Xfinity Mobile's Price Cut Is A Positive For Comcast Versus Premium Providers Verizon, AT&T, Analyst Says

  • Comcast Corp's CMCSA Xfinity Mobile slashed the pricing of its Mobile plans to $45 for one line, $30 per line for two to four lines, and just $20 per additional line after that. 
  • The new pricing follows Charter Communications, Inc's CHTR price cut declared in October 2021. 
  • Verizon Communications Inc VZ recently launched a new unlimited data plan pricing. 
  • Also Read: Wireless Carriers T-Mobile, Verizon, AT&T And Broadband-Internet Providers Comcast, Charter Compete For Customers
  • KeyBanc analyst Brandon Nispel saw the update as positive for Cable, specifically Comcast mobile subscriber growth, damaging the Big 3 Wireless Carriers, mainly Verizon and AT&T Inc T, which he viewed as premium-priced providers. 
  • He believes Mobile pricing is likely under pressure, contrary to the view that Wireless Carriers have pricing power given their recent price increases. 
  • Cable continues to push aggressively on Mobile pricing compression, which acts to combat the competitive threat Wireless Carriers pose to Cable's Home Broadband business. 
  • He reiterated the belief that Cable operators are more efficient in handling the competition than wireless carriers.
  • Recently, MoffettNathanson downgraded Verizon to Underperform from Market Perform with a $41 price target, down from $55.
  • Verizon's efforts to avoid being dragged into AT&T's promotional abyss met limited success. It saw Verizon in a tough position, with challenging market expectations and a (modestly) higher valuation than AT&T.
  • Price Action: CMCSA shares traded lower by 0.91% at $37.28 on the last check Tuesday.
  • Photo via Wikimedia Commons
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