Comcast ( CMCSA Quick Quote CMCSA - Free Report) recently announced its partnership with Hewlett Packard ( HPE Quick Quote HPE - Free Report) division, Aruba, to launch its new Virtual PrivateNetwork (VPN) service, Comcast Business Teleworker VPN. The new solution aims to provide reliable, high-performance connection along with security to the expanding remote workforce amid the coronavirus pandemic.
The VPN is powered by the Aruba Edge Services Platform (ESP). When combined with Comcast's Managed VPN Aggregator service at a business location, enterprises can connect home-based devices, such as laptops, desktops, VoIP phones and printers, to the corporate network.
The service functions as a centrally-managed remote access VPN that enables employees to connect to primary business systems, applications and files. Also, the independent internet connection does not interfere or compete with at-home bandwidth.
Comcast’s Expansion Efforts to Aid Recovery
Comcast’s shares have declined 1.4% in the year-to-date period against the Zacks
Cable Television industry’s growth of 8.5%.
The underperformance of this Zacks Rank #3 (Hold) company can be attributed to the closure of theme parks and movie theaters due to the pandemic-led social-distancing norms. Further, postponement of sporting events globally hurt Sky’s revenues. You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Nevertheless, the strong adoption of xFi, the growing popularity of Xfinity X1, Flex services and the newly launched Peacock ad-supported streaming service serve as key catalysts to the company’s expansion plans. Moreover, the new VPN service is expected to boost Comcast’s footprint among enterprises.
Comcast’s endeavor to provide frictionless services to customers is a major growth driver. Earlier in October, the company announced the availability of a new xFi Pod for Xfinity Internet customers that promise up to 2X faster speed than that offered by the first-generation device.
Markedly, Comcast has ventured into the U.S. wireless industry with the nationwide rollout of its wireless services under the Xfinity Mobile brand. Xfinity Mobile combines
Verizon’s ( VZ Quick Quote VZ - Free Report) 4G LTE network with Xfinity Wi-Fi hotspots to deliver a great wireless experience, which is cost effective. Comcast claims that customers can save up to 30% on their monthly wireless bills with Xfinity Mobile services. Broadband Services Gain Traction During the Pandemic
The pandemic-induced work-from-home culture has increased reliability on broadband services for frictionless communication. The growing demand for high-speed internet is expected to benefit industry participants like Comcast and
Charter ( CHTR Quick Quote CHTR - Free Report) .
Coronavirus has been a tailwind to Comcast’s broadband business. The company added 323K high-speed internet customers in the second quarter. At the end of June 30, 2020, Comcast’s high-speed internet customer base surged 37% year over year to 800K.
Markedly, high-speed Internet revenues grew 7.2% year over year, primarily driven by increased residential high-speed Internet customers and average rate. Business Services revenues were up 3.6%, driven by customer-base expansion and higher average rates.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
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