Comcast Expects 40% Profit Margin from WiMAX
Posted by Jesse Ward on Monday, August 10, 2009 · 
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As we first reported last year, Comcast has invested in the Sprint-Clearwire nationwide WiMAX initiative, and is re-selling the service under its own brand name, High-Speed 2Go.
Comcast first launched the mobile WiMAX service in Portland in June, followed by the Atlanta market just a few weeks ago. High-Speed 2Go is primarily sold as a bundle with Comcast’s wired broadband service for an introductory, one-year price of $49.95.
Last week, Comcast Chief Operating Officer Steve Burke spoke with analysts about the company’s wireless strategy. Burke noted that 40% of the customers the company has acquired in Portland are brand new to Comcast, and are potentially lapsed DSL customers.
The most intriguing part of Burke’s comments centered around profit margins: “The product at the end of the year resets to $69.95. And the combination product of the two [WiMAX and wired broadband service] has a very healthy margin. We were just talking about 40% margins. The margin is in excess of 40%, the combination once it resets to $69.95.”
Comcast expects to expand the WiMAX offering to additional markets this year, including Philadelphia, Chicago and Washington state. In regards to a future voice product/bundle, the company declined to comment.
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