Comcast Seemingly Eyeing MVNO Options Again, BTIG's Piecyk Says
Comcast's seeming renewed interest in wireless communications might signal its next strategic step, said BTIG analyst Walter Piecyk in a blog post Friday. That Comcast is reportedly in talks with Verizon to renegotiate its mobile virtual network operator (MVNO) contract…
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that it has never used is "a surprising new development," as well as an indication Comcast's 2011 sale of AWS spectrum to Verizon was at too-low prices, Piecyk said. While cable companies have touted Wi-Fi First as their response as the wireless industry becomes a growing competitive threat, "an attractive MVNO deal would be critical to execute that strategy," he said. However, because Comcast is trying to renegotiate points to its Verizon deal, even if Comcast activates the existing agreement this year, "we suspect it will talk it down as merely a limited trial," Piecyk said. Given the slim profit margins on MVNOs, Comcast might be better served by a wireless acquisition, and the company reportedly is in some sort of talks with Sprint and almost surely with T-Mobile as well, he said.