Rival cable provider Charter Communications Inc <CHTR.O> plans to launch a wireless service in 2018.
Comcast’s service will launch on Verizon’s airwaves as part of a 2011 agreement between the two companies. It will allow customers to switch automatically to Comcast’s Wi-Fi hotspots from 4G LTE.
Comcast will limit the service’s rollout to customers within its footprint, which includes major markets like Philadelphia and Chicago. It will initially be available only to subscribers with Xfinity broadband service.
Comcast had roughly 25 million high-speed Internet customers in 2016, according to a filing.
It did not state its investment in Xfinity Mobile or the expected return. Chief Financial Officer Mike Cavanagh said in a meeting with analysts on Thursday that the service would be cash flow positive over time.
Analysts at JPMorgan wrote in January that building a wireless business could cost Comcast hundreds of millions of dollars annually in the first few years, potentially cutting as much as 5 cents to 10 cents off earnings per share in 2017.