Comcast Corp. (CMCSA) and Liberty Global Plc. (LBTYA), the two leading cable MSO (multi service operator) in the U.S. and Europe respectively, have formed an agreement to offer industry’s first international WiFi roaming connectivity to their subscribers. The service will start on a trial basis in late 2014 and will be offered commercially from 2015.
Comcast has more than 3 million WiFi hotspots across the U.S. while Liberty Global has installed over 2.5 million WiFi home spots in various European countries like Belgium, the Netherlands, Ireland, Poland and Switzerland.
Per the deal, Comcast subscribers will be able to avail high-speed broadband (Internet) connection using Liberty Global’s WiFi network while in Europe. Similarly, Liberty Global’s subscribers can go online using Comcast’s WiFi hotspots while staying in the U.S.
The cross-continent WiFi interoperability will provide a free alternative to the wireless data roaming facility. Customers will have the privilege to use Internet without consuming allotted data on their wireless plans. Both Comcast and Liberty Global are aggressively deploying WiFi hotspots in their own territories.
The thriving WiFi market has become a major growth driver for teleocm/cable TV operators. In this respect, T-Mobile US Inc. (TMUS) has also decided to allow mobile customers to make calls on WiFi network.
Notably, this is not the first alliance between Liberty Global and Comcast. In 2013, Liberty Global joinedthe RDK Management LLC., a joint venture between U.S. cable giants Comcast and Time Warner Cable Inc. (TWC) and acquired the license to test RDK standard on its next-generation Horizon IP video gateways. Currently, Comcast has a Zacks Rank #3 (Hold) while Liberty Global carries a Zacks Rank #4 (Sell).
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