Comcast: 40% Margin in WiMAX

Comcast Corp. said its margins on its WiMAX service should exceed 40 percent once the pricing for it goes to $69.95 per month.

Comcast, an MVNO on the Clearwire Corp. WiMAX network, offers WiMAX in Atlanta and Portland, Ore. now, and will launch in Chicago, Philadelphia and Seattle later in the year. It’s also reselling Sprint-Nextel Corp. 3G service and bundling the two.

"The product at the end of the year resets to $69.95," Comcast COO Stephen Burke told analysts during the conpany’s earnings call. “And the combination product of the two has a very healthy margin. We were just talking about 40 percent margins. The margin is in excess of 40 percent, the combination once it resets to $69.95."

The data-only 4G High-Speed 2Go product (accessible via laptop card) is being sold promotionally for $49.95 per month for a year. The cableco also has an offer that adds in Sprint’s nationwide 3G data-only service.

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