Posted on 06/11/2003 10:35:00 AM PDT by Pro-Bush
Comcast's two-tier pricing angers broadband-only customers
Bay Area Web surfers who use Comcast for their Internet connection are finding they have to pay a premium if they do not also take the company's cable-television service.
Internet-only customers have seen their monthly bills jump from $46 a month to $60 recently. By contrast, cable modem (news - web sites) users who also buy cable-television service pay just $43 a month for Internet access.
Comcast says it is simply rewarding customers who bundle services. But Internet-only customers say they are being punished for not wanting or needing cable television.
"I feel taken advantage of," said Jill Singleton of Fremont, whose family does not own a TV. "Being able to have broadband is important to us, and it's not like we really have another choice."
Comcast announced the rate increase in December, shortly after the Philadelphia company acquired AT&T Broadband. Company spokesman Andrew Johnson said the company gave its customers ample notice about the rate change.
The new prices began to appear in customers' bills April 1; the specific date varies with their billing cycle.
"We're rewarding people who take more services from us," Johnson said. "Just like other companies. It's a tried-and-true concept."
Johnson would not say how many Bay Area customers take only cable-modem service, but the number is "very, very, very small," he said.
Natalie Munn of Fremont said she never heard about the increase and did not notice any change until Comcast debited her checking account in May.
Happy with satellite
Munn said she switched from cable TV to satellite years ago because of problems with her former cable provider, Viacom. She is happy with the satellite service, she said, and has no plans to switch back to cable.
"It's blatantly unfair," Munn said. "They're using their monopoly position to force people to subscribe to cable."
Johnson said that even with the price increase, broadband-only customers are still getting a good deal. He said Comcast's pricing is competitive with the only broadband alternative, digital subscriber line, or DSL.
Comcast's $60 cable-modem service, with download speeds of up to 1.5 megabytes per second, is comparable with an SBC Yahoo DSL package offered at $59.95, Johnson said. Comcast customers can save $3 a month if they provide their own cable modem.
"We still believe we have a superior product in value," Johnson said.
The two-tier pricing structure, which Comcast uses nationwide, has attracted the ire of consumer groups.
Consumers Union and the Consumer Federation of America have asked the Federal Trade Commission to investigate what they called "anti-competitive" behavior. They are taking aim not at the higher-priced cable-modem service, but at the low-priced TV-Internet bundle.
Bundled pricing
The groups argue that Comcast's bundled pricing is so low -- less than $60 for both Internet access and basic cable TV -- that it amounts to giving away the cable-TV service for free. The goal, they said, is to "shrink the market" for DirecTV satellite television, Comcast's only real competitor in most markets.
"What they're doing, in my view, constitutes predatory pricing," said Chris Murray, legislative counsel for Consumers Union.
Murray said the bundle could be considered anti-consumer.
"If you're looking for a bundle, it's a great deal," he said. "But what about the person who only wants one service? For some people, this is the difference between being able to get broadband and not being able to get broadband."
Of course, if Comcast was so damn proactive, they would have been paying attention to the county when initially told that a new subdivision was coming in. Considering that the phone company, et. al. were...
Feh.
As for the implied lack of quality of the homes, rest assured, I checked that out before putting any money on the table.
By the way - from what I understand, Comcast is short on the uptake with MOST of the subdivisions around here. So this is not an isolated incident.
Like I said - if Comcast was so damn interested in customer service, they'd be proactive. But they're not. They don't give a damn, and it shows. Too bad. Is there any wonder that satellite penetration in the Atlanta market is so high?
As I said in the beginning, as far as I'm concerned, that was simply the straw that broke the camel's back. As long as the existing customers bend over for the shareholders, Comcast will continue treating folks like dirt.
I had my land line shut off, and only use cellular, but I wanted to have a different number. Be advised that if you keep your land line number for you cell phone, there's no way to ensure that telemarketers can't call you, and stick you with the bill. At least with cell phones, there are certain ACs and exchanges that only belong to cell phones, and they know they'll get into serious trouble.
Mark
It would be like stealing cable service back when it was legal for the cable companies to charge you for each TV.
Not since the telecom laws that broke up AT&T were passed. Way back then, AT&T actually owned the equipment and premesis wiring, and they could tell you what you could and couldn't do, even in your own home. However, once the gubmint put an end to that, you're not breaking any laws by having an unlimited number of systems using a single link to the Internet. The simple fact is that they're selling bandwidth, and can't tell you what you can and can't do with the data once it moves out of their domain of authority.
Of course, if you voluntairly sign a TOS agreement that limits your ability to do this, then I suppose you could have legal problems. But it's doubtful that any provider would look to the law for redress, simply because it would be hard and expensibe to prove, as well as generating a huge amount of bad press.
Mark
Wow! You guys are so lucky! In order to get static IP addresses on Road Runner, you have to go with the second tier or higher RR Business plan, which starts at (I think) $169/month!
Mark
The county was supposed to set that when the streets were drawn; that's the way it works with the utilities (phone, water, power) as well. The responsibility is either with the county or with the cable company.
Believe me, it's NOT just FTP. If you to telecommuting, and use a VPN, be sure that the router you have is compatible with the VPN. Most are NOT!
Mark
That's why god gave us FIMF, I guess. The telemarketer issue was mentioned / addressed about 80 posts ago.
If those services are unConstitutional or immoral, then no, you shouldn't use them. Fixing prices for cable television is not a legitimate function of government, so you shouldn't try to get them to do so.
If you think that is ignorant, you may be at the wrong site.
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