X
<

Tuning in for Media's Earnings Season: Key Trends in the Sector

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Part 14
Tuning in for Media's Earnings Season: Key Trends in the Sector PART 14 OF 15

Why the Media Industry May Continue to Tap into Wireless

Comcast’s move into the wireless business

On April 6, FierceCable reported that Comcast (CMCSA) had unveiled its foray into wireless services through Xfinity Mobile. According to the report, the service will use Comcast’s 16 million Wi-Fi hotspots and provide access to Verizon Communications’ (VZ) 4G LTE (long-term evolution) network.

The report also states that Comcast will offer both limited and unlimited data plans with the service and will bundle the mobile service only for its existing high-speed Internet service customers. According to the report, Comcast’s wireless service will not offer Wi-Fi calling and zero-rated videos. No zero-rating means that users will not be able to stream videos without affecting their data plans.

Why the Media Industry May Continue to Tap into Wireless

Interested in CMCSA? Don't miss the next report.

Receive e-mail alerts for new research on CMCSA

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Comcast has an MVNO (mobile virtual network operator) agreement with Verizon Communications (VZ) and Sprint (S). With the renewal of its 2011 agreement with Verizon, the company believes it could generate more value for its shareholders.

At the Deutsche Bank Media, Internet & Telecom Conference last month, Comcast noted that it wants its wireless business’s NPV (net present value) to be positive and for it to have a lower churn. It plans to achieve these objectives by providing its wireless services in a bundle, which will be available only in Comcast’s service area footprint at first.

Rise in video traffic

According to Cisco Systems’ (CSCO) VNI (visual networking index), at the end of 2015, video accounted for ~61% of mobile data traffic in the United States (SPY). By the end of 2020, analysts estimate that this figure could expand to ~77% of US mobile data traffic. Considering this scenario, more media companies could enter the wireless space.

X

Please select a profession that best describes you: