“We are not seeing any impact from those programs from the competitors in our base and I think our results speak to that this quarter and I think they will speak to that in the fourth quarter as well”.
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With Verizon’s excellent nationwide network behind it and a concerted effort to differentiate on plans and pricing, Comcast’s wireless ambitions may turn out different in 2016.
Analyst Craig Moffett, who runs equity research firm Moffett Research LLC and is a highly regarded expert on the telecom industry, said Comcast’s exercise of the option “is likely the first domino” in a series of actions that could include Comcast bidding on wireless spectrum in 2016, or later purchasing a wireless carrier.
Verizon CFO Fran Shammo said during the company’s earnings call yesterday that unnamed cable companies had said they’d execute their right to resell Verizon airwaves as part of the deal where Verizon bought spectrum from a cable consortium.
For this goal Comcast will resell Verizon’s wireless service. One analyst is arguing that the key reason the carrier launched the mobile-first over-the-top video service is not to upend current online video business models, but a much simpler and purportedly more lucrative reason: to collect data on users that it can sell to advertisers.
Comcast and other cable companies could offer a hybrid service combining access to Wi-Fi networks as well as Verizon’s network, said DSL Reports in a blog. Spokesmen for Verizon and Comcast declined to comment. There has been speculation that the MSO will announce a Wi-Fi calling product similar to Freewheel, which was announced by Cablevision (NYSE: CVC) in January.
In fact, Shammo said this could become a financial liability for these companies since they are essentially giving out loans for the value of the phone that customers pay back every month.
Part of the cable companies doing what they have to do just might be something Verizon would never do.
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While Verizon and Comcast appear to be at odds over terms of the MVNO, de Sa holds out the possibility of a renegotiated deal, which he called a “non-aggression pact”, under which Verizon would cooperate with cable TV companies.
