Let’s take a closer look at Comcast Xfinity Mobile. Now that Comcast and Charter are re-entering wireless, what can we expect? How successful will they be? These questions are being asked by customers, investors and competitors. Wireless has been growing and changing over the last few decades. Leadership has changed several times. So, what’s coming next in wireless?
Ten years ago, Apple iPhone and Google Android entered the wireless space and quickly won leadership from Nokia and Blackberry, who themselves did the same thing to Motorola a decade earlier. The question is being asked. Are we getting ready for this same kind of transformation?
The answer is no. However, even though they won’t transform the industry, Comcast may still benefit from wireless if they play their cards right.
It won’t be until next year that Charter is expected to get back into wireless. However, Comcast recently jumped back into the space with their Xfinity Mobile service and for the most part, so far, I like what I see. However, the big questions still stands, will they be successful this time around when they failed at their first attempt years ago?
Why Comcast says customers should choose Xfinity Mobile
I visited several Comcast stores to take the temperature about how ready they are in their wireless re-entry. Results were mixed. Some stores seemed to have a wireless specialist while others did not. Most workers couldn’t help at this early stage with wireless questions. Hopefully, that will improve.
The question I asked was simple… why should a customer choose Xfinity Mobile over AT&T Mobility, Verizon Wireless, Sprint or T-Mobile? According to the Comcast representatives, the answer seemed to be simple. Savings. Bottom line, their highest priced plan was $45 per month for unlimited service.
While that’s good, you must first be a Comcast customer, plus customers were expecting something new or different. If all they offer is a lower priced service, that may be attractive to some. However, they have limited their marketplace to their existing customers. That means limited geographic area and limited customers.
While pricing for this bundled wireless service is attractive, customers can already get similar pricing in the marketplace from top wireless carriers with their pre-paid and post-paid services.
So, it appears Comcast is not entering wireless with a transformative idea. If that’s the case, they will just be one of many competitors in the space. My concern is, when they took a similar path years ago, they failed. And they were not alone. Amazon Fire Phone, Facebook phone and others failed as well.
Comcast looks at Xfinity Mobile as an add-on service to their regular cable TV bundle. They hope this bundle will enhance their brand value. However, if successful, it will only be for the smaller slice of the pie. It ignores the vast majority of wireless customers who are not already Comcast users.
That’s why, even if this is successful, it will not likely impact the existing wireless industry.
DirecTV NOW offers wireless TV or mobile TV
So why is Comcast so interested in wireless? I believe the reason for this is simply so they can avoid losing customers to competitors as the pay-TV industry evolves to IPTV, wireless TV and more. Xfinity Mobile is defensive, not offensive.
New competitors like DirecTV NOW which also sells wireless TV or mobile TV are transforming the payTV space. And the new DirecTV wireless TV is the single competitive threat which really juiced up Comcast interest in wireless. And not just Comcast, but Charter Spectrum, Verizon and other top competitors as well.
Comcast should focus on reason for re-entering wireless: Mobile TV
This was where the whole idea for them to get back into wireless started last year. However, if this is the case, then why is Comcast not focusing on this messaging to the marketplace? Why aren’t they talking to the customers and discussing their wireless TV so customers don’t have to leave and go to a competitor like DirecTV NOW with their mobile TV?
This weak and mixed marketing message is one of Comcast weak links. They never had to compete in cable TV, so they never had to learn the tough and subtle marketing tricks other companies developed over time. Looking at Comcast marketing materials, you can’t even find where they discuss wireless TV. Something which should be front and center.
So, while I hope Xfinity Mobile is successful for Comcast, it does not look like they will impact or transform the wireless industry. In order for them to be successful, they will have to come up with a focal point to focus on in their advertising and marketing. Something like wireless TV or savings. Some kind of hook that will capture the attention of the customers they want to attract.
