Word is Comcast plans to enter the small business market with Xfinity Mobile. Let’s take a closer look at what this means, both good and bad.
Comcast saw the writing on the wall a decade ago that the cable TV industry was changing. Now that the transformation is fully underway, Comcast’s growth strategy is a bit confusing.
First, Comcast has been trying to break into the wireless space for a decade, and the company’s end goal was vastly different from what you would expect.
His first attempt was completely unsuccessful. In fact, the first attempt by all other cable TV companies to go wireless was also unsuccessful.
It has since returned wireless with Xfinity Mobile. Today, Comcast’s wireless offering is a consumer game.
Today, the company plans to enter the small business sector.
Although it looks good at first glance, we have to recognize the real purpose. This is not about competing with Verizon Wireless, AT&T Mobility and T-Mobile. Rather, it’s about slowing the loss of customers through its older, more traditional cable TV services.
It looks like Comcast wants to slow down the loss for as long as possible.
Comcast must focus on reducing losses and accelerating growth
There are two things a business should focus on. One is to reduce any loss. Two is growing up.
Comcast appears to be doing both, but is focusing more on slowing the loss and not enough on transforming the business and the entire cable TV industry to ensure it stays valid in the future. a decade.
Trying to hang on to yesterday keeps Comcast from preparing for tomorrow.
Comcast hold on to yesterday, don’t get ready for tomorrow
You see, traditional cable TV has been in decline for years. So Comcast, Charter Spectrum, Altice, and all the cable TV companies must find a way to reinvigorate the industry and slow the decline.
This is Comcast’s goal with wireless. Not be profitable. Don’t be a competitor in space. No, its objective is simply defensive. The company wants to keep its cable TV customers as long as possible.
The problem is, the pay TV industry is changing and businesses need to focus on tomorrow, not yesterday.
The good news is that wireless has helped Comcast slow the loss to consumers, and it hopes it will do the same in other segments. The problem is, this is only a temporary, short-term solution.
Xfinity Mobile, Spectrum Mobile, Altice Mobile is wireless from cable TV
Today, all of the major cable TV providers offer wireless service. Xfinity Mobile, Spectrum Mobile and Altice Mobile are their names.
One wonders why Cox and other cable TV companies haven’t joined them.
These three companies seem to be doing a lot better this time around. Still, they don’t really compete with Verizon, AT&T, and T-Mobile. Remember, this is not the point.
Instead, they are trying to slow down the loss of customers on the pay TV side of the business.
Next, Xfinity Mobile plans to expand to business services
Next, Comcast plans to enter the small business market with its Xfinity Mobile wireless service. This sounds encouraging and could help the business grow.
As an investor, client, worker, or executive, there is so much you need to know and understand as the cable TV and wireless industries continue to change.
From what I’ve read, Spectrum Mobile seems to do better among the cable TV entries in the wireless, although Xfinity Mobile and Altice Mobile are also very active in this space.
The loss of cable TV customers is only accelerating. This change has an impact on all traditional cable TV companies.
Postpaid and Prepaid Wireless Segments
Wireless has two main segments, postpaid and prepaid.
Postpaid is what is sold by majors like Verizon and AT&T when you pay for the month after you use it.
Prepayment is the prepayment of your monthly fees. Postpaid operators also offer prepaid services. Cricket Wireless is the leader in the prepaid space and is owned by AT&T.
There are many differences between these two different ways of doing business.
Postpayment usually requires a contract. Prepaid does not.
Using your smartphone and wireless service when traveling abroad is another problem. While typical postpaid customers can use their device when traveling abroad, prepaid customers generally cannot.
Verizon attempts to acquire TracFone to expand its prepaid service
The prepaid segment is growing rapidly. Verizon has not been aggressive in growing this industry and is falling behind.
This is why Verizon is trying to acquire TracFone. This is a prepaid service that would allow Verizon to become relevant overnight if the parties can make it happen.
One of the main reasons for the growth of prepaid is the cost to the customer. Prepaid services are generally less expensive. Sometimes much less. Another reason is the lack of a long term contract.
