- Comcast Corporation CMCSA Xfinity Mobile has reduced the price of its mobile plans to $45 for one line, $30 per line for two to four lines, and only $20 per additional line thereafter.
- The new pricing follows Charter Communications, Inc. CHTR price drop declared in October 2021.
- Verizon Communications Inc. VZ recently launched a new unlimited data plan pricing.
- Read also : Wireless carriers T-Mobile, Verizon, AT&T and broadband internet providers Comcast and Charter compete for customers
- KeyBanc analyst Brandon Nispel saw the update as cable positiveespecially the growth of Comcast’s mobile subscribers, damaging the big three wireless carriers, primarily Verizon and AT&T Inc. Jwhom he viewed as premium-priced suppliers.
- He thinks mobile pricing is likely under pressure, contrary to the view that mobile operators have pricing power given their recent price increases.
- Cable continues to aggressively push for mobile rate compression, which acts to combat the competitive threat that wireless carriers pose to Cable’s home broadband business.
- He reiterated the belief that cable operators are more effective at managing competition than wireless operators.
- Recently, MoffettNathanson downgraded Verizon to underperform Market Perform with a price target of $41, down from $55 previously.
- Verizon’s efforts to avoid being dragged into the AT&T promotional abyss met with limited success. It saw Verizon in a difficult position, with tough market expectations and a (moderately) higher valuation than AT&T.
- Price action: CMCSA shares traded down 0.91% to $37.28 when last checked on Tuesday.
- Photo via Wikimedia Commons
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