Comcast Business Q2 growth fueled by enterprises’ complex service needs
Key Highlights
- Comcast Business is experiencing a shift towards higher-value, advanced solutions, with revenue from these solutions rising to nearly $0.70 per dollar of connectivity sold.
- The launch of Total Solutions Advantage offers SMBs high-speed connectivity and cybersecurity at predictable prices, starting at $60/month, with flexible term options.
- Strategic partnerships like the T-Mobile MVNO enable Comcast to target mid-size and large businesses requiring extensive wireless services, fueling growth.
- Despite competitive challenges, Comcast reported a 3.7% revenue increase and a 5% EBITDA rise in Q2, driven by core assets in Ethernet and SD-WAN.
- Industry recognition as a leader in SD-WAN and Ethernet segments highlights Comcast’s market strength and growth potential in enterprise services.
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Here are other stories on Comcast:
- Comcast’s Cavanaugh says wireless is a lever in its convergence strategy
- Comcast Business balances SMB challenges by pursuing mid-size and large business growth
- Comcast Business’s Q3 revenues rise to $2.6B amidst fixed wireless access (FWA) competition
Comcast Business is finding that its growing cadre of enterprise services is giving it a greater foothold in larger businesses.
Jason Armstrong, CFO of Comcast, told investors during its second-quarter earnings call that it continues to find new opportunities with enterprise customers whose needs require more than just traditional connectivity.
“Growth continues to be driven by strong momentum in enterprise solutions, where we are seeing demand from larger customers with more complex connectivity, security, and managed services needs,” he said. “Importantly, the mix shift towards advanced solutions continues to scale.”
He added that revenue from advanced solutions has been rising for the past few years.
“Three years ago, for every dollar of connectivity we sold, we sold about $0.20 of advanced solutions,” Armstrong said. “Today, that figure is closer to $0.70, underscoring the increasing value we are delivering to customers.”
Driving SMB ARPU
As seen in earlier quarters, Comcast Business continues to face strong competition from fiber and fixed wireless access (FWA) competitors like Verizon and AT&T in the small- to medium-business (SMB) segment.
However, the service provider remains focused on enhancing SMB ARPU.
“At SMB, competition remains elevated, but we continue to drive ARPU growth by deepening relationships through a strong mix of advanced solutions,” Armstrong said.
One of its latest solutions was the debut of its Total Solutions Advantage – a suite of technology plans that combine high-speed connectivity and built-in cybersecurity into what it says is a predictable monthly price.
What will likely resonate with SMBs is the pricing. Total Solution Advantage plans start at $60 per month and include a 30-day money-back guarantee, as well as the flexibility to lock in rates for one or five years. Customers selecting 1.2 Gbps and 2 Gbps broadband tiers also receive modem equipment at no additional cost, reducing upfront expenses.
Within SMB and larger businesses, wireless is also a key factor for Comcast Business. With the launch of its T-Mobile MVNO agreement, Comcast Business can target midsize to large businesses requiring up to 1,000 lines.
Michael Cavanagh, co-CEO of Comcast, said it likes the results it's seeing so far with its T-Mobile partnership.
“This quarter, we went live with our T-Mobile MVNO partnership for business customers, and the early signs are encouraging,” he said. “We expect activity to ramp as we move into the latter part of the year.”
He added that its wireless momentum continues to mount. “Wireless is scaling quickly,” Cavanagh said. “Enterprise continues to gain momentum, and the work underway across pricing and the overall experience is strengthening the foundation for a converged, valuable customer base over time.”
Room for growth
Despite the competitive challenges it faces in the SMB market, Comcast Business saw growth in the second quarter.
Revenue grew 3.7%, and EBITDA increased 5%, which reflected a nonrecurring item related to a long-term fiber lease renewal.
Armstrong said that revenue growth and EBITDA were just under 3% when this item is excluded.
“These results are consistent with the trend we have seen over the past year after adjusting for the Nitel acquisition, which we have now lapped,” he said.
The service provider certainly has the assets and expertise in key enterprise service areas, including Ethernet and SD-WAN.
Comcast Business ranks #1 on Vertical Systems Group’s (VSG) U.S. SD-WAN LEADERBOARD for the second consecutive year based on 2025 site share, and it attained a number five spot on the U.S. Ethernet LEADERBOARD.
VSG noted that on its Ethernet LEADERBOARD, AT&T and Comcast Business are the only LEADERBOARD companies with Ethernet port share gains in 2025.
Armstrong sees the potential for further business services growth going forward.
“Business services is growing at roughly a 3% rate with an enormous amount of room to run, particularly in enterprise, and is the fastest-growing provider right now,” he said. “All gives us optimism on the longer-term question about how you rebounded growth.”
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About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