The trade-off is that prepaid customers don’t get the same level of service and functionality as postpaid customers.
Prepaid wireless generally does not work outside of the United States
For example, when the network is busy, postpaid customers get the benefit. International use is another difference. When users travel around the world, their postpaid service may work while their prepaid service generally does not.
That being said, the prepaid market has really been a rapidly growing industry over the past decade.
The part of the market that wants to save money is strong and getting stronger.
Xfinity Mobile is a reseller of Verizon Wireless as an MVNO
Xfinity Mobile is part of this prepaid market as an MVNO reseller, reselling Verizon Wireless mobile services.
There are quite a few big players and a lot of smaller ones in the prepaid world as well.
There are also countless medium and small players. Small brands are not as familiar as they don’t market or advertise the same as big brands.
Prepaid services resell Verizon, AT&T or T-Mobile
Most prepaid services resell one of the Big Three wireless networks, Verizon Wireless, AT&T Mobility, and T-Mobile. Sprint is now part of T-Mobile.
That being said, the quality of the call, the speed of the wireless data connection, and the consistency of the experience are everywhere.
For example, when testing a Cricket Wireless service, I found the sound quality and wireless data speed and consistency to be generally as good as AT&T.
The quality, reliability of prepaid varies
However, when testing other lesser-known services the speed and quality are far from the same. It will be a problem with many customers.
Basically, you will need to test the service in the areas where you use it to see if the quality and speed are right for you.
Thus, the MVNO reseller market is very uneven when it comes to customer experience and customer satisfaction.
Are the quality and speed of Xfinity Mobile reliable enough?
Thus, Xfinity Mobile plans to move to the small business market.
Remember, Comcast only viewed wireless as a tool to reduce customer loss or churn. The company thought that every customer who signed up for wireless would be a âloyal customerâ.
In fact, for quite a long time, wireless was not profitable for Comcast.
Are things changing? Is Wireless Suddenly a Growth Engine for Comcast? I hope so, but I don’t know.
Is wireless growth now part of Xfinity Mobile’s strategy?
Maybe, it’s just a way to help Comcast stabilize its loss of customers. You know, hang on to existing business. This has always been their wireless strategy.
The problem is, traditional cable TV has been on the decline for many years now.
Something dramatic must be done now if Comcast is to maintain its leadership position.
This is why Comcast has to be aggressive in creating more reasons for existing customers to stay put. He must create new services and products that customers can buy.
Comcast must create “sticky bundles” to hang on to customers
They have to create a sticky customer with a sticky package in order to survive and grow for the long term.
While I don’t yet know where the business will go, I think it’s important that every investor, worker, client, and leader fully understands how the underlying terrain is changing and shaping up.
Remember the growth chart. Every business and every product or service is somewhere on the growth curve. Either they are growing, or they have a peak, or they are declining.
Remember the growth curve now has an impact on Comcast
Understanding where the business and product line is on the wave of growth is critical.
Traditional cable television services are on the downswing of the growth wave. This is new in the last decade.
It is not a good place to be.
They’ve done a great job hanging on their entire lives as the ground beneath them has shifted, crumbled and changed over the past few years.
This is the real pressure Comcast faces today
So this potential next step in the small business market might be a good move, if Comcast gets there. This will help the business deal with the real pressure it faces todayâ¦ losing customers.
Comcast needs to update its strategies for continued growth. The Peacock streaming service is a good shot, but it needs more of those good shots if it is to transform for tomorrow.
Too much of Comcast’s traditional core services are on the downward side of the growth curve. It must have its key services on the rising side of the growth curve.
There is no other choice.
Jeff kagan is an Equities.com columnist. Kagan is a wireless analyst, technology analyst, and commentator following telecommunications, pay TV, cloud, AI, IoT, telehealth, healthcare, automotive, self-driving cars and more. Email him at [email protected] Its website is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan and LinkedIn www.linkedin.com/in/jeff-kagan/
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