We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Comcast Xfinity Service be Appealing as a Prepaid Plan?
Read MoreHide Full Article
Comcast Corp. (CMCSA - Free Report) has decided to offer its Xfinity Internet Services as a prepaid plan called Xfinity Prepaid Internet Service to all its Xfinity users in its network, with 10 Mbps download speed and 1 Mbps upload speed. The news was reported recently on FierceCable. Comcast is the leading cable MSO (multi service operator) and media and entertainment firm in U.S.
Comcast’s Xfinity Prepaid Internet Service comes as a ‘pay-as-you-go’ offering, along with a partnership with Sprint Corp.’s (S - Free Report) Boost Mobile prepaid brand. To avail the service, users may first have to purchase an $80 starter kit, which comes with a DOCSIS 3.0 gateway and a seven or 30-day refilling option for $15 and $45, respectively. Both the kit and refills will be available at select Xfinity and Boost Mobile stores.
The company claims that its prepaid internet service will be both cost-effective and customer-friendly. The prepaid internet service will be made available in more than 800 Boost Mobile stores in Pennsylvania, Michigan and Texas, and in more than 4,000 Boost Mobile stores across Comcast’s footprint by the end of the year.
The Comcast prepaid service could also be a good alternative to hotspot products, in some cases. Xfinity Internet offering comes in the form of an annual contract-free or credit free service and is also available online.
Winding Up
Contract-free and credit-check-free or deposit-free prepaid schemes have set a trend. Last month, U.S. telecom behemoth AT&T Inc. (T - Free Report) launched two new prepaid GoPhone plans, one with unlimited data and another with 6GB data. The Unlimited GoPhone offering also comes in the form of an annual contract-free or credit free service. Another similar plan is Verizon Communications’s (VZ - Free Report) FiOS (Fiber Optic Service) Prepaid. Such prepaid options are promotional schemes to lure more customers and increase the subscriber count.
However, this also points at increasing competition between wireless carriers and the cable company on the prepaid front.
Price Performance
Comcast underperformed the Zacks-categorized Cable Television industry over the past three months. The company’s shares rallied around 8.9% compared with roughly 13.3% gain for the industry over the same time frame.
We can trace the underperformance back to an intensely competitive and consolidative U.S. pay-TV industry. Charter Communications Inc.’s (CHTR - Free Report) twin buyout of Time Warner Cable and Bright House Networks has heightened competition in the industry. The consolidation trend among telecom and cable TV operators has also put more competitive pressure on the company. If the proposed acquisition of Time Warner Inc. by AT&T goes through, the combined entity will also give direct competition to Comcast in the media business. Notably, AT&T will be in a face-off with Comcast in the wireless segment as the latter announced plans to enter the wireless service business in 2017.
Mounting programming expenses and operating costs as well as a debt-laden balance sheet are the other near-term risks for the company.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Comcast Xfinity Service be Appealing as a Prepaid Plan?
Comcast Corp. (CMCSA - Free Report) has decided to offer its Xfinity Internet Services as a prepaid plan called Xfinity Prepaid Internet Service to all its Xfinity users in its network, with 10 Mbps download speed and 1 Mbps upload speed. The news was reported recently on FierceCable. Comcast is the leading cable MSO (multi service operator) and media and entertainment firm in U.S.
Comcast’s Xfinity Prepaid Internet Service comes as a ‘pay-as-you-go’ offering, along with a partnership with Sprint Corp.’s (S - Free Report) Boost Mobile prepaid brand. To avail the service, users may first have to purchase an $80 starter kit, which comes with a DOCSIS 3.0 gateway and a seven or 30-day refilling option for $15 and $45, respectively. Both the kit and refills will be available at select Xfinity and Boost Mobile stores.
The company claims that its prepaid internet service will be both cost-effective and customer-friendly. The prepaid internet service will be made available in more than 800 Boost Mobile stores in Pennsylvania, Michigan and Texas, and in more than 4,000 Boost Mobile stores across Comcast’s footprint by the end of the year.
The Comcast prepaid service could also be a good alternative to hotspot products, in some cases. Xfinity Internet offering comes in the form of an annual contract-free or credit free service and is also available online.
Winding Up
Contract-free and credit-check-free or deposit-free prepaid schemes have set a trend. Last month, U.S. telecom behemoth AT&T Inc. (T - Free Report) launched two new prepaid GoPhone plans, one with unlimited data and another with 6GB data. The Unlimited GoPhone offering also comes in the form of an annual contract-free or credit free service. Another similar plan is Verizon Communications’s (VZ - Free Report) FiOS (Fiber Optic Service) Prepaid. Such prepaid options are promotional schemes to lure more customers and increase the subscriber count.
However, this also points at increasing competition between wireless carriers and the cable company on the prepaid front.
Price Performance
Comcast underperformed the Zacks-categorized Cable Television industry over the past three months. The company’s shares rallied around 8.9% compared with roughly 13.3% gain for the industry over the same time frame.
We can trace the underperformance back to an intensely competitive and consolidative U.S. pay-TV industry. Charter Communications Inc.’s (CHTR - Free Report) twin buyout of Time Warner Cable and Bright House Networks has heightened competition in the industry. The consolidation trend among telecom and cable TV operators has also put more competitive pressure on the company. If the proposed acquisition of Time Warner Inc. by AT&T goes through, the combined entity will also give direct competition to Comcast in the media business. Notably, AT&T will be in a face-off with Comcast in the wireless segment as the latter announced plans to enter the wireless service business in 2017.
Mounting programming expenses and operating costs as well as a debt-laden balance sheet are the other near-term risks for the company.
Comcast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>