Comcast deploys AI to speed up internet restoration after storms

PHILADELPHIA - Comcast Corporation (NASDAQ:CMCSA), a $117.5 billion market cap telecommunications giant and prominent player in the media industry, has implemented artificial intelligence technology nationwide to expedite internet service restoration following commercial power outages, according to a press release statement issued Friday. According to InvestingPro analysis, the company appears undervalued at current levels, with strong financial health metrics supporting its infrastructure investments.

The technology, which was first tested during the 2024 hurricane season, reportedly enables Comcast to improve storm recovery effectiveness by 50 percent in affected regions. The system uses AI and machine learning to more quickly identify mass outages and their causes. With annual revenues exceeding $124 billion and a robust free cash flow yield, Comcast maintains substantial resources for such technological innovations. For deeper insights into Comcast's financial strength and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.

When modems go offline during an outage, Comcast's monitoring system receives individual alarms. The AI algorithm groups these alarms based on commonalities such as location and time, then determines the cause of the outage. This allows the company to notify customers with appropriate recommendations and dispatch technicians with specific tools needed for repairs.

"We know how crucial it is for customers to stay connected, especially during severe weather," said Elad Nafshi, Chief Network Officer, Connectivity and Platforms at Comcast.

The company stated that most power outages are resolved in less than two hours and affect fewer than 200 customer locations at a time. Comcast's network is designed to remain operational for up to four hours without commercial power. With a gross profit margin of nearly 71% and strong operational efficiency, the company maintains robust infrastructure investments while delivering value to shareholders through consistent dividend payments, which it has maintained for 18 consecutive years.

The AI system has already been utilized during the 2024 hurricane season, including Hurricanes Helene and Milton, helping to coordinate emergency crews working to restore connectivity in Florida, Georgia, South Carolina, Tennessee, Virginia, and Indiana.

Comcast also offers customers a Pro WiFi Extender with 4G LTE backup as part of its Xfinity Pro service, with an option to purchase a backup battery that can keep the home network online for up to four hours during power outages by automatically switching to cellular service.

In other recent news, Comcast Corporation announced its intention to redeem approximately $2.47 billion in 3.950% notes due in October 2025, with the redemption scheduled for September 2025. This financial maneuver is part of Comcast's ongoing efforts to manage its debt obligations effectively. Meanwhile, Comcast's NBCUniversal is reportedly nearing a significant $200 million annual deal with Major League Baseball to broadcast games on NBC and its Peacock streaming service. This potential agreement highlights Comcast's strategic focus on expanding its sports broadcasting portfolio.

In analyst updates, UBS has maintained its Neutral rating and $36 price target on Comcast, reflecting concerns about increased connectivity costs. Similarly, Bernstein reiterated its Market Perform rating with the same price target, noting that Comcast's Average Revenue Per User (ARPU) growth is expected to remain healthy at around 3% or higher for the upcoming periods. RBC Capital initiated coverage on Comcast with a Sector Perform rating and a $38 price target, pointing to intensified competition from fiber and fixed wireless access providers as a challenge for the company. These developments provide a snapshot of Comcast's current strategic and financial landscape.

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