Comcast NASDAQ: CMCSA is pursuing a broad reset of its Connectivity and Platforms business, with a heavier focus on Wi-Fi, mobile convergence, simplified pricing and network upgrades, Steve Croney, CEO of Connectivity and Platforms at Comcast, said at the MoffettNathanson Media and Communications Conference.
Croney, who previously served in Comcast operating and finance roles, said he approached the business over the past year with what he described as a “challenger mentality.” He said the company needed to be more honest about its strengths and weaknesses, define a clearer “North Star” for the business and align leaders around specific deliverables and metrics.
“If we wanna change the trajectory of the business, want to deliver different outcomes, I had to think about it through a very different lens,” Croney said.
Wi-Fi and Convergence Take Center Stage
Croney said Comcast’s strategy is centered on three core areas: improving the network, building products around Wi-Fi, and strengthening customer experience through personalization and simplification. He also described changes in “ways of working” as foundational to the turnaround.
Asked why he emphasized Wi-Fi rather than broadband as the foundational product, Croney said Wi-Fi is central to making Comcast’s products work better together, including streaming and mobile services.
Convergence between broadband and mobile is “core to our entire strategy,” he said. Croney said Comcast is seeing purchase intent shift toward bundles that combine value with differentiated experiences. As an example, he said Xfinity Mobile customers connected to Comcast Wi-Fi can get 1 gigabit download speeds.
Croney pointed to Comcast’s 65 million passings, gigabit-plus broadband availability across that footprint, and what he described as the largest Wi-Fi network in the country. He said about 90% of mobile traffic is offloaded onto Wi-Fi, supporting Comcast’s ability to price mobile service at roughly half the level of some competitors.
Comcast is also tracking “converged ARPA,” which Croney defined as broadband revenue plus mobile service revenue over broadband customers. He said that figure is about $85 today, roughly half of mobile ARPA at competitors, leaving “another huge opportunity” for the company.
Simplified Broadband Pricing and Mobile Attach
Croney said simplifying broadband pricing was “essential” because Comcast had been too complex, which he said hurt trust and transparency. He described a current structure with Internet Essentials for the value segment, four speed tiers from 300 Mbps to 2 Gbps, and three price options for each tier: one-year, five-year and everyday pricing. He said the company lowered the everyday price to be more competitive and included the gateway in packages.
He said Comcast also offers a free mobile line to customers who take its service, whether new or existing. Croney said early cohorts of free-line customers are converting to paid service at a “significant majority” rate, with no notable churn issues.
Croney said Comcast’s first-quarter results showed improvement in broadband connects and voluntary disconnects, along with stronger mobile attach. He cited 435,000 mobile line net additions in the first quarter, calling it the company’s best quarter ever for that metric. He also said over 40% of sales are now in gigabit tiers.
Asked whether mobile is primarily defensive to protect broadband or offensive as a growth product, Croney said, “Unequivocally it’s about playing offense.” He described mobile as Comcast’s “number one priority” and said the company sees a roughly $200 billion total addressable market in mobile.
Competitive Pressure from Fiber, Fixed Wireless and Satellite
Croney acknowledged an “intense competitive environment,” including fiber, fixed wireless access and satellite. He said Comcast is operating under the assumption that fiber will continue to build, fixed wireless will remain aggressive and satellite will enter the market in some capacity.
Still, he said Comcast believes the long-term market will include two multi-gig providers to the home, with fixed wireless and satellite also active. Comcast has competed with fiber for 20 years, Croney said, adding that fiber tends to take share early before share and average revenue per user move toward market norms over time.
Croney said Comcast is competing at both ends of the market, with its 300 Mbps product on the low end and gigabit product on the high end. He said fixed wireless has done well on simplicity and ease, areas Comcast is trying to improve through simpler installation and customer interactions.
Network Upgrade Strategy
Croney pushed back on the idea that Comcast’s hybrid fiber-coaxial network is structurally inferior to fiber. He said Comcast’s end-state network using full duplex DOCSIS 4.0 will allow it to compete with fiber from a network perspective.
He said the cost is about $200 per passing, which he described as one-seventh to one-tenth of a fiber passing to the side of the home. He also said active devices in the network support intelligence and telemetry, including AI-capable chips in nodes, amplifiers and gateways.
Croney said early metrics from the upgraded network show trouble calls down 15%, time to repair down 35% and impaired devices on the network down 50%. Comcast is about 60% of the way through its current network work, he said, with DOCSIS 4.0 deployments beginning to accelerate.
Business Services, Video and Growth Outlook
Croney also highlighted Comcast Business, calling it undervalued. He said the segment has $10 billion in revenue, operates in a roughly $60 billion marketplace, represents nearly 25% of connectivity revenue and runs at a 55% margin. He said Comcast is the largest provider to small and midsize businesses in the country and is seeing momentum in mid-market and enterprise customers.
In video, Croney said Comcast is focused on customer optionality and control rather than only replicating competitors’ offers. He said the company has simplified video packages and is leaning into app bundles, including StreamSaver and other bundles that offer customers 25% to 40% value.
Asked when Comcast’s Connectivity and Platforms business can return to growth, Croney said the company is in a deliberate investment cycle, including pricing, customer experience, products and go-to-market strategy. He cited demand for broadband, the convergence strategy, mobile penetration, business services, cost improvements and better use of broader company assets as potential drivers.
“We have a great hand,” Croney said. “It goes back to we just need to execute, but I’m confident we’ll get there.”
About Comcast NASDAQ: CMCSA
Comcast Corporation NASDAQ: CMCSA is a diversified global media and technology company headquartered in Philadelphia, Pennsylvania. Its principal operations are organized around Comcast Cable, which provides broadband internet, video, voice and wireless services to residential and business customers in the United States under the Xfinity and Comcast Business brands, and NBCUniversal, a media and entertainment group that develops, produces and distributes content across broadcast and cable networks, film, and streaming platforms.
NBCUniversal's assets include the NBC broadcast network, a portfolio of cable channels, Universal Pictures and other film and television production businesses, and the Peacock streaming service.
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