In addition to 15 million Wi-Fi hot spots, Comcast has option to resell Verizon Wireless services
During the Goldman Sachs Commacopia conference today, Comcast CEO Brian Roberts previewed plans for the cable TV giant to launch a Wi-Fi-integrated mobile virtual network operator in mid-2017 using the nationwide Verizon Wireless network.
Verizon Wireless made a deal with several cable companies back in 2012 in which they agreed to a $3.6 billion deal to buy spectrum from Comcast, Time Warner and Bright House Networks. As part of the deal, each of the cable companies got a four-year option to become a Verizon Wireless reseller.
In an earnings call last year, Verizon Communications CFO Fran Shammo said a cable company had exercised its option. Now Roberts has confirmed some details of Comcast’s plan.
He cautioned that this a preliminary look, “but the concept would be that our very best customers … buy some sort of multipackage bundle from us, we can sell them more products. And if that product can be the Verizon Wireless product improved with our Wi-Fi – 15 million hot spots – where it’s more seamless, and we’re able to give you a good value proposition … we believe there will be a big payback with reduced churn, with more stickiness, with better satisfaction, more product purchasing from us.”
Roberts said the new wireless efforts are being guided by Greg Butz, former EVP of sales and marketing, who has a 150-person team.
“It’s a little early to be talking about it,” Roberts said. “There’s a lot to do.”
Click here to access a recorded version of the presentation.
