Comcast’s high-speed Internet business
Comcast (CMCSA) is upbeat about its broadband business this year. Currently, its high-speed Internet business has a market share of 45.0%. Comcast stated in its fiscal 2Q17 earnings call that when it comes to residential high-speed Internet, only 75.0% of households are subscribing to the service. As a result, it believes that there is still room for growth in the residential high-speed Internet business.
Comcast is also banking on its new product, xFi, to appeal to its customers. The company said that xFi offers a personalized Wi-Fi experience for its users. With XFi, the company is focusing on innovative products for its high-speed Internet business, targeted at residential customers.
Comcast has also adopted a market segmentation strategy for its high-speed Internet business that would provide various levels of services and speeds. It has also upgraded its Internet speeds in several markets in the United States (SPY) in a bid to compete with other triple-play or high-speed Internet products from telecommunication companies such as AT&T (T) and Charter Communications (CHTR).
Comcast’s high-speed Internet business in fiscal 2Q17
In fiscal 2Q17, Comcast’s high-speed Internet business was the biggest generator of revenues for Comcast Cable. High-speed Internet had revenues of $3.7 billion in fiscal 2Q17, a 9.2% rise year-over-year. In fiscal 2Q17, high-speed Internet had 140,000 residential customer additions.
Currently, 55.0% of Comcast’s high-speed Internet residential customers have opted for speeds of 100 Mbps (megabits per second) or higher.