Comcast Corporation (NASDAQ:CMCSA) is reported making an entry in to the fiercely competitive wireless phone industry.
This happens just when other big players in the market including Verizon Communications Inc (NYSE:VZ) and AT&T Inc. (NYSE:T) are pursuing unlimited data plans as well as jockeying for piece of the company’s television turf. The wireless services provides unlimited data for less than almost every other player in the market. It is expected that the deal will be profitable once it hits hundred of thousands subscribers.
The pricing plans are reported to have attached conditions and are only available to Comcast’s TV and internet customers. The company offer the lowest initial unlimited offer of $45 among the most prominent wireless carriers in the U.S.
This is expected to further escalate the price war which has already ravaged in the industry. The shares of the company indicated the highest rise in more than two months.
Search for new revenue sources
Comcast is the largest cable operator in the U.S. Reports indicate that, the company is looking for new revenue sources as customers do away with the traditional TV packages.
Competitors including Charter Communications Inc. and AT&T develop through acquisitions. Comcast on the other hand is using Xfinity, a new service to sell other products and lure its about 29 million subscribers to maintain their royalty to the company as more options are availed to enable watching of movies and shows online.
Plans for the future
Greg Butz the president of Comcast Mobile said, “The more products you add, the lower the churn.” the company hopes to have 250 stores, around half of its total, designed to sell phones and wireless services before the end of the year. The rest of the stores will be updated later.
Comcast has contemplated venturing in the wireless industry for a couple of years. The new services were not timed to any specific moment as reported by the executives. The venture is expected to achieve profitability once the subscribers hit a low-to-mid-single-digit share of 25 million customer base.
Comcast’s share rose 2.2% to $38.15 at 1.51 p.m in New York, the biggest single day jump since January 26. The stock price is up 10% for the year.