United Investment Limited - Why CMCSA is unconcerned with fixed wireless expansion?

CENTRAL, Hong Kong - Oct. 26, 2022 - PRLog -- Comcast Corporation CMCSA on the other hand, completed the second quarter with the same number of broadband customers it began with. While many investors were concerned about the outcome, management sees newcomers like TMUS as a short-term effect with little long-term potential to eat into its performance significantly.

TMUS confronts two hurdles in expanding its home internet service in the future.

T-home Mobile's internet service hasn't been available long enough for many users to abandon it. But in the future, things will be extremely different. "We recognize that math is arithmetic and churn will rise as the base grows," TMUS CEO Mike Sievert told investors on the company's second-quarter earnings call in late July.

Subscribers may cancel for a variety of reasons. Customers will migrate, and TMUS may be unable to serve them. They may decide to move to another service provider, such as CMCSA. They may decide that they do not require home internet at all and that their mobile wireless connection suffices.

TMUS will need to bring in more gross additions to balance the losses when users begin to abandon the service. TMUS has various options to increase gross additions in the short term. It still has a sizable customer base of TMUS wireless phone service users to market to. It is rapidly expanding its 5G network and will soon cover the entire country, making more families eligible for the service. It is just now beginning to infiltrate the enterprise and small business broadband service markets.

Another problem that will eventually limit TMUS's expansion is that it cannot physically service that many residences without jeopardizing its cellular customer's connections. TMUS's primary business is selling cellular phone service; hence it will not offer home internet access in locations where it lacks the bandwidth to support both.

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