Comcast Gets Into Cellphone Service

Comcast is to offer cellphone service next year, targeting its existing customers. It will use a combination of cellphone towers leased from Verizon and its own wireless hotspots.

The company is not revealing too many details at this point, but it appears it believes it will be able to offer a wider coverage area by using its existing network of around 14 million wireless hotspots.

Customers Own Routers Part of Network

That network is so large because it not only covers devices in public places such as coffee shops but also uses a "guest mode" on the wireless routers of many cable customers. That setup already allows customers to access the Internet wirelessly when they are near the property of another Comcast customer who also has the mode activated. (Source: theverge.com)

Exactly how the cellphone service will work hasn't been confirmed, but it appears voice calls and text messaging will go through the Verizon network. Data use such as mobile web browsing will go through the WiFi hotspots where available with Verizon's data network used as a backup.

In theory this setup will mean Comcast has to pay less money to Verizon than normally happens with such "mobile virtual network operator" services. That could allow it to charge less to customers, or keep more in profit.

Deal Could Allow All-In-One Package

It seems Comcast will initially concentrate on selling the cellphone service to its cable customers as part of a cable TV, home Internet and cellphone service bundle. That should also mean a more efficient business as Comcast could use its existing administration and customer account management.

Comcast won't necessarily be totally reliant on Verizon if the cellphone service takes off. It's reported to be among the bidders in a series of secretive government auction of unused wireless spectrum that could be used for cellphone services. Of course, there's no guarantee it would win enough of those auctions to be able to go it alone, or that it would be prepared to build equipment such as cellphone towers to take advantage. (Source: philly.com)

What's Your Opinion?

Would you favor having cellphone service built into a cable and broadband package? What pricing and data allowances would persuade you to switch to such a deal? Does Comcast's reputation for customer services affect how you view such an offer?