Comcast's two-tier pricing angers broadband-only customers

Mercury news/Yahoo ^ | 6/11/03 | Michael Bazeley,

[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."

[js1138]

Same here. It's also a lot easier to change service. Takes about 15 minutes over the net.

[Chemist_Geek]

The NIC MAC must then be cloned

Paddywhack, and give the dog a bone?

[webheart]

I use SureWest Broadband: Bundled Internet on fiber optic at 10 mbps upload and download, plus bundled phone and cable, one provider, one bill, and a $10.00 bundle discount. Absolutely the best deal anywhere! </bragging>

I toss AOL cd's in the trash twice a week and comcast ads 3 times on some days. Don't even read them.

[knews_hound]

I have actually filed a complaint with the FTC regarding this issue.

I have had cable Internet for years, first with Comcast, then AT&T, now back to Comcast.

During the entire time, I have been a Dish user and have had only the Internet function.

My cost has remained the same the entire time.

Until now that is.

Now, I am being told that in order to continue the same service I have had for years, I must pay an additional 15 bucks a month to recieve the same service that I get now, with a Cable TV service I did not ask for nor that I want in order for my rate to stay the same.

It seems that Comcast has simply decided that ALL of their customers must subscribe to both services, which of course is much more profitible for them, while adding no features or benefits to the package. The Cable TV signal is the same one that has always been on the pipe, nothing has been added.

Yet the price goes up 15 bucks a month.

Sweet deal for Comcast.

I and all the other Internet only subscribers get screwed.

I urge anyone else in this same position to do the same, file a complain with the FTC.

The only way that this will change is to make noise.

Cheers,

knews hound

[Ready4Freddy]

LOL, CG! ;>)

[Pro-Bush]

Roveville, Sacto area?

[brianl703]

I have never used a NIC provided by Comcast, nor have they ever provided one or offered to provide one.

In my experience, all it takes to switch to a new NIC or broadband router with a different MAC is to power-cycle the cablemodem.

Comcast's TOS doesn't prohibit the use of broadband routers. It only stipulates that they don't support them [meaning that if you can't get it to work, don't call them for help].

[brianl703]

If that's true about local number portability, then how do telemarketers (who are not allowed to call cell numbers) know that it's a cell number when their list of prefixes shows it as being a landline prefix?

[Ready4Freddy]

Good question, brian.

I do have some reservations about whether or not the portability that's being appealed now will actually require landline ---> cellphone portability, tho. It may just have been a request from the cellphone industry group as an attempt to level the playing field, so to speak.

[Paul C. Jesup]

Good news, Bellsouth doesn't care about how many computers you have on your network and Bellsouth will start offering an IP address for $15, for home users of fastaccess in July, plus an up-grade of from 5 e-mail boxes to 25 e-mail boxes.

Take that Comcast.

[brianl703]

Cable doesn't charge you a $5/month "box fee" for every TV you want to watch anything on, unlike the satellite companies.

Cable will allow you to split the signal as many times as you want for no additional charge [although if you want premium or digital channels, you need to rent a box--it's about the same $5/month that the satellite companies charge you even if you own one]. Everything else is watchable without a box.

[DannyTN]

"Good news, Bellsouth "

I want DSL or cable speed. I'm currently with Bellsouth, but it's about $75 a month including taxes and those third party fees they don't tell you about when they are quoting rates. But you are right, they don't care about how many computers you have.

I'm waiting for others to offer the service where I'm at and will switch to the first competitor that offers it here.

[Paul C. Jesup]

Someone other that Bellsouth is screwing you because it is only $50-$55 a month, if you network you house yourself.

[Ready4Freddy]

Good luck, Danny. There's an awful lot of the US that doesn't have a choice between DSL or Cable - it's one or the other, whichever happens to be in your 'hood. You could be in for a helluva wait.

I would love to have Mr Cable & Mr DSL show up on my doorstep at the same time on the same day, but it's never happened yet.

[farmfriend]

They want to charge me for every computer I have that I connect to my home network.

I think they have changed that recently. Seems like I heard that but don't know where. I have Comcast now that they have bought out AT&T after they bought out Comcast. Never did figure that out.

[Paul C. Jesup]

What exactly are you buying? It is directly from Bellsouth or a ADSL reseller?

[elephantlips]

Get a Linksys router, it takes care of the ip addresses for your different computers and you don't have to worry about your cable company doing it.

[usslsm51]

And the phone company for every phone.

[Revolting cat!]

Monopoly is nice isn't it? It even has its defenders who think they'd be subsidizing those who don't like it. Go figure. A public service, utilizing public streets to string along the cable, monopolized and in cahoots with the politicians. The greatest land on earth in 2003 for you! Free market, yeah!

If they hiked your rates and you don't want cable TV, because who needs the idiot box, call them, protest, and threaten to switch to DSL. They'll give you a rate break for a few months. In fact, it may be an excellent idea to switch once a year or so between DSL and cable, taking advantage of the introductory rates. Screw them before they screw you and let the humourless steam thinking they are subsidizing you! (That alone is about half the fun.)

[TexRef]

We have a lot of thunderstorms this time of year, so it's out for perhaps 10 minutes at a time several times a week.

I've had that problem before with the 18" dishes -- consider getting a larger dish -- it improves the signal dramatically!

I had a problem with trees blocking the view from my apartment balcony with my 18" dish. I installed a 36" dish and things work perfectly now!