Comcast Eyes Home Security Market - Analyst Blog

Zacks Investment Research
Posted: Mar 06, 2012 3:42 PM
Comcast Eyes Home Security Market - Analyst Blog

In order to gain a strong foothold in the U.S. home security market, Comcast Corporation (CMCSA) plans to accelerate the rollout of Xfinity Home service across all its domestic market. Apart from installing the product in 33% of its location, the company also plans to aggressively deploy the product across U.S. markets within a span of one year.

Earlier in June 2010, Comcast launched the product under the Xfinity Home Security brand. The house monitoring product and services includes a touch screen device, similar to a tablet, through which one can monitor their home when they are not there.

Subscribers can also control their house online through iPad/iPhone applications. They will also get 24 hours police and fire protection along with latest weather, sports and traffic reports.

Comcast also teamed up with iControl Networks, which provides software for online home management solutions. These services are available to subscribers starting from $29 per month, excluding the product instalation. 

We believe that the launch of home security or monitoring services will create a new revenue platform for Comcast, as the company can include the home solution package along with other bundled offerings to its subscribers, hence driving top-line growth for the company. As per the industry analysts, the home monitoring solution business will cover 20% of the total household in the U.S. by 2015.

The lucrative home security market has not only attracted Comcast but also lured other big players like Time Warner Cable (TWC) and Verizon Communication Inc. (VZ), which have also started offering similar services at attractive prices to its subscribers. We believe this will spur stiff competition in the home security market.

Comcast is continuously developing new products as well as creating new revenue streams in order to reduce the losses arising from loss of video subscribers as well as counter competition from other telecom carriers. The company has invested heavily in deploying DOCSIS 3.0 technology in order to provide speed of 50 to 105 mbps to its subscribers. Such faster downloading speeds will help the company to compete with 4G networks offered by other telecom operators.

We maintain our long-term Neutral recommendation for Comcast. Currently, Comcast has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

Based in Philadelphia, Pennsylvania, Comcast Corp. offers various consumer entertainment, information, and communication products and services to the residential and commercial customers.

COMCAST CORP A (CMCSA): Free Stock Analysis Report
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VERIZON COMM (VZ): Free Stock Analysis Report
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