Comcast’s wireless service is a good deal but causing the company to lose money

 

Recently, Comcast started providing its own wireless service under its Xfinity Mobile service. The actual service is being provided by Verizon and the plans for the wireless service is quite cheap and flexible. Although the Xfinity Wireless service is a great deal for Comcast subscribers, the company is apparently losing money.

Comcast

In its latest earnings report, the company has reported a 189 million USD loss from Xfinity Mobile despite the addition of 196,000 new customers during the quarter. Analysts expectations about the loss were that Comcast may lose 1.2 billion USD in its first 18 months, but the loss that company incurred is higher than their expectations.

Much of the cost incurred by the company is possibly the initial costs that occur during the start-up period of the new business and that cannot be avoided when setting up a network. However, Comcast already owns a retail store network and it doesn’t need to invest in any wireless infrastructure as it can utilize its stores to sell the plans.

According to DSL Reports, CEO of Comcast Cable, Dave Watson, over a conference call, said: “I think we are away from a really good beginning with mobile.” “But, it launched last May, and yet it’s early in terms of the way we expand distribution. We are going to start to provide mobile solutions with broadband.”

Xfinity Mobile service plans include two options. The first one is the 45 USD-per-month Unlimited plan, which allows subscribers unlimited data, talk, and text, but with a soft cap of up to 20 GB per month. The second offer is the per-GB option, which costs 12 USD a GB per month. You can subscribe to this offer only if you are a Comcast cable or Internet service customer.

Comcast is allowing customers to match and mix different types of line on a single account, which is generally not normal for the wireless carrier, and help make family plans quite economical. Generally, the pricing of Unlimited plans works in the way that it decreases the cost per line as you get more lines on your account. But, it doesn’t allow you to mix and match assorted lines. This plan is designed to allow you to pay for unlimited data for the entire family – even your grandparents can avail it, who are still using an AOL email! This is because it’s cheaper than that of the line by line option.

Now, talking about Xfinity Mobile, you can spend around 45 USD for any of the frequent data users in your family, and around 25 USD for a month for those, who are not that heavy users of the Internet. Basically, Xfinity is a lot cheaper than Verizon or T-Mobile, and you can get the excellent network of Verizon too.

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