Comcast plans to participate in the upcoming FCC auction and exercised option to resell Verizon Wireless services
Consider this interesting scenario, which seems likely to happen within the next year:
You’re moving into a new place so you give Comcast a call to arrange to move your Comcast cable TV service to your new residence. Since they were your cable TV provider in the place from which you are moving, it makes sense to use them again in your new location. And, you likely also had Internet access and home telephone as well, and, indirectly, Comcast provides wireless broadband services via the Wi-Fi built into the cable TV router.
You’re discussing the features and pricing of your “triple-play” package when the Comcast rep suddenly asks, “would you be interested in Comcast providing you with wireless access services – just like what’s offered by other wireless operators along with most of the popular smartphone products like the iPhone and Android smartphones?”
You respond with, “I heard from friends that Comcast was getting into wireless. Does the Comcast wireless cellular service work just like what’s offered by the other wireless providers? Can I get the same LTE wireless service?”
The Comcast rep responds, “yes, Comcast Wireless provides the same services that other wireless operators offer. And, because we are the new kids on the block, we are going to provide privileged streaming access to a number of our NBC Universal properties at no charge. Thus, you’ll get access to stream rich media content and get it on an iPhone or Android phone. And, before you ask, Comcast will be glad to cover all the fees to move your cell plan services to Comcast. And, for the first year, you won’t have to pay anything for your new wireless cellular service.”
The prospect answers with: “Great, sign me up. I get the best cable TV service out there and Internet access like I had before. Plus, I get free use of the Comcast wireless network at no charge for the first year.”
While this rather bullish promotion from Comcast may be total fantasy, it does suggest the kind of things Comcast could do if they wanted to get serious and become a major wireless player. The reason it makes sense for Comcast to become a wireless provider is to protect their other assets, which include NBC Universal (movies and TV), and Comcast Xfinity, which provides TV set-top boxes and schedule programming for 500-plus TV stations.
Users want to access content – all kinds of content – with their smartphones and tablets. Comcast has content and (soon) wireless provisioning via either Wi-Fi or cellular. Adding wireless services will allow the company to greatly increase their subscriber base and retain others who want to access content outside of the traditional cable TV network (via the X1 set top box and services) by over-the-top access using the Comcast Internet access services.
So, don’t be surprised if you see Comcast running TV ads about how its wireless service provides the best wireless services plus access to their tremendous library of movies and TV shows.
J. Gerry Purdy, Ph.D. is the principal analyst with Mobilocity LLC and a research affiliate with Frost & Sullivan. He is a nationally recognized industry authority who focuses on monitoring and analyzing emerging trends, technologies, and market behavior in mobile computing and wireless data communications devices, software and services. Dr. Purdy is an “edge of network” analyst looking at devices, applications and services as well as wireless connectivity to those devices. Dr. Purdy provides critical insights regarding mobile and wireless devices, wireless data communications, and connection to the infrastructure that powers the data in the wireless handheld. Dr. Purdy continues to be affiliated with the venture capital industry as well. He spent five years as a venture advisor for Diamondhead Ventures in Menlo Park where he identified, attracted and recommended investments in emerging companies in the mobile and wireless industry. He has had a prior affiliation with East Peak Advisors and, subsequently, following their acquisition, with FBR Capital Markets. Dr. Purdy advises young companies who are preparing to raise venture capital. Dr. Purdy has been a member of the Program Advisory Board of the Consumer Electronics Association that produces CES, one of the largest trade shows in the world. He is a frequent moderator at CTIA conferences and GSM Mobile World Congress. Prior to funding Mobilocity, Dr. Purdy was chief mobility analyst with Compass Intelligence. Prior to that, he owned MobileTrax, LLC and enjoyed successful stints at Frost & Sullivan, Dataquest (a division of Gartner) among other companies.
Editor’s Note: Welcome to Analyst Angle. We’ve collected a group of the industry’s leading analysts to give their outlook on the hot topics in the wireless industry.
