never underestimate the marketing power of "one bill convenience" when combined with the "financial savvy" of the checkbook-wielding (or cashback-credit-card-wielding) housewife. And in this case, with service from the great-and-powerful-Verizon, bragging rights abound!

    I just spent a goodly three hours unwinding a fraudulent quadruple-play "deal" from a large phone company that such a housewife, an accountant by trade, "negotiated", without exercising due diligence (calling me), to confirm if it would work with her most-faithful-husband, who asks only to be able to sit on the couch and watch certain sports at home, rather than wandering off to a nearby bar full of temptresses.

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    1. It just goes to show that you don't need to know math to be an accountant.

      Dreams really can come true.

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  5. We love Xfinity Mobile services and look forward to getting our $300 prepaid VISA.
    I'm thinking about moving my backup iPhone to Xfinity before Sep 30 to get another $150.
    Unless they continue $300 rebates for the new iPhones next month.

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    1. If you have to pay people to use your product, it's probably a shitty product.

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    2. Verizon postpaid service is probably not a shitty product, even for you.

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  6. I'd wager their growth will stall as all the early adopters have already hopped on board.

    Now comes the struggle to pull people away from their existing phone plans, which isn't easy when their target market are stubborn, risk-averse hardasses who still have a cable subscription.

    They're running uphill at this point, and pretty soon their growth will exhaust itself.

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  7. Xfinity Mobile has plenty of room to grow. More and more people are learning about it and hearing how friends and extended family members like it. When they need or want a new phone, Xfinity will be hard to resist. And Xfinity will retain lots of those customers who can choose their ISP because Mobile customers will have to pay $10-$40 more per month to change ISPs. Many, especially families won't see much savings.

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    1. Xfinity doesn't have much room to grow. It's really a small regional player not anything Nationwide like the actual cell carriers. I looked on their website, I would probably have to drive 500 miles to find a place that I could actually get an Xfinity account at.

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    2. Your math is fuzzy. Comcast has >29 Million more potential customers who subscribe already. Plus all the FIOS and other ISP customers who can switch and save money on their mobile service.

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    3. 29 more million customers? That's a tenth of the US population. Actually, less than that. Well, maybe they will get as big as Sprint one day!

      As for the thing about who can switch & "save money on their mobile device", it kind of outs yoy as someone who is trying to sell this service, as opposed to presenting facts about it.

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