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03 Sep

What Is Dish’s Opinion About Xfinity Prepaid Service Of Comcast?

Dish Network Channels

Xfinity Prepaid Service

Reports on pay TV operators in the United States show that they are facing huge subscriber loss recently, and for this reason, they are trying to target on new customers. Many TV operators are introducing a host of new offers to attract more and more customers to their services. In this line, Comcast recently announced their Xfinity Prepaid Services.

Xfinity Prepaid Services is a pay-as-you-go offering from Comcast, and as per the service, users can renew their subscriptions or sign up for the internet or television services from Comcast for a period of seven or thirty days without signing for any contracts or credit checks.

Xfinity Prepaid Services from Comcast will prove to be much attractive to people without a checking or savings account (FDIC refers to these people as “unbanked”). As per FDIC statistics, there are about ten million “unbanked” households in the US, and another twenty five million households that are “under-banked”.

Dish Network

Comcast Cable

“We want to create an easy, pay-as-you-go option for people who want more flexibility and predictability when buying our services,” said Marcien Jenckes, Executive Vice President for Consumer Services at Comcast. “And our partnership with Boost Mobile will give Xfinity Prepaid customers even more places where they can conveniently sign-up and pay-as-they-go.”

When asked about the Xfinity Prepaid Services during the second quarter earnings call, Dish Network’s chairman and CEO, Charlie Ergen said that prepaid services can prove to be a good way to target on less credit worthy users.

“We do some of that today at DISH. Again, there are profitable customers in the prepaid world, and certainly in the wireless world…. I would think that that is something that would make sense for Comcast to look at. I guess I could add you’re probably not dealing with the $1,000 SAC to get that customer. So I think you have to balance your SAC versus your churn rate versus your ARPU and margins, right? It’s a different customer,” Ergen said.

Xfinity Prepaid Services will be available in locations Illinois, Georgia, Michigan, and Indiana at the beginning, and will be offered to all regions within the footprint of Comcast by the end of 2017.

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