Comcast to Launch 2 Gbps Superfast Internet Connection - Analyst Blog

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Comcast Corp.CMCSA , the largest cable MSO (multi service operator) in the U.S., recently announced that it will deploy fiber-based 2 gigabits per second (2 Gbps) residential broadband Internet services in Atlanta from May 2015. Known as Gigabit Pro, this new service will run on fiber-to-the-home (FTTH) technology.

Comcast is expecting to bring Gigabit Pro to around 18 million subscribers out of its nearly 22 million high-speed data subscribers across the country by the end of this year. The remaining subscribers will be covered in 2016. In the meantime, customers who will not be able to avail the Gigabit Pro facility will be served with Comcast's DOCSIS 3.1 technology. This hybrid fiber-coaxial network will provide Internet speed at 1 Gbps.

Comcast's Gigabit Pro network may be a threat to Google Inc.'s GOOGL ultra-high-speed fiber-based network. Gigabit Pro will double the Internet speed offered by Google fiber and will be 80 times faster than Comcast's standard broadband Internet speed. In order to offer high-speed residential broadband service, Comcast currently uses Ciena Corp.'s CIEN gear for the last mile and Netgear Inc.'s NTGR hardware for customer premises. Industry sources indicate that Comcast may continue with these two vendors for its Gigabit Pro network.

Notably, Comcast's $45.2 billion proposed acquisition of Time Warner Cable Inc. TWC is currently going through strict regulatory scrutiny. We believe that if the deal finally crosses regulatory hurdles, it will be a win-win situation for both the companies. Time Warner Cable is pushed to the corner by telecom giants providing fiber-based video and low-cost operators offering online video streaming services.

On the other hand, Comcast will benefit from geographic expansion, significant operating cost synergies, which will boost its bottom line and free cash flow, and a unique combination of triple-play (voice, video and data) delivery and high-quality content distribution mechanism.

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CIENA CORP (CIEN): Free Stock Analysis Report

COMCAST CORP A (CMCSA): Free Stock Analysis Report

TIME WARNER CAB (TWC): Free Stock Analysis Report

NETGEAR INC (NTGR): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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