Study: Xfinity Mobile shaking up the wireless space

May 2, 2018
According to a study from Market Strategies International, Comcast's (NASDAQ:CMCSA) Xfinity Mobile pricing strategy is pulling customers ...

According to a study from Market Strategies International, Comcast's (NASDAQ:CMCSA) Xfinity Mobile pricing strategy is pulling customers away from all major mobile carriers. Almost 60% of current Xfinity Mobile customers surveyed said they switched because of the better deal, while an additional 27% cited the better deal and dissatisfaction with their previous provider as the reasons for switching.

The study, "The Xfinity Mobile Effect," evaluated the success and competitive threat of cable companies offering wireless service. As Comcast marks the one-year anniversary of its Xfinity Mobile launch, its venture into the "quad play" space (Internet, television, telephone and wireless services) is paying off, the research house says, both as a wireless service and as a tool to enhance Comcast's core Xfinity Internet and TV businesses.

The study also indicated that once consumers are exposed to Xfinity Mobile's plan, they indicated that they are somewhat more willing to make the switch to Xfinity Mobile than when asked about their general attitudes about switching. This is particularly true for consumers who have been with their current provider for a shorter period of time.

"What makes Xfinity Mobile's success compelling is that current customers are very happy with the service and are willing to recommend it to other consumers," said Paul Hartley, managing director of the telecom division at Market Strategies. "Its Net Promoter Score, based on a likelihood to recommend, easily beat other competitors with a tremendous score of +59, which is practically unheard of in the wireless industry and demonstrates the impact Xfinity Mobile is having."

"In the telecom industry, the importance of a quad play strategy cannot be understated from a customer experience standpoint," said Jeffrey Johnson, director of research and consulting at Market Strategies and the study's author. "Consumers that sign up for multiple services are more valuable for the company. Our research shows that Comcast is now firmly rooted in quad play - a space that only AT&T and Verizon have successfully dominated in the past."

Market Strategies interviewed a sample of 1,044 consumers aged 18 to 64 between March 14 and 28. Respondents were recruited from the Full Circle opt-in online panel of U.S. adults and were interviewed online. Survey invitations were sent in proportion to U.S. census populations, and the data were weighted to match wireless provider market share. Due to its opt-in nature, this online panel (like most others) does not yield a random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections.