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Cable Business Services

Comcast Eyes Electrical Surge

Call it a cable power play. Not content to sell video, broadband, voice, mobile, home security, home automation, and business telecom services to the world, Comcast is exploring the idea of peddling electricity.

Greentech Media reported Wednesday that Comcast Corp. (Nasdaq: CMCSA, CMCSK) is gearing up to sell electrical power in its home state. Robert Powelson, chairman of the Pennsylvania Public Utility Commission, said the Philadelphia MSO is teaming up with a retail electric supplier to offer an electricity product in the fourth quarter.

Speaking to reporters, Powelson did not name the retail supplier. But a spokesman for NRG Energy of Princeton, NJ, later told Philly.com that his company is "working with Comcast on a new initiative."

A Comcast spokeswoman confirmed Thursday in an email, "As you may have read, we are exploring a relationship with a third-party supplier, NRG, to conduct a retail energy trial in Pennsylvania." She did not offer further details.

A successful trial could catapult Comcast into yet another service category. In the last couple of years, the MSO has branched out from its more traditional cable services of video, broadband, and voice by adding wireless, multiscreen video, home security, and home automation to its ever-growing roster of residential offerings. (See Betting on Smart Homes.)

For example, as Greentech Media reported, Comcast could bundle an electricity service with its Xfinity Home automation service. Among other things, Xfinity offers home controls for lighting and heating, making it a good complement for an electricity offering.

Such speculation may be premature, especially if Comcast short circuits the potential trial with NRG. However, with the US pay TV market pretty saturated and the broadband market nearing the saturation point, we shouldn't be surprised if the electricity business lights a fuse for Comcast and other MSOs.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

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DOShea 1/23/2014 | 10:15:59 PM
Why not? This would have seemed outrageous at some point in the past, but now, why not? It is not that much of a leap from home automation to electrical service, though I don't think Comcast is a qualified success in the former, is it? If they can extend those bundles in new directions, maybe one day they won't even include video.
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