PHILADELPHIA – Comcast Corporation (NASDAQ:) has announced the introduction of NOW, a new suite of prepaid Internet, mobile, and streaming TV products. NOW is designed to offer consumers low-cost, month-to-month services backed by the Xfinity network’s reliability without the need for contracts or credit checks.
NOW Internet is positioned as a more reliable alternative to fixed wireless services, offering prepaid options at competitive prices. Customers can choose between two Internet speeds: 100 Mbps for $30 per month or 200 Mbps for $45 per month, both with unlimited data and including an Xfinity gateway.
The mobile component, NOW Mobile, provides unlimited 5G data, talk, and text for $25 per line. It stands out as the only prepaid wireless option that integrates access to over 23 million Xfinity WiFi hotspots.
The streaming service, NOW TV, available to Xfinity Internet customers, includes live and on-demand content from more than 40 networks, several integrated FAST channels, and Peacock Premium, all for $20 per month. Additionally, NOW WiFi Pass offers unlimited access to Xfinity WiFi hotspots for $20 for 30 days.
According to Dave Watson, President and CEO of Connectivity and Platforms at Comcast, NOW was created in response to consumer demand for simple, reliable, and affordable connectivity and entertainment options.
In light of the upcoming end of the Affordable Connectivity Program (ACP) in April, unless additional funding is provided, the NOW portfolio is expected to serve as an affordable option for those enrolled in ACP, supplementing Comcast’s existing low-income broadband adoption programs.
Initial trials for NOW Internet and Mobile have commenced in select cities, with a broader national rollout anticipated in the coming weeks. NOW TV and WiFi Pass are currently available throughout Comcast’s service areas.
This new offering from Comcast aims to provide a straightforward solution for customers seeking quality internet and mobile services on flexible terms. The information presented in this article is based on a press release statement from Comcast Corporation.
InvestingPro Insights
As Comcast Corporation (NASDAQ:CMCSA) launches its new NOW product line, aiming to capture more of the prepaid services market, the company’s financial health and strategic moves are of particular interest to investors.
Comcast’s management has demonstrated confidence in the company’s prospects through aggressive share buybacks, a sign often interpreted as a bullish signal about the firm’s valuation and future performance. This aligns with the company’s track record of raising its dividend for four consecutive years, showcasing a commitment to returning value to shareholders.
InvestingPro data highlights Comcast’s robust financial metrics, with a market capitalization of $154.94 billion and an attractive price-to-earnings (P/E) ratio of 10.05 for the last twelve months as of Q4 2023. This is complemented by a gross profit margin of 69.76%, indicating strong profitability within the media industry.
Moreover, the company’s dividend yield stood at 3.05%, with a notable dividend growth of 14.81% over the last twelve months, emphasizing its appeal to income-focused investors.
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With Comcast’s next earnings date scheduled for April 25, 2024, and analysts predicting the company will remain profitable this year, the introduction of NOW could be a strategic move that reflects on future earnings reports.
The InvestingPro Fair Value estimate of $55.58 suggests potential upside from the previous close price of $39.12, indicating room for growth according to some analysts’ assessments.
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