Comcast: Wireless Is A Major Threat And A Key Opportunity


  • Comcast is currently largely maintaining its current approach to broadband pricing and strategy, counting on wireless networks becoming too saturated to compete.
  • T-Mobile and Verizon are currently drawing more or less average customers because they are offering unlimited data at a cheaper price.
  • Although still early days, evidence suggests that different pricing models can drastically reduce average data consumption without destroying consumer appeal.
  • Comcast’s broadband business will therefore remain under pressure more than management is projecting.
  • Comcast’s own wireless business, ironically, uses a very similar strategy. I believe that wireless business will continue to grow and increase profit.

Close up of metal scissors cutting black wire


Like a lot of stocks, Comcast (NASDAQ:CMCSA) has been battered this year, though Comcast has actually been battered less than most. It is down “only” 30% in the last 12 months, as opposed to many entertainment/telco stocks which are down over half. With a

Disclosure: I/we have a beneficial long position in the shares of TMUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Leave a Reply

Your email address will not be published. Required fields are marked *