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Could somebody tell me if I will be able to stream my xfinity options while on vacation in Mexico?
No, there isn't any streaming available outside of the U.S. however, you can download recordings or On Demand shows/movies onto a mobile device to watch later out of the country.
Can you explain how to use a VPN to connect to Xfinity T.V. Stream app when traveling?
It is not allowed to try to circumvent the USA only license restrictions by the owners of the video content. The ability to download (in USA) and then watch anywhere is allowed.