Sunday, January 3, 2016

It’s no secret or surprise that…

Comcast is [again] the lowest ranked internet service provider in the country.  As the only viable broadband provider in some markets, customers pay up but do not necessarily shut up.   

Jealousy could be a factor in their anger.  In Google Fiber markets like Kansas City, Austin, and Provo, subscribers pay $70/month for 1-gig internet access (or $130 for internet and TV).  In AT&T GigaPower markets, 1 gig internet speed is available for $70/month or $110/month.  (The price is lower in markets where Google Fiber is a competitor.)


Where is Comcast with its mega-speed internet service?  Well, in 2015, it rolled out GigaPro in just six markets [to counter Google Fiber and/or AT&T’s GigaPower and/or a municipality like EPB in Chattanooga].  The 2-gigabit per second service, however, costs customers $1,000 upfront and $300/month for 24-months, and its only available to customers who live in close proximity to the company’s fiber network.  But, this strategy appears to be a stop-gap measure to stem erosion of share in vulnerable markets.  The grander plan is the widespread deployment of the DOCSIS 3.1 modem that, in early testing, has shown the ability to substantially increase the amount of data transfer Comcast can manage over its existing cable TV network.  If the modem change-out works successfully, Comcast will be able to launch the service nationwide much more quickly and much more cost effectively than building/upgrading its network.   Will Comcast price and deliver the service in a way that will finally make customers happy?   Let’s see.

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