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Comcast's WiMax Bundle Puts Pressure on AT&T and Verizon
Posted: 02-Jul-2009 [Source: Strategy Analytics]

[Strategy Analytics views Comcast's recently announced "High-Speed 2go" service offering 4G mobile broadband and home Internet for $50 a month as highly competitive as neither AT&T nor Verizon offer anything comparable.]

Boston -- Comcast’s announcement of its “High-Speed 2go” service, which bundles Clearwire’s WiMax service with its own broadband products, will put new pressure on competitors AT&T and Verizon, according to analyst firm Strategy Analytics. The service, set to launch in Portland, OR, offers 4G mobile broadband and high-speed home Internet for $50 a month. Neither AT&T nor Verizon is currently marketing a similar bundle.

Comcast's success, however, will hinge largely on its ability to market the service and gain traction with customers before the top two wireless companies come back with similar offerings and the weight of their combined mobile customer base, which numbers around 165 million subscribers. A key step for Comcast will be to offer compelling services, on top of the WiMAX platform, that really build on its position providing video entertainment in the home, according to Strategy Analytics.

“Our latest US broadband survey research puts Comcast near the bottom in overall customer satisfaction,” said Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics Service. “Strategy Analytics sees the launch of High-Speed 2go as a net positive for Comcast customers, and—if executed correctly—a potential churn-mitigation tool for the company.”

Another key to Comcast success will be timing, along with Clearwire’s ability to quickly roll out its 4G network, which is currently limited to a few small and medium-sized markets.

“Clearwire has its work cut out for it. Success for the company and its cable partners will depend on its ability to build and market its mobile WiMAX to new markets before Verizon gets its LTE deployments underway for a wave of commercial launches in 2010,” said Susan Welsh de Grimaldo, Senior Analyst in the Strategy Analytics Global Wireless Practice.

Strategy Analytics estimates the number of people using mobile broadband on notebooks and netbooks to more than double in the next two years, approaching 30 million subscribers by the end of 2011.


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