Comcast goes into US wireless business with unlimited data plans

Comcast will start selling cellphone plans called Xfinity Mobile in the coming months, using a network it’s leasing from Verizon. Every major wireless provider now lets users stream and download at will with no costly overage charges, a shift in the battle that shows no signs of abating. Comcast had roughly 25 million high-speed Internet customers in 2016, according to a filing. To cover customers, Comcast plans to partner with Verizon’s 4G LTE network along with more than 15 million Xfinity wifi hotspots to provide the coverage.

The service will launch in May or June for Xfinity customers and later this year for everyone else. This move will make the company the first major cable provider in the U.S. to offer wireless service as it looks to expand its business. “We like the business we have, we’re not looking to subsidize a new effort”, Cavanagh said during an analyst presentation.

And Comcast CFO Michael Cavanagh said the company’s new mobile service should help it “sustain better growth”, noting that last year Comcast managed for the first time in years to grow the number of its pay-TV subscribers.

No Penalties – Easily switch back-and-forth between data options at no cost. Mobile carriers that throttle unlimited plans usually do so only in times and places of network congestion, but there is no such caveat with Comcast: once you pass 20GB of cellular data, your cellular speeds will be slower until the monthly billing period is over. Once you’re out of range of a hotspot, your phone will then connect to Verizon’s network. It’s a way for existing Comcast customers to possibly lower what they pay for cellular data by promising not to cut the cord. While many carriers today tout offers where they’ll pay the early termination fees or your remaining bill with your old carrier, Comcast is making no such offer to potential customers. So someone who uses no data would get free wireless service.

Alternatively, customers can opt to pay $12 per gigabyte for data. Comcast executives declined to reveal whether the company’s agreement with Verizon prevents it from building its own cellular network. It will initially be available only to subscribers with Xfinity broadband service. Existing customers will be eligible to add wireless, and the company is hoping an affordable and reliable wireless option will bring in new customers for its bundled offer. It’s offering iPhones, Samsung Galaxy phones and one budget model from LG. It’s similar to the approach taken by Google when it launched its Project Fi wireless service.

Comcast claimed savings of as much as $576 annually for a hypothetical customer named “Frank” who uses 4.2 GB per month in comparison with a typical competitive offering. Families can share their data across devices and will only pay for what they use. Users need to purchase a phone through Xfinity Mobile for each of these 5 lines of service.