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Comcast is about to Launch own Wi-Fi Service with Verizon’s Network |
Comcast Corporation is about to launch a Wi-Fi service which will be in competition with all major wireless carriers of United States.
The largest cable company of United States has informed to Verizon Communications Incorporated that they are planning to resell the Wi-Fi service of Verizon, Two people who are aware about this matter, they shared this info on this basis that their names will not be disclosed as publicly this information has not been shared with anyone. According to this agreement, corporation of cable companies who are driven by Comcast, they sold the series of licenses to Verizon in the amount of $3.6 billion to obtain the authority to resell the Wi-Fi services of Verizon.
On Tuesday Fran Shammo, Chief Financial Officer of Verizon informed that the cable companies(did not have the name of cable companies)briefed to Verizon that as per the agreement now they want to execute.
By using Wi-Fi hotspots and network of Verizon, Comcast would provide the Wireless services and hybrid cellular. Comcast is entering in the market when United State’s powerful Wireless carriers Verizon and AT&T both are under pressure because of their competitor T-Mobile as they are providing double data services and cut off in prices to their consumers.
New Street Research LLC’s analyst Jonathan Chaplin, wrote on his note that except T-Mobile for all other wireless carriers this news will be bad while for cable this news will be good.
Statement given by Fran Shammo on the earnings call Tuesday,Verizon’s spokesman Bob Varettoni ,refused to comment on that. Jenn Khoury, spokeswoman of Comcast refused to comment.
According to Chaplin, After the 6 month of notification the market trial of wireless services of Comcast could start and by next year the commercial services could begin. due to their Wi-Fi hotspots and with appealing surplus, cable companies propose the service to its consumers which will start at $25-$30 per month and they could save almost a conventional wireless carrier’s partial cost of the network which is fifty-fifty cost of a conventional Wi-Fi plan.
Although it has been expected by many analysts that a mobile phone service will be launch by Comcast in which both cellular networks for connectivity and Wi-Fi will be available but according to source, it is not yet decided by the Comcast that they will go for it or not. Company is still analyzing the techniques to influence them.
On May earnings call the president of Comcast cable division,Neil Smit said Wireless is very powerful and strong resource and they would be searching for the best techniques how to take advantage from it, so thats why working on the plan of action for Wireless and looking for the ways to reveal itself.
In January, an economical mobile phone with service by the name of Freewheel was disclosed by the Corporation of Cable vision Systems but if they want to access the service the connection of Wi-Fi hotspots was required.
Earlier Cable companies have made efforts to put Wireless as the 4th service called quad or quadruple play in which the combination of Internet, Television and telephone with the provision of Wireless. Project by the name of Pivot was introduced by Sprint and Cable companies like Cox, Comcast and Time Warner Cable as partners and it was their first effort and after two years that was obstruct.
With the desire to capture the wireless, In the month of December 2011 cable companies had made an agreement with Verizon that they will sell the range of Licenses for five years.
The cable companies in December 2011 struck deals with Verizon to sell their spectrum licenses, which they had acquired just five years earlier with wireless ambitions. Both the cable companies and Verizon were settled as part of agreement, that both would sell the services of each other. By getting a percentage of profit for that customer who will signup for the product of cable TV and in its retail stores Verizon can propose products. On the other hand whenever any customer signup for Wi-Fi service, Cable companies can get fees for it.
