Comcast025 Archivespreparing to compete with the likes of AT&T, Verizon and T-Mobile with a new wireless product slated for launch in 2017.
The move brings one of the biggest internet and cable TV giants (not to mention the company's ownership of NBCUniversal) into the mobile industry. Meanwhile, Verizon and AT&T have both been pushing into Comcast's backyard with investments in wired broadband internet service as well as content creation.
Comcast CEO Brian Roberts announced the new service at a conference on Tuesday, according to a report from Bloomberg. The service will rely on Comcast's Wi-Fi hotspots and switch to Verizon's network when none are available.
Reports that Comcast would enter the wireless industry have been around for years, driven primarily by the company's growing Wi-Fi footprint. Many of the Comcast routers used by its customers double as Wi-Fi hotspots.
The new service would provide Comcast with a new revenue stream as well as a way to make its combined services more appealing for customers.
“There will be a big payback with reduced churn, more stickiness, better satisfaction,” Roberts said at a Goldman Sachs event on Tuesday, according to Bloomberg.
Roberts said the service could be available by the middle of 2017.
Comcast's move underscores the collision course of modern media, particularly as more consumption happens on smartphones over Wi-Fi and wireless networks.
Smartphones account for 50% of all U.S. digital media time spent, according to a recent report from comScore. As people spend more time on their phones, they're spending less watching traditional TV, which continues to be Comcast's core business.
Original image has been replaced. Credit: Mashable That shift has meant that Comcast, which once had a near monopoly on the distribution of TV and internet to its 28 million customers, is now facing mounting competition from wireless providers, who are also producing their own content -- just like Comcast does.
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