In less than five months, Xfinity Mobile – a low-cost wireless service from Comcast Corp. – has managed to attract nearly 200,000 subscribers in the US.
However, this budget wireless service is exclusively available to Comcast customers, who already have a subscription to its TV and Internet service. In May 2017, when it was launched, the cost of unlimited data plans was 65 USD for a month and for the subscribers to premiere package, which additionally includes landline phone and video services, the cost was 45 USD for a month. These were the lowest prices among the top wireless carriers in U.S.
To provide the service, Comcast hinge on the cellular network of Verizon Communications Inc. As per the industry experts, Comcast is supposedly paying 3 or 4 USD a gigabyte to Verizon and selling it for 12 USD to the consumers; hence still making profits out of its new budget wireless service.
In the US, around 80 percent of smartphone data travels over Wi-Fi as most people make use of Wi-Fi on their phones instead of cellular networks. Xfinity enables subscribers to connect their smartphones using 18 million Wi-Fi hotspots of the company and keeps Verizon’s cellular network as a backup.