Comcast Corporation (CMCSA - Free Report) has decided to extend its Wi-Fi hotspot technology across all localities in the country where it operates.
In order to expand its Wi-Fi hotspot coverage, Comcast will supply cable modems to its subscribers powered with Wi-Fi routers. The Wi-Fi routers will support two signals strengths, which will serve two different functions. One of the signals will be used for domestic purposes (used within home) while the other will be used publicly for sharing with other subscribers of the company.
Each Comcast customer will have a separate user name and password. Hence, once the Wi-Fi router-based cable modems are switched on, any Comcast subscriber can easily log into the neighborhood hotspot through their respective user name and password.
To date, Comcast has supplied the new cable modems to nearly 100,000 homes and expects to cover its entire operational expanse as soon as possible.
Such enhanced service offered by the company will help its subscribers to stay connected to its network as they travel, thereby safeguarding its position against leading wireless operators like AT&T, Inc. (T - Free Report) and Verizon Wireless. Moreover, it will also reduce cost and improve network strength as it will not share its Wi-Fi hotspot with other cable companies.
Wi-Fi hotspot technology is gaining huge popularity as it reduces network pressure and lowers maintenance cost. At present, Comcast along with other cable companies like Time Warner Cable , Cablevision Systems Corporation , Cox Communications and Bright House Networks provides 150,000 public hot spots to its customers. They have also appealed to the FCC to free up more frequencies in order to rollout more Wi-Fi services across the U.S.
Currently, Comcast Corporation carries a Zacks Rank #3 (Hold).