Telecom & Wireless

Can Amazon Help Comcast Fend Off Telecom and Satellite Rivals?

Douglas A. McIntyre

Published: March 22, 2016 6:43 am

Last Updated: January 13, 2020 11:41 am

Amazon.com Inc. (NASDAQ: AMZN) has set a deal with Comcast Corp. (NASDAQ: CMCSA) to sell cable packages online. Comcast could use the help as telecom fiber to the home, satellite and various forms of cord cutting have eaten at its core business. It is too early to tell whether the alliance works or is only a press release about an experiment.

The Amazon Cable Store offers the Comcast Triple Play of cable, Wi-Fi and telephone service. The package has been a staple in the industry since consumers began to demand wireless broadband and phone service that did not come from the phone company.

Comcast calls its cable service Xfinity for some reason. Amazon will bundle Xfinity products with “exclusive promotions” and “dedicated customer service.” Presumably, that is better than the terrible customer service many current Comcast subscribers receive.

Additionally, people who take the package can avoid modem leasing fees and get an Amazon gift card.

Comcast management promoted the move in a press release:

“Amazon is not only the biggest online retailer and a place where millions of our customers shop every day, but it’s also a brand that’s unrivaled when it comes to customer service,” said Charlie Herrin, Executive Vice President of Customer Experience for Comcast Cable. “Amazon’s new marketplace provides an immersive online destination to showcase our terrific suite of products, including Xfinity X1.”

Better customer service and products anyone can buy at any time, without Amazon.